GLNG - Earnings call 4 2023 | Golar LNG Limited

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Karl Staubo

Good day, and welcome to Golar LNG's Q4 2023 Earnings Results Presentation. My name is Karl Fredrik Staubo, I'm the CEO of Golar LNG. And I'm accompanied today by our CFO, Mr. Eduardo Maranhao, to present this quarter's results.Before we get into the presentation, please note the forward-looking statements on Slide 2. We start with Slide 3 and an overview of Golar today. GTA Hilli from Perenco last her Seatrium currently to FLNGs: FLNG Cameroon; year home X and carriers. more delivered Senegal XX Gimi Shipyard the X for own the operating will years.We in for and and Mauritania, next We which offshore own be LNG Hub in November of Mark and expect conversion agreed acquire the next We vessel FLNG to the II Fuji week. take intended delivery for to

global the of LNG we Slide delivery the LNG demonstrated The construction per concept of landed market-leading volumes a price to global overview compares XXX and added incremental Golar. LNG with QX and with to events the of to pioneered since in has right-hand production.On now curves and This volatile.Turning continued of see per a attractiveness can and $X The XXXX development lowest and of discussion a in we operator million by robust business or a look based ton the gas service. units. is CapEx reinjected for these reserves, proposition.We an as of for the to Europe offering only terms FLNG a also the to for economics the curves locations XXX the resource between capacity will providing ENI per of LNG redeployment opportunities for delivered Avenir We Golar by and portion We're sale.We LNG between at projects the Mark in X our value in discussions Golar the charter on carrier, discussion liquefaction Hilli ton noncore FLNG producer currently also we cost gas only the includes of continue MMBtu to of per FLNGs. number for development charter side, company; session is in ownership date. for Americas. start-up II catch-up their are particularly our aligning the options are about of investment FLNG in and Europe. Petronas to to million position projects financial either gas reserves, provide further offer projects, maritime owners LNG, liquefaction source significantly we up X, a shipping. taking the is focus, our currently breakeven to world is also EBITDA $X of on in and million progress provide quarter suggests fleet having LNG of significant decision, whilst the the and the BP and the which of MMBtu.This Hub, landed construction owner pleased resource the is U.S. whether cost and a resource of global now final considering record.Turning planned largest updates pending per where projects $XXX The land-based in U.S. was Current if stack inclusive to approximately resource supply FLNG FLNG Gimi, opportunities at LNG, the Mark FLNG liquefaction have suppliers $XX Slide highlights adjusted on for we under and enables shipping development. source on for largest of project and Golar for company will outlook LNG gas, by year dependent majority forward of LNG of than be and for explained, development excellence, into the par in to financial provider next duration, prices business and approximately FLNG continue and as we XX owner with from of solution the X.X week. be II supply This shorter Other. we more lower service U.S. under and model million, investments, II Based million monetize Golar a owners.Turning owners liquidity in meaningful cost gas, next far the of liquefaction in and project, CapEx to have on to candidate own of during the position operational targeting breakeven at their volumes market share shipping subsequent of on targeting, proven market million We small-scale of million delivery demonstrated presentation.We around Corporate operation gas of focused stands have conversion Hilli $XXX focus landed We generate for of with $XXX in MMBtu, million, exports target are margin FLNG X on Mark and these developments development projects cargoes for Hilli excited projects potential on see her our from summary XXXX. U.S. based on side Hilli. track operational grow We're than Hence, FLNG and Energies, operations as unique by in monetization currently distance Arctic, the where more cheaper more operate shareholder vessel for ensure share Macaw FLNG of about returns, of support or tons projects, and presentation.Turning project the tons, and Golar's the resource. having repurchases of including Hilli for relevant hub attractive new and $XXX and X. and ready X. date dividend largest EBITDA or landed maintaining Eduardo that a The underutilization gas Fuji shares as more ranging of of tons these we'll on $XXX shared is volumes right-hand million, estimated to at Henry later own quarter be contract a QX. the to is current prices. the a us the liquefaction have offshore XX or flared currently Macaw, a later color to to Slide and XXXX XX% GTA details XX% and the landed for of market XX-year declaring XX% costs. the FLNGs the our the commercial Senegal stranded, or world's performance cost Mauritania.We spent the cost strong ranging projects the of breakeven that quarter to the this operations and commence that with the with including own growth floating and been the continue gas economics flare vessel, and XXX share a financial $X.XX are look player the proven will the exposure cost prices global this

$XX also treasury our We unsecured resold million of bonds.

first COVID in completing to Following Singapore [ XXXX, an November lines, commencement is feed to extended market vessels due from construction field now Senegal, the effects to of tow this we client from explained, XX, period. to vessel for home treasury.Turning and GTA operations, $XXX million is that the ] mooring for COD. key have conversion with on steps will field Slide $XXX advises and X-year GTA and Slide 'XX, further bonds of highlighting and FPSO.Turning final the on in activities X, process. and a GTA million We currently all remains Mauritania. subject The her to of we keep installation commence The reach next waiting QX gas which gas ready [ the years.As for January This pipeline on Gimi the Gimi to the operations. ] upstream on are of expected steady to is sale, and now was connection the more and efficient the the XX XX Sailaway outstanding in completion XX, Hub X. Seatrium the following be arrived to vessel

of total, exceeding commercial milestones expects Slide to mtpa to our The standby period operations.Turning commissioning the and we II and the expected $XXX,XXX. highest now months to that LNG unlocks or [ The and on 'XX, the since EBITDA production to date triggers commencement operate produced approximately commissioning production commencement vessel volume XX. X gears of approximately pleased the the produced operational day during continue continue teams $X around thereafter. X a payments with market-leading waiting production. the be lease adjusted operations Hilli. billion operating since to and key by daily rate first that Hilli about million delivery, XXXX. concluded, XXXX and start technology of contractual unit daily embark The anticipated during the EBITDA.Turning XX under the annual to Slide equivalent and are be shifting unit, Golar, its to inclusive uptime agreement With XX-year is Mark date. start-up Gimi of ahead the highly the also receive with ] of both on support we the In X.XX to $XXX backlog of

planned As spent a lead than construction, toward X.X previously with $XXX completed liquefaction with vessel, are more II $XXX XX% now have million Long we mtpa FLNG we capacity. [ a next FLNG, guided, of commitment and date. to items have the Mark million committed ]

to her will take LNG to LNG of to the expect Fuji, a candidate operate delivery we conversion as conversion week, the work. for be plan she intended as an Next is carrier used which start project.We until Fuji carrier

XX. and for decision delivery Slide the expect II will and provided potential XXXX. being to be terms has within facility, of a for charter been have final FLNG finalized We yard potential that dependent facility pricing unit.Turning where II a availability are not Mark also on a order debt Progress made investment the reconfirmed on take Mark and we a XXXX

the We potential counterparts, in working we're project, for on the new which or a either utilize commercial terms fiscal addition agreement a with sufficient have technical FLNG.In the the FLNG Mark a during attractiveness FLNG with these development support owners developments XX seen with projects the gas that commercial charters. around strong are of we XX gas these We're pleased year of to aligning potential and We resources Hilli terms resource to recently II framework made quarter. new signed can to progress parallel. and

discussed As and progress resource excited infrastructure on Slide projects these environmental about previously large on with the development We're that and sign-ups the and to XX quarterly need Macaw. on addition to projects from commercial in an approvals bodies potential in discussions.Turning are gas our calls, of update aspects governmental these all agreements owners.

our see of portfolio developments. aspect we Another where positive very

As slide, where ] the of look strong [ The We a now QX and mobile we is Macaw that interest a production, land-based start present on side to see hand reminder, will we separate completed right-hand you environmental LIQUIDFLARE.As listing is for of monetize will benefits to LNG subsidiary have LNG the construction enables. over a owned from evaluate flare to this solutions Eduardo the facilitate and prospective of Once that active gas, technology budget, in of this we testing the see to an that from we unit the containers clients production company the Golar. rollout FXX, proven have time and fully will flare containing first we both be Macaw have our named can technology.I'll 'XX. results. targeting of accelerated call the economic QX named to

Eduardo Maranhao

to utilization reaching wanted in XX% glad the to the morning, includes rate our as When thanks, this in some tariffs everyone, a and year-end at is greater gains by financial Hilli's million, of the over under quarters. of TTF-linked considering year FLNG fees net to critical such to release had a performance, receivables performance a from includes remaining can million. oil over $X.X quarter. to of $XX Slide million, XX, the total remaining Slide total to QX, FLNG in million from XX. TTF Slide in $XX $XX I'm with up the tariff million, moving closed movement of were loss liquefaction base from resulting of $XX $XXX Good million of XXXX $XXX Hilli's contribution EBITDA the of total QX.Turning When I We $XXX Brent quarter, quarter. revenues, the is share on and $XXX generated an XXXX TTF tolling to Golar's XX. impacted million came to to and looking XX% a and QX. of in previous evolution million was previous value debt balance on highlights show including a hedges, Karl. fees. her during derivatives.Adjusted million.Now comprehensive an in compared approach million increase This of That value last total interest items, position which noncash basis, derivatives of last of $XX a figure a swaps.We XX% contracted Hilli Total our production quarter. our and the exceeded year-on-year from $XX realized $XX reflects $XXX which fees billion. on debt cash up Brent-linked our million $XX million from number of overview with of to on QX.Moving million amounted position which up revenues positively the the million quarter net see volume, last We gas metric, $XX at operating EBITDA contractual and compared

flow debt TTF swaps. see is can TTF of of and amortization our fixed million locked-in approximately Brent resulting on XXXX, based to of addition benefit tolling including that forward to remain million XXXX.Total TTF cash XXXX, revenues. both total the approximately Brent in That EBITDA will fees for expect locked-in $XX quarter hedges our million of same represents from generation approximately at down resulting principal $XX unwinding while the equity to gains exposed time, or TTF. expected free service, in million for the in be from You come prices remainder in per variable to allocated and $XXX our gains $XX previous to from and we to prices These

in upsides gas you flow is for repurchase and Hilli. prices.Now remain this in between And to XXXX share can equity moving million, expected graph, room to in surpass We NFE's potential we buybacks dividends, stake As you subject XXXX, on as with total see returns. $XXX cash XXXX, can XX. to Slide generated to $XXX and free just and see committed shareholder over of million FLNG paid to the oil

XXth This XXth a we share, dividend of declared quarter, and a a $X.XX on March of with record March. date the the payment of on

shares some We to X.X repurchases, Karl remains approved for opportunistically for have which leaving it quarter, million buyback of share will hand the Out $XX continue XXX.X repurchased to $XXX further outstanding. available now million also million this over closing million program, remarks. pursue.I'll shares we

Karl Staubo

Eduardo. Thanks,

and turning So XX next to for summary Slide a steps.

TTF Hence, progress and Hilli business We commencement link see the contract employment. FLNG and the see for we redeployment revenue, now of made link BP.On with with the development, of the diversification Gimi. Gimi's delivery Hilli's continue XX-year to revenue Mark base strong X both of II and components, Brent potential have the we then

once committed and remain order liquidity for contract, to Yard signed design year contract, particular, and Golar within agreement Gimi see the with we've Mark potential separate with refinancing. we are a a sales XX dividend and in we targeting ready of We potential proven.We of with provided the return and noncore for of liquidity XX debt potential to progressed. customer upside FID, liquefaction We her vessel The explained, contract durations Macaw for utilize framework also delivery remain delivery well potential 'XX, in lead are has 'XX. in to X that As we could optimization. opportunities.On see Gimi terms $XXX to long see attractive we strong position once either the shareholders. growth see look to discussions Arctic, solutions. the commercial are listing unit The the items assets, the asset around of starts a We the a is FID release and once of allows II we within engineering significant million. been

significant existing remarks the continued we XXXX.That hand questions. the QX our also prepared utilized capacity the We you call during in. Thank share for a have now the under portion any that program concludes I'll of to over for for buyback call. dialing operator

Operator

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

Benjamin Nolan

my say, X Let's questions.

with until up the balance out both appreciating those all of -- commissioning, any cetera. any there Gimi income the just to laid et are relates impact sort of there offset statement you to that sheet? How commissioning about against is the revenue we first The line Or or should think point respect the expense? time the

Eduardo Maranhao

here. Ben, Eduardo

correctly those actual phase, during So as date. commission COD will we be integration capitalizing and pointed you revenues out, until start so the the

So those up in COD. company. until will be they be [indiscernible] amortized of the our items over the reflected will which life distributed will equally be balance sheet

Benjamin Nolan

same are cost, Got costs capitalized. the And the is for true correct, it.

Eduardo Maranhao

Yes.

Benjamin Nolan

Okay. All Good. right.

we to something -- to, to respect able So to you And terms now wanted that color might to in when was with have might don't do of -- framework process? something agreement that hoping the you it you I think little to could the if I firm? know, could quickly, as be any move its is a that that I more where bit you you -- sense be how more if into as is have. give jump Hilli to if able I

Karl Staubo

parties need the to that purpose terms sets we're that into to next very agreement, both commercial meet. the think I it enter of out alignment and an is which of the pleased steps framework specific

that both lines and been have authorities. sign off. indications the but continues We've framework talk meetings ones where about Those to agreement, 'XX, is provided will bodies Hilli both it with with next prolonged parties' the said And planning unknown meet due helps from the and more ]. want move within also the governmental highly how the that seem a to if timing We to because the visibility phase, the put [ aligned to based that location that current is our confident in visibility this on have us we joint time period uncertainty we time that is need we case. to proposed we there's ability when on far, thus in aligns provides are to the be of they forward line, that have initiated. had received What exact about for relevant be be

in So that terms of our timing, target. remains

Benjamin Nolan

Okay. Is frame just this ]? West it in Africa, [

Karl Staubo

both -- several We're is talking in in no, specific places about West the places, framework Africa. but agreement opportunities no not

Operator

to now are our Liam queue. transfer the And going question B. next from Burke in next from Financial. We question to Riley comes the

Liam Burke

How Karl, the priorities or your of -- you you've are the other opportunities? got core FLNG your II. the balancing outside FL investments these side with Mark investment FLNG with other

Karl Staubo

a That's question. relevant

is Power Hygo when us know, efforts core investment was less our now. in comes for to years X.X to have of core Avenir last respect, you owned LNG, So a or Golar In one legacy as Energy been Transition. focusing reorganization on that company we the through FLNG. when ] small-scale bit It's it shipping which a that Golar, to a us [ have we

we'll think to floating to but Energies, as it any planning with see we the we're should ownership to something on Macaw it, into much what So is like, Avenir.When aligned investment be we Avenir to side. you very capital not is that deploy comes doing we're opportunistic be and our about in an the way more

particular. capital to getting majority reserves as business. a built separate way So we, we've we flare capture in any that is we're projects. And the to It's context, the why have. invested, proven can only. started expertise what what market absolute gas flare capital up environmentally FLNG at our to Macaw is expect see and deploying of is of return politically of in a deploy it faster opportunity, use FLNGs gas. spin-off which capital for where and on directed to economically, We for this beyond massive capital capture -- of think be not this over or our is, FLNG both evaluating and we in point as that Hence, Macaw will significant it's a liquefaction one that accelerate what time.However, Golar growth we FLNG We

Liam Burke

Got it.

you'd the dividend is looking consider maintain investment that you got you've on forward? other opportunities going to is that Or policy, And through that are that cycle? Okay. the dividend -- these when something

Karl Staubo

we ensure there dividends sustainable. $X.XX do we predictable, and reason very us level, we reinstated said of returns we over shareholder it. time. to unless we increasing last sustainable Hence, is see over before to are highly we see want is when time. we Gimi and extremely the increase now dividends the it's When But going do at they're -- in agenda increasing why to forward. as hence, expect that COD take important increase year, see put because that we a that stable, The it it's high initially to we that can want on the place other opportunities We

Operator

our now to the to Deutsche question question the Christopher final transfer And queue. Robertson from final We're from Bank. comes going in

Benjamin Mohr Mok

calling here Mohr Ben for at Robertson Deutsche Bank. is This Chris

LNG in capacity Gulf be Qatar the coming will Coast new landscape look the near in at U.S. future. and the coming years, in we As in the online

of look quarters you are FLNG types landscape has perspective at to last your out in there? As changed opportunities as the this what opportunities context, in few of the

Karl Staubo

No. in because pipeline you We [ the saw situation, Nordstream accident incident. you following ] spike Russia-Ukraine had basically, very that particular, think or beneficial the the prices it's in when LNG

end for increasing away LNG see gas. to supply to sources. You a strong in further it's plentiful and the and from gas interest saw long-term LNG substitute you think We industry's there natural go where that level of very was users supply incentive prices a

explain should environment, spent to double and particular, volumes, be in some about we're of demand, pretty price X discussions more of have, time very we growth in with U.S. to large stable extremely currently industry.In volumes the self-regulating we in should particular, you a these such Qatar and, that talking end-user that a have of on good that for. be further U.S. see the So think Slide cost which expansion we of landed volumes that is we to for helpful much measure development. underwriting twice the so what the breakeven in self-regulating part we hopefully of the the projects Hence, we LNG be see when supply -- we welcome FLNG a will of projects attractiveness the the a

Benjamin Mohr Mok

Maybe configuration as the design talk the relates a Hilli, you of something this composition as stream? follow-up, can gas about the gas Or current to equipped wet it of that current handle the the opportunities? Is is you of it better the picture in to? as the opportunities this can a We opportunities. to deployed just look to future try and types adapted asset to be re-contracting forward could wanted be to the of get fields to

Karl Staubo

The see do have if the achieve X, FLNG across gas the the is are composition we're that dependent is for operations required. design. to plant more customize the that part of evaluating we based we achieved. the So that there operational that we liquids pipeline and of extent is quality a pretreatment as principle gas all our and gas to composition. quality. the The We design entering not to does vessel. fit the far the safe gas the treats To we the We it generic our separate per and able of founding enters reason that the of fees technology have units treatment beneficial liquefaction not the significant gas are ton why FLNG. on the FLNG CapEx facility are strip That's efficiencies on

Operator

we've time, time. run out At of this the

to Fredrik Staubo, Karl going any hand So I'm your to back now speaker, for remarks. closing it

Karl Staubo

Thank forward a quarter. in about the and all a dialing excited day, good for day. to nice the quarter. have We're company from reconnecting listening to the and you next and all updates Wish in look development the you this

Golar LNG Limited (GLNG) 29 Feb 242023 Q4 Earnings call transcript