XML 26 R19.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Variable Interest Entities ("VIEs") | 6 Months Ended
--- | ---
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Variable Interest Entities ("VIEs") | VARIABLE INTEREST ENTITIES (“VIEs”) 11.1 Lessor VIE As of June 30, 2024, we leased one (December 31, 2023: one) vessel from China State Shipbuilding Corporation entity (“CSSC entity”) as part of a sale and leaseback agreement. The CSSC entity is a special purpose vehicle owned by a third party (“Lessor SPV”) that we are required to consolidate under US GAAP. In this transaction, we sold our vessel, the FLNG Hilli and then subsequently leased back the vessel on a bareboat charter for an initial term of ten years. In June 2023, we entered into the fourth side letter to FLNG Hilli’s sale and leaseback facility which amended the reference rate to a Secured Overnight Financing Rate (“SOFR”) from London Interbank Offered Ra te (“LIBOR”), reduced the margin and extended the tenor of the facility by 5 years to 2033. These amendments did not impact our total bareboat obligations. We still have the option to repurchase the vessel at a fixed predetermined amount during i2ts charter period and an obligation to repurchase the vessel at the end of the vessel’s lease period. A summary of our payment obligations (excluding repurchase options and obligations) under the bareboat charter with the lessor VIE as of June 30, 2024, is shown below:
(in thousands of $) | 2024(1) | 2025 | 2026 | 2027 | 2028 | 2029+
Hilli (2) | 42,095 | 82,201 | 79,077 | 76,043 | 72,830 | 274,766
(1) For the six months ending December 31, 2024. (2) The payment obligations above include contractual capital and variable rental payments due under the lease. The assets and liabilities of the lessor VIE that most significantly impact our unaudited consolidated balance sheet as of June 30, 2024 and December 31, 2023, are as follows:
(in thousands of $) | June 30, 2024 | December 31, 2023
Assets |  |
Restricted cash and short-term deposits | 17,590 |  | 18,085 |
Liabilities |  |
Total debt (1): | (350,752) |  | (393,193) |
Current portion of long-term debt and short-term debt | (287,223) |  | (299,576) |
Long-term debt | (63,529) |  | (93,617) |
(1) Where applicable, these balances are net of deferred finance charges. The most significant impact of the lessor VIE’s operations on our unaudited consolidated statements of operations and unaudited consolidated statements of cash flows for the six months ended June 30, 2024 and 2023 are as follows:
(in thousands of $) | 2024 | 2023
Continuing operations
Statement of operations |  |
Other financial items, net (note 9) | 3,749 |  | — |
Interest expense | 10,381 |  | 5,273 |
Statement of cash flows |  |
Net debt repayments | (42,670) |  | (52,359) |
Financing costs paid | — |  | (3,150) |
11.2 Golar Hilli LLC Hilli LLC owns Golar Hilli Corp. (“Hilli Corp”), the disponent owner of FLNG Hilli. The ownership interests in Hilli LLC are represented by three classes of units: the Hilli Common Units, the Series A Special Units and the Series B Special Units. We are the managing member of Hilli LLC and are responsible for all operational, management and administrative decisions relating to Hilli LLC’s business. We have retained sole control over the most significant activities and the greatest exposure to variability in residual returns and expected losses from the FLNG Hilli and, as a result, we concluded that Hilli LLC is a VIE, that we are the primary beneficiary and that we consolidate both Hilli LLC and Hilli Corp. As of June 30, 2024 and December 31, 2023, the ownership structure of Hilli LLC is as follows:
| Percentage ownership interest
| Hilli Common Units | Series A Special Units | Series B Special Units
Golar LNG Limited | 94.6 | % | 89.1 | % | 89.1 | %
Seatrium | 5.0 | % | 10.0 | % | 10.0 | %
B&V | 0.4 | % | 0.9 | % | 0.9 | %
Summarized financial information of Hilli LLC The assets and liabilities of Hilli LLC(1) that most significantly impact our unaudited consolidated balance sheets are as follows:
(in thousands of $) | June 30, 2024 | December 31, 2023
Balance sheet |  |
Current assets | 83,927 |  | 70,461 |
Non-current assets | 1,198,071 |  | 1,212,922 |
Current liabilities | (341,173) |  | (342,480) |
Non-current liabilities | (86,889) |  | (125,094) |
(1) Balances are inclusive of the Hilli Lessor VIE. The most significant impact of the lessor VIE’s operations on our unaudited consolidated statements of operations and unaudited consolidated statements of cash flows for the six months ended June 30, 2024 and 2023 are as follows:
(in thousands of $) | 2024 | 2023
Statement of operations |  |
Liquefaction services revenue | 112,488 |  | 116,594 |
Realized and unrealized gain/(loss) on oil and gas derivative instruments | 56,635 |  | (87,754) |
(in thousands of $) | 2024 | 2023
Statement of changes in equity |  |
Additional paid-in capital (1) | — |  | (251,249) |
Non-controlling interest | — |  | 35,644 |
Statement of cash flows |  |
Reacquisition of common units in Hilli LLC | — |  | (100,047) |
Net debt repayments | (42,670) |  | (52,359) |
Financing costs paid | — |  | (3,150) |
Cash dividends paid | (4,737) |  | (17,842) |
(1) In March 2023, we repurchased the 1,230 Hilli Common Units, held by Golar Partners from NFE which represents an increase in our ownership interest in Hilli LLC while control is retained. Consequently, a loss of $251.2 million was recorded in equity. 11.3 Gimi MS Corporation Following the closing of the sale of 30% of the common shares of Gimi MS Corporation (“Gimi MS”) to First FLNG Holdings in April 2019, we have determined that (i) Gimi MS is a VIE and (ii) we are the primary beneficiary and retain sole control over the most significant activities and the greatest exposure to variability in residual returns and expected losses from the Gimi. Thus, Gimi MS continues to be consolidated into our financial statements. Summarized financial information of Gimi MS The assets and liabilities of Gimi MS that most significantly impact our unaudited consolidated balance sheets are as follows:
(in thousands of $) | June 30, 2024 | December 31, 2023
Balance sheet |  |
Current assets | 113,037 |  | 17,359 |
Non-current assets | 1,731,916 |  | 1,702,148 |
Current liabilities | (205,493) |  | (168,370) |
Non-current liabilities | (560,466) |  | (585,678) |
The most significant impact of Gimi MS VIE’s operations on our unaudited consolidated statements of cash flows for the six months ended June 30, 2024 and 2023 are as follows:
| Six months ended June 30,
(in thousands of $) | 2024 | 2023
Statement of cash flows |  |
Additions to asset under development | 88,965 |  | 138,102 |
Capitalized financing costs | (569) |  | (1,156) |
Net debt receipts | — |  | 85,000 |
Proceeds from subscription of equity interest | 27,278 |  | 21,118 |

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
Name: | us-gaap_VariableInterestEntityDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration