Golar LNG (GLNG) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 net income attributable of $26 million and Adjusted EBITDA of $59 million, with strong operational performance from FLNG Hilli and progress on FLNG Gimi commissioning.

• Entered definitive 20-year FLNG deployment agreement in Argentina, targeting LNG exports from 2027 and leveraging Vaca Muerta shale gas, expected to generate ~$300 million annual Adjusted EBITDA and ~$6 billion backlog.

• Declared Q2 dividend of $0.25 per share, payable September 3, 2024, and maintained liquidity of ~$0.6 billion.

• Advanced Mark II FLNG project with final EPC contract stages, $293 million spent to date, fully equity funded, and secured option for a second unit.

• 23.5% stake in Avenir LNG and full ownership of Macaw Energies, with Macaw's first flare-to-LNG unit deployed in Texas.

Financial highlights

• Q2 2024 total operating revenues: $65 million; FLNG tariffs: $88 million, up from $86 million in Q1.

• Adjusted EBITDA: $59 million, slightly down sequentially; net income attributable: $26 million, a significant year-over-year improvement.

• Liquidity: ~$604 million cash on hand; adjusted net debt at quarter end: $569 million.

• Declared dividend: $0.25 per share, record date August 26, payment around September 3.

• Q2 distributable Adjusted EBITDA from FLNG Hilli: $69 million, Golar's share $64 million.

Outlook and guidance

• Gimi commissioning expected this quarter, full operations in 2025; Hilli redeployment to Argentina in 2027.

• Targeting to more than double FLNG capacity to over 12 MTPA by 2030, with two Mark II FLNGs planned.

• Annual EBITDA potential of ~$1.5 billion once expansion to four units is complete and operational by 2030.

• Strong FLNG project pipeline in West Africa, South America, Middle East, and Southeast Asia.

• FLNG Hilli expected to generate ~$300 million annual Adjusted EBITDA at 90% utilization for Argentina project.