GLNG - Earnings call transcript Q3 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Golar LNG Limited Third Quarter 2021 Conference Call. At this time, all participants are in listen-only mode, until we conduct the question-and-answer session on the phone and on the web.

Just to remind you all, this call is being recorded. I would like to hand over to your Mr. Karl Staubo. meeting. your begin Please

Karl Staubo

the welcome like LNG's taking to My Fredrik dial and LNG. presentation. time earnings We in. Staubo, Karl is would thank name of to all, Golar QX Golar results to CEO Hi, you for

quarterly into today statements quarter's accompanied please note our results. present this CFO, Mr. Before on the the two. slide we results, get to I'm by forward-looking Eduardo Maranhao,

We of report million, to and revenue the Turning QX slide of $XXX increase and quarter XX% EBITDA a adjusted highlights. year-over-year up year-over-year. XX%, three an of million, for $XX

has strong We QX FLNG in cargo, uptime on delivered other expect continue commodity to we'll our million quarter. of continue of to now Shipping, $XX.X Furthermore, Starting we which and Hilli, than this TTF at for XX% earnings a the see X get FLNG production our we earnings 'XX, exposure a implying off $XX both throughout globally. any linked its deliver of MMBtu, the QX our LNG FLNG, details growth which hedged to across XXX% for and train into our more XXrd segment presentation. from on per

the XX% now our to Golar's just to billion. to increasing commodity see scheduled backlog and and Gimi $X start contract last complete, Hilli, an the FLNG years. two is XX earnings We about also in technically This linked in for of XX-year earnings. BP is will months Golar Hilli Brent-linked from more EBITDA earnings, its from unlock contribution [indiscernible] from production double together, expected than XXXX, versus

potential for increased experienced also new FLNG momentum projects. We

rapid of also an million existing We new Mark on integrated five continue a projects. making potential build. ton And constructive customer for III with use we're progress discussions

FLNG have quarter in the different seen increase prospective of customers an in across also geographies. amount the We

a Turning year-over-year. XX% day $XX,XXX the to portfolio our a of Shipping quarter, Shipping, TCE achieved for up

spot increased due fleet up this also exposure through segment opening going to XXXX. to expect from see increased earnings of We forward our

increasing FLNG at see We with values for a convertible Shipping no continued until the well The upcoming other ships these corporate financings increasing prices, be contracted We refinance maturities revenue our quarter. in our as secured charter maturity will $XXX,XXX about five-year vessel from material bond debt the I used attractive one as day have to the time an now flexibility the $XXX financial Eduardo building over one-year proceeds results. by quarter We increasing and and have delivers to asset charters, day, recently turn for extend of maturity, $XXX our financings. driven new take fund increased third after of strengthening On for new financings through segment increasing rates. to investment, Gimi to million. for a shipping FLNG LNG will us to interest we project. to three the call million growth during backlog now

Eduardo Maranhao

on morning, and Karl, Thanks, XXXX. I'm update third good the of pleased quarter to financial an our results provide very for everybody.

year-on-year. the in we and same number in a this of $XX QX, performance increased quarter million EBITDA last up $XXX Operational in So, operating to can turning an million group see was the very quarter. year. of third slide was had at five, came quarter, that solid really the from increase Total strong, performance XX% to revenues this adjusted XX%

derivatives shipping oil end at was mark-to-market by on numbers. and value shipping Fortress this non-cash was unrealized than of recorded year's and $XX of more operating million; to this revenues a adjustment fleet we across to QX This by driven strong shareholding loss September. net the total can mainly of Energy partially $XX,XXX be and gains increased more about our and the talk presentation. $XXX million improving our to I quarter, day QX, offset million. of last a on in The QX, XX% attributed up This New TCE in $XX this a XX% will of our gad realized in increase per earnings performance.

for as will QX when We last expected additional operating at year. Hilli were This operational shipping number oil-linked fleet Hilli, FLNG it from higher component continue the with expect to cash the barrel. will re-contracted $X.X This $XX increase line including of QX, increase in revenues Total flows million be Brent Brent-linked [indiscernible] $XX approximately million per crude $XX in our generates prices was million including further every rates. enhanced in dollar of above revenues. in

oil rising in this realized XX% when of increase quarter, $XX compared to $X XXXX. year. with realized QX. the million contributed also $X.X compared an of QX, result when reflecting increase in Adjusted $XX FLNG XX% quarter, recorded last this same period was million of an important of a was prices, derivative million QX, an Shipping from million EBITDA we the As instrument from gain on up to

We FLNG the expect generation EBITDA exposure to years, over from the Hilli. on of from two three from back levels earnings contracted and times commodity our adjusted Gimi current our grow earnings on segment four to from next increased

XX% from sheet balance QX, last year. by position cash same was the million. the year-on-year, time, same billion, debt to end At total $X.X to Our total down continues of strengthen. At period our the $XXX increased contractual has our XX% of

financing three corporate million. slide up which approval extend of priced six, in our bond, include to of FSRU the $XXX a the one maturity three-year obtained secured another million, as $XXX January, four-year unsecured to $XXX the from case, new So, in new vessels, January October, $XXX in Golar Seal, to on Karl years, Tundra this mentioned also our to for refinancing before, of RCF to And we for million moving have up facilities, new XXXX, we have a XXXX. million which of number Golar we

reducing time interest on So, combination same extend us to existing facilities those costs at as the the of maturities, debt facilities. key the allowed has our

refinancing these material FLNG our of XXXX, delivery are importantly, address improve favorable terms there More maturities. enabled convertible on bond debt expected substantially in to and now Between sheet and no Gimi flexibility. initiatives our have balance of the us the our

there related shipping next address of low to in maturities re-financings levels passage. ability years, confident on extremely into While these our value on the such the remain some based few we are

So, more FLNG now another in XXX% to and would of number she moving a the adjusted talk achieved little slide In on eight, EBITDA $XX performance about I our to more QX, uptime, million quarter bit commercial generated than like of Golar. to incredible Hilli.

had oil any the additional XXrd upside we the prices liquefaction provide than unit producing LNG floating more meaningful earnings gas no quarter, other This will world. in recently cargo CapEx. with from increased and offloaded, Tailings

increasingly We for Brent-linked $XX market the XXXX. QX. And contributions in fees to based future million approximately expect generate forward we from are on prices, our optimistic in

year just production QX part million at exposure agreed us also alone. for that increase from to next $XX is a benefit gas production prices it incremental net we agreement 'XX TTF hedged have We of of Btu, Golar from for first by per of that XXXX exporter recently $XX of XXX,XXX the that prices, price to this speaking that production. allows an gas approximately quarter of our tons, feature a to incremental have million, income of implies important And to

increase have the production to to which which tons I'll further the a could XXXX agreed this back over tons potentially by from Lastly, per Karl. can X.X XXX,XXX customer, production to now even be extended, on with based year to potential incremental turn up we XXXX. million three-year option, call

Karl Staubo

Thank you, Eduardo.

incremental what increase this some nine diving more detail Turning of in into to equate could of the and dollars. slide to in production

the price revenue fee initial be in Golar. the capacity, tolling oil flow tie no to change X.X Golar declared drilling X% Golar, the to XX. an every price expect Brent here change in the prices X.X we incur of production Golar would increase having grounded reserves in generated of more TTF utilization TTF of to of are derivative production the again, of price. drilling XXXX. and makes from should The say is Perenco is campaign for this $X.X optional linked EBITDA, $XX to for gas Hilli So, to sensitivity incremental of the an $X the for to capacity increased net annual current plus its EBITDA current X.X is production the the $XX successful. have XXXX current increment this you you will will would to of On XX% if XXXX from those needs production be increase XXXX million increased tons Golar expenditures first-half from to XXXX. the 'XX increased tons annual installed to and million production or different charter the price, EBITDA. from EBITDA the increase announced highlight utilization. million dollar view from linked $X.X XX% to option million capital XX% was price. to capacity Sure, we more generation a a installed by the prices, capacity or In years income. the generation sensitivity. Xst to corresponds TTF TTF fee utilization change XX% million increases ongoing the the is the that has to to in the EBITDA from end equivalent utilization from of a EBITDA TTF for for January all option at fixed originally $X.X million about above contracted July, X.X Hilli, utilization. in capacity capacity Again three share XX results million the A The or until where TTF They TTF $XXX is to tariff of during option of of clear million Hilli would own dollar Perenco, The tons to XX million in currently its would a that million to straight change the contract can that half the equate Important unit, three-year a facilitate of of for July to to be in tolling capacity. XX% run in tons your volume we XX% correspond one-time program

generation two from will full years. is year EBITDA We're flow work man generation components construction Golar and and Engineering $XXX now with XX% complete million is Construction, technically Gimi invested then than more start work cash and which update to to more annual to contract Gimi capital of mainly XX commissioning. startup, XX, all work for the Turning on years remaining million are XX% procurement unlocking and from slide $XXX Golar's critical than of now date. currently about XX hours million every of complete

focus reservoir the $X our quality is counterpart. on illustrative we Turning projects. encouraged FLNG value and from to attractive left, Starting FLNG positioned the around and FLNG slide opportunity explain XX, projects. We're MMBtu. this $X believe is an increasingly And per integrated market gas Lifting uniquely to FLNG increase $X we'll cost surface tolling top for of will chain to we the Golar the growth. arrangements by for why. on duration typically range the on dependent credit from now

seek You that $X.XX don't another MMBtu on around very $X.X linked what's around also user and That to FLNG to These environment $X margin the FLNG on of equates million per at interest end an the billion leaves FLNG. you driving gas $X new current that's $X.X that the current from per FLNG ship it $XX an per are LNG around breakeven margin generation gas projects increased billion $XX MMBtu. prices MMBtu. to to margins and $X Asia increased prospective the of deliver our for This for Comparing explains charters with of EBITDA means million per gas need or a a to a in is MMBtu. commodity for current can shipping Obviously, rates contracts. desire high. almost price

is on would at So, you a historical in be top the the the reward, line money. taking do for of a prices, cash in it's gas landed look not make see attractive breakeven see And gas right, a green this healthy context Asia. extremely extremely $X can compared few make that you can extremely margins. you historical most part, scenarios where risk an to you the And

next demand we for years, suggests furthermore be which the should the the believe XX versus LNG Lastly, strategy. years this strong stronger supports on prices LNG previous that XX pool

our of On other we bottom the half FLNG compared footprint liquefaction the offshore and page, plants. have of gas carbon land to technology the based

Hence, take projects. Our and as investment our new FLNG decisions new is technology build ranked the we to initiatives experience on attribute to this developments. out best-in-class macro supportive important to an gas integrated for we continue FLNG for that technology consider increasingly underlying charters when highly of view our

shed slide some Turning try to see lights on most XX, where we the arising. FLNG to more opportunities interesting we

new seen increasing resources have development Middle FLNGs we where East, gas gas new amount remain of mentioned, the low abundant natural an geographies The proven As most gas there invest cost, quality, Africa reserves. project considering for active in high of reserves. and are

tolling for these We base and projects are regions. currently discussions in both in integrated

Turning on shipping XX, see also from segments. our slide to we to strengthening expect shipping earnings attention our continued

As $XX,XXX expect at day. QX our a quarter $XX,XXX shipping XXXX the Eduardo came mentioned, around at TCE TCE for we day and a in

night number vessel of We've The XXX% current line lower the spot longer vessel interest that million an months coloring blue a this across from exposed this the than XX the outlook a encouraged day. recently bars will into Hence remain alternatives a to factors Last coverage, to EBITDA by days we evaluating new We see XX% We're and fleet one for of back earnings blue of charter million, can of one-year tried around exposure where simplification on side, was Golar change result of the three potentially group deleveraging of five-year earnings. our part represent created a we change five-year for ships fixed of of illustrate hand by the of LNG to a in the healthy than shipping are this a and the a fleet in dark That stapled you in and summer about confident with separate segments, months on days. charter our for will on concluded charter day. fixed $XXX together that value represents term lower on shipping shipping left spot segment. The vehicle. fleet These asset looked days shipping business to $XXX,XXX we by we higher corresponds develop our as from where charter. increasing EBITDA. XXXX. last to XX that increased building represents prices $XX our increasing is equity significantly will separating which opportunistic charter increased further has $XX,XXX QX a our see red $XX,XXX EBITDA values

the generally shipping $XXX,XXX the a trade being strengthened day as long-haul Turning and rates an expected pipe the arbitrage Asia with year-over-year every in driver single Europe quotes across between to market. slide already a to adding XX, has market the are main are widening entire up of month. Broker of excess and

are markets. the supply supply, events and also side, the On LNG the arbitrages that current we affecting out in rates, commodity other prices of across rates term LNG turn demand through explains the current some impacting board. XXXX, in impact we effective markets support have regulations highlighted new prices are key From the LNG charters On longer-term environmental right-hand continued support why XXXX. geographical in slide to the will and longer see coverage the available fix creating XX, strong which full for carrier

see We LNG and high Brazil, South dropped in weather On of with higher demand and in see are from XXX% output. the demand especially cooling supply demand above broad imports XX% heating demand, is in demand. rebound due to America, side, which the year-to-date. demand frequency We in condition see LNG Asian XX%. Europe renewable low year-to-date LNG higher up causing we which LNG up up stable a Chinese see in hydropower on We extreme for peaks limited

of supply flows the to from On and producers, Nigeria average Central limiting Europe. We Trinidad, Europe the see number impacting from a supplies. below storage including Northwest the season are of volumes Russia ability Peru. hurricane see to levels side, we supply European reduced reduced and five-year U.S. this

in model all at in day extremes end our higher which think all volatility, market and the So, business the these shipping impact the benefits of we particular.

to express and fleet within emissions levels. reduce our reduce have XXXX by Turning efforts we targets continue our to wide XX, intensity versus XXXX carbon carbon to our slide XX%

and fleet to for for we of focus from exception commercial see exploring effective the we to with our We're the path carrier new are shipping be push our alternatives her only our ahead in as Golar of is we within regulations evaluated of industry new becoming towards the committed according we and - cut well entire the Xst We January fleet emissions to on remaining LNG net environmental XXXX. continue the of zero. Arctic to to the part all boundary have Arctic. the regulations where the also emissions and standards enable are are increasing work fleet entire EEXI CII steam our

to believe in the a last transition slide on focus section, LNG vital cleaner sources we will the towards Turning of corporate XX, play strategic energy. to role continue and

the in mix. view years gas BP the XX% LNG oil likely supports that energy time market from natural a of hydrocarbon coal, segment higher assumed per barrels BP of LNG is for at consumes we buffer outlook plants by LNG included of share And X% oil load coal oil sources of We base presented expects earnings its comfort Golar's the by work energy to sun, by embedded demand have from same next to or the flexible million renewable. here slide. coal to a to BP increased $XXX by energy serviced oil operate supply expects energy alternative reduce per in XX% to to power that demand nature day. project. this supply of energy in Today, its equivalent to XX% world attributes demand and we around shipping the as second in global gives us energy is summarizes of period, day. barrels renewables. growth order reduced global XX has XX% will then a million renewable slide made there world offsets and be of million our oil energy versus XXX sources. growth energy. meet increase demand XXX XXXX. enables other If previous only in segment, XX fuels In and XX by The in XX by today the on after times equivalent sufficient of this fastest world XXXX and the that prices energy power where EBITDA and we supporting backup will be and market rollouts energy and produce not is At rain gas from an gas of wind source growing one FLNG last years Slide creating months. This cleanest the and go

rolling we market off. as Again rates expect $XX to to million equates in a significant change significantly generation carriers increase for fleet change shipping our to explained, across the for LNG see $XX,XXX than EBITDA current that is are charters higher EBITDA. As

could to the of the the million were you in double than $XXX more and fleet, one course mark to entire rates two go next see the up to you way years. all If market shipping to

$XX $XX of Turning of which million $XX to fee we million and Hilli, oiling revenues. made tolling fixed last comprised XX months, million of

on back Golar. Xst incremental see volumes, of of strong development of increasing generated growth We TTF the CapEx all expect with to well link to from no startup revenues, as EBITDA as the next Brent linked January in year

$XXX start where equity. of $XXX XX Turning there's from with CapEx will and $XXX see at debt contract by and years in of covered linked we years. its Gimi to we If about million. contribution million Gimi, $XXX to $XXX for every to million our million the G&A, three under any adding developing could commodity increased last which EBITDA million Adding is closer year portfolio this $XXX only by to million off any increase XX FLNG growth adding net is is be XX revenues next the where unit Gimi $XXX QX with EBITDA months Golar Further fixed year Gimi, million. derived before within to BP total CapEx and will This construction, EBITDA will remaining unit the will XXXX. generate the generation EBITDA currently from $XXX to this projects. unit the rates shipping two

for stands billion net at Our $X.X remaining at $X.X and CapEx debt contractual securities of $X.X billion. a and cash remaining billion. marketable debt, $X.X suggests This billion including CapEx,

revenues to to from EBITDA for we generation slide, stream. segment two Gimi and quadruple and on three the during FLNG, last Turning our on to driven outlook, years, the summary next commodity-linked expect coming Hilli, FLNG by

market-leading design, LNG Golar projects proven track LNG demand supported carbon low-cost positions for record, increased footprint Our capitalize on and to by operational prices. stronger our industry-leading

alluded from new As to, projects. see and integrated we increased fee momentum tolling

increase increased those to earnings off. We from as segment market we our also than stronger see Shipping expect to exposure rates rolling

the current to believe and operational Golar's in leverage questions. of new XXXX. turn any financial and financial $XXX million fundamentals, call, call see our refinancing market our funding earnings all That capitalize have Lastly, on dialing We're now optimistic enabling delivers. going and we concludes flexibility We group operator debt XXXX Golar of on QX presentation. the for to the the facilities and simplification. again you of projects, material until for no and Thank business, Corporate, with about to new well-positioned increased macro we'll further tailwinds over Gimi into is growth maturities secured, benefiting and potential the strengthening direction FLNG

Operator

Instructions] first [Operator Randy you. Thank question. go comes Please Giveans your from question the of line Jefferies. from with Our ahead

Randy Giveans

Eduardo. Karl Howdy, How's it going? and

Karl Staubo

Hey, Randy.

Eduardo Maranhao

Randy. Hey,

Randy Giveans

Hey.

of expansion congrats XXXX, any [indiscernible] XXX,XXX obviously a a basically, first-half Hilli this capped, or obviously the X, it it's is that, option been tons of that specific here throughput hurdles or in can't And around time take increased of on next tons, around few XX,XXX know elevated or first, on January the of quarter or yes, advantage long LNG year? the then questions in I throughout be this, can into lastly, timeline start there? prices X, a per this, So, there before any the start is train further to next year? the date quarter so kind pulled first for it's coming, at secondly of deadline then And reason some more

Karl Staubo

Yes, sure.

throughout the now equally XXX,XXX tons so quarter. a for XX,XXX year, So, it next of think distributed as is

Randy Giveans

Yes.

Karl Staubo

we that overproduction quarter. and flows fine-tuned production, there is dependent with But into equally prices. have can gas As some the room gas each be current that's for on

move very into So, drilling When that of first-half are it's gas of the to drilling They easy they need a the They high it all further to not during of prices expansion, option QX. undergoing year. to well. currently next one the program. comes declare to originally committed

We drilling have the wells been made production. aware that four secure incremental to they're now

that So, in the this with remain it's with was it's wells. if everybody's do interest volume will the they operation will. with likely that likely four well, one times And it think declared declare they incremental and that optimistic And 'XX. to from Hilli, gas four it option of 'XX to we stable think the we price they as we very

Randy Giveans

to some question, on to that earlier little part upside? the quick then turn get way any And that of January it. a XQ X, other than Got

Karl Staubo

We believe this contractual will happen from January that's the obligation. X,

Randy Giveans

Got right, of clearly then and really, it. even there, All in maturities till no sheet, shape minimal balance including turning Gimi. great your to kind XXXX, CapEx debt

two that. around questions guess I So,

share debt are the kind reducing the the then the focus trading February? here and this from or you just the $XX-$XX, the on of And beyond until authorization, stubbornly your over additional use any timing share repurchase carriers? LNG further First, what's secondly, in there Is of expect at the of fourth liquidity? do redemption, converts quarter that next maybe waiting

Karl Staubo

to want one, take Do you Eduardo?

Eduardo Maranhao

sure. Yes,

hi, So, Randy.

of it [insurance] when of the the convertible So, the to the we bonds, $XX of of connection with unsecureds, $XXX comes [Ph] million million in out have converts. the repaid redemption

And bonds upon repay maturity, to XXX, redeem those we bonds we with date. in remain to which that we will other plans February. So, so further mature no have plan any before

Randy Giveans

Okay.

Eduardo Maranhao

our in do connection to $XX issuance. we allowance approved -- repurchase, buyback we the plans further an million of no still in been the And prepaid comes program. it as $XX have, to or And bond already intentions share near-term. million by has no when up the share to complete But to Board, with have the but it right

Randy Giveans

someone so the right, me. Thanks much. I ask All guess, it for well, else spin I'll about that's potential. let LNG

Eduardo Maranhao

you. Thank

Karl Staubo

Thank you, Randy.

Operator

next [Operator your Please Ken America. Bank question the with question. of ahead Instructions] Hoexter go Our comes of line from from

Ken Hoexter

Can Karl discussions? you just about you're discussions, Great. Is FLNG up we've heard anything sounds a Eduardo. like Hey, us, Mark and those Maybe Are accelerating Gandria? it over they talk Golar some provide progress popping on the the the lot past. more of III? that of the from

I see what and stage progressing? want far just So, think they're you how at, to they're do

Karl Staubo

Yes, hi, Ken.

in by more I at August. months. time, XX. So, QX that said that the July, on the that time news we stand that within we material the same question six in said and got think be And that FLNG will call. XX we six guiding, we think was likely there would I At to than And think we

you see on [Ph] it comes And [what of] on where type we we project, tolling are to contacts. timing. that integrated both base and progress perspective some So, gives when making

yesterday, to three-and-a-half Tortue the have that today. they field, FLNG listen And -- of of some for the accommodate integrated is apart On of LNG decision if should built tons, and production FLNG, infrastructure, other we Gandria, million be you FID solutions. I projects, during five on the but done that discussed the from call there's to Phase So, by also X think XXXX. field Cosmos' all quarterly

utilize volumes, the and the I then the on probably And Mark fee, we'll tolling project, or would that smaller a III say likely that I will go I II Mark [indiscernible]. think So, Mark more integrated a it's on device.

Ken Hoexter

Great.

Randy's looking little -- Are you that. the look of do Thank Thanks. potential all on have -- mentioned, the couple a grow forward in an for that you. to you maybe And Sounds it 'XX, like answer time the is size? still we're bit something's maybe production couple that to next when you of that just it the frame the fourth the next coming months, -- two is first that train? months then is train? trains, you over But is and And this have and in questions. scale verily so the any third access in more that increase they answer, on to following give

Karl Staubo

Yes, sure.

to So, has we four today, and got which from trains, Hilli produce clear, produce we be we trains just four interchange from. all trains

new you it in a sit think then don't a it. for new car, to and it as and garage of your Even four try Just still car. go if it's let start years, buying

want do. make speed as it's to works kept you So, that of sort to up supposed to it's sure and

we produce So, right, if and X. utilization. X%, an to into from only 'XX, of keep train you trains, 'XX XX% that increase 'XX we production that's And interchanging produce from. you're on The incremental XX%. of to which X of trains potentially for that But our is, want we and equate

can summer, to of if All and all six X, the that four or should they before between from of satisfied need of months we interchange first the XXXX trains during declared we even train at be the the end up the latest. know

Ken Hoexter

mentioned from right, trains. those incremental, All then incremental and any three just that comes within comes the you

interchange. at the looking still You're even the upscaling fourth to yet, it not with

Karl Staubo

have can agreements off-take amount from XXXX. has that do this resource of gas have the with and until Perenco to extract That the entered that that gas July to into themselves producing while they allow still the flow we're firing

Ken Hoexter

two, my time. Karl. are Those Perfect. Thanks, appreciate the Eduardo. Thanks,

Karl Staubo

Thanks.

Eduardo Maranhao

you. Thank

Operator

comes to Our go from with ahead Ben Nolan Stifel. Please your question question. next line of

Frank Galanti

on I for Can potential the longer our Are is or contract, and it to it the looking the to of the nothing? volume gas there taking through Perenco Frank Hilli could sign is wanted with on of that additional for Thanks Ben. contract in out past XXXX? you more at Hilli Galanti end the that kind longer-term. options for walk thinking This other just kind follow-up great. Yes, other options Is it provide -- new -- needed? that of a term words, is question.

Karl Staubo

sure. Yes,

in be production until to with The the Hilli we And And we we record not have one target the increase full so is that capacity an direction. where about I along that direction. an January talk we And is unit that proven to to but price, in her potential the declared Hilli X or unit. is step said is potential extension Should of step or are be is going think to from with increase the then that think current get Perenco several it on XX of attractive we further that for the utilization our increased could XX the more all from of to declared, paid get deploy we another integrated and increasingly contract not, track open charters. gas discuss upside. before

Frank Galanti

currently your flared But an And more type helpful. opportunity question, to that my of Okay. expectations gas obvious been thinking some those from an are the talk hard gas guess about to able or and Yes, has sourcing stranded materialize. deals what that's then challenges I through clearly providing is for second of solution. that sort is monetize gas specifically Could then solve on, of perspectives problems? being kind on on the those you in of to and

Karl Staubo

at least than been FIDs FLNG, price. factor purely think why been anticipated slower as have that's the Golar originally I the gas to key the

at the which is driving power, why it's and look been GMLP. the name for gas you and mainly the four built then Hygo to the bit focus later years, course price if Golar or change downstream, we to which sold kind of was last shifted of five over So, where a

in Now We investment. new on the supports price that curves the also that FLNG currently unlocking forward upstream but the back think driver of gas territory spot, key that's project. is on

the it LNG driven specific time, exports, time Other all forward use in regulatory have So, which you current, approval. by need That's of stumbling the to is but first that government close some permits includes picture be allowed key the to consuming to equally prices. call and foremost, it's field to important LNG both driver. of blocks

Frank Galanti

Okay, Thanks much. very very helpful.

Operator

the next Webber Our with line Mike comes ahead of Research. from question your question. Webber from go Please

Mike Webber

Hey, good guys. morning you? are How

Karl Staubo

Mike. Hey,

Eduardo Maranhao

Well, thanks.

Mike Webber

Good.

the has your differently, carriers business, the you at good. the this absent that to ability it but you're LNG has that but LNG there's already I out much the one with the of plan into chase lot your a I review carriers. only some time appreciated going references what -- end on and do it parsed is volatility to the finance so additional Some strategic into FLNG looking having been balance to re-carving a not think to of historically. Golar be Ell, deck a sheet at thing guys pertains of as his you bit then and there's looks looks But Randy go particularly able that's there, put and especially ability that's and know is little attractively, the even on the issue an here color energy to bit little at to get for which of bit showing in over, kind like it been a

So, you up carrier you market. project LNG think would you run FID-ing or $X that or finding and into likely do think strategic you you on formally FLNG it's pursuing billion before -- billion for spin right put consider the do back to likely you a executing curious, I'm you'll fleet financing solutions or the the $X that would an -- end

Karl Staubo

the that do We FLNG an projects not spin that's as issue did. at the shipping to all absolutely do see new not way a requirement we

that's highlighted much right we we and FLNG both a shipping, we think to admit segment the mainly now in because have have in our sits the the we outlook competitive have that where for very we As unique FLNG like but edge. uniqueness past,

venues. they something and update have as listed could it segments pursuing that convinced we will. opportunistic be continue two to will once vehicles much So, segments, like from were separately we as both think the in that to pretty be market extract such value we And with, could if the I'm the we we better

Mike Webber

building dig get be to at if looking somewhere financing, can larger you endeavor. that's be that's Mark likely to MPTA, going export III a Got X And a you're little going into just that a bit, just to and where you're you.

If you're about in a ton But to projects made would that and a think not likely you've availability I if a China, is Mark I the looking for point going more at next your large front sounds market. looking million Mark ton X presumption you big that it's been look Or in It Mark at that you're as placing market doing look spending the the right, want perspective. Tortue? the then at, you I III likely a it's financing the the from runner it's at time, balance the shift to Singapore think Do the second -- know your if way I the a like be that I prioritize II. carriers for or I on assume would on sheet. address long to be your you Korea, to like in you make FLNG sure asset you earlier, X.X of are has kind we're Tortue that quite importance obviously back something into clear project? it Tortue, because of of just that implications but seems

Karl Staubo

We and today. $XXX have securities north of marketable million cash

I proven similar It changed one BP the FLNG's that not The a XXX% initial operated and think one would is is -- the was no concept since has and time Hilli work for concept is XXXX. unit. in ordered proven this of with now if knew the since key at that's things this unit practice. a actually utilization

to a So, generic made an a like it's It's the asset. FPSO asset. become custom that's field. It's not of generic to starting more

very also and do we these availability Gimi. see contracted for originally we So, Hilli from when different financing units,

the right FLNG that will us significantly target likely a You will to are reduced equity phase. that structures allow have for projects, we construction new contribution during

Mike Webber

all mind your financing. been sticks able to Hilli, what that I had Guinea, which my guess and which where $XXX in out was is factor burning being right, a year of that part would the also which post know see I have contracts, Right. in wasn't Equatorial million had you're turned LNG in because space. that had but you built, was the it complicating market

the to from and given knows is outlook, now. now, right three concern a where but not are two the that's years market where we obviously who So,

So, a is we've with couple a I of what trying angle decade past over repeat times think the the to asking. ago of seen avoid that's cycle which kind I'm

Karl Staubo

-- around. to we you resource the high there. But that so, a still say, that the as quality day failed no other still very natural at project time got of a we're assume alongside And what large resource. very know is It's project. that any it's last on end that integrated gas. still Yes, It's evaluating

going we there's currently ensure this we're project at, time, back from under discussion but very that right so to if that only in, So, the looking not we're will that's far several integrated need now. happen

Mike Webber

offline. Thanks can the it. take I that for guys. okay. time Right, Appreciate

Karl Staubo

you. Thank

Operator

from ahead Morgan Please your from [Operator Instructions] Our next question go comes of the question. with Evercore. Sean line

Sean Morgan

Hi, guys. Thanks for questions. taking my

I XX of have up I bit the up model. I kind little for to Slide as see XX, on So, spot the range widespread LNG, a integrated of the follow some which for a kind at discussed what on activity in just we've on but think sort look indicates we Asia to of pretty

on were so If in you need European interest a more backstop and, smaller -- you mentioned of think model the bit order asset And produce based sort would volatility the for that we've that of integrated that you any one cost pricing in there the spot of the TTF if Asian in towards And are to to market Brent? a -- to maybe need SPAa. recent sign the there you for those to and builds it's project. or little the is be with sign interest to kind the FLNG. need, Is is seen any there based it smaller for and actually seeing you SPAs in finance JKM fact prices the SPAs,

Karl Staubo

sure. Yes,

fund back TTF model JKM you that to on the half natural similar asymmetric projects or it on volume basis end of what day, doing But and on sell an is user. net or to in linked market. or the And whether looks such whether to it's a depends half for end in risk linked to interesting of like the what can that what could so So, to SPA try be be parts and the SPA the it on at negotiate you Brent of exposed that's create profile, -- other And depends to integrate the then you with said negotiations. interesting naked with the search could SPA. be

Sean Morgan

Okay.

essentially finance facility, SPA without export facility there's where having it's integrated all. lining you an of financing on think whether the at up you market an terms to more could a with or project that that go traditional the doing you you'd in route so, And rely bank

Karl Staubo

unit existing it's and an very bit think an project use but new the I a you into development a obviously directly whether a business on we FLNG a premature company, unit. the or Like, depends enter not of into It funding. question it of without would

key the we when funding the one attributes So, project. of build is

Sean Morgan

a lot. Thanks Okay.

Karl Staubo

Thanks.

Operator

go Brothers. And our Shere the from Please line Craig Tuohy of from with ahead next question question. comes your

Craig Shere

Good in three a our contracting. the logjam scale break land the focus in question to on the large One months time. integrated about morning, good been years there approach, two for that's seen quarter. recent on long-term, we've Congratulations the on LNG based

new top FIDs quarters some the teed next Qatari being And are of in couple decade certainly on up mid supply. the

mid and off As about late committed on in commodity the still you more with ever even as are think decade? route contract coming as Perenco this XXXX Hilli, to into we exposure going

Karl Staubo

see in in deck anywhere significant liquifaction and up we if XX% to new tons, a Slide the tons are is meet Yes, XXX development. I we to think the showed here, XX to back need we if to ramp that close LNG you projects million million to go that from XXX grow by expected to

previous at least the take link answer downside any be So, commodity fixed and reduce volume risk is short again, exposure. SPAs would offsite the as question, for probably we have that half to the yes, would significant interested to to we But exposure.

Craig Shere

you, Got okay…

Karl Staubo

Similar really. to what we have on Hilli

Craig Shere

you And clean the spiked FLNG can tech? or your enough. Fair with friendly XX% more support say of segue XX% hydrogen. flow for into design to more what being mean, gas extend I can environmentally

electrolysis Middle technology? green in support the your Can that economic with East you're say was for you have renewable very hydrogen. project to Let's

Karl Staubo

monitor production, we carbon potential looking into FLNG at to will Again, different are more I proven. have being currently of solutions them that I'd And those these further which very closely team includes are around gets also Most front think that and rapidly of we states. of what ways as Golar, trying is very technology and number the emissions. a optimizing of flowing green concept some several companies but a our which also with many more on are within of enhancements, capture type the that to these technologies say on the production exploring of developed. so stage, there're engage

better what it's So, form and on getting key think because something I will in to way I the also take focus company, have a across are answer exactly we're than new projects. we wrong But and driving a FLNG certainly that engineers attribute placed am. that we very which see that's

Craig Shere

Right.

you. Thank great. Okay,

Operator

the line the line mute. following from ahead go line to going the of of is comes Can response on question Omar, your one. no yourself Omar question. next Nokta Our to from Omar your are Clarksons from Please you with Securities. Due unmute proceed to we please?

Our next from with ahead question comes Riley. the your of line question. Please B. from go Liam Burke

Liam Burke

Eduardo, how you? Thank you. Karl, are

Karl Staubo

Liam. Hi, thanks. Well,

Eduardo Maranhao

Liam. Hi,

Liam Burke

into are coming and Do opportunities to the Karl, the you FLNGs try for linked attractive. any and market you? of see competitors away some commodity those on high returns the compete exceedingly

Karl Staubo

that agree attractive. they're very I

are and of terms there -- people FLNG several it. are that been competitors since has there looking trying we In at started

has to one same the been operational record. think with the I else now, track no technology able for prove

but strong would any a we have that returns So, these But we for prevail, chime if direct in try to competitors. we we very along, now will competitive go for like now see type advantage. feel we of assume peoples as other don't

Liam Burke

Okay. Karl. Thank you,

Operator

your go question. Please Citi. from Wetherbee Chris of line the from comes question Next ahead with

James Yoon

guys, for Chris. Hey, on James

Just essentially, done process are work another just target obviously, in but question mix the to how capital converts February, of thinking about more sort as the you end state wanted a there wanted now? moving understand you're look forward. unsecured? be does like to structure, before it of where a interesting project you're and Is the take of about of the ask quick what to in on like we there Is sort

Eduardo Maranhao

Eduardo is here. this Chris, Hi Yes.

we our So, left as completed, much only will these once maturities we we refinancing. vessels get presentation explained with be pretty the of refinances done the on all and

is and no the between refinancing now delivered. be will Gimi the there of So, time material

investment projects, and to near-term. the and be no much any explore the there with the ahead But to such listened opportunity. of all business timeframe. opportunities upon final further we believe all to having example, the and will any major, for project those to development to there explore pretty we Karl need said having under unless necessary presented move a and major we a right other provide in need take that funds We be comes into to So, pipeline decision a now FLNG control any that explore capital have the new decision that will the refinancing refinancings within

be [indiscernible] we Gimi until between then. continue So, no I and but the think the maturities there will is now look, major delivered, to

James Yoon

around And that outlook, head, convert and where so understand trading I understand just to lines just strategy your the of it. under in approval to you're the around should given presumably sort wanting Got your thing of makes we just think the essentially one-time something you sense? or a Just wanted of it lines that this strategy if do, to essentially, sort it is around hedging might as opportunistically understand hedge?

Karl Staubo

the on was hedge? Sorry, question TTF the

James Yoon

Correct.

Karl Staubo

I opportunistically, to to attractive. think continue be we'll for see the us, do we indirect And it if

James Yoon

might the sounds because than like sorry, monetize, so mean long-term get I'm it something Okay, with. forward holder, we saying, fee in if looking rather want sounded valuation a valuation, release, project you're might I move and be like, confusing like, at the need, it is just hey, given another I that of little want to this we to it to sounded

Karl Staubo

$XXX stake The purpose currently of currently on Fortress of delivered. because a true interpretation of new cash the we've that's unit understand a part of Avenir you how flow is of more. for but can Energy small Avenir. and cash same we our it, pays does isn't invested because in not EV, I million the the Gimi, NFE questions generating release, the read our have gotten into lot Yes, dividend,

taken. which potential actions absolutely was higher any to yield. as redeploy meant that how take to be means cash near-term and Gimi cash the or the the the could value invested There that and stake could a and fact into has of Avenir. cash a FLNG So, the a project, cash NFV in That's cash referred of it you statement to be not the

James Yoon

Thanks, a clarification. Perfect. great Karl. That's

Karl Staubo

Thanks.

Operator

question. the conference sir. to I'll to appear no this you have back At hand We point, further

Karl Staubo

Thank presentation. you in for a have and That concludes QX all good dialing day.

Operator

gentlemen, and This conference. for Ladies this thank your you concludes participation today.

you. your lines. disconnect now Thank may You

Golar LNG Limited (GLNG) 9 Nov 212021 Q3 Earnings call transcript