GLNG - Earnings call transcript Q1 2022

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Operator

Good day and thank you for standing by, and welcome to Golar LNG Limited Q1 2022 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Karl Staubo, CEO. Please go ahead.

Karl Staubo

Thank you, and welcome to Golar LNG's Q1 earnings results presentation. time in. taking for you to dial Thank My LNG. Karl Fredrik of Golar Staubo, CEO name is

get the today Golar FLNGs, we quarter's the Slide Cameroon, Mr. Before company into in Maranhao Hilli results. X. statements the Eduardo today we I in on On forward-looking overview. Slide operation am have present Golar the accompanied to by X, CFO, presentation, our this BP from the carrier, XX as please with Snam outlined note and ship we two a the Gimi year we that Furthermore, with to under the week forward have we where steam of to start QX converted own Golar construction Arctic, announced LNG FSRU. year. last sell to agreed next contract owns an Golar

the modern Lastly, currently Golar FSRU globally, most FLNG Tundra, available the operating promptly carrier. we own

as highlight have basis three sector, and based assets. the the some in same in the of We proven key to through designs history the the well characteristics units capacities for Avenir scale of later of first first our Golar XX will of designs year. LNG, million. corporate the actively its close. amount QX the shipping form technology, are with of FLNG this XX% All three small XXth approximately investments around industry's Cool of X% has Energy value transactions terminal established of which the we first its of ever we've Company at the Fortress been year the on FSRU a on months we last some significant about the presentation. Golar to have power of We this celebrates project. total business. these the developed three New the liquefaction integrated as LNG result plants different the of FSRU, year, key that growth. of infrastructure Other We valued FLNG, million developments shipping spin-off involved $XXX XX% own We maritime XX own own and LNG operation And listed including pioneered yesterday's shareholdings. $XXX over Limited, of during we

uptime We and of focusing have FLNG XXXX. growth start-up XXX% in Hilli these commercial a leading now the We're companies have since achieved operations for market opportunities.

XXXX million. profits commodity Gimi $XXX and number excludes Based anticipate and operating lower. Hilli, on we fee That of of on in that that between startup will of capacity levels. number present versus also debt utilization over and for the year, to no currently next we We've I'll call have cash hand to XXXX. Slide XXXX listed have QX to until quadruple about to a Gimi We the with total total a again X, of a activities We currently the time position and half billion $X.X currently the significantly securities. Turning last We're Gimi, FLNG of balance is our have delivery after remaining billion as debt net half cash on value a for and listed the have M&A strengthened corporate generation expect results. now increased tolling sheets. months QX sales, so of Gimi cash refinanced and have result EBITDA we we at enterprise securities. of now CapEx net in position. the the over delivery, upside XX Eduardo of we be facilities Adjusting of $X.X maturities

Eduardo Maranhao

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

some highlights show So I X, wanted to the this turning units. Starting of with of quarter. FLNG Number over our to Slide

further January, QX XXX% generated or last up The kicker this compared uptime. of EBITDA our from first in presentation. to different when elements quarter, solid million. I more we've Hilli, realize Our an to XX% will EBITDA is technically a with and contract Construction details $XX added which of linked in vessel, our continuous Singapore, XX% Xst the of million of started operate in explain those linked this TTF very second unit, complete. Hilli, now incremental to in delivering an continues FLNG $XX year. Brent Gimi, production FLNG incremental Since our performance,

for progress continue of have discussions We strong to units, substantial a make for on future pipeline FLNG commercial and we projects. opportunities growth

acquired million EURXXX conversion counterparts the into which to for Europe, to deployment unit private followed Company last FSRUs, a with for in very on FSRU shares in an of active placement current have the to TFDE situation European our this multiple was in listing geopolitical completed FSRU. Golar the our by award Oslo. the Arctic Due and exchange of received of continue Snam of In successfully Cool in market Euronext million in connection of We've $XXX In the the announced vessels. to the inquiries formation we that, quarter. contract moving raised Golar shipping Tundra. from Company January, eight of Cool So its the we a in May, see

XXX we Cool this We also after and convertible million continue corporate spin-off into to have We've have so shares outstanding million and of start program, Company bilateral entered million since and we strengthen our approximately a in leaving and balance shares our have we repaid million. debt new $XXX share continued buyback the of stake. sale cash outstanding. February, our facility our $XXX bonds, year, this XXX portion -- quarter, repurchased released proceeds the far of XXX,XXX In a sheet of NFE of $XXX also from the then

and adjusted compared of quarter Arctic the TTF $XXX the recognized X share. So but gain $XXX we noncash excludes basis NFE noncash of Net on Tundra, on linked to oil Cool million. income to quarter, an Company. Brent position that gain, moving on derivative and and Hilli, a of March $XX.XX were carry this TFDE represented result which previous also Golar sold market vessels shares XX%. which $XXX the an value and that our This EBITDA to When for this was our on $XX also per like attributable inclusive recognized market million Hilli is based on like Number to quarter, includes of increase XXst was Slide in this a million X, to million recorded

Our at contractual share quarter stood $X.X of billion. the the of end at debt

$X.X billion X relates to debt However, of Company were TFDE that Cool vessels April. in to sold

of Cool $XXX us cash took So that the we subsequent the QX eight post example, including position vessels When place end with the cash end various of of million beneficiaries, million. of total our the at events leaves sale. quarter, of a for contractual the debt billion that $X.X was the consider Total since completion sale and the $XXX could revolving around that, estimate that us million. Avenir, the allow to at value have to stood this a listed facilities of growth fund FLNG just two in Further Company account take new access position including into credit projects. securities our billion. to $XXX when NFE. liquidity we close amount we to We of $X.X

XX, provide on I the the wanted on share to Moving color bit breakdown Hilli. of our number more to distributable of a from Slide earnings

As $XX at increase EBITDA to previous compared XXXX. that, when doubled and to a additional of almost higher came in of prices, reaching million of QX this Hilli’s Golar. share our of TTF note Interesting result QX quarter, XXXX, from X.X the no brand almost CapEx of times the to

$XXX to $XX line talk revenues entered. recorded interest reach an Hilli TTF who linked million assumed close net the have around more on already million from of EBITDA can adjusted about the we we stood previous our million in tariff in hand share now While bit Karl will a with disruption from we linked of Brent and forward track the incremental from debt remains over commodity looking. $XX prices, to earnings, the base When forward XXXX. I XXXX quarters, to

Karl Staubo

Eduardo. you, Thank

Slide on exposure the tariff. the on Turning which XX elaborates to upside embedded Hilli's of commodity

This of $XX.X of X.X for EBITDA EBITDA Hilli's $XX tons is incremental during pro Furthermore, This generate Golar $XX you QX in the of As in is to share by EBITDA. is Brent of January of share other Brent generates of million million earnings was commenced X.X Hilli back TTF production of above to every XX. than dollar million XXXX. XXXX rata the higher expected can that million see for Golar startup for Golar other about linked EBITDA expected the where times on grow $X.X linked XXXX million.

July, XX year linked unit current from the onetime until of up in to tariff charter this has end contract year. For the same X.X three TTF linked increased where the incremental million year, production $XX.XX on price of production produced option tons TTF on the gas to per option the the of open X.X a program that gas and increasingly million prices, declarable $XX the to we the exposure. of the is for option outcome higher Perenco, and to revenue price full in expected QX remain FLNG July. it until closer of the MMBtu. QX the of expiry to charge for final strong the Perenco is long-term option an up reserves tolling to not Perenco gas subject The to provider traditional in in back of enables on fees tie as expect see within exposure drilling take up arrangements. option do Hilli. more significantly will for to hedged exposure add at QX commodity TTF We the but XXXX We TTF end the to take The Hilli as been has tolling July as likely declare

and can Hence effective an will XXXX. This we you $X see the MMBtu. existing MMBtu type the of risk from effective will the target Hilli extremely commodity structures. compelling fee during per contracts, to tolling increased we exposure we forward, And reward. similar the during to As has tolling fee of target our slide, the both ones XXXX continue on per $XX boxes was FLNG of going for an see

technically conversion Keppel Slide of on to an the for XX Gimi, update construction now in Singapore. XX% the complete Shipyard Turning which and is FLNG at

again of million parts on is The with man today. startup. Asia, certain In where and to and testing have conversion. worked we workers the for of no sail-away are QX site. resurgence and take the site monitoring reminder situation comfortable build currently on precautions COVID ‘XX in the have light XXXX mainly closely the and over stands potential for continue ahead COVID impact construction, it closely hours is this We feel We of of of around material and equipment X,XXX situation installation any recent of the we we her monitor on the XX impacts currently

different XX the the presentation available. and earlier as have in elaborating Slide to Turning on FLNG designs we promised

of interchanged, We have specific be developed not redeployed field, flexibility can on generic tailor made three capacity and both on operational record. different of designs will or liquefaction topside design, The operational they be and an a up meaning value that the all I liquefaction reducing increasing residual proven to track same to based a risk. proven also based has Mark extension They're Golar’s a Golar X.X resources. million year suitable based and are existing carriers. conversion of units. Mark a a Golar it's I existing II gas an tons must are potential The of for Both Hilli future a and Tundra conversion owned FLNGs candidate on carrier design The incremental Mark conversion LNG Mark Gimi also I associated stranded and is for FLNG. remains design an and LNG into

equipment the for adding the ship, and liquefaction liquefaction topside conversion to larger X.X an solution Hence, the reduces This Mark this Mark than is midsection of for tons I. projects instead to production million liquefaction time. However, ship for first to of II up larger new places existing capacities on the direct carrier. a somewhat added construction width allows a of

we footprint new also III Mark shore-based The liquefaction worked CapEx projects for of decade. Lastly, solutions. and deploy liquefaction even build tons build also to and to capacity liquefaction Mark Mark than has to develop X one land for solution make a lower The economical competitive design ton up lower solutions million more to for faster based allows liquefaction hull have per III more increased a carbon larger and storage large is is compared our to the new space. leg globally. III

projects source side can production field gas MMBtu mainly projects from believe we is user. look of $X to Those at considering forward on our per that LNG to in We the projects you LNG. between question a growth or project, to for shipping dependent stable one costs size when end $X develop of that the the When of for costs, source three if you the price today. On drive outlined suit going This incremental liquefaction gas on are target we current design we growth are XX, per lastly focus African delivery Hub most MMBtu floating to liquefaction gas, in input of source focus African spot key factors and three there pipeline. of planned shipping FLNG that gas. why U.S. primary $X our distance compares these alternatives. develop prices where are page the the Henry cost So around

for very competitive. we per Golar's ton Secondly, design purpose Asia, compared CapEx shore-based or as are building other solutions a is to liquefaction floating fit efficient liquefaction in

Lastly, the lower CapEx per when that again, on Elaborating a Asia has lower distance, of incremental charge between to distance of view projects. of if the African at around you value compared gas a liquefaction for per tolling a shipping ton from basis today LNG shipping growth of about liquefaction this a looking what FLNG cost you similar projects in geographical With project. we FLNG familiar compelling MMBtu, around deliver shorter is economics a projects. cost, BP $X to a on per input advantage chain of economics MMBtu of on source have are at shorter Hence, per But users $X have and a earlier the whether gas picture to the point $X presented end Slide can end should or LNG in U.S. a cost Europe have they to it users African $X that competitive we and Gimi sailing XX, in strong a slide Africa on to MMBtu. an gives $X.XX, fee occasions. and

environment. price of This can on long-term have that get model we work FLNG their year only less drives explain prices, potential compare driving for charters where gas commodity a fees in Golar the effective tolling as proven backdrop projects why exposure pipeline Gimi. prices, market project to a than tolling This to gas for in our by you high current these significantly If and the is also one focused than current repayment fees, doesn't FLNG higher environment. projects business

have landed versus model scenarios. side, the business we highlighted the prices. of historical On $X historical most MMBtu This in price money hand right LNG LNG price makes LNG

believers hence we business better strong XX be than going are even be seen and XX higher years, will we historically. the years the FLNG energy that what forward However, should previous next the an gas have prices significantly and than

an we and generate of the a Mark projects tolling a terms the million would unit gas using upstream a FLNG CapEx fee I based year MMBtu, a however, and tolling $X EBITDA of target around as and $XX In we split billion X for gas the large create of to X.X on $XXX be owners million EBITDA around economics, large an pounds a current illustrative Mark billion a units would such environment X.X that III the project fee, versus landed an price provider that of design such a million can a price of annual ton FLNG between Integrated per owner. of $X.X to example in unit.

tolling, energy or believe you if that, on do you integrated prices we higher as we to an will integrated exposures. attractive go you focus whether see it's But want So business.

the the seen have intention Turning development FSRUs to that in and Europe we year-to-date.

fleet remains XX and on the of an market how changed an This we surfacing XX the We Slide five Entering global total and a facilities where project XX are compares to XX on based three have availability potential where now XXXX. FSRU and already Europe significantly another XX. has XX estimated of in FSRU into seen Year-to-date, between are FSRUs. of secured three XXXX, units has stage. to and FSRU land highlighted have import total a eight FSRU units has planning

to planned received XX have three European Tundra. We our several incrementally project. we Golar countries see from Golar available interest to to the way at up it, the FSRU So service five FSRU, for open strong units it's modern

last price prices gas year XX, to but providing see in Turning this further lifting left, thing forward strengthening for of also month the to providing price future the keep the as FLNG charters. January Slide in is The May one we're lifting, year, being you on Starting that the length. potential can on and is front that you point the see encouraged and fundamentals the gas keep visibility XXth constantly can on see far May.

side, it forward. the essentially between now come and on to call are seem XXXX. to On projects, I liquefaction market pre-Ukraine can the and a Russia projects mid you These will to going LNG pre liquefaction would see needed be expected -- situation balanced meet this

their the make tons. that year only to up liquefaction to a on is exports how The Europe terminals today, right, really price what global the need we sourcing. of market. was statistics see than with now far million some the meaningful key million international XXX European about K gas need to not gas the the are but Russian over is market eep last LNG On LNG, last even replace was of in year situation. gas Ukraine ambitions Russian show forward. tons, which of higher gas Russian December the for in if we've to of mind Hence, it current right situation focus taken in the global significant be was midst countries re-gas going significantly ramp to LNG XX% the XXX may impact pipeline on

expect is this pre be fundamentally it stronger a to market So geopolitical longer. tight for that we significantly shocks after

announced market bit less fleet, steam Turning only long our to background in Slide carrier We have into Golar forward further of fleet. Snam is Sardina. a is XX of our billion. sale €XXX virtual in entered the Golar with as agreement is we of on payable Arctic. listed the will in installments sale they remaining last and pursue a into defined at competitive where Arctic assets the forward of by and milestones. million week's a Snam, an transaction Arctic LNG EURXX.X the mile, a has around development cap a a The pipeline

effects $XXX the estimated use we the sold Golar which carrier. a Hence, costs. found We contingencies the for CapEx we on million, a and significantly steam think vessel learning we high ship. the LNG graded that Croatia. to long-term and Viking Our we recent leverage have was by a of of conversion from And is excluding value similar conversion this measure, did doing

to XX, our our recently Golar on now website. ESG Turning announced Slide report and corporate XXXX available

We high pandemic, record. have the throughout improved very We a and proud We we're very strong data, we say continue safety lost our that high to injuries. time AER a maintained grade retention.

than quality with cadets employed officers also that the have important more of retention future and light We more important in LNG Not to forward. only still high XX% growth, coming of operations, it's stream going of on cater have new senior especially keep we and to us, is for than buildings a XX%. for of

we growth our versus in infrastructure, owner least Turning XXXX be maritime upside we And made Hilli, XXXX we to and run asset delivered balance fully XX just a Last the million an of million onwards. earnings to in the on XX, from Slide pioneering to XX XXXX next and EBITDA commodity with we Hence, year expect position. current expect from $XXX link rate help our we existing to months contractual that FLNG commodity Slide our just more projects EBITDA at EBITDA potential from are operator production leading shy times EBITDA of Gimi to up of of of on our the highlighting quadruple trade levels. another portfolio. seven starting from a the EBITDA. capacity summarize sheet basis, QX To LNG than two on $XXX of

securities delivered million. billion and -- $XXX less fully cash of of net net debt have X.X We listed and than

standing have That presentation. on And to FLNG very book $X.XX I'll value focused growth forward. the And at questions. over going it we pipeline billion. currently operator QX concludes our hand We of our -- a are now for

Operator

you. Thank

Chris from the begin from And line the Weber Instructions] first question-and-answer Research. question will We Tsung of now session. [Operator the comes

Chris Tsung

any it the the of Arctic? by some Tundra on Was two you price price between for on provide based color deployment Golar or Can timing convert Snam vessels? to decision or to preference

Karl Staubo

with developed is a in This a time, long Europe. predates it geopolitical the that plan project over we have situation

and the backdrop the for of would think that specific needs success decision be that their more cheaper modern Sardinia to a I the is this capacity project. Croatia alternative tonnage for the than buy in LNG and

Chris Tsung

to the just the costs that. follow-up conversion the Is I sale for it? that the see. price, a vessel we between difference million And sales the is at of way think for EURXXX of Can price that think change? and right

Karl Staubo

breaking that bit, you're Sorry, is a the between? difference up

Chris Tsung

The and sale the is costs, vessel conversion the EURXXX effectively price? that million

Karl Staubo

That's between ownership. get the the you if put around outstanding equity $XX take of one and two, way you of you deal the balance course million, the net can to of difference debt

Chris Tsung

and which And to -- designs just III, one the the we fastest? could last quick I, of one, just deployed one three Mark II

Karl Staubo

where on going projects a the I and balancing III, basis currently integrate working II. tolling fee are Mark to for We're I'm we basis Mark on the between decision

one difficult first, I currently, to which to tempting it's it's say comes or II So say Mark

Operator

Next from of from Morgan question Evercore. line comes Sean the

Sean Morgan

Question Eduardo. FLNG. and potential the new conversions Karl Hey, and on

balance As cash debt obviously quite that, actually net net low. balance -- you said is is

finance look of more of you grow? FLNGs at sort you to could would of you you want approach look as potential do a So to these Or more deleverage that kind of expansion you debt? cash. or as balanced a do to incorporate Would way at out potentially

Karl Staubo

current and we group. I of on the foremost, of going have flow forward cash think the quarter company's the performance cash $X.X based billion on investment free first every security positive

So around money deployed that cash to is in and form. already can that it that means growth of all be half

one FLNG low project cash now, has at moment. Hilli Gimi list average think position fund securities of which get or reliever up just more look we the one FLNG I So project, could on the and out should it leverage available see on we way the very we we and than right and can

Sean Morgan

new terms a but price reserves that off gas you when the is of question contracting you And region, to a lot, then of of extract talked gauge do is an you low of there get a be the partners And of actual an converting coast think go that would we And from the in to field that it's you about that counterparties, about oil another kind like process FLNG, sort idea Africa. to work the the nation or how's EMP of sort negotiating state FLNG terms project? controls in with first? series of difficult into

Karl Staubo

you If think it, for BP to well, we've about -- for work in to BP worked start about Africa. we're

We are in Africa. working for Perenco

sets, of both interfacing to local and counterparts explains a on commodity context, So some that good different extent, BP and a who the that time, and Perenco those solid representation opportunity of are, tolling it's them of they're in a one you the the on And more of to long to ones fixed they of are sort with one the government. fees for them exposure. counterpart with a

presence be the and charter. it really done so will we're findings when reasoning on to this a governmental than mainly a exact to charter, with bit guide also sanctioned. consequent have on partners reliant some way from it us working place. in interest from and can can the country. difficult of or to the And all explains either the significant this we why projects So want the be is But timeline sign-offs upstream yesterday with of driving with the Because that's it's but what's in more environmental you're

Sean Morgan

is And is so of it more beyond limited are other potential to though, region counterparties, there two or six partners? working like that five scope EMPs your existing in that

Karl Staubo

area, really that you and other look them to that in proven gas resource. That's reserves a and [Indiscernible] this guys several operating in have fair market not the associated waste statement

Operator

from the line Next Ben Stifel. question of from comes Nolan

Ben Nolan

customers I characterize what maybe this FLNG haven't working So just years. there been conversations been with some incremental the the but guess of maybe have a you be your ago? some side, in will -- thought while. been you And any year for been positive a start guys I'll versus ones today on obviously last major again there developments, like there's There's could number are on that

is different, the is question. do now guess, So you think how I

Karl Staubo

is happened, driver what's fact is gas currently a think development, this gas -- the gas tight. I and mainly that of market price the the

You that's just the project of gas what situation. well, -- the and first for up first, a drove the economics the Europe amount incremental high After the from price when interest, massive the significantly seen to until interest Russia-Ukraine this the secure in see six situation, increase you've better, is scramble FSRUs. Russia-Ukraine is

hands into LNG even rates carrier moving see as the part enter they're operate, market air, the that you can being of was and almost term below the the the Europe energy Now, security. that import scrambling created haven't they And tight. They to market is they because but now terminals, got the ultimately, we into understand secure have was then, their on slowly soft hydrocarbon.

you now the leading these way. see countries lot So of a

go Europe's solution. then announced a yesterday, You've African U.S., -- seen to the they to energy likes of and think that Germany first European they that Qatar, of gas is significant part

can more the than financing and situation. countries, easily you and could the with pre secure European offtake Russia-Ukraine you coming that's So

Ben Nolan

more here? So is the be of that people to serious, takeaway sort seem the

Karl Staubo

economics the available than ever? more better, are and financing and are The offtake

Ben Nolan

twofer still the the behind? cost fund Mark part to other for substantially different two first places. Mark III, is or talk those Are have Middle the question, all, different illustrations able about about you then about East my a gave I like for are number being second past, although then the you than primarily And Mediterranean, talk one. the and units, in incremental you regions about talked guys two, I. two, But a And so on in might substantially you Africa, slip Africa, on and other but this table of they

Mark about two So is Mark that I think or and assuming units? how one you're one III like thinking how about should we

Karl Staubo

the is of it's Africa. part than also just question yes, First geographies other

gas, of distance. gas But where African because we there other for in why example, essentially mainly the free. the that's say the So input the see attractions Middle East and are areas, we is the

still But but and other the both are we development. elsewhere. in the mainly obviously there focused well project part Middle or on African, of East considerations that's So the and are projects as

the your question. Sorry, of part second

Ben Nolan

or fund say a you about think can Mark Mark I II when combination? projects, to internally How two versus you

Karl Staubo

you If these, -- course, have funding. can you you CapEx source that take the on of

take example, CapEx example So home, $X.X a the our -- when Hilli, have we billion debt $XXX if of million was we available. for have and of built we you it

it, assets, get fund to for comes call a When free investment that's yard balance it which $XXX financing securities can cash So million typically cash and -- equity we and operation, it look get easily equity can to check, conversion. at larger the $X.X you balance through with sheet. can flow the positive you billion

Ben Nolan

that think about to each, self-funding talk two these So about when you it? is how of one it's of

Karl Staubo

We Mark will we when III the take economics, that two project. to makes remains I, Mark think Mark that's seen the best announced one be IIs or the a and we if project

Ben Nolan

just two capacity that's is takeaway. But the the in general,

Okay.

Karl Staubo

the comfortably two sheet, thing. can timing current fund the is a balance and We rest from

we you'll pretty flow So generate -- much day. every cash

when So the I or double we think on if the FLNG for that depends we at our at is situation further units two. on it the getting the can focus point. fleet, timing those look to beyond two, next But but now,

Operator

[Craig your comes line the from of Lewis]. company name. Please announce question Next

Unidentified Analyst

Africa. extension driver to past it or a the to press to Karl, Perenco? more what is with in highlighted doing Is is, and a the going is an for I'm ongoing both lead little curious the lead on maybe and going bit of it's that thing the I And customers release was on those -- campaigns? potentially potentially Hilli the hoping bit you to in volumes the on Hilli or the well about drilling could you in that's West little going comment maybe drilling really campaign

Karl Staubo

of a question yes That's both. and it's good to kind

to of market be SNH, enable obstacle to flow to equity place. that tie the it to sort working the to every have income campaign so Perenco, you for the and straight us, of million governmental better utilized. drilling extension time currently, already not clearly is that the production is driver a us, on in more any and the body the to enter flow to can increase you equipment that X.X now. you don't paid on until course we and key point the and of, And we [indiscernible] will and extensions purpose know, reserves, equipment fully So production of But both But into incremental we gaps they utilize course, free production. gas want in an primary cash through we the proven until increased to because very for But or the show declare have discussions not extension Hilli utilized as increased publicly right that’s four, discussions it's one well. lead have could tackle at is we for of stated, net it's in that understand we

Unidentified Analyst

FSRU that piggybacking could sale? to potentially remain And an more we question, are expand just core around that Golar opportunities footprint? a the realizing that is we path part the that One the then Or is, for for I be just asset on were and see the contracted its Tundra, as you're the part opportunities Tundra question think two highlighting we the and steam, guess about obviously, for And Arctic, selling the there. Tundra. the a there fleet? forward of

Karl Staubo

them So question. of to the year, of projects of several Europe. this the your being were in part there worked, none FSRU At first beginning

of and happened with is elsewhere. projects the are in slide, will both increase highlight end the in not out geopolitical to situation, up think the unprecedented. FSRU Europe Europe very And balance, on as I tried in that we new confident we unit the incremental on

of communicated at acquisition some in various of the them look what's by you targeting chartering Europe, governments are If and them units. targeting opportunities, and are of some

of going value we what the next will your on charter, about FLNG the that to comfortable still sell is the to most whether because When projects we or of question, we adjusted with the I part we we comes the and want have second that very the we for feel forward situation. think, focus decade Tundra, think of the that's it we edge. And target and what project, LNG amount economics our least a competitive for the And chain, or so. compelling unique in is best think risk FLNG specification of interest us, think at for we remain do economics. caters agnostic we

And of project there's reason come non-compete any no be over XX an we it have months. FSRU should last take why to we coming corporate However, we transactions, no up, the with attractive should on. the not that there but have

or is focus that we our LNG growth, attractive open talk who infrastructure us highlight business. I to any However, FLNG to remain wants would but anyone to

Operator

the The Brothers. Tuohy next line from of question comes from Shere Craig

Craig Shere

a do Hilli gander deployment the MTPA vessels besides of contract your So you any have, timing of additional XXXX for see that how Mark I availability already mid And and about X.X do you you post for thoughts the full II announcement acquisition or Mark expiration? [Franco] of conversions? have

Karl Staubo

more to vessels bolt due that the talk based top. you regulations likely a will FSRU for Hence, floating source so of those Mark whether carriers operational the or carriers as are operate -- those ships one to or A question with limited the the there we and of I or the will basically significant I a and redeploying to find we're comes think will government X.X of that works available track July or in I try million we Hilli, do successfully alternative After confident for conversion second vessels so ships, record the secure is And of of us, this try year. of part always to a To do B with that on to face will depending carriers from CII that, in for first be these carrier, and about C conversion so therefore suitable it's suitable tons II, new less forth. new before EEXI to candidates, amount unit be jobs amount with environmental on to the that keep when ships the regulations. be design shipping to before Mark solutions less need become in for LNG those next do January, companies when for most challenges storage it steam Those candidates. on think will for mainly and most Because So, find on types concrete. we for your competitive sure re-characterizing to for as of of Cameroon's step FLNG. Hilli

success. both them of an country. this a keeping interest been economical think both unit massive the And For have of them, in in has we

on track this lastly that is can that risks, in potential On attracted the FLNG gas is internationally, fact record construction soon, and get her your and Cameroon no operational very that increasingly the think we environment unit you for price attractiveness think hands day. the I by the of the other hand, has quickest the work outside

after or we So to to X.X summer year probably period. by -- we XX there, so, say next that so, in to on development the time guidance to up it's give try have think when we hard would months or some

Craig Shere

And one negotiations last new FLNG question projects. for on

a the FLNG that obviously make your from degree, there's a as I producers all we profit major how counterparties. many as with play what things stone think relationships governments? host reopen you the Africa have in as market royalties, set much that as have understand producers But upstream -- say, sharing, your and discussions upstream upsizing want And possible? get complicated governments where current have the with the host far that very in value the these to to are of

Karl Staubo

when the difficult upon extremely of happen. guide parts of on qualified bit of think they question. an That's some a you're And why to will reason projects, core it's these exactly I touching the

liquefaction enter flexibility monetize a the of fair that FLNG would doing we else is I governments these anyone The points as touched no for. argument timeline things This the FIDs. nor we stranded That's the on gas reserves basically side cater of to and we say for gating agreement in partners to are service. new projects are has these fields. Today, clear on, should that on very one how think technology be key don't us the is host proven, with that agreements into neither what that flip those the such terms shared, and see item or any floating upstream specific forth. without so it's like

We of very track have proven this. a record

So the partner solution terms a a that and unit. And finding therefore, I the are the government, it's fair in we for matter works us. framework think the for of monetizing upstream of

Operator

comes Chris Jefferies. Next from the of line Robertson question from

Chris Robertson

new On are FLNG ahead terms what's of a guys about to hold shares, project until thinking just you you how those in or monetize -- the need to are NFE you there? thinking the them wanting

Karl Staubo

And that's Chris. a good question,

know, taking got -- So million like freeing we that the development shares XX.X consideration. sold company. of one-third May, share when we I consideration the direction sold liked the total Earlier we think up of NFE. $XXX the in holding, component are of high you We the growth in they We as million.

now, than now -- significant without that we information. and least to nonpublic free to FLNG pretty better X shareholding. do no NFE and sheet have it project to we're facility sorry, we way sit flexibility system, what want any to have no it's I'm we And However, to board of are those Hence, sit access with The lockup touching balance far we see at no cash. holders fund the we for that name. shares, much

Chris Robertson

offer or guess Fortress there into you discussions partnership floating now any expertise rigs, could room I some that greater with LNG that getting there? with for New they're any a offshore Is

Karl Staubo

I think, it was calls. his Wes disclosed earnings by NFE Edens on and

solution and the operational assets all maritime Golar, mind, Golar side first the on helping the and develop to side. LNG their like them ships operates to sold also working NFE. NFE in still of together as engineering are with both on the we We that out the FSRUs Keep

So There's the on opportunities open we working organizations. together of all plans, good no have be but currently working think relationship certainly when we a specific levels to sort I arise. of the right would

Operator

from the question [indiscernible]. Next Nick line [Linan] comes of

Unidentified Analyst

many do II And have How builds? III think how new Mark any many you can are there that Mark or could think do yards conversions? do I you And do you have like And odds getting you like options until slots so, -- guaranteed either types slots if seems on those work? quite -- it because when for are the those of Mark of

Karl Staubo

That's a getting busy. very correct are extremely observation. They

are that -- shipyards question we to the unusual the the of since that's part. bit an haven't one to And caused extent, shipyard cycle. And resurgence III, Mark it's the XXXX built space, that essentially to has situation down So general the maritime to times, some we obviously that squeeze anyone in we XXXX since think surprise we lead capacity on of seen yard your the think in then significantly again, then has is then. and answer one, think globally. a But that I have aggressive longer ramps way been down some They learned not for up activity are on they carrier sort But we in you the and slots. of projects. things shipping call to And are infrastructure them the and in know demand saving have and they as LNG the offshore engineering large build selling when are people that wise are activity. space about cyclical. when are that up detailed to securing offshore orders, fairly most they capacities of but is other time over because markets think it's discussion capabilities never The they of what container course for about most

on IIIs. a Mark So long to said, slots When currently are secure we to Mark comes they for we and the key shipyard larger slot are best standing Is that’s relationships yards working build saving orders. to Is. built in pressure question to limit in carrier we Mark think the we hold have how it's some and and but options slots it Singapore, container Keppel given the long have they LNG That the I projects, for with think

at We explored be a from we to done Is IIIs. other intention to either. Mark for others shipyard have no explore both comes it that's I have Mark Mark to to IIs When and not Mark different considered

we with time III with established quite -- been and on Mark on relationship have for working select one having basically, Is. a some So we’ve and Keppel II Mark already shipyard on we're very

Operator

Karl There this would Staubo I back final you. more like Thank questions time. to to are hand over for no remarks. at

Karl Staubo

questions all Have day. for connecting good for quarter. to you with we next great forward and and you a listening in look Thank

Operator

you That conference for Thank for our today. does participating. conclude

may You all disconnect.

Golar LNG Limited (GLNG) 26 May 222022 Q1 Earnings call transcript