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.

• Signed 20-year definitive agreement for FLNG deployment in Argentina with Pan American Energy, targeting LNG exports from 2027 and expected to generate ~$300 million annual Adjusted EBITDA and ~$6 billion backlog.

• Commercial reset with BP on Gimi resolves disputes, unlocks refinancing, and accelerates commissioning, with up to $0.5 billion liquidity release.

• Advanced Mark II FLNG project with final EPC contract stages, $293 million spent to date, fully equity funded, and option for a second unit by 2028.

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

Financial highlights

• Q2 2024 total operating revenues: $65 million; Adjusted EBITDA: $59 million, down 8% sequentially; net income attributable: $26 million.

• Q2 2024 distributable Adjusted EBITDA from FLNG Hilli: $69 million, Golar's share $64 million.

• Liquidity position: ~$604 million cash on hand; adjusted net debt at $569 million as of June 30, 2024.

• Q2 2024 comprehensive income: $33.9 million; cash dividend payout: $28.9 million.

• Declared quarterly dividend of $0.25/share.

Outlook and guidance

• Targeting to more than double FLNG capacity to over 12 MTPA by 2030, with four FLNG assets potentially generating ~$1.5 billion annual EBITDA.

• Gimi commissioning expected to start this quarter, full operations in 2025, unlocking 20-year contract and $3 billion EBITDA backlog.

• Hilli to redeploy to Argentina in Q1 2027 after current charter ends July 2026, with increased capacity utilization and expected annual Adjusted EBITDA of ~$300 million at 90% utilization.

• Mark II FLNG order targeted within Q3 2024, delivery in 2027; option for second Mark II with 2028 delivery.

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