GLNG - Earnings call transcript Q2 2021

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Operator

Good day, and thank you for standing by. Welcome to the Golar LNG Limited Q2, 2021 Results Presentation Conference Call. Currently, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Karl Fredrik Staubo. you. Thank ahead. go Please

Karl Staubo

the presentation. thank coordination bearing like there. for results. Golar of earnings is Maranhao, you CEO to dial-in. LNG. and to to interesting CFO Eduardo I’m to us, conference to results quarter second call accompanied Anyhow, LNG’s present thank Karl taking would My you Staubo, everyone, like with for some quarter’s Fredrik welcome you time again We our this Hi, the we Golar name today would by

get into statement we the Before note quarterly the on results, forward-looking please Slide X.

New X, our delighted Energy at Energy. income million. Hygo quarter a asset disposal on Turning in we to there The quarterly including came the on in best-ever gain announce Transition net and Slide significantly gain $XXX of Fortress million, embedded that are value to proves portfolio. to Golar of Golar’s is $XX for LNG disposal EBITDA at LP, Partners,

XXX% cargo increase as Turning uptime projects to to the near-term of Golar, for Hilli. an capacity In we increase delivering no XXth offloaded. The LNG our its the agreement on will at to CapEx utilization additional with concluded segment, cash production as to deliver Hilli prices. of to July, continues to well increased targets deliver flow sure LNG commodity

explain will the this We increase in in further later presentation. detail,

currently unscheduled is exposure, currently Singapore. Brent-linked generating and Hilli’s technically construction GAAP Gimi are newly we addition acquired remains the In to revenue for complete, operation. in XX% under

Charter for quarter. our shipping, Equivalent a shipping of to portfolio $XX,XXX Time Turning achieved the

a one $XXX revenue the in of of million. increasing our to quarter, fixed shipping recently rates five increase freight charter, strengthening in counter-seasonal seen have year We our carriers on backlog and LNG

long-term values. see segment, to for pressure asset both We strengthening shipping and on continue and rates our near an upward fundamentals

records following million. closed a our NFE, Turning gain we Hygo of The the book gain $XXX GMLP April NFE sale of on at share in shareholding the booked close NFE which of and book corporate, the of $XX.XX. XX.X XX, million to to have price

NFE securities now the from $X proceeds marketable transaction, the billion. cash and have approximately we Following of

at results. sheets that Our cash balance term of over than to relationship currently for And in $XXX refinancing we're turn banks quarter additional discussion concluded, now key new $XXX excess call for the would and Eduardo the release liquidity million in Golar. with in us take if $XXX million to second to through quarter more I’ll million. the ended

Eduardo Maranhao

revenues enhanced we that in oil This and linked This to another million which instruments. continue line came on we the super than X, Revenues But of but provide XXXX. second our quarter our QX. down was gain has the to you, derivative last the in Brent with the Hilli, segment, with segment, XX. we a from attributed update on, been of revenues segment. Thank segment from $X QX, and as Slide second down fees this Karl, with I'm quarter for main observed which tolling was on figure. we that which good a $XX which same transactions the corporate have and both performance whilst number on greatest for in fantastic million, Total XXXX. from have million the of observe the those that quarter. this time from This quarter in orders, the shipping Overall, million to group been FLNG or QX. same added us, number on million, we very to the for $XX the this a gains million of from QX The will realized were year. increases by include performance the quarter result X% with $XXX everybody. the of higher seasonality contributor morning, million million group the numbers $XX operating activities not has line could to includes of $XX Continuing were record sale result the has from portion slightly XXXX. to million. GMLP. includes business quarter in one-off and management FLNG costs, the figure from operating Hygo a of an this excited quarter the quarter, does overall of This be Hilli costs approximately in same equivalent vessel FLNG $XX a also quarter the and see to operational to the GMLP to had from $X number overproduction where adjusted was which component, of The of which the above $XX in base a and April redundancy order of revenues financial result great Hygo been results further quarter. turn and number continued previous of our and charter shipping close the EBITDA we managed recorded rates If This has $XX commercial the a the solid our pushed our million, can in market, corporate overhead following as

quarter, figure. unrealized in oil our been the that from and derivative have NFE in million, by from net liabilities GMLP QX. another the provision this sale losses $XXX offset from million gain has the Karl before, of to to added shares. Hygo record further gains $XX NFE compared million Brent Total $XXX and a mark-to-market in accounted to we quarter, unrealized tax disposal on to contributed $XX Hilli As also by we million of of That alluded income this recorded which and

of equivalent carrying June, per the of our As of end share. was stake the $XX.XX NFE’s value to

which ended from million had of So, of debt of And liquidity $XXX out of as explained unrestricted billion. Karl reserves $XXX million, the cash. quarter total point total view, we with before, $X by a was net we cash

will for receive in facilities X, replacement that of related relationship $XXX give to to excess FLNG further from information I the continued and million. over new also presentation you and and of the we have continue the We performance Slide term If Hilli. lenders key sheets to number turning

Hilli in amazing It She of the to upsides captured. with So of cargo EBITDA quarter. uptime. XXth total contributed to performance during with commercial this completed has XXX% further $XX continues deliver an QX, its million in in be

quarter, from additional the up oil fee a an in Brent expectation $X is the our from is million which generate QX. we benefits Our million linked price, and high $X next in recorded to

with by from further to the We have in details also more XXXX. agreed will tons, with the XXX,XXX increase now to can turn about back to increase so production he I in by XXXX XXX,XXX Karl, call option Perenco arrangements. XXXX to talk these it

Karl Staubo

Eduardo. you, Thank

The exciting year the total Turning for quarter developments to was of tons Hilli. capacity total has million will delivering year liquefaction been tons. capacity. million announced increase of X, announced in year more X.X of or volumes our year per million its Slide X.X increase one per next tons see to X.X increase per for contracted Hilli tons XX%, million a during the capacity for X.X by

revenue, only X.X existing the expressed increase linked has to free and million every been to year. production increase declare Hence, in campaign Hence, a and an of on has tariff Brent will three the facilitate in the additional the price tons. above and to no million tons OpEx. year which of to incur to to and an capital derivative, increased In current period annual adjustments cash tons EBITDA tons our changes of from of oil consists and in will per total forward cash on wells, to majority to to the committed increasing an be exposure, Golar’s delivering will of million million production approximately minor built-in existing tariff to for on will expenditure production. ‘XX to XX% X.X ’XX, given incremental Hilli which there the target flow, can that and XX% flows ‘XX $XX two TTF The X.X capacity Golar between curves. over drilling on Golar be flow interest add million economic gas growth the no option linked ‘XX addition, X.X Perenco the capacity

to will that curves can increases around increased If if on forward at you Brent same will $XXX based the you The TTF however, production prevail, instead price increase But will believe million. that million. TTF number the $XXX prevail, million. $XXX current believe current to the that

prices. X, backwardation prices million, put or for to pricing million. upsides. will on numbers on will significant those base are $XXX an are rate is EBITDA increase forward curves, There oil granularity forward some for of Hilli see in So into remaining in current both Explaining more On current perspective, volumes, $XXX lowered and around spot this increase with Slide TTF of gas see and you $XXX same currently the an the embedded we million.

as Bent $X XX see here The On you change $XX equals left the link, current annual that barrel. price million sensitivity for forward mentioned Hilli Brent Hilli on the is a EBITDA in change where can is aware price worth around to basis. $X on of XXX sensitivity Brent on and a an the be the in

price TTF sensitivity. same right, see can the you the on On the

forward number current If the prevails we incremental $XX spot curve, XXXX, For million. an same on million. of book $XX the is learning

For million million. versus ‘XX $XXX ’XX, $XX it's to

existing point upside there's in the is our that So significant embedded assets.

complete, on track now on Turning to Slide is XX, technically and Gimi XX% budget.

the fifth drydock and and is now final have XX.X We million worked man-hours, complete.

all full XXXX. XXXX, in are of first with ’XX, billion as from from been for will of have the we quarter commissioning along $X.X contract the to Singapore XX-years expected revenues second and We sale we total with start of we BP, quarter during QX, before a be away backlog the start

strategy continue economically made exposure. considering an prices into to supportive macro reward, further solution and create we to where low gas combination been historically. on attractive as risk have of trading Turning are progress fields produces Further attractive where been gas and view of today, announced initiative our to a underlying XX, backdrop, Page our we trading increase they LNG highly has move the cost upstream. our our The FLNG to where

LNG experienced to [ph]. team we're we very with as We're producing gas, currently stranded and gas added have update these personnel associated several making NOV exploring market progress well the We will Shell from on when already further our projects. opportunities, fields upstream and as

and III existing to for and commercial projects. of design. technical with ton And our Mark with prospective On X continue we side seen existing clients use FLNG million we the business, specific an building have growth of discussions a new attractive on work client tooling

Page Turning to shipping. XX, gears to and switching

both As quarter [ph] are much for too the taking at $XX,XXX. charter came or exposure, more expect a significantly XXXX. $XX,XXX day, This increased we but line be ‘XX mentioned, result into in shipping of coverage less in and of an into to remainder and for at we our QX a TCE the increasing is seeing spot XXXX,

mentioned, backlog for counter quarter, of of As debt in ships. used as during to ships strength in announced on a increasing And year we our debt million million return reduction upfront the $XXX to QX, cyclical the repaid our during we one also, on a five $XX total $XXX million. charter repayments our four fix

Slide witnessed freight XX, pulling as and compared rates Asia to the year. in as a have the higher, witnessed is shipping LNG a first-half shipping itself of the in Turning the well market, demand prices to China's first-half the in growth in imports, From tonnage both considerable ton-miles commodity growth XX% as of upturn perspective, by the higher XXXX. real

an high, it's active shipping. remained been somewhat prices LNG trading benefiting environment, benefits which volatile, the again Although,

rise as building reflect quotations. LNG Another reduced steel asset shipyard attention interesting on prices availability paying carriers it's shipping. signs to $XXX around steep placed is up in $XXX we're were and across and newbuild to XX-months LNG LNG the see to values now start of factor around new to million quoted this also new We secondhand creeping price million early for trends ago, orders around today. across values,

place taking and Pacific, From strength we Turning only see Asia in primarily the being perspective, imbalance is LNG materialize to in don't a the the only growth the demand geographical rates. and years see we five in growth still support market for over next focused we supply, at that we continuing XX, is freight Atlantic, in strong between ton-miles. of fundamental which which continued driving volume to see we the that see Page the moment, have

part alluded to, fleet market shipping due a Based impact, is forward. regulations and translate carriers, shipping initiatives fleet emission refinance likely trade of on will a to face balance orders alternatives increased and particular of the of capacity constraint LNG expanding to for outlook tight going The propulsion. As we Golar, in additional new together shipping previously obsolescence that segments. older evaluate to LNG have the market the the to earlier current shipping our also an for tonnage in separation coupled built limited have with on should market the into XXXXs non-recourse with we our reengaged positive steam

strategic we the the on for out again Turning last that last and our around XX-months To could million. TCE. shipping at million. to Slide or to to EBITDA fleet last existing one million $XX,XXX of then see focus. EBITDA the rata $XX,XXX earnings current up assumes of mark-to-market the This start $XX the $XXX asset decrease which the our of come million. TCE, by adjusted top-line, section applied XX-months Hilli, average the power laid our will $XXX corporate On shipping pro Hence, increase across presentation On XX, portfolio. can in EBITDA if today, $XXX TCE The see we've was segment generation change in EBITDA you there's Golar’s million. fleet, in shipping year is the our $XX you

based corporate on we presentation million. then we of in agreed $XXX the based this plus Gimi our million. to plus today, Perenco, the see in million. EBITDA $XXX easily included Train the around asset then see EBITDA have with X $XX will a October spent rata time on But Netting XX-months generating adding portfolio, than and contract significant an That our around and TTF the to remains off EBITDA $XX of XX-year last XXXX, we million. on oil will $XXX more pro currently $XXX track contracted pricing. of embedded start current As around upside $XXX million with upside a rata on by from can cash, increase weigh million we at EBITDA, have EBITDA production then current Brent increase incremental will million into to investments, Gimi pro some

the and of market that remaining and around last million, trading billion, contractual our that billion, debt you will to $X.X assets around cash around a position EBITDA we're then XX-year is this of pricing CapEx where on compare BP, XX-months platform. to X embedded of you times, the X X X times growth flows or between is discount to portfolio. to include any currently $XXX an we in of If EBITDA of if can Golar’s and significant upside trading and believe see times you adjusted in monetize liquid $X.X cash We $X before asset across billion, cap and a also

the And optimistic significant So, capital with healthy we fundamentals across encouraged capital and buffer the very $X at by we of structure shipping around remain believe and we billion. now supporting FLNG. a are

Slide to outlook. and a Turning XX, for summary

Mark progressing million over new integrated anywhere we III have evaluating increased the our million We're have are current which we projects. ton expanded announced price. between existing EBITDA with backlog an $XXX and team in and million then FLNG capacity the currently for add or utilization on TTF, $XXX several As contract Hilli, X FLNG for the will customer current on buildings,

shipping side, we supporting higher than spot the further rates rates fundamental On term strength. see

an asset came increasing We $XX corporate portfolio. building And the see freight a EBITDA million. across market, rising exposure adjusted we and of our spot asset our On in on values higher stronger investments, and back prices. at new have

the $XXX $X a we liquid strong was FLNG further convertible which focus group operator I over questions. upcoming The and position equity bond today's by call. million, maturity, prepared sale $XX hand That book a of for like asset a of share. And it NFE refinancing the separating income net will shipping. remarks to our to following approximately and and our the billion, Our would of any equates concludes efforts of to simplification and cash on

Operator

Stifel. [Operator Instructions] comes first line from And question of the as from your Ben Nolan

open. lines Your ask your Please question.

Ben Nolan

morning. good Hey,

the natural Can towards Or, talked in maybe something So, at how potential things. moment? about is far conversations start, oh, you let I think I'll when there's the III progression you you and the guess those boy, a there. frame more with few would that a Mark are start development -- definitive? But me

Karl Staubo

Sure.

So number things I of on dependent day. these things, there of couple stakeholder other the a But why think binary charter, always the progressing every this the think the talk in and I sort taking when a end would you us are project there's of as supporting a things, both it's quickly as in type yes/no see possible. benefits decision of of charter, about at the

and lot one, left important you on most every day right driver course a the the There's number now think money wake. price. I table gas is of the for of

cost you when large to prices than way of due it's the complicated of When day orders sourcing day III. steel is and waiting for the a the significant yard decision it's then container capacity. going, one building more Second, vessels of investment large like, an going yard orders, Mark activity see lack fairly one delay

solutions. carbon I Lastly, have everybody's that which such the is ahead And should phase, we than have studies think possible. the track of as up quickly for solutions, the now move alternative the we proven and cost can liquefaction as next record confident search that been other are footprint, in FLNG to competitive and point, open concluded think interest the for in more I operational technology be then therefore our

Ben Nolan

Okay.

that -- is see it guess it's control, I a of something framework? obviously, fair out of kind your that XXXX a Is something you this that is as So maybe somewhat but event?

Karl Staubo

next able we to update Yes, more significant some be market and able six be XX-months, I there within to significant months, progress, the to see the progress. six say maybe should would than on XX-months,

Ben Nolan

really, relates contract in question the just second my contracting and general. five Perfect. Thanks, Karl. to And actually then year

a can contract. the thinking contracted basis? And that you're ships, is mean, of be something this rate kind any long-term room of I you that looking the a as five to was Tundra? to on there then on for other the a First, year on guess, is on do context get I an specifically, one FSRU on any I is that

Karl Staubo

Sure.

a in of couple questions. things there's So those

the So, charter, to for Tundras comes that when for not year five and FSRU. and to it be specific carrier is a

the all-in you well some above that to have if especially to it meaningful we bank, in breakeven. when fleet, helpful year where it's five the do Doing you potentially tie reasons with shipping a of above is way you why it the ships, prepare with separation of to FLNG also a do the for the cash One can Golar, term a decided how fleet can to and refinance our one discussions in our on ship helps shipping shipping non-recourse from business. fleet or

to So it’s it decided on attractive also driver refinancing, – rates we why are fix of equity historically. on we that have what compared the decent that cash generating helps was flow to we made And free to could ships the we been charter. find of to XXX interesting. a Tundra, cube as specifics several that of When XXX. and storage Tundra Tundra confident will high work projects instead are is very FSRU, it are comes the where her, has we throughput we for there increasingly a

we've very Tundra, to we likely then And at her, for like would she's it. would a how keep So that's until fixed not projects. to look but include were shipping we spin, suited do for see we certain well her alternatives and Tundra if that

Ben Nolan

Thank All you. Perfect. right.

Operator

comes from next Webber Chris the Tsung line your question Research. of [Operator And Instructions] from

ask ask question. your Please your open. is open, Chris lines Tsung, line question. please Your your

Mike Webber

morning. is Mike actually good Chris. How for Hey, doing? This on you Webber guys,

Karl Staubo

Mike. Hey,

Mike Webber

Good.

So on spin the just carrier wanted to specifically. follow-up

facility considered to delivering just carriers make a spin, So a basis. but on to carrier leverage we idea be relatively all there to even while get to refinancing flat, would things them refinance easier under it single a is levels assume those for presumably the the

Karl Staubo

a that's think I fair Yeah, assumption.

per XXX We’re in to around TFDE. down that

think leasing above I the slightly you probably if market, to can you proceeds want get that.

go it's for that, a number. financing, you normal but bank that slightly If around it's below variations

it we or whether lease sort see full it's of to package, with of lease. a structure most So a makes final bank or suitable, combination sort you whether up that sense really do to go the bank

needed, look we refinance non-recourse injection. could we structure can fairly but what like be without exactly on any could basis, on minimal dependent standalone further there a cash fleet the further deleveraging So

Mike Webber

Okay. That's awful.

So spending of kind complicating I mean, impediments to carriers. it's the always of the been one

looking what the all sequel, do Given kind timeline while idea you'd to of that? at be

Karl Staubo

transactions years mid obviously portfolio seen a I across the the think, concluded. of changes quite lot with NFE company

very a will for we we've take freed sort I close I of years to look this it but reengage solve been parked And two such any ago. this of It's quite all be now bit, a at think to fair, think was that troubling time up again. sort were we and around now discussions. to thorough we

of across corporate and I of corporate fair, Difficulty], the be Hygo lot think, to that's transaction space and GMLP. with gas the LNG [Technical activity in there's happened a private, large selling

So LNG, for we're it's play there that difficult the opportunities worth encouraged investors rates we And to across are with are, exploring. and pure some believe shipping where see exposure. that they to obtain

that’s think You makes gone to pure more exposure. we course, shipping for but times, play way three of than we’re exposure, already because see shipping that, can more buy, encouraged that

Mike Webber

Sure. And something the options Or, to specific counterparty, be of acknowledging markets? have you is you -- in number regard, public idea it out primarily involve pursuing spun are where that fleet? involved a a this could just carrier the scenarios a still in that

Karl Staubo

as be we would and exploring the be couple without a the well. best but It what is involved I we're certainly easily on latter. the could obviously the of think solution, other table any don't long partners think alternatives

Mike Webber

Hilli, adding follow-up different my a then laying there additional the you did And Sure. volumes of for the good in on out the and job scenarios deck.

term, in is of know, terms always the based understanding contract my a it's been I begin curious volume to with. Just

that asset, there bit something around and a to X after out extending activity. on underlying drilling volume that volumes? any utilize I you is at Is be inland country, conversations the more been you You the toggling substantive would in know Trains relevant contingent to Or, term X? contract least are I or for figure of now. playing some is little kind more that the the Perenco’s of on expect conversations of And guys baseline with guess

Karl Staubo

clear the there the Perenco, have we been think market extension and to thing extremely say I equally we see with are we about is that not talking fair expansion. that clear with before

think, E deck up completely word have So, so to the one in for that's July, within starting I now open until we there's that off We the only discuss. table concluded us, been expansion here to we than been obviously more it's we it from onwards, and has terms the in is extension. slide back the how door presented of But, in the open that see partners target on we as certainly our like. on structure so Slide a option to But look And that deploy be with to field needs economics to come ourselves. FLNG general. control XX, gas solutions the primary that could the be like contract to down work would find it Hilli would an to in what Perenco, be we well. with we But open

some during gas course we the conversations tried Hilli some, some We that are another seeing the fields quite to the good also those we flow of because to there our upstream reserves and we benefits made additional dependent wells, now that, three call that and And that think wells, very redeploy of we've could to in already hires mention some as think very of well. on we're strengthening are on will team. But, the we that of I interesting there two are start translate. I encouraged think build Perenco will think quickly

Mike Webber

Got you.

my say Appreciate. Thanks, follow-up. I'll Okay. guys.

Karl Staubo

Thanks.

Operator

comes from of Citi. from your next Chris line Wetherbee the As question

your ask Please open. is question. line Your

James Yoon

on James Chris. for guys, Hey

out around just something Just is should that wanted does that? on milestones or there of? just new we just to lot progressed. aware and of all regulation timing sort around questioning this follow-up essentially the that spin. Is you're the into a be areas any play ignored Or, How of essentially there aspect

fit, want see understand you there. anything As to just to aware kind of there's be of if

Karl Staubo

Sure.

the And come which the from obsolete ’XX. So on in less one will other XX% slow of have see positive we far mainly that only carriers, support fleet affecting the to Other for supply we're is steamer is be affected effects. of but see down, our need represent which big just We because in if positive have effective over Xst will left Arctic. that a We they as Jan steam which should benefit, the fleet, rates. either than water. XX% fleets than the or new very TFDEs, regulation

are I'm we So to forward looking change, and it. welcoming that

have And to not if think triggers, partners. be to spins looked to that it it think it's we I ourselves with open previously do we shipping well. I we're in partners, do we to will say we're again, the do be of is fair ship standalone doable And relying per to to as debt on the where level when expose with now, this them. on do to a situation should that terms will we level down a believe at but do we wish it's surely basis

James Yoon

-- possible just wait ’XX, you or Or, the it Got sense little it that ‘XX? wait the till or do something catalyst, into might of maybe and think is it make or it'll concern it. even to it your a strength whatever to But of the actually is a for bit where shouldn't view given of the other? one to the much you're Just that – think you you don't going reflect it for or to trying get outlook be versus understand way timing. or back-half expect

Karl Staubo

probably of interesting that been one that as LNG holding agree -- is LNG carriers. the history time shareholder, the through We of more period shipping a that's into

necessarily don't sale. we a see spin a as However,

then think doable. that's the you maintain As long really equity, and spin as it we

shipping exposure struggle versa. the Golar about the want And want the has for that don't FLNG you today, us, shipping you share, in considering one company. is vice into to of share, see and you'll that instead company, share get separate to fleet a efficient exposure, and another to own FLNG exposure we're pricing, shipping which So if because think LNG we we what exposure. necessarily people want And then What share, two an with then put which and which the the is just FLNG potentially shipping to share is FLNG is one then holding a handout GLNG shipping the venture. and one exposures, have

James Yoon

then another understanding possibly Got how right. FLNG a might you it. And of All just item, deal. structure separate sort

benefited You provided you've guys sort of flexibility gained. the have a from by the lot liquidity

like So think just about funding whenever to partner FLNG about you thinking the source, does come you an structure potential of you Would would it some you're understand project? trying how how initially? about think deal potentially, about? on Would other take a

Karl Staubo

a between distinguish to need arrangements, you so to similar deal that's There, BP. tolling

we get do building a we repeat sort financing. to contracts, to Gimi yard a of long-term were the if like So do newbuild expect would to would of against and

requirement partners. we already redeployment for to when large on lower during construction also have to taken we require we purpose such if course, very Gimi have that than And FLNG, would of contract. its of and been off think to existing portion project. as be cash we were marketable And and build a the would time. share alternatives Hilli CapEx have we and the in When also you on on we it then securities by of sufficient Hilli. the have of comes sort our fund it XXXX, likely debt into turns we've But integrated, are So structure amortized equity of significantly looking go that pay the

also in limited then should think need at our That's the her So from think do equity moment. we sheet. order own redeploy a what to we it can and separate it on entity, be about balance we very that

James Yoon

Great. Thank you.

Karl Staubo

Thanks.

Operator

of from Randy question comes Giveans Jefferies. next And from the line

question. your ask Please open. lines Your

Randy Giveans

Gentlemen, going? how's it

Karl Staubo

Randy. Hey,

Randy Giveans

A for the closed? liquidity maybe guess for you the excess facilities are what timing new question refinancing get collateral? $XXX million this of what I of release in $XXX or there. be sheets used assets will on And to million, received the hurdles term

Karl Staubo

Sure.

on can free additional assets. undelivered terms. fairly we some attractive have been do So, And we we alternatives believe we liquidity looking at some have how at up

that on part So relates those term Tundra, of around has to which that. sheets in currently million $XXX

We have released. credits, of some are cashback be letter that which could

in where having We million, $XXX again, of under levered are have also very there. a shareholding we for sort position NFE,

to that levered. the those, that's So to venues is that say Gimi addition it's under I are we of fair think some exploring in

against of project. million $XXX the have billion We debt backlog $X.X

oil derivative has Train utilization against neither neither of any Avenir I think X seen it, the shareholding. leverage increased and we as capacity does Hilli, our or have

the are that those some of we venues exploring. are So

we when see significant benefit sensitive raising you alternatives. if some there price across in terms liquidity these integrated upstream course, need and the extra alternatives. do of growth in now can attractive discussing it we particular, potential FLNG, or pipeline that these do see are We But is at the

Randy Giveans

Okay. converts And without that at if prices? selling does repay be NFE then I these guess the relatively way low shares would conclude, the that to

Karl Staubo

Yes.

very write since was as to trying report, NFE transaction consistent So we we on the are the be in this announced.

XX. it that share said what of now We've and the are current address to share And Golar NFE. when bond, convertible be will deciding Golar, with do with and in always to that sources do find tap upcoming funding shareholding sensitive the we our levels, as We holding. NFE’s price opposed we alternative July at expired to to on anything needs price these to best to on out lockups our near-term having of NFE

Randy Giveans

upside X significant pretty and EBITDA X Slides on question there's contribution. last guess I X, Train to or the downside it. Got

it's have that you EBITDA expect to looks floor this? you a any entirely going of TTF. you it Are contribution for next to So Or, year? like hedge do linked

Karl Staubo

loss. to I do Perenco nor linked think the that when fair at it's to except it's neither TTF, would us

gas So the But you increase on a both Hilli, and incremental long exposure. way aligned structured for can’t we it as have capacity a utilization production contract the to on we be also lose is for of the money to but where the to we time, TTF. know, in increase wanted

current impossible a you it's like dated at it But look there's hedge better Then the the curve, to if So market. have we yes, there to lose hedging upside. because LNG so what on in dynamic up, of the any that. significant it's is backward probably we're out, seeing don't floor, things. off plans We money you're

Randy Giveans

Got it. That it is Thanks me. so much. for

Karl Staubo

Thanks.

Operator

question from Sean next our line comes from And Evercore. Morgan of the

is line open. Please ask Your question. your

Sean Morgan

guys. Hey,

any terms for right implications Is like that III conversion you Gandria the be Or, the makes there looks and given sense do kind would from of now still of bespoke Mark this kind for right builds project? think the the preference specific a FLNG the Gandria? market for the priority the So Gandria projects? for this of the have in development additional newbuild. future side of Does will

Karl Staubo

sense. certainly make can It

separate making both think I way think that to we FLNG, this integrated. what then about we're that we the the in progress tried on we we're say report our is tolling trying in -- FLNG say and to

newbuild near-term making is the to side, absolutely progress tolling the comes the On it most as and likely well. we most that you're when discussion absolutely advanced And integrate in Mark III. correct. it are But

there. have a about some to relation and And sitting one her, But will her is done deployed. could a timeline, design somewhat She III to of back obviously Gandria. of be solution around with already open a than very than currently given on near-term our There worth We a I scrap in million. remain say more debt has using benefits date. Gandria think large both. Gandria. if a no quicker we I are is of in is that the value could to before as integrated, against Mark outside hole sourcing is have Singapore, you ask likely significantly a the that But But we more study that that. be the Mark would significantly LNG and For in anything discussion deploy probably Gandria $XX

Sean Morgan

capacity Okay. Hilli? And to smaller to the to for I the similar a the if solution, Mark III? it's what be were do would compared III. There'll Mark think Gandria, the the for you conversion five be

Karl Staubo

full the quarter about Gimi. and Yeah, Hilli of

Sean Morgan

Okay. a lot. Thanks

Karl Staubo

Thank you.

Operator

Bank the America. your you. And next from Hoexter of comes Thank Ken line of question from

Please line open. is question. ask Your your

Ken Hoexter

Great. Good afternoon. Good morning.

agreement and aware third Is stop Just the the up the performance? running Thanks. should the fully be Hilli, congrats that fourth on XXX% or operating. slows on drydocking any scheduled anything that Let train me And there and discussions to there. the we did on just how on train, that progress then the of running? the get upside, and keeping potential

Karl Staubo

Okay.

X, to X.X off the have million just wells. They incremental on two option from an depends drilling for the Train to the start ‘XX or now flow proving So is reserves But to those so up three Perenco and wells. from it another really current latter, ‘XX, tons. gas when on expect Hilli. the to contract on you the reserves the the drilling Currently, the be current of period, we X and and that of back Train just do utilization see But flow do measure the not can known location during what's could change or obviously actual of doing reserves.

could I Perenco’s for the unlikely period, we drilling think but would outcome say during now up. one, it's coming campaign, I the of that’s to it's that existing contract X do Train subject So that

half was? of your the other question Sorry,

Ken Hoexter

occur Oh -- the simple type Is forward that to just anything XX that one. that the there that going any is you've has had any downtime? loads, disrupts drydocking of

Karl Staubo

every there maintenance -- done will There And for period. or current remainder drydocking been no no again, the of scheduled at and do up we've those are to either down shut time successfully, the the budgeted There's windows. contract it's some quicker. be ramp of time sort back

are So very scheduled. any no don't we drydocks. there certainly are which is happy, downtime, we foresee without them, shutdowns not or And

Ken Hoexter

of And delivering constraints timing you've COVID or downtime? just are construction for on on guess, on the then late there And on that delivery? the anything penalties had Perfect. on Gimi, there any that I any impact or on is

Karl Staubo

of of feels I like on was one. COVID effect enough FM that think, XX-months the it

slightly We certainly we a serious note. but more that situation. So on keep the felt, monitoring obviously

and worsens, is here. need we alternative situation Singapore. shareholder to-date, with XX% project The source Keppel. is workers Keep became drydock non-Singaporean to booked more going problematic the progressing timeline. If get those according million complete. to final availability Singapore, XX.X or think around working are of the forward only to now some in is in the the and fifth Keppel – mind, plans I sensitivity We've is of COVID and into workers and we such workers the we need a working hours Capital sourcing the

aligned were we to solutions source with find such workers elsewhere. Keppel to So

pretty situation would under I COVID working the X,XXX under a control construction is around say So, to every the the much project can large extent control. is vessel the people on day. keep you situation on There

haven't any we now had across significant COVID For workforce. the outbreaks

Ken Hoexter

Eduardo rundown, the each color. through the simplification slides great parts different a Great on great of And it. on updates the it’s of running and

you the sounds date. monetizing potential just mentioned of stake the Just we simplification like stake you’ve have NFE plans. are there July us XX one the last you don't there? your thoughts the the monetizing one mean, the me any your it for of what given thoughts like want them, structure, maybe on -- just keep to give the is It passed on I sounds

Karl Staubo

of dollars in half with and familiar sold NFE, when around into itself three and which in, terminals in And billion obviously over the growth construction But under around can Hygo GMLP. NFE, in intimately under GMLP or Brazil, the volumes sharp will which it start can generated of Maranhao I coming quarters. then ramp Hygo. he's that injects see development Hygo chime from a EBITDA significant with in to a significant months, up and because we

asset portfolio attractive add you that from the of trade, of with that growth GMLP, existing if top play. what see and tools extremely for it's embedded if NFE, is like you an think So Hygo the the that we we

has into fruition. important is But NFE the course industrial that that encouraged the will January of by on was since building evolved get strategically to are XX. and terminal the share remain transaction we price disappointed We how announced see

If you But we in knows together add we're where they keep NFE, with I significant Brazilian some share, and more potential and about outs if can is the we're solution than of fast working that that why it. LNG that that's to very obtain integrated the far encouraged ins do. think the terminals There and Maranhao model.

Eduardo Maranhao

terminals on add deliver the we extremely in Brazil, how plan. their In the I in ability think their on I different think various had to a ongoing of business Yeah, on we special jurisdictions. see words remain just on continuation may projects of performance their are couple developments, we confident recent terminal here with if that I there the

have dialogue, and since we seen really deliver NFE’s in remain confident said, we progress and We close ability on significant as transaction, I to the that. announced on

our have upcoming alternative really address we in that, liquidity ample as everything the market that so needs, believe said it refinancing provide far. that we having fully to has to Golar addressing delivering NFE does presentation. have been ways explained So, further to value And the been not we

Ken Hoexter

Great. Appreciate guys. Thanks, the time.

Operator

Liam Burke your the As from from comes question B. of next line Riley.

is line question. open. ask your Please Your

Liam Burke

Hi, Eduardo. Karl. you? you. Hi, Thank are How

Eduardo Maranhao

Hey, Liam.

Liam Burke

contract of combination envision that tolling the how to Karl, or two? the back Mark could TTF the is would to you pricing is it of III tied go or it and project you the be

Karl Staubo

expenditure On discussing the to the as contract or expect on the have price we're the arrangement we we so EPC it Mark pricing what Mark III the comes itself the tolling price capital currently to of When fixed III Gimi. similar a sort contract. fixed

Liam Burke

alternatives pretty returns the of on see competition the any Okay, lower are projects projects attractiveness or you or cost alternative priced lower or these here? Do the great. nice. FLNG And

Karl Staubo

I is fair like to or are three [ph]. think a doing that there say that It's it's four people shale FLNG. producer

have of us. [indiscernible] on solution. We have is And and course there, the then the NFE fulfilling you working

have comes if you attractive. XXX% record per point if NFE the of but think, operational the not delivery. I competitive. track From liquefaction, track since a the that's cost also than any it minute, record, to better an view, competitive, of OpEx exclude a on uptime we highly ones I think When for most with mentioned we're

day, think, XX, will So in you at again, as highlighted look see the far it's end if at more the on Slide that you economics, of deck, FLNG the I important.

is are are thing on are important that reliance have when you're most better last they as the competitive these all upside they even the service, now, to or able if were gas are like capture We parameters, but a you prices they winter.

end I our take. have I their produce to for real but operational FLNG the comes So attractiveness. any our to the And when NFE, and own it ambition think of use for others, day, the price think rather record they don't at track is points

tolling competitor So as see a on them business. don't we

Liam Burke

Great. you, Thank Karl.

Operator

time. at Please this And there no further continue. questions are

Karl Staubo

get the here. Thank But on call And Thank sorry conference speak you for soon. Again, you. for to dialing we're of could relevant and you bit call. go with all stay question. thanks a dial-in some of sort that all and glad the mess let’s into delays for

Operator

participating, you disconnect. today's for may concludes conference Thank and this now And call. you

Golar LNG Limited (GLNG) 9 Aug 212021 Q2 Earnings call transcript