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Segment Information
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION

We own and operate LNG carriers and FSRUs and provide these services under time charters under varying periods, trade in physical and future LNG contracts, are in the process of developing our first FLNG and have entered the power market in an effort to become a midstream LNG solution provider. Our reportable segments consist of the primary services each provides. Although our segments are generally influenced by the same economic factors, each represents a distinct product in the LNG industry. Segment results are evaluated based on net income. The accounting principles for the segments are the same as for our consolidated financial statements. Indirect general and administrative expenses are allocated to each segment based on estimated use.

The split of the organization of the business into four reportable segments is based on differences in management structure and reporting, economic characteristics, customer base, asset class and contract structure. As of June 30, 2017, we operate in the following four reportable segments:

•
Vessel operations – We operate and subsequently charter out LNG carriers and FSRUs on fixed terms to customers.
•
LNG trading – We provide physical and financial risk management in LNG and gas markets for customers around the world. Activities include structured services to outside customers, arbitrage service as well as proprietary trading.
The LNG trading operations meets the definition of an operating segment as the business is a financial trading business and its financial results are reported directly to the chief operating decision maker. The LNG trading segment is a distinguishable component of the business from which we earn revenues and incur expenses and whose operating results are regularly reviewed by the chief operating decision maker, and which is subject to risks and rewards different from the vessel operations segment.
•
FLNG – In 2014, we ordered our first FLNG based on the conversion of our existing LNG carrier, the Hilli. The Hilli FLNG conversion is expected to be completed and delivered in the second half of 2017.
FLNG meets the definition of an operating segment as the business is a distinguishable component of the business from which, once the first FLNG is delivered to us, we will earn revenues and incur expenses and whose operating results will be regularly reviewed by the chief operating decision maker, and due to its nature is subject to risks and rewards different from the vessel operations segment or the LNG trading segment.
•
Power – In July 2016, we entered into certain agreements forming a 50/50 joint venture, Golar Power, with private equity firm Stonepeak. Golar Power offers integrated LNG based downstream solutions, through the ownership and operation of FSRUs and associated terminal and power generation infrastructure.
In October 2016, the Sergipe project obtained FID thus differentiating Golar Power’s risks and long term business prospects from the other reporting segments. Golar Power meets the definition of an operating segment as the business is a distinguishable component of the business from which we earn revenues and incur expenses and whose operating results will be regularly reviewed by the chief operating decision maker.

 
Six months ended
Six months ended
(in thousands of $)
June 30, 2017
June 30, 2016

Vessel
operations

LNG
trading

FLNG

Power

Total

Vessel
operations

LNG
trading

FLNG

Total

Time and voyage charter revenues
32,284

—

—

—

32,284

24,222

—

—

24,222

Time charter revenues - collaborative arrangement
11,739

—

—

—

11,739

5,936

—

—

5,936

Vessel and other management fees
9,495

—

—

—

9,495

4,769

—

—

4,769

Vessel and voyage operating expenses
(41,008
)
—

—

—

(41,008
)
(50,111
)
—

—

(50,111
)
Vessel and voyage operating expenses - collaborative arrangement
(12,772
)
—

—

—

(12,772
)
(2,804
)
—

—

(2,804
)
Administrative expenses
(22,320
)
—

(226
)
—

(22,546
)
(19,141
)
—

(2,124
)
(21,265
)
Depreciation and amortization
(42,552
)
—

—

—

(42,552
)
(39,149
)
—

—

(39,149
)
Other operating gains and losses (LNG Trade)
—

—

—

—

—

—

16

—

16

Other non operating income
206

—

—

—

206

—

—

—

—

Impairment of long-term assets
—

—

—

—

—

(1,706
)
—

—

(1,706
)
Net financial expenses
(44,726
)
—

—

—

(44,726
)
(74,613
)
—

—

(74,613
)
Income taxes
(647
)
—

—

—

(647
)
1,285

—

—

1,285

Equity in net losses of affiliates
(2,606
)
—

(3,126
)
(7,461
)
(13,193
)
(5,563
)
—

—

(5,563
)
Net (loss) income
(112,907
)
—

(3,352
)
(7,461
)
(123,720
)
(156,875
)
16

(2,124
)
(158,983
)
Non-controlling interests
(15,931
)
—

—

—

(15,931
)
(12,229
)
—

—

(12,229
)
Net (loss) income attributable to Golar LNG Ltd
(128,838
)
—

(3,352
)
(7,461
)
(139,651
)
(169,104
)
16

(2,124
)
(171,212
)
Total assets
3,149,673

—

1,174,512

174,073

4,498,258

3,442,102

—

913,899

4,356,001


Revenues from external customers

During the six months ended June 30, 2017, our vessels operated predominately under charters with the Cool Pool and NFE Transport Partners LLC. During the six months ended June 30, 2016, our vessels operated under time charters with three main charterers: the Cool Pool, Nigeria LNG Limited and NFE Transport Partners LLC.

In time and voyage charters, the charterer, not us, controls the routes of our vessels. These routes can be worldwide as determined by the charterers, except for the FSRUs, which operate at specific locations where the charterers are based. Accordingly, our management, including the chief operating decision maker, do not evaluate our performance either according to customer or geographical region.

For the six months ended June 30, 2017 and 2016, revenues from the following counterparties accounted for over 10% of our time charter revenues:
 
Six months ended June 30,
Six months ended June 30,
(in thousands of $)
2017
2016
The Cool Pool (note 14)
39,444

90
%
20,820

69
%
NFE Transport Partners LLC
4,579

10
%
3,487

12
%
Nigeria LNG Ltd
—

—
%
5,849

19
%


The above revenues exclude vessel and other management fees from our related parties (see note 14).