Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q3 2023 Earnings Presentation
23 slides from Golar Lng's earnings presentation, Nov 21, 2023
Slide 1: Third Quarter 2023 Results
THIRD QUARTER 2023 RESULTS NOVEMBER 21, 2023 Golar LNG Limited 2023 I 1
Slide 2: Forward looking statements
Forward looking statements This press release contains forward-looking statements (as our ability and that of our counterparty to meet our LTA during 2023. Failure to produce this contracted parts of the natural gas and LNG supply chain; changes in defined in Section 21E of the Securities Exchange A
Slide 3: Company overview
Company overview FLNG & Marine Assets Investments Investments Existing FLNG Assets FLNG Growth Prospects Ownership 100% MKII design (3.5mtpa1) Ownership FLNG Hilli (operational) - MKI (2.4mtpa1) FLNG Gimi (in transit) – MKI (2.7mtpa1) Existing LNGC Assets / Conversion Candidates 23.5% LNG Fuji Golar
Slide 4: FLNG Gimi: Sailed from Singapore 19th November
FLNG Gimi: Sailed from Singapore 19th November Golar LNG Limited 2023 I 4
Slide 5: FLNG Hilli: 102 cargoes offloaded with 7+ million tonnes produced
FLNG Hilli: 102 cargoes offloaded with 7+ million tonnes produced 100th offloading to LNG/C ‘Energy Integrity’ Steady performance since commencement of operations 8 7 6 Million tons LNG 5 4 3 2 1 0 Jul-22 Jul-18 Jul-19 Jul-20 Jul-21 Jul-23 Nov-20 May-18 Nov-18 May-19 Nov-19 Jan-20 May-20 May-21 May-
Slide 6: Golar owns the world's largest FLNG capacity and is the only provider of FLNG as a service
Golar owns the world’s largest FLNG capacity and is the only provider of FLNG as a service Overview of the global FLNG fleet by owner 5.1 mtpa of operating 4 3.6 2.7 capacity 0.6 2.7 3.6 1.5 1.4 3.4 2.4 1.2 1.4 Golar ENI Shell Petronas NFE Contract structure Liquefaction as service Liquefying own ga
Slide 7: FLNG developments in Africa's competitive advantage in the global gas market
FLNG developments in Africa’s competitive advantage in the Global gas market Africa has massive gas reserves Golar’s FLNG: Market leading capex/ton Shorter sailing distances to LNG markets Onshore Floating North Africa 3,000 280 TCF LNGCs required to lift one mtpa of production 2,500 Prelude FLNG Ce
Slide 8: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 8
Slide 9: Q3 2023 highlights and subsequent events
Q3 2023 highlights and subsequent events FLNG Corporate and other FLNG Hilli: Q3 financial highlights: o 100th cargo milestone reached on October 14 o Adjusted EBITDA1) for the quarter of $75M o Continued 100% operational uptime o Total Golar Cash1) position of $0.8BN o Offload 102 complete – totali
Slide 10: FLNG Gimi delivery driving cash flow from capex to earnings
FLNG Gimi delivery driving cash flow from capex to earnings FLNG Capex1) FLNG Adjusted EBITDA2) 450 400 400 350 350 300 300 250 $ million $ million 250 200 200 150 150 100 100 50 50 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 • Fleet of operational FLNG’s doubled once FLNG Gimi i
Slide 11: FLNG Gimi: Next steps towards contract start-up
FLNG Gimi: Next steps towards contract start-up F L N G Transit to Ready for Upstream FLNG Commercial Senegal / mooring to commissioning commissioning Operations Date Mauritania hub Appx. 60 days sailing Golar notifying BP Gas introduced to Upstream prepares to FLNG, testing of incl. two refueling r
Slide 12: Significant progress on MKII FLNG
Significant progress on MKII FLNG MKII FLNG Project Update Long-lead items are under construction • Major long lead item orders placed and under construction, 250,000+ engineering hours to date, to allow for fast-track project execution upon FID, reducing execution risk and shortening construction t
Slide 13: Update on Macaw Energies
Update on Macaw Energies First Flare-to-LNG Liquefaction pilot in US in Q1 2024 • Ongoing manufacturing and assembly. Unit commissioning with lean gas planned mid-Q1 Displacing diesel and LPG using small-scale integrated solutions • Ongoing discussion with E&P producers for first flare gas pilot by
Slide 14: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 14
Slide 15: Third quarter 2023 financial results
Third quarter 2023 financial results Q3 2023 Q2 2023 Q3 2022 Q3 2023 Highlights $m $m %∆ $m %∆ FLNG (before realized gains on oil and gas derivative instruments and other adjustments1) 56 60 (7%) 55 2% • Total operating revenues of $67M Corporate and other 6 12 (50%) 13 (54%) • FLNG Tariff, Net1), 2
Slide 16: FLNG Hilli: Commodity-linked tariff boosts earnings
FLNG Hilli: Commodity-linked tariff boosts earnings Evolution of Hilli Distributable Adjusted EBITDA1), 2) (Golar’s pro rata share) +14% Y-o-Y 90 86.2 88.0 EBITDA ($ million) 78.6 80 73.3 70 36.6 64.1 45.4 30.2 60 28.5 19.3 50 17.6 14.6 40 12.9 30 29.2 24.8 20 33.8 33.8 31.9 10 15.6 16.0 - Q3 2022 Q
Slide 17: FLNG Hilli generating strong cash flow to equity
FLNG Hilli generating strong cash flow to equity Golar's pro-rata Distributable Adjusted EBITDA1) generation Commodity linked earnings 400 350 323 Commodity: Brent Crude oil 300 270 61 282 Sensitivity to $1/bbl change: 250 6 56 $2.7M (annually) EBITDA ( $ million) 30 99 Limit: $60-$102/bbl 200 39 89
Slide 18: Balance sheet with capacity for shareholder returns and FLNG growth
Balance sheet with capacity for shareholder returns and FLNG growth Cash and debt overview Key takeaways Cash $M • Current liquidity position including cash receivables from TTF hedges amount to ~$0.9BN and fully supports the Q3 2023 Total Golar Cash1) 841 development and initial equity requirements
Slide 19: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 19
Slide 20: Summary and next steps
Summary and next steps Revenue diversification 2.4 mtpa FLNG Hilli 3.5 mtpa MKII Corporate and liquidity Return to shareholders Recontracting FLNG contract and FID • FLNG Hilli revenues • Increased interest for • Long-lead items well • $0.9BN1) in liquidity • Upside to dividend from base, Brent and
Slide 21: Appendix
Appendix Golar LNG Limited 2023 I 21
Slide 22: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q3 2023 earnings release for a reconciliation to the most comparable US GAAP measure and the rationale for • Adjusted EBITDA backlog the adjustments: https://www.golarlng.com/investors/quarterly-reports/2023 •
Slide 23: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Rationale for adjustments QUANTITATIVE RECONCILIATION Increases the comparability of the Jul-Sep Apr-Jun Jul-Sep Distributable Adjusted operating results of the FLNG Hilli EBITDA1) (in $M) 2023 2023 2022 from period to period by removing the non-distribu