Core Insights - BP plc has achieved a significant milestone in its Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, marking a critical step in the commissioning of Golar LNG's floating liquefied natural gas (FLNG) vessel, Gimi [1][8] - The GTA Phase 1 project is BP's largest and most complex undertaking, with the first gas flow from subsea wells to the FPSO GTA recently commenced [2][5] - The first export cargo of LNG is anticipated by the first quarter of 2025, with full commercial operations expected in the second quarter, contingent on meeting necessary conditions [3] Project Details - The completion of the commissioning phase will initiate a 20-year lease and operate agreement, unlocking approximately $3 billion in adjusted EBITDA backlog for Golar LNG [4] - The GTA Phase 1 development features Africa's deepest subsea infrastructure, with wells reaching water depths of up to 2,850 meters, and is set to produce 2.3 million tons of LNG annually for over two decades [5][6] - BP holds a 56% working interest in the project, supported by approximately 15 trillion cubic feet of recoverable gas resources, with partners including Kosmos Energy, Petrosen, and SMH [6] Strategic Importance - The achievement of this milestone reinforces BP's position as a leader in deepwater gas developments and highlights the strategic importance of LNG in its future energy mix [8] - BP continues to advance other global projects, including ongoing drilling and subsea commissioning operations in the Mediterranean Sea, demonstrating its commitment to expanding its energy footprint [7]

Financial Data and Key Metrics Changes - Adjusted EBITDA revenues for Q3 2024 were $90.5 million, aligning with guidance of approximately $90 million, resulting in net income of $17.4 million and adjusted net income of $28.7 million [3][19] - Adjusted earnings per share for the quarter was $0.53, with a pro forma cash position of $450 million, representing about 35% of the company's market cap [4][8][60] - For the full year, revenue guidance is set between $353 million to $355 million, with adjusted EBITDA expected to be between $271 million to $274 million [10] Business Line Data and Key Metrics Changes - The company reported 100% technical utilization of its fleet during the quarter, with operational expenses at $14,900 per day, slightly improved from the previous quarter [19][20] - The time charter equivalent (TCE) rate for the quarter was $75,400, compared to guidance of $75,000 to $77,000 [9] Market Data and Key Metrics Changes - The LNG market is experiencing 1% growth historically, with a projected increase to around 6% growth next year due to new projects coming online [28][29] - European LNG import levels are below last year due to high storage levels, currently around 93% full, which has affected sourcing [32] Company Strategy and Development Direction - The company has a significant backlog of contracts, totaling over 50 years minimum, which may grow to 82 years with option declarations, providing strong earnings visibility [8][60] - Recent contracts for Flex Resolute and Flex Courageous have been fixed for longer periods at higher rates than the prevailing market, indicating a strategic focus on securing long-term revenue [5][12] Management's Comments on Operating Environment and Future Outlook - Management noted a soft spot market affecting one ship on index, leading to expectations of revenues close to $90 million in Q4, slightly lower than Q3 [7][60] - The company remains optimistic about long-term demand despite current market softness, citing a healthy backlog and cash position [17][60] Other Important Information - The company declared its 13th consecutive ordinary dividend of $0.75 per share, despite a decrease from $3.125 to $3 in trailing 12 months dividends [8][15] - The company has completed two refinancings totaling $430 million, resulting in net proceeds of $97 million [6][22] Q&A Session Summary Question: What is the expected timeline for U.S projects to start ordering long-term contracts? - Management indicated that many U.S projects are close to export, and with 90 million tons of new volumes expected from 2028 to 2030, significant shipping requirements will arise [62] Question: What motivates the charterer to fix ships far in advance? - The motivation is not project-specific but portfolio-related, as super majors are satisfied with the service and are looking to secure ships due to new environmental regulations [63][65] Question: What is the strategy for the CONSTELLATION vessel? - The strategy involves assessing market conditions and potentially trading the ship in the spot market until the market improves, with a focus on maximizing shareholder value [67] Question: What is the outlook for the options on Aurora and Volunteer? - Management believes the market will tighten by 2027, and if options are not declared, the ships will return in 2026, which is expected to be a favorable time for term rates [69][70] Question: How does the company view the MEGI and XTF technologies? - Management highlighted that MEGI ships are more efficient and have a better environmental profile, leading to a resurgence in interest despite their higher costs [71][74] Question: What is the company's stance on dividend sustainability and share buybacks? - The company maintains a strong cash position and believes it can sustain dividends despite market fluctuations, while share buybacks are not ruled out but are approached cautiously due to ownership structure [76][81]

Q3 2024 Performance & Guidance - Q3 2024 revenues reached $90.5 million, aligning with the guidance of approximately $90 million[6, 8] - Net income was $17.4 million, with adjusted net income at $28.7 million[6] - Earnings per share (EPS) stood at $0.32, while adjusted EPS was $0.53[6] - The company anticipates Q4 Time Charter Equivalent (TCE) earnings of around $73,000-$75,000 per day and revenues close to $90 million[6] - Q4 Adjusted EBITDA is expected to be near $70 million[6] Contractual Agreements & Backlog - Flex LNG extended the charters for Flex Resolute and Flex Courageous by up to 10 years from 2029[6] - Secured additional firm contract backlog for Flex Courageous and Flex Resolute with a minimum 3-year firm period from Q1 2029 to Q1 2032, with extension options to 2039[10] - The company has secured 50 years of minimum charter backlog, potentially growing to 82 years with charterer's extension options[11] Financial Position & Dividends - A quarterly dividend of $0.75 per share was declared, resulting in a dividend per share of $3.00 over the last twelve months, yielding approximately 13%[6, 7] - The company finalized a $430 million refinancing in early October, yielding net proceeds of $97 million[6] - The company has a solid cash position of $450 million after completion of refinancings[23]

Financial Performance - Vessel operating revenues for Q3 2024 were $90.5 million, up from $84.7 million in Q2 2024, representing a 9% increase[4] - Net income for Q3 2024 was $17.4 million, down from $21.8 million in Q2 2024, a decrease of 20%[4] - Adjusted EBITDA for Q3 2024 was $70.4 million, compared to $63.2 million in Q2 2024, reflecting an increase of 18%[4] - The Company recorded vessel operating revenues of $90.5 million for Q3 2024, an increase of 8.6% from $84.7 million in Q2 2024, attributed to seasonal increases in spot market rates[26] - Adjusted EBITDA for Q3 2024 was $70.4 million, up from $63.2 million in Q2 2024, reflecting a positive operational performance[35] - Net income for Q3 2024 was $17.4 million, down from $21.8 million in Q2 2024, with basic earnings per share decreasing from $0.41 to $0.32[34] - Net income for Flex LNG in Q3-2024 was $17,408,000, down from $45,101,000 in Q3-2023[80] - Basic earnings per share for Flex LNG in Q3-2024 were $0.32, compared to $0.84 in Q3-2023[79] - The company reported net income of $62,453,000 for the three months ended September 30, 2024, compared to $90,468,000 for the same period in 2023, reflecting a decrease of approximately 30.9%[143] - Net income for the three months ended September 30, 2024, was $17,408,000, a decrease of 62.5% compared to $45,101,000 for the same period in 2023[146] - Adjusted net income for the three months ended September 30, 2024, was $28,680,000, down 20.7% from $36,051,000 in the same period last year[146] Debt and Cash Management - The total long-term debt as of September 30, 2024, was $1,673.1 million, down from $1,760.4 million in Q2 2024, a reduction of approximately 5%[4] - As of September 30, 2024, total long-term debt was $1,673.1 million, reduced from $1,812.1 million at the end of 2023, due to regular repayments and prepayments[52] - Cash and cash equivalents as of September 30, 2024, were $289.5 million, down from $370.2 million in Q2 2024[4] - The company reported a carrying value of cash and cash equivalents as of September 30, 2024, was $289.5 million, a decrease from $410.4 million at December 31, 2023[118] - The company incurred extinguishment costs of long-term debt amounting to $637 thousand during the third quarter of 2024[84] - Long-term debt decreased to $1,577,692 thousand as of September 30, 2024, down from $1,656,294 thousand in June 30, 2024, a decline of approximately 4.74%[82] Operational Efficiency - The Company achieved a technical uptime of 100% for its vessels in Q3 2024[13] - Vessel operating expenses remained stable at $17.8 million in Q3 2024, unchanged from Q2 2024, indicating effective cost management[27] - Operating expenses for the three months ended September 30, 2024, were $17,836,000, an increase of 5.3% compared to $16,937,000 for the same period in 2023[153] - Opex per day for the three months ended September 30, 2024, was $14,913, an increase of 5.3% from $14,161 in the same period last year[153] Market Conditions - LNG prices have stabilized after a 60% increase since February 2024, with TTF prices reaching $12.6/MMBtu by the end of Q3 2024, driven by strong demand and supply constraints[58] - Global LNG exports for the first ten months of 2024 reached 341 MT, a modest increase of 1.8 MT or 0.5% year-on-year[59] - China remains the largest global LNG importer with 65 MT YTD-2024, reflecting a robust 10.3% year-on-year increase[60] - European LNG imports have decreased by 22% year-on-year, primarily due to a mild winter and reduced industrial demand[60] - Spot rates for modern two-stroke vessels averaged $70,900/day in Q3-2024, down from $141,000/day in the same period last year[63] Shareholder Returns - The Company declared a dividend of $0.75 per share for Q3 2024, marking the thirteenth consecutive quarter of the same dividend amount[11] - Dividends paid per share for the nine months ended September 30, 2024, was $2.25, compared to $2.50 for the same period in 2023[97] - The company declared a cash distribution of $0.75 per share for the third quarter of 2024, to be paid on or around December 11, 2024[138] Future Outlook - The International Energy Agency (IEA) projects supply growth to accelerate to nearly 6% in 2025, requiring 40-50 new ships[61] - Geopolitical factors, including the re-election of Donald Trump, may positively impact the LNG shipping market by lifting the current pause on U.S. LNG export approvals[66]

Core Insights - Golar LNG has made significant progress in its floating liquefied natural gas (FLNG) projects, including a Final Investment Decision (FID) for the MK II 3.5mtpa FLNG expected to be delivered by 2027 [1] - The company reported a net loss of $36 million for Q3 2024, but an adjusted EBITDA of $59 million, indicating operational resilience despite market challenges [1][20] - Golar has secured a 20-year FLNG deployment agreement with Pan American Energy in Argentina, with expectations to commence LNG exports by 2027 [7][8] Financial Performance - Golar reported a Q3 2024 net loss of $36 million, with a net profit of $54 million when excluding $90 million of market-adjusted non-cash items [1][20] - The adjusted EBITDA for Q3 2024 was $59 million, with a backlog of approximately $11 billion in adjusted EBITDA, reflecting strong future revenue potential [1][23] - The company declared a dividend of $0.25 per share for the quarter, demonstrating a commitment to returning value to shareholders [1] Operational Developments - The FLNG Hilli maintained a market-leading operational track record, generating $73 million in distributable adjusted EBITDA for Q3 2024 [2] - Golar expects to receive approximately $220 million in pre-COD compensation for FLNG Gimi, with $78 million already received in 2024 [3] - The commissioning of FLNG Gimi is underway, with gas being introduced from an LNG carrier to accelerate the schedule [4] Strategic Initiatives - Golar has entered into definitive agreements for a 20-year FLNG deployment project in Argentina, tapping into the Vaca Muerta shale deposit [7] - The company is pursuing a refinancing of FLNG Gimi to improve liquidity and reduce debt costs [6] - Golar is targeting to secure a charter for its MKII FLNG by 2025, which will enable asset-level debt financing [10] Market Position - Golar is positioned as the only proven provider of FLNG as a service, with competitive construction costs and early available capacity globally [10] - The company has a strong cash position of $807 million as of September 30, 2024, which supports its operational and strategic initiatives [23][25] - Golar's share of contractual debt stands at $1.465 billion, with a net debt position of $658 million after accounting for cash [25]

Core Viewpoint - Golar LNG Limited has signed an Engineering, Procurement and Construction (EPC) agreement with CIMC Raffles for a MK II Floating LNG Production vessel, which will have an annual liquefaction capacity of 3.5 million tons of LNG per annum (MTPA) [1][2]. Group 1: Project Details - The MK II design is an evolution of the MK I design and will convert an existing LNG carrier, Fuji LNG, with a storage capacity of 148,500 m³ [2]. - The total EPC price for the MK II FLNG conversion is US$ 1.6 billion, with a total budget of US$ 2.2 billion, which includes various costs such as yard supervision and initial bunker supply [2]. - Golar has already spent US$ 0.3 billion on the project, with engineering and long lead items now 63% complete [2]. Group 2: Project Timeline and Capacity - The MK II FLNG is expected to be delivered in Q4 2027, making it the earliest available floating liquefaction capacity globally [4]. - The MK II FLNG has an earnings potential of approximately US$ 0.5 billion of adjusted annual EBITDA, before commodity exposure [4]. Group 3: Strategic Importance - The new MK II FLNG order increases Golar's controlled liquefaction capacity by about 70% to 8.6 MTPA [5]. - The project reflects Golar's commitment to providing timely solutions for gas monetization and enhancing its market position as a leading owner of FLNGs [5]. Group 4: Collaboration and Expertise - Golar, CIMC, and Black & Veatch have invested significant man-hours optimizing the conversion process and de-risking project execution [3]. - Black & Veatch's PRICO® technology will be utilized in the project, marking their sixth floating LNG project to reach a final investment decision [5].

Core Insights - Golar LNG Limited has signed a 20-year FLNG deployment agreement in Argentina, indicating strong progress in expanding its FLNG opportunities [1] - The company reported a Q2 2024 net income of $26 million and an Adjusted EBITDA of $59 million, with a backlog of approximately $11 billion [1][14] - Golar and bp have entered into commercial reset arrangements for FLNG Gimi, which is expected to release liquidity of up to $0.5 billion [1][3] Financial Performance - Q2 2024 net income attributable to Golar was $25.9 million, a significant increase from a loss of $4.5 million in Q2 2023 [14] - Total operating revenues for Q2 2024 were $64.7 million, down 17% from $77.5 million in Q2 2023 [14] - Adjusted EBITDA for Q2 2024 was $58.7 million, a decrease of 29% compared to $82.8 million in Q2 2023 [14] Operational Highlights - FLNG Hilli Episeyo generated $69 million of Q2 Distributable Adjusted EBITDA, with Golar's share being $64 million, consistent with Q1 2024 [2] - The cumulative production of FLNG Hilli Episeyo has surpassed 8 million tons, maintaining a market-leading operational track record [1] - Golar expects to receive approximately $220 million in pre-COD compensation for FLNG Gimi across 2024 and 2025, including milestone bonuses [3] Strategic Developments - Golar and Pan American Energy have entered into definitive agreements for a 20-year FLNG deployment project in Argentina, expected to commence LNG exports by 2027 [7] - The FLNG Hilli Episeyo is expected to generate an annual Adjusted EBITDA of approximately $300 million, assuming 90% capacity utilization [8] - Golar is progressing with the development of a 3.5mtpa MKII FLNG, with long lead items already 63% complete [11] Liquidity and Debt Management - As of June 30, 2024, Golar's total cash was $604 million, with a share of contractual debt amounting to $1.198 billion [22] - The refinancing of the existing FLNG Gimi debt facility is in the credit approval process, which is expected to improve liquidity [6] - Golar's Adjusted Net Debt as of June 30, 2024, was $594 million after accounting for total cash [22]

Three energy stocks may achieve significant breakthroughs in 2024 based on their robust financial health and strategic advantages. This article highlights three energy stocks with strong fundamentals, making them prime candidates for such breakthroughs. Operating in high-demand areas like liquefied natural gas (LNG) transportation, these companies are poised to benefit from the global shift toward cleaner energy. Consistent revenue and EBITDA performance in this space underline their potential as LNG trade ...

FLEX LNG (FLNG) is scheduled to release second-quarter 2024 earnings results on Aug 14. The shipping company's earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and missed on the remaining occasion, the average beat being 7.1%. The Zacks Consensus Estimate for the to-be-reported quarter's earnings is pegged at 47 cents per share. The metric has remained stable in the past 60 days. The bottom-line projection indicates a year-over-year contraction of 9.6%. Against this backdro ...

Golar LNG Ltd. ("Golar"), and bp, as Operator of the Greater Tortue-Ahmeyim LNG Project, have executed agreements to implement a commercial reset for FLNG Gimi. The commercial reset agreement simplifies contractual cash flows and settles previous disputes related to payment mechanisms for pre-commercial operations date ("Pre-COD") contractual cash flows. Golar and bp have agreed an updated schedule of daily payments until the Commercial Operations Date ("COD"). The daily payments have step-up mechanisms bas ...