Golar LNG (GLNG) Q1 2025 earnings summary

Executive summary

• Secured two 20-year FLNG charters for Hilli and Mark II in Argentina, ensuring long-term revenue and growth, and exited LNG shipping to focus on FLNG operations.

• FLNG Hilli maintained 100% uptime since 2018, completed final maintenance, and is preparing for redeployment in Argentina.

• FLNG Gimi is in final commissioning, with commercial operations and a 20-year contract expected to start in Q2 2025; first cargo offloaded in May 2025.

• Mark II FLNG conversion is on schedule for Q4 2027 delivery, with FID and financing targeted in 2025 and significant long-lead items already at the shipyard.

• Adjusted EBITDA backlog stands at $17 billion, providing over 20 years of cash flow visibility, with further upside from commodity exposure and inflation.

Financial highlights

• Q1 2025 operating revenues reached $63 million, with Adjusted EBITDA of $41 million and net income of $13 million, including $32 million in non-cash items.

• Total Golar Cash at quarter-end was $678 million; net debt position was $817 million.

• Declared a $0.25 per share dividend, equating to $105 million annually, payable in June 2025.

• Last 12 months' EBITDA reached $218 million; market cap at $4 billion.

• Q1 2025 net income attributable to Golar was $8 million.

Outlook and guidance

• FLNG Gimi's 20-year contract expected to start in Q2 2025, adding $151 million annual Adjusted EBITDA (Golar's share).

• Mark II FLNG conversion on track for Q4 2027 delivery; charter start-up expected in 2028 with $400 million annual Adjusted EBITDA plus upside.

• Combined FLNG agreements add $13.7 billion to $17 billion in Adjusted EBITDA backlog over 20 years, before inflation and commodity upside.

• Net debt projected to increase to $2.3 billion upon Mark II completion, with leverage ratio at 2.8x net debt to EBITDA.

• Plans to proceed with at least one FLNG EPC award in 2025 and potentially more units, focusing on balance sheet optimization and capital recycling.