Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q3 2024 Earnings Presentation
25 slides from Golar Lng's earnings presentation, Nov 12, 2024
Slide 1: Third Quarter 2024 Results
THIRD QUARTER 2024 RESULTS November 12, 2024 Golar LNG Limited 2024 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 to comply with schedules, performance specifications or distributions they pay us; claims made or losses incurred defined in Section 21E of the Securities Exchan
Slide 3: FLNG market-leader: 50+ years of maritime energy infrastructure innovation
FLNG market-leader: 50+ years of maritime energy infrastructure innovation Operating/future assets & investments Key figures as of Q3 2024 FLNG Assets on the water FLNG Under construction $4BN Market Cap2) $807M Total Golar Cash1) $658M Golar’s net interest-bearing debt3) FLNG Hilli (operational) -
Slide 4: MKII 3.5 mtpa FLNG the first available FLNG globally
MKII 3.5 mtpa FLNG the first available FLNG globally Current Status • EPC contract signed with CIMC Raffles, total project cost of $2.2BN • Fuji LNG to enter yard in Q1 2025 as the conversion vessel • Total spend to date including the Fuji LNG is ~$0.4BN6) which is fully equity funded • Secured opti
Slide 5: Golar owns the world's largest FLNG capacity and is the only proven provider of FLNG as a service
Golar owns the world’s largest FLNG capacity and is the only proven provider of FLNG as a service Overview of the global FLNG fleet by Owner 8.6 FLNG #1 FLNG #2 Under construction 6.4 3.5 Operating capacity 2.4 4.7 (mtpa) 3.6 2.7 0.6 2.0 3.3 1.2 1.4 3.4 3.6 3.3 2.4 1.5 1.4 Company Liquefaction again
Slide 6: Golar targets to more than double its liquefaction capacity by 2030
Golar targets to more than double its liquefaction capacity by 2030 Golar’s current focus is to rapidly expand FLNG asset base and sold capacity Quantifying earnings impact 14 • In-built earnings growth from existing FLNG FLNG production capacity (mtpa) 12 assets: 10 o Hilli capacity increase from 1
Slide 7: Business update
Business update Group results Summary Golar LNG Limited 2024 I 7
Slide 8: Q3 2024 highlights and subsequent events
Q3 2024 highlights and subsequent events FLNG Corporate and other FLNG Hilli: Q3 financial highlights: • Offload 122 in progress. 8+ MT of LNG offloaded since COD • Net loss of $36M before NCI and inclusive of $90M non-cash losses • Reservation Notice received from PAE for Argentina contract • Adjus
Slide 9: Signed 20-year FLNG charter for FLNG Hilli in Argentina
Signed 20-year FLNG charter for FLNG Hilli in Argentina Contract highlights About Pan American Energy 20-year FLNG contract term Approx. US$300 million or US$2.6/MMBtu Annual Adjusted EBITDA1) before commodity-linked pricing Approx. US$6BN Latest developments Adjusted EBITDA backlog1) before commodi
Slide 10: Operational update FLNG Hilli and FLNG Gimi
Operational update FLNG Hilli and FLNG Gimi FLNG Hilli: Maintains market leading track record FLNG Gimi: Commenced accelerated commissioning $299M LTM Distributable Adjusted EBITDA1) $215M Annual Adjusted EBITDA1) (100% basis) (100% basis) Accelerated commissioning underway 122nd cargo offload in pr
Slide 11: Positive progress towards new FLNG projects
Positive progress towards new FLNG projects FLNG business development update 100 TCF = ~2,000 million tons LNG North/East Africa ~380 TCF West Africa ~240 TCF South East Asia South America (ex-ARG) ~240 TCF ~200 TCF Argentina ~300 TCF • Significant positive progress on our other FLNG commercial oppo
Slide 12: Group results
Business update Group results Summary Golar LNG Limited 2024 I 12
Slide 13: Third quarter 2024 financial results
Third quarter 2024 financial results Q3 2024 Q2 2024 Q3 2023 Q3 2024 Highlights $m $m $m FLNG (before realized gains on oil and gas derivative • Total operating revenues of $65M 56 56 56 instruments) Corporate and other 6 6 6 • FLNG tariff, net1), 11) of $89M Shipping 3 3 5 Total operating revenues
Slide 14: FLNG Hilli: Stable cash flows with further upside from commodity linked earnings
FLNG Hilli: Stable cash flows with further upside from commodity linked earnings Evolution of Hilli Distributable Adjusted EBITDA1), 12) (Golar’s pro rata share) 90 84.1 Millions 80 73.3 68.0 70 31.3 63.8 64.1 0.3 60 28.5 18.7 17.5 17.2 50 20.1 40 16.5 12.9 15.1 17.5 30 20 31.9 32.7 30.9 32.7 29.4 1
Slide 15: FLNG Hilli generating strong cash flows to equity
FLNG Hilli generating strong cash flows to equity FLNG Hilli Golar's pro-rata Distributable Adjusted EBITDA1), 12) generation Commodity linked earnings 350 326 Commodity: Brent Crude oil 300 65 270 273 Sensitivity to $1/bbl change: 12 250 $2.7M (annually) 34 49 Limit: $60-$102/bbl 99 206 8 EBITDA ($
Slide 16: FLNG Gimi: Commercial reset agreement reached with bp
FLNG Gimi: Commercial reset agreement reached with bp Contract Amendment executed for the GTA project in August 2024 Provides settlement of all ongoing disputes including the arbitration process and re-aligns the parties towards project optimization to reach COD Provides simplification of contractua
Slide 17: Strong balance sheet with financing flexibility
Strong balance sheet with financing flexibility $300M Unsecured Bond issued in September 2024 Increased leverage capacity on existing FLNG assets • Issued $300M 5-year Unsecured Bonds at 7.75% coupon • FLNG Gimi Adjusted EBITDA backlog1) of approx. $4.3BN (100% basis) supports • Proceeds will be use
Slide 18: Summary
Business update Group results Summary Golar LNG Limited 2024 I 18
Slide 19: Key 2024 milestones and focus for 2025
Key 2024 milestones and focus for 2025 2024 milestones 2025 action list Gimi arrived at the GTA Hub in January Refinancing of the FLNG Gimi Agreed commercial reset with bp Conclude conditions precedent on the 20-year Pan American Energy contract Definitive agreement for 20-year charter with Pan Amer
Slide 20: Securing MKII charter within 2025 is set to double FLNG earnings
Securing MKII charter within 2025 is set to double FLNG earnings Fleet expansion driving long-term growth of Adjusted EBITDA backlog1) 25 Existing Adjusted EBITDA backlog1),4) on FLNG Hilli and FLNG Gimi supports FLNG growth whilst maintaining shareholder returns 20 Stable cash flows with further up
Slide 21: Appendices
Appendices Golar LNG Limited 2024 I 21
Slide 22: Appendices: Non-GAAP measures
Appendices: Non-GAAP measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q3 2024 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/2024
Slide 23: Appendices: Non-GAAP measures (continued)
Appendices: Non-GAAP measures (continued) Non-GAAP measure Rationale for adjustments Increases the comparability of the QUANTITATIVE RECONCILIATION Distributable Adjusted operating results of the FLNG Hilli EBITDA1) Jul-Sep Apr-June Jul-Sep from period to period by removing the non-distributable (in
Slide 24: Appendices: Endnotes
Appendices: Endnotes 1. See Appendices: Non-GAAP measures for definitions and reconciliations of non-GAAP measures. 2. Market cap: 104.5M shares at a closing price of $38.10 as of November 11, 2024. 3. Golar’s net interest-bearing debt: Golar share of Contractual debt1) of $1.465BN less Total Golar
Slide 25: Appendices: Abbreviations used
Appendices: Abbreviations used COD Commercial Operations Date EBITDA Earnings before interest, taxes, depreciation and amortization EPC Engineering, Procurement and Construction FID Final Investment Decision FLNG Floating Liquefaction Natural Gas vessel FPSO Floating Production, Storage and Offloadi