Highlights and subsequent events
* Golar LNG Limited ("Golar" or "the Company") reports Q2 2025 net income
attributable to Golar of $16 million, Adjusted EBITDA(1) of $49 million and
Total Golar Cash(1) of $891 million.
* Added $13.7 billion in Adjusted EBITDA backlog(1), with further upside in
contracted FLNG tariff CPI escalation and significant commodity upside:
* Concluded 20-year charter of FLNG Hilli ("Hilli") in Argentina with Southern
Energy S.A. ("SESA"), with Adjusted EBITDA backlog(1) of $5.7 billion.
* Signed definitive agreements and reached Final Investment Decision ("FID")
for a 20-year charter for the MKII FLNG, also with SESA, with Adjusted
EBITDA backlog(1) of $8 billion. Remaining regulatory approvals and
customary conditions precedent expected within 2025.
* Commodity upside to Golar of approximately $100 million per year for every
US dollar of offtake above $8/MMBtu.
* FLNG Gimi ("Gimi") reached Commercial Operations Date ("COD").
* Closed offering of $575 million of convertible senior notes due 2030 ("the
Notes") and repurchased 2.5 million common shares.
* Appointed new board members, Benoît de la Fouchardiere, Mi Hong Yoon and
Stephen J. Schaefer.
* Declared dividend of $0.25 per share for the quarter.
* Progressing contemplated next FLNG unit on the back of strong development of
commercial pipeline.
FLNG Hilli: Continued market leading uptime during the quarter, 137 cargoes
offloaded to date since contract start up in 2018 in Cameroon. Upon completion
of the current charter in July 2026, Hilli is scheduled to enter a yard in the
third quarter of 2026 for upgrades and life extension work before arriving in
Argentina for its 20-year charter for SESA during Q2 2027. Yard selection for
the redeployment related upgrade and modification works is expected within Q3
2025. The scope for the yard stay includes repair, life extension modifications,
winterization of the vessel and installation of a new soft-yoke mooring system.
The key commercial terms for the 20-year charter agreement include net charter
hire to Golar of $285 million per year, a total of $5.7 billion over the 20-year
term. In addition Hilli will make a commodity linked FLNG tariff component of
25% of FOB prices in excess of $8/MMBtu. This will add approximately $30 million
of potential upside to Golar for every US dollar the achieved FOB price is above
the reference price of $8/MMBtu. Hilli will be moored in the San Matías Gulf in
Argentina.
Having concluded the 20-year charter agreement in Argentina, we will seek to
optimize the asset level debt on Hilli.
FLNG Gimi: In June 2025, Gimi successfully achieved COD, marking the
commencement of the 20-year lease term with BP under the Lease and Operate
Agreement. Gimi is now in the process of offloading its 8th cargo. The vessel is
operating well and has transitioned into its contractual post COD appraisal
period during which equipment will be tuned to optimize performance as
operations and interfaces with customer infrastructure normalize. Golar owns
70% of Gimi, and Golar's share of the net earnings backlog for the contract
duration is expected to be approximately $3 billion.
Stakeholder approvals for the $1.2 billion sale and leaseback facility have
taken longer than expected. This allows for potential alternative financing
optimization for debt refinancing of Gimi including a bank facility or secured
bonds.
MKII FLNG 3.5 MTPA conversion: Conversion work on the $2.2 billion MKII FLNG is
proceeding to schedule. As of June 30, 2025, Golar has spent $0.8 billion on
this project, all of which is currently equity funded. The MKII FLNG is expected
to be delivered in Q4 2027.
On August 6, 2025, SESA reached FID for the charter of Golar's 3.5 MTPA MKII
FLNG, as contemplated under the terms of the definitive agreements executed by
SESA and Golar in May 2025. The MKII charter remains subject to regulatory
conditions precedent and satisfaction of other customary closing conditions,
expected within 2025.
The key commercial terms for the 20-year charter agreement include net charter
hire to Golar of $400 million per year, equal to $8 billion over the charter
period. In addition the MKII FLNG charter includes a commodity linked tariff
component of 25% of FOB prices in excess of $8/MMBtu. This will add
approximately $40 million of potential upside to Golar for every US dollar the
achieved FOB price is above the reference price of $8/MMBtu. The MKII FLNG,
currently under conversion in China, will sail to Argentina following her
redelivery, with contract start-up expected during 2028. The MKII FLNG will be
moored in the San Matías Gulf near the Hilli. Combined, the two units have a
nameplate capacity of 5.95MTPA, and the project expects to benefit from
significant operational efficiencies and synergies from two FLNGs in the same
area.
Southern Energy: SESA is a company formed to enable LNG exports from Argentina.
SESA is owned by a consortium of leading Argentinian gas producers including Pan
American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%),
as well as Golar (10%).
Golar's 10% ownership of SESA provides additional commodity exposure. With both
FLNG's operational, the 10% equity stake equates to approximately $28 million in
annual commodity exposure to Golar for every US dollar/MMBtu change in achieved
FOB prices above or below SESA's cash break even.
With the combination of the fixed charter hire, operating expenses pass through,
commodity exposure for FOB prices above $8/MMBtu and Golar's 10% shareholding in
SESA, Golar has secured an attractive contracted cash flow with highly
attractive risk-reward in commodity linked earnings. For every US dollar FOB
price above $8/MMBtu, Golar's total commodity upside is approximately $100
million, versus approximately $28 million in downside for every US dollar/MMBtu
that realized FOB prices are below SESA's cash break even.
Business development: With the existing fleet committed to 20-year charters, we
have increased focus on securing attractive FLNG growth units. We are working
with three prospective shipyards for different FLNG designs (MKI, MKII and MKIII
with liquefaction capacities ranging from 2.0 to 5.4 MTPA) to obtain updated EPC
price and delivery schedules. In order to secure attractive delivery we plan to
enter into slot reservations for long lead equipment within Q3 2025.
We see increasing industry recognition of the benefits of FLNG solutions versus
land-based liquefaction terminals, driven by the proven track record of the
fleet on the water, lower capex, shorter construction time and increased
flexibility. This in turn drives prospective charter interest in our FLNG
solutions. Golar is the only proven provider of FLNG as a service. Based on the
increasing demand for FLNG to monetize stranded, associated and flared or re-
injected gas reserves, we plan to order our next FLNG before locking in a
charter to drive competitive tension and terms for our next FLNG project. This
is the same approach successfully executed for the FLNG Hilli and for the MKII
FLNG. Based on yard availability we are confident that a contemplated 4(th)
Golar FLNG will be the only open and available FLNG capacity within this decade.
We expect to decide on vessel design for our fourth FLNG once final EPC prices
and delivery schedules are obtained. We are in parallel working on the
commercial pipeline to match commercial opportunities to the contemplated fleet
addition. We also expect that a 5(th) unit could follow shortly after a 4(th)
unit has been ordered and chartered.
Our fully delivered net debt to Adjusted EBITDA(1) stands at around 3x, and we
expect to fund planned FLNG fleet growth with proceeds from debt associated with
the conclusion of long-term charters for our existing fleet.
Corporate/Other: In June we raised $575 million of convertible bonds. As part of
the convertible bond process we bought back 2.5 million shares for $103 million,
at a share price of $41.09 per share. The Notes were priced at 2.75% fixed
coupon with a 40% premium. Inclusive of the buyback the Notes are net dilutive
to our share count prior to the Notes offering if our share price exceeds $76.71
at maturity in December 2030, before adjusting for any dividends paid in the
period.
Operating revenues and costs under corporate and other items are comprised of
two legacy FSRU operate and maintain agreements in respect of Italis LNG and LNG
Croatia, both of which are expected to end in Q4 2025.
Shares and dividends: 102.3 million shares are issued and outstanding as of June
30, 2025, inclusive of the 2.5 million shares repurchased and cancelled in
connection with the June 2025 convertible senior notes offering. Golar's Board
of Directors approved a total Q2 2025 dividend of $0.25 per share to be paid on
or around September 2, 2025. The record date will be August 26, 2025.
Financial Summary
On COD the FLNG Gimi asset under development was de-recognized, and a sales-type
lease receivable was recognized in the balance sheet. The accounting for a
sales-type lease is different to Golar's other commercial agreements, which have
typically been accounted for as operating leases. In order to compare the
performance of the FLNG Gimi with our wider business, management has determined
that it will measure the performance of the FLNG Gimi sales-type lease based on
Adjusted EBITDA(1, )modified by sales-type lease receivable in excess of
interest income. This approach allows Golar to review the economic results of
FLNG Gimi in a format consistent with FLNG Hilli.
+--------------------+---------+---------+--------+---------+---------+--------+
|(in thousands of $) | Q2 2025 | Q2 2024 |% Change|YTD 2025 |YTD 2024 |% Change|
+--------------------+---------+---------+--------+---------+---------+--------+
|Net income | 30,779 | 35,230 | (13)% | 43,718 | 101,725 | (57)% |
| | | | | | | |
|Net income | | | | | | |
|attributable to | | | | | | |
|Golar LNG Ltd | 15,639 | 25,907 | (40)% | 23,836 | 81,127 | (71)% |
| | | | | | | |
|Total operating | | | | | | |
|revenues | 75,673 | 64,689 | 17% | 138,175 | 129,648 | 7% |
| | | | | | | |
|Adjusted EBITDA (1) | 49,255 | 58,716 | (16)% | 90,191 | 122,303 | (26)% |
| | | | | | | |
|Golar's share of | | | | | | |
|Contractual Debt (1)|2,048,873|1,197,626| 71% |2,048,873|1,197,626| 71% |
+--------------------+---------+---------+--------+---------+---------+--------+
Financial Review
Business Performance:
+-------------------------+----------------------------------+-----------------+
| | 2025 | 2024 |
+-------------------------+-----------------+----------------+-----------------+
|(in thousands of $) | Apr-Jun | Jan - Mar | Apr-Jun |
+-------------------------+-----------------+----------------+-----------------+
|Net income | 30,779| 12,939| 35,230|
| | | | |
|Income taxes | 439| 179| 140|
+-------------------------+-----------------+----------------+-----------------+
|Net income before income | | | |
|taxes | 31,218| 13,118| 35,370|
| | | | |
|Depreciation and | | | |
|amortization | 12,206| 12,638| 13,780|
| | | | |
|Unrealized loss on oil | | | |
|and gas derivative | | | |
|instruments | 34,816| 25,001| 16,050|
| | | | |
|Other non-operating | | | |
|income, net | (29,981)| -| -|
| | | | |
|Interest income | (5,823)| (8,699)| (8,556)|
| | | | |
|Loss/(gain) on derivative| | | |
|instruments, net | 3,843| 6,795| (107)|
| | | | |
|Other financial items, | | | |
|net | 973| 2,292| 54|
| | | | |
|Net (income)/loss from | | | |
|equity method investments| (78)| (10,209)| 2,125|
| | | | |
|Sales-type lease | | | |
|receivable in excess of | | | |
|interest income | 2,081| -| -|
+-------------------------+-----------------+----------------+-----------------+
|Adjusted EBITDA (1) | 49,255| 40,936| 58,716|
+-------------------------+-----------------+----------------+-----------------+
+--------------+-------------------------------------------------------------------------------------------
| | 2025
| +------------------------------------------------------------------------------------------+
| | Apr-Jun |
| +------------------+------------------+--------------+------------------+------------------+
|(in thousands | | Corporate and |Total Segment | | Consolidated |
|of $) | FLNG | other | Reporting | Elimination | Reporting |
+--------------+------------------+------------------+--------------+------------------+------------------+
|Liquefaction | | | | | |
|services | | | | | |
|revenue | 56,512| -| 56,512| -| 56,512|
| | | | | | |
|Sales-type | | | | | |
|lease revenue | 8,219| -| 8,219| -| 8,219|
| | | | | | |
|Vessel | | | | | |
|management | | | | | |
|fees and other| | | | | |
|revenues | 4,381| 6,561| 10,942| -| 10,942|
| | | | | | |
|Vessel | | | | | |
|operating | | | | | |
|expenses | (26,472)| (5,795)| (32,267)| -| (32,267)|
| | | | | | |
|Administrative| | | | | |
|expenses | (60)| (6,412)| (6,472)| -| (6,472)|
| | | | | | |
|Project | | | | | |
|development | | | | | |
|expenses | (4,162)| (1,607)| (5,769)| -| (5,769)|
| | | | | | |
|Realized gain | | | | | |
|on oil and gas| | | | | |
|derivative | | | | | |
|instruments | | | | | |
|((2)) | 16,234| -| 16,234| -| 16,234|
| | | | | | |
|Other | | | | | |
|operating loss| -| (225)| (225)| -| (225)|
| | | | | | |
|Sales-type | | | | | |
|lease | | | | | |
|receivable in | | | | | |
|excess of | | | | | |
|interest | | | | | |
|income | 2,081| -| 2,081| (2,081)| -|
+--------------+------------------+------------------+--------------+------------------+------------------+
|Adjusted | | | | | |
|EBITDA (1) | 56,733| (7,478)| 49,255| (2,081)| 47,174|
+--------------+------------------+------------------+--------------+------------------+------------------+
+--------------+---------------------------------------------------------------+
| | 2025 |
| +---------------------------------------------------------------+
| | Jan-Mar |
| +---------------------+---------------------+-------------------+
|(in thousands | | | |
|of $) | FLNG | Corporate and other | Total |
+--------------+---------------------+---------------------+-------------------+
|Liquefaction | | | |
|services | | | |
|revenue | 55,688| -| 55,688|
| | | | |
|Vessel | | | |
|management | | | |
|fees and other| | | |
|revenues | -| 5,938| 5,938|
| | | | |
|Time and | | | |
|voyage charter| | | |
|revenues | -| 876| 876|
| | | | |
|Vessel | | | |
|operating | | | |
|expenses | (18,785)| (9,685)| (28,470)|
| | | | |
|Administrative| | | |
|expenses | (588)| (8,999)| (9,587)|
| | | | |
|Project | | | |
|development | | | |
|expenses | (2,351)| (968)| (3,319)|
| | | | |
|Realized gain | | | |
|on oil and gas| | | |
|derivative | | | |
|instruments | | | |
|((2)) | 21,213| -| 21,213|
| | | | |
|Other | | | |
|operating loss| -| (1,403)| (1,403)|
+--------------+---------------------+---------------------+-------------------+
|Adjusted | | | |
|EBITDA (1) | 55,177| (14,241)| 40,936|
+--------------+---------------------+---------------------+-------------------+
+---------------+--------------------------------------------------------------+
| | 2024 |
| +--------------------------------------------------------------+
| | Apr-Jun |
| +----------------------+----------------------+----------------+
|(in thousands | | | |
|of $) | FLNG | Corporate and other | Total |
+---------------+----------------------+----------------------+----------------+
|Liquefaction | | | |
|services | | | |
|revenue | 56,120| -| 56,120|
| | | | |
|Vessel | | | |
|management fees| | | |
|and other | | | |
|revenues | -| 5,444| 5,444|
| | | | |
|Time and voyage| | | |
|charter | | | |
|revenues | -| 3,125| 3,125|
| | | | |
|Vessel | | | |
|operating | | | |
|expenses | (22,765)| (10,220)| (32,985)|
| | | | |
|Administrative | | | |
|income | | | |
|(expenses) | 34| (5,886)| (5,852)|
| | | | |
|Project | | | |
|development | | | |
|expenses | (1,300)| (2,226)| (3,526)|
| | | | |
|Realized gain | | | |
|on oil and gas | | | |
|derivative | | | |
|instruments | | | |
|((2)) | 36,390| -| 36,390|
+---------------+----------------------+----------------------+----------------+
|Adjusted EBITDA| | | |
|(1) | 68,479| (9,763)| 58,716|
+---------------+----------------------+----------------------+----------------+
(2) The line item "Realized and unrealized (loss)/gain on oil and gas derivative
instruments" in the Unaudited Consolidated Statements of Operations relates to
income from the Hilli Liquefaction Tolling Agreement ("LTA") and the natural gas
derivative which is split into: "Realized gain on oil and gas derivative
instruments" and "Unrealized (loss)/gain on oil and gas derivative instruments".
Golar reports today Q2 2025 net income of $31 million, before non-controlling
interests, inclusive of $9 million of non-cash items(1), comprised of:
* TTF and Brent oil unrealized mark-to-market ("MTM") losses of $35 million;
* A $4 million MTM loss on interest rate swaps; and,
* A $30 million day one gain on recognition of the FLNG Gimi sales type lease.
The Brent oil linked component of FLNG Hilli's fees generates additional annual
cash of approximately $3.1 million for every dollar increase in Brent Crude
prices between $60 per barrel and the contractual ceiling. Billing of this
component is based on a three-month look-back at average Brent Crude prices.
During Q2 2025, we recognized a total of $16 million of realized gains on FLNG
Hilli's oil and gas derivative instruments, comprised of a:
* $9 million realized gain on the Brent oil linked derivative instrument; and
* $7 million realized gain in respect of fees for the TTF linked production.
We also recognized $35 million of non-cash losses in relation to FLNG Hilli's
oil and gas derivative assets, with corresponding changes in the fair value in
its constituent parts recognized on our unaudited consolidated statement of
operations as follows:
* $27 million loss on the Brent oil linked derivative asset; and
* $8 million loss on the TTF linked natural gas derivative asset.
Balance Sheet and Liquidity:
During June 2025 Golar closed the offering of $575 million of 2.75% Convertible
Senior Notes due 2030. The Notes are senior, unsecured obligations of the
Company, bear interest at a rate of 2.75% per annum, mature on December
15, 2030, and are convertible into the Company's common shares, cash, or a
combination of shares and cash, at the Company's election. The conversion rate
was equivalent to an initial conversion price of approximately $57.53 per common
share, representing an initial conversion premium of approximately 40% over the
closing price of the Company's common shares at the time of issuance. Of the net
proceeds, $103 million was used to repurchase 2.5 million of the Company's
common shares on June 30, 2025.
As of June 30, 2025, Total Golar Cash(1) was $891 million, comprised of $783
million of cash and cash equivalents and $108 million of restricted cash.
Golar's share of Contractual Debt(1) as of June 30, 2025 is $2,049 million.
Deducting Total Golar Cash(1) of $891 million from Golar's share of Contractual
Debt(1) leaves a net debt position of $1,158 million.
Assets under development amounts to $0.9 billion, all of which relates to the MK
II FLNG Fuji conversion project. Upon COD in June 2025, the FLNG Gimi asset
under development was de-recognized, with a sales type lease receivable
recognized on the balance sheet in its place.
Non-GAAP measures
In addition to disclosing financial results in accordance with U.S. generally
accepted accounting principles (US GAAP), this earnings release and the
associated investor presentation contains references to the non-GAAP financial
measures which are included in the table below. We believe these non-GAAP
financial measures provide investors with useful supplemental information about
the financial performance of our business, enable comparison of financial
results between periods where certain items may vary independent of business
performance, and allow for greater transparency with respect to key metrics used
by management in operating our business and measuring our performance.
This report also contains certain forward-looking non-GAAP measures for which we
are unable to provide a reconciliation to the most comparable GAAP financial
measures because certain information needed to reconcile those non-GAAP measures
to the most comparable GAAP financial measures is dependent on future events
some of which are outside of our control, such as oil and gas prices and
exchange rates, as such items may be significant. Non-GAAP measures in respect
of future events which cannot be reconciled to the most comparable GAAP
financial measure are calculated in a manner which is consistent with the
accounting policies applied to Golar's unaudited consolidated condensed
financial statements.
These non-GAAP financial measures should not be considered a substitute for, or
superior to, financial measures and financial results calculated in accordance
with GAAP. Non-GAAP measures are not uniformly defined by all companies and may
not be comparable with similarly titled measures and disclosures used by other
companies. The reconciliations as at June 30, 2025 and for the six months ended
June 30, 2025, from these results should be carefully evaluated.
+------------------+------------------+---------------------+------------------+
| | |Adjustments to | |
| |Closest equivalent|reconcile to primary | |
|Non-GAAP measure |US GAAP measure |financial statements | |
| | |prepared under US |Rationale for|
| | |GAAP |adjustments |
+------------------+------------------+---------------------+------------------+
|Performance measures |
+------------------+------------------+---------------------+------------------+
|Adjusted EBITDA |Net income/(loss) | +/- Income taxes |Increases the |
| | |+ Depreciation and |comparability of |
| | |amortization |total business |
| | |+ Impairment of long-|performance from |
| | |lived assets |period to period |
| | |+/- Unrealized |and against the |
| | |(gain)/loss on oil |performance of |
| | |and gas derivative |other companies by|
| | |instruments |excluding the |
| | |+/- Other non- |results of our |
| | |operating |equity |
| | |(income)/losses |investments, |
| | |+/- Net financial |removing the |
| | |(income)/expense |impact of |
| | |+/- Net |unrealized |
| | |(income)/losses from |movements on |
| | |equity method |embedded |
| | |investments |derivatives, |
| | |+/- Net loss/(income)|depreciation, |
| | |from discontinued |impairment charge,|
| | |operations |financing costs, |
| | |+/- Sales-type lease |tax items, |
| | |receivable in excess |discontinued |
| | |of interest income |operations and |
| | | |sales-type lease |
| | | |receivable in |
| | | |excess of interest|
| | | |income. |
+------------------+------------------+---------------------+------------------+
|Distributable |Net income/(loss) | +/- Income taxes |Increases the |
|Adjusted EBITDA | |+ Depreciation and |comparability of |
| | |amortization |our operational |
| | |+ Impairment of long-|FLNG Hilli from |
| | |lived assets |period to period |
| | |+/- Unrealized |and against the |
| | |(gain)/loss on oil |performance of |
| | |and gas derivative |other companies by|
| | |instruments |removing the non- |
| | |+/- Other non- |distributable |
| | |operating |income of FLNG |
| | |(income)/losses |Hilli, project |
| | |+/- Net financial |development costs,|
| | |(income)/expense |and FLNG Gimi. |
| | |+/- Net | |
| | |(income)/losses from | |
| | |equity method | |
| | |investments | |
| | |+/- Net loss/(income)| |
| | |from discontinued | |
| | |operations | |
| | |+/- Net and other | |
| | |amounts invoiced | |
| | |under sales-type | |
| | |lease | |
| | |- Amortization of | |
| | |deferred | |
| | |commissioning period | |
| | |revenue | |
| | |- Amortization of Day| |
| | |1 gains | |
| | |- Accrued | |
| | |overproduction | |
| | |revenue | |
| | |+ Overproduction | |
| | |revenue received | |
| | |- Accrued | |
| | |underutilization | |
| | |adjustment | |
+------------------+------------------+---------------------+------------------+
|Liquidity measures |
+------------------+------------------+---------------------+------------------+
|Contractual debt |Total debt | +/-Variable Interest|During the year, |
|(1) |(current and non- |Entity ("VIE") |we consolidate a |
| |current), net of |consolidation |lessor VIE for our|
| |deferred finance |adjustments |Hilli sale and |
| |charges |+/-Deferred finance |leaseback |
| | |charges |facility. This |
| | | |means that on |
| | | |consolidation, our|
| | | |contractual debt |
| | | |is eliminated and |
| | | |replaced with the |
| | | |lessor VIE debt. |
| | | | |
| | | | |
| | | | |
| | | | |
| | | |Contractual debt |
| | | |represents our |
| | | |debt obligations |
| | | |under our various |
| | | |financing |
| | | |arrangements |
| | | |before |
| | | |consolidating the |
| | | |lessor VIE. |
| | | | |
| | | | |
| | | | |
| | | | |
| | | |The measure |
| | | |enables investors |
| | | |and users of our |
| | | |financial |
| | | |statements to |
| | | |assess our |
| | | |liquidity, |
| | | |identify the split|
| | | |of our debt |
| | | |(current and non- |
| | | |current) based on |
| | | |our underlying |
| | | |contractual |
| | | |obligations and |
| | | |aid comparability |
| | | |with our |
| | | |competitors. |
+------------------+------------------+---------------------+------------------+
|Adjusted net debt |Adjusted net debt |Total debt (current |The measure |
| |based on |and non-current), net|enables investors |
| |GAAP measures: |of: |and users of our |
| |-Total debt |+Deferred finance |financial |
| |(current and |charges |statements to |
| |non-current), net |+Cash and cash |assess our |
| |of |equivalents |liquidity based on|
| |deferred finance |+Restricted cash and |our underlying |
| |charges |short-term deposits |contractual |
| |- Cash and cash |(current and non- |obligations and |
| |equivalents |current) |aids comparability|
| |- Restricted cash |+/-VIE consolidation |with our |
| |and |adjustments |competitors. |
| |short-term |+Receivable from TTF | |
| |deposits |linked commodity swap| |
| |(current and non- |derivatives | |
| |current) | | |
| |- Other current | | |
| |assets (Receivable| | |
| |from TTF linked | | |
| |commodity swap | | |
| |derivatives) | | |
+------------------+------------------+---------------------+------------------+
|Total Golar Cash |Golar cash based |-VIE restricted cash |We consolidate a |
| |on GAAP measures: |and short-term |lessor VIE for our|
| | |deposits |sale and leaseback|
| | | |facility. This |
| | | |means that on |
| | | |consolidation, we |
| |+ Cash and cash | |include restricted|
| |equivalents | |cash held by the |
| | | |lessor VIE. |
| | | | |
| | | | |
| | | | |
| |+ Restricted cash | | |
| |and short-term | |Total Golar Cash |
| |deposits (current | |represents our |
| |and non-current) | |cash and cash |
| | | |equivalents and |
| | | |restricted cash |
| | | |and short-term |
| | | |deposits (current |
| | | |and non-current) |
| | | |before |
| | | |consolidating the |
| | | |lessor VIE. |
| | | | |
| | | | |
| | | | |
| | | | |
| | | |Management believe|
| | | |that this measure |
| | | |enables investors |
| | | |and users of our |
| | | |financial |
| | | |statements to |
| | | |assess our |
| | | |liquidity and aids|
| | | |comparability with|
| | | |our competitors. |
+------------------+------------------+---------------------+------------------+
(1) Please refer to reconciliation below for Golar's share of contractual debt
Adjusted EBITDA backlog (also referred to as "earnings backlog"): This is a non-
GAAP financial measure and represents the share of contracted fee income for
executed contracts or agreements subject to conditions precedent, less
forecasted operating expenses for these contracts/agreements. Adjusted EBITDA
backlog should not be considered as an alternative to net income / (loss) or any
other measure of our financial performance calculated in accordance with U.S.
GAAP.
Non-cash items: Non-cash items comprised of impairment of long-lived assets,
release of prior year contract underutilization liability, MTM movements on our
TTF and Brent oil linked derivatives, listed equity securities and interest rate
swaps ("IRS") which relate to the unrealized component of the gains/(losses) on
oil and gas derivative instruments, unrealized MTM (losses)/gains on investment
in listed equity securities, gains or losses on derivative instruments net and
gains or losses on recognition of sales type lease in our unaudited consolidated
statement of operations.
FLNG tariff, net: This is a non-U.S. GAAP financial measure that represents the
total cash inflow and economic performance generated by our FLNGs during a given
period. It is calculated by taking the total amount invoiced for FLNG services,
including liquefaction services revenue, sales-type lease revenue, vessel
management fees and other revenue and realized gains on oil and gas derivative
instruments, adjusted for the amortization of deferred commissioning period
revenue, Day 1 gains (deferred revenues) and deferred contractual payments
received prior to COD under the LOA that is allocated to the non-lease component
("deferred pre-COD O&M service revenue"), the unwinding of liquidated damages,
the accretion of unguaranteed residual value and the accruals and other timing
related items including tax receipt, underutilization, overproduction revenue
and demurrage cost. FLNG tariff, net is intended to enhance the comparability of
our FLNG performance across periods and with other operational FLNGs in the
industry. FLNG tariff, net should not be considered as an alternative to total
operating revenue of the FLNG segment or any other performance measure of our
financial performance calculated in accordance with U.S. GAAP.
To read the rest of the press release, please download the attached .pdf document.