Golar LNG (GLNG)2025-03-27 20:06Financial Performance - Golar LNG Limited reported a net cash provided by continuing operations of $318.2 million for the year ended December 31, 2024, compared to $134.6 million in 2023, reflecting an increase of $183.6 million [218]. - The company reported a $14.9 million decrease in revenue from Golar Arctic due to commercial waiting time, partially offset by a $9.3 million increase in revenue from Fuji LNG following its acquisition [210]. - The net cash provided by discontinued operations was $0.3 million for the year ended December 31, 2023, related to the disposal of vessel operations in Malaysia [219]. Cash Flow and Investments - The company experienced a net cash used in investing activities of $417.0 million in 2024, which is an increase of $285.3 million compared to $131.7 million in 2023, primarily due to higher costs related to FLNG conversions [221]. - Cash and cash equivalents, including short-term deposits and restricted cash, totaled $716.6 million as of December 31, 2024, with $150.2 million classified as restricted cash [213]. - Golar LNG Limited's net cash provided by financing activities increased by $288.8 million in 2024, primarily due to $215.1 million in proceeds from debt issuance and drawdowns [224]. - The company anticipates capital expenditures of approximately $0.7 billion in 2025 related to the MKII FLNG conversion project [222]. Debt and Obligations - The total contractual obligations as of December 31, 2024, amounted to $3.7 billion, including $1.2 billion in gross long-term and short-term debt [228]. - Golar LNG Limited's liquidity requirements are primarily for servicing debt, funding conversion projects, and maintaining cash reserves to satisfy borrowing covenants [212]. - The company is in compliance with all covenants under its various loan agreements as of December 31, 2024 [226]. Market Risks and Hedging - The company is exposed to various market risks, including interest rate, commodity price, and foreign currency exchange risks, and employs derivative instruments to hedge these exposures [357]. - A one-percentage point increase in the floating interest rate would increase the company's interest expense by $3.0 million per annum [360]. - For the year ended December 31, 2024, a 10% reduction in Brent linked crude oil price would have decreased the realized gain on oil derivative instruments by $25.6 million [363]. - A 10% reduction in TTF linked gas price and a 10% appreciation of USD against Euro would have decreased the realized gain on gas derivative instruments by $7.2 million [364]. - The company bears no downside risk to oil prices should they move below the contractual floor of $60.00 per barrel [363]. - The company bears no downside risk to natural gas prices should the TTF price move below $0.5652/MMBTu [364]. Currency Impact - A 10% depreciation of the U.S. Dollar against Euro and CNY would increase capital expenditure for MKII FLNG and FLNG Gimi by $4.2 million and $2.0 million, respectively [365]. - A 10% depreciation of the U.S. Dollar against GBP and NOK would increase administrative expenses by $1.6 million and $2.9 million, respectively [365]. - A 10% depreciation of the U.S. Dollar against Euro and XAF would increase seafaring officers' remuneration by $1.3 million and $0.6 million, respectively [365]. Interest Rate Swaps - As of December 31, 2024, the notional amount of interest rate swaps outstanding was $518.5 million, representing approximately 67.6% of the company's floating rate loans totaling $766.9 million [360].