Golar LNG (GLNG) Q3 2024 earnings summary

Executive summary

• Ordered and made FID for third FLNG (Mark II) with 3.5 MTPA capacity, targeting Q4 2027 delivery; $0.4 billion spent to date and EPC contract signed.

• Signed 20-year FLNG charter for Hilli in Argentina, with $6 billion Adjusted EBITDA backlog before commodity pricing; project FID by PAE targeted for Q1 2025.

• Commercial reset with BP for Gimi FLNG enables accelerated commissioning, pre-COD compensation, and improved refinancing; full COD expected in 1H 2025.

• Declared $0.25 per share dividend for Q3 2024.

• Option secured for a second Mark II FLNG with potential 2028 delivery.

Financial highlights

• Q3 2024 total operating revenues were $65 million; Adjusted EBITDA was $59 million, with a net loss of $36 million due to $90 million non-cash items.

• Cash position at quarter end was $807 million; net debt stood at $646–658 million.

• Issued $300 million unsecured bonds at 7.75% in September 2024, maturing in 2029.

• Market cap at $4 billion as of Q3 2024; 104.4 million shares outstanding.

• Adjusted EBITDA margin for Q3 2024 was approximately 91%.

Outlook and guidance

• Targeting to charter Mark II FLNG within 2025; option for a second Mark II could further expand capacity.

• Run-rate EBITDA could reach $1 billion by 2028 with Hilli, Gimi, and one Mark II on charter; $1.5 billion possible with a second Mark II by 2030.

• FLNG Gimi COD expected within 1H 2025, triggering 20-year lease and $3 billion Adjusted EBITDA backlog.

• FLNG Hilli in Argentina expected to generate ~$300 million annual Adjusted EBITDA.

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