Golar LNG (GLNG) - 2025 Q1 - Quarterly Report

FORM 6-K Filing Information This Form 6-K report for Golar LNG Limited includes the Overview, Operating and Financial Review, and unaudited consolidated financial statements for Q1 2025, incorporated by reference into the Company's Form F-3 ASR registration statement Filing Details This section details the Form 6-K filing, including the Q1 2025 financial review and statements, incorporated by reference into the F-3 ASR registration statement - The report includes the Overview, Operating and Financial Review, and unaudited consolidated financial statements for the three months ended March 31, 2025[3] - The information in this 6-K report is incorporated by reference into the Company's registration statement on Form F-3 ASR (File No. 333-271027)[4] Signatures The report was signed by Eduardo Maranhão, Principal Financial Officer of Golar LNG Limited, on June 6, 2025 - The report was signed by Eduardo Maranhão, Principal Financial Officer, on June 6, 2025[8] UNAUDITED INTERIM FINANCIAL REPORT This section presents the unaudited interim financial report, including forward-looking statements and management's discussion and analysis Forward-Looking Statements This section cautions that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially, advising against undue reliance - Forward-looking statements are subject to significant uncertainties and contingencies, and actual results may differ materially from projections[12][14] - Key risk factors include the ability to meet obligations for the GTA Project (FLNG Gimi) and FLNG Hilli, securing financing for MKII FLNG, global economic trends, and changes in tolling rates[13] - The company assumes no obligation to revise or update any forward-looking statements unless required by law[15] Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's discussion and analysis of Golar's financial condition and results of operations Overview Golar's strategy focuses on market-leading FLNG operations, leveraging balance sheet flexibility to maximize shareholder returns through accretive projects - Golar's strategy is to provide market-leading FLNG operations and maximize shareholder returns through accretive FLNG projects[18] - The company offers a proven, quick, low-cost, and low-risk solution for natural gas liquefaction to resource holders[18] Recent and Other Developments Recent developments include 20-year FLNG deployment agreements in Argentina, a Q1 2025 dividend declaration, and the annual general meeting 20-year FLNG deployment projects in Argentina Golar secured 20-year FLNG deployment agreements in Argentina for FLNG Hilli and MKII FLNG, totaling 5.95 mtpa capacity with fixed annual charter hires - Golar executed 20-year agreements for 5.95 mtpa liquefaction capacity in Argentina[20] - FLNG Hilli redeployment reached FID, with commercial operations expected in 2027, generating $285 million fixed annual charter hire plus commodity-linked tariff[20] - Definitive agreements for MKII FLNG charter signed, with commercial operation expected in 2028, generating $400 million fixed annual charter hire plus commodity-linked tariff[21] Dividends Golar declared a Q1 2025 dividend of $0.25 per share, payable around June 10, 2025 Dividend Declaration (Q1 2025) | Metric | Value | | :----- | :---- | | Dividend per share | $0.25 | | Record Date | June 3, 2025 | | Payment Date | On or around June 10, 2025 | 2025 Annual General Assembly The 2025 Annual General Assembly re-elected and appointed directors, re-appointed auditors, and approved director remuneration - Re-elected Tor Olav Trøim, Daniel Rabun, Carl Steen, Niels Stolt-Nielsen, and Lori Wheeler Naess as directors[22] - Appointed Benoît de la Fouchardiere (CEO of Dixstone, Board member of African Energy Chamber) and Mi Hong Yoon (Company Secretary, Managing Director of Golar Management (Bermuda) Limited) as new directors[22][23][24] - Re-appointed Ernst & Young LLP as auditors and approved director remuneration for the year ending December 31, 2025[22] Operating and Financial Review Golar exited shipping in Q1 2025, reclassifying activities to Corporate and other; consolidated Adjusted EBITDA decreased due to lower derivative gains and shipping revenues - Golar exited shipping operations in Q1 2025 with the sale of Golar Arctic and conversion of Fuji LNG, reclassifying all legacy shipping activities to the Corporate and other segment[26] Consolidated Results of Operations Consolidated net income and Adjusted EBITDA significantly decreased in Q1 2025, driven by reduced derivative gains, lower revenues, and increased expenses Consolidated Financial Highlights (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | Change (YoY) | | :------------------------------------------ | :----- | :----- | :----------- | | Net income | 12,939 | 66,495 | (53,556) | | Adjusted EBITDA | 40,936 | 63,587 | (22,651) | | Unrealized loss/(gain) on oil and gas derivative instruments | (25,001) | 2,148 | (27,149) | | Interest income | (8,699) | (10,026) | 1,327 | | (Loss)/gain on derivative instruments, net | (6,795) | 6,202 | (12,997) | | Net (income)/loss from equity method investments | (10,209) | 214 | (10,423) | - Adjusted EBITDA decreased by $22.7 million, primarily due to a $12.9 million reduction in realized gains on oil and gas derivative instruments (following TTF swaps maturity), a $2.5 million decline in total operating revenues (due to Golar Arctic disposal), and increased administrative and project development expenses[33] - Unrealized loss on FLNG Hilli's oil derivative instrument increased by $43.2 million due to volatility in future Brent crude oil price curve[29] - Net income from equity method investments increased by $10.4 million, primarily due to the gain on disposal of shareholding in Avenir[32] FLNG Segment The FLNG segment's Adjusted EBITDA decreased in Q1 2025, primarily due to reduced realized gains on derivatives and lower FLNG tariffs, alongside increased project development expenses FLNG Segment Performance (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | Change (YoY) | | :------------------------------------------ | :----- | :----- | :----------- | | Total operating revenues | 55,688 | 56,368 | (680) | | Realized gain on oil and gas derivative instruments, net | 21,213 | 34,147 | (12,934) | | Project development expenses | (2,351) | (1,085) | (1,266) | | Adjusted EBITDA | 55,177 | 70,175 | (14,998) | | FLNG tariff, net | 72,931 | 86,501 | (13,570) | - Realized gain on FLNG Hilli's oil derivative instrument decreased by $4.9 million due to a lower three-month look-back average oil price ($75.56/barrel in 2025 vs. $81.74/barrel in 2024)[38] - Realized gain on FLNG Hilli's gas derivative instrument increased by $4.4 million due to a higher one-month look-back average TTF price (€47.80 in 2025 vs. €30.33 in 2024)[38] - Realized MTM adjustment on commodity swap derivatives decreased by $12.4 million due to the maturity of TTF swaps on December 31, 2024, with no new swaps entered[38] - Project development expenses increased by $1.3 million, primarily due to higher costs for pursuing FLNG contracting opportunities in Argentina[40] Corporate and Other Segment The Corporate and other segment's Adjusted EBITDA loss increased in Q1 2025, driven by lower revenues from asset sales, higher administrative expenses, and other operating losses Corporate and Other Segment Performance (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | Change (YoY) | | :------------------------------------------ | :----- | :----- | :----------- | | Total operating revenues | 6,814 | 8,591 | (1,777) | | Administrative expenses | (8,999) | (6,604) | (2,395) | | Other operating loss | (1,403) | — | (1,403) | | Project development expenses | (968) | 273 | (1,241) | | Adjusted EBITDA | (14,241) | (6,588) | (7,653) | - Total operating revenues decreased by $1.8 million, mainly due to the absence of time charter revenue from the Golar Arctic (sold in March 2025), partially offset by increased revenue from Fuji LNG and Italis LNG[42][46] - Administrative expenses increased by $2.4 million, primarily due to a $2.1 million increase in employee compensation and benefits[43] - Other operating loss of $1.4 million was due to a $0.9 million credit loss allowance on the Higas shareholder loan and a $0.5 million loss on disposal of the Golar Arctic[44] Liquidity and Capital Resources Golar's liquidity needs for debt, working capital, and FLNG projects are expected to be met by existing cash, operations, and planned initiatives, with improved cash flows across all activities - Short-term liquidity requirements include debt servicing, working capital, FLNG modification, FLNG Hilli redeployment capital expenditures, and MKII FLNG conversion projects[47] - Golar believes existing cash, cash equivalents, short-term bank deposits, cash flow from operations, and planned liquidity-enhancing initiatives will be sufficient for at least the next 12 months[47] Cash and Cash Equivalents (as of March 31, 2025) | Metric | Amount (in thousands of $) | | :----- | :------------------------- | | Cash and cash equivalents (including short-term deposits) | 694,300 | | Restricted cash | 172,900 | Short-term Liquidity Requirements and Resources Golar's short-term liquidity needs for debt, working capital, and FLNG project expenditures are expected to be covered by existing cash, operations, and planned initiatives - Liquidity requirements include servicing debt, working capital, potential investments, FLNG modification, FLNG Hilli redeployment capital expenditures, and MKII FLNG conversion projects[47] - Existing cash, cash equivalents, short-term bank deposits, cash flow from operations, and planned liquidity-enhancing initiatives (e.g., FLNG Gimi sale leaseback) are expected to be sufficient for the next 12 months[47] - As of March 31, 2025, cash and cash equivalents (including short-term deposits) totaled $694.3 million, with $172.9 million being restricted cash[48] Transactions Impacting Cash Flows (Since March 31, 2025) Post-Q1 2025, Golar received significant cash inflows from Gimi LOA and FFH equity, while making substantial payments for MKII FLNG, Gimi, and loan repayments - Receipts include $40.5 million of pre-commissioning contractual cash flows for the Gimi LOA and $2.0 million proceeds from First FLNG Holdings' equity subscription in Gimi MS Corporation[51] - Payments include $124.5 million for MKII FLNG, $78.4 million for Gimi, $32.8 million in scheduled loan and interest repayments, and $0.3 million drawdown under the Higas revolving shareholder loan[51] Security, Debt and Lease Restrictions Golar's financing agreements are collateralized by vessel liens and impose various operating and financing restrictions, with the company in compliance with all loan covenants as of March 31, 2025 - Financing agreements are collateralized by vessel liens and impose restrictions on incurring additional indebtedness, creating liens, selling capital shares, making investments, and distributing dividends[50] - As of March 31, 2025, Golar was in compliance with all covenants under its loan agreements, including maintaining a positive working capital ratio, tangible net worth, and at least $50.0 million in consolidated cash and cash equivalents[49][50] Cash Flows Net cash from operating activities significantly increased in Q1 2025, while net cash used in investing and financing activities decreased, resulting in a net decrease in cash Consolidated Cash Flows (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | Change (YoY) | | :------------------------------------------ | :----- | :----- | :----------- | | Net cash provided by operating activities | 100,577 | 36,471 | 64,106 | | Net cash used in investing activities | (61,965) | (102,443) | 40,478 | | Net cash used in financing activities | (60,881) | (65,471) | 4,590 | | Net decrease in cash and cash equivalents, restricted cash and short-term deposits | (22,269) | (131,443) | 109,174 | | Cash and cash equivalents, restricted cash and short-term deposits at the end of the period | 694,313 | 640,027 | 54,286 | - Operating cash flow increase was primarily due to an $87.1 million increase in FLNG Gimi's pre-COD contractual cash flows[54] - Investing cash flow improvement was due to $81.9 million in cash inflows from related party loan repayment and proceeds from equity method investments/long-lived asset sales, partially offset by increased capital expenditure for FLNG conversion projects[56][57] - Financing cash flow decrease was mainly due to the absence of treasury share purchases ($14.2 million in Q1 2024), partially offset by a $12.0 million increase in debt repayments[59] UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS This section presents Golar's unaudited consolidated financial statements for the three months ended March 31, 2025 INDEX TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS This index lists the unaudited consolidated statements of operations, comprehensive income, balance sheets, cash flows, and changes in equity for Q1 2025 and 2024 - The index lists the unaudited consolidated statements of operations, comprehensive income, balance sheets, cash flows, and changes in equity for the three months ended March 31, 2025 and 2024[61] UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS Golar reported a significant decrease in net income and operating income in Q1 2025, primarily due to losses on oil and gas derivative instruments Unaudited Consolidated Statements of Operations (Q1 2025 vs. Q1 2024) | (in thousands of $, except per share data) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Total operating revenues | 62,502 | 64,959 | | Total operating expenses | (54,014) | (47,995) | | Realized and unrealized (loss)/gain on oil and gas derivative instruments | (3,788) | 36,295 | | Operating income | 3,297 | 53,259 | | Net financial (loss)/income | (388) | 13,588 | | Net income | 12,939 | 66,495 | | Net income attributable to stockholders of Golar LNG Limited | 8,197 | 55,220 | | Basic and diluted earnings per share ($) | 0.08 | 0.53 | UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Golar's comprehensive income significantly decreased in Q1 2025, reflecting lower net income and other comprehensive income components Unaudited Consolidated Statements of Comprehensive Income (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net income | 12,939 | 66,495 | | Net other comprehensive income | 1,130 | 370 | | Comprehensive income | 14,069 | 66,865 | | Comprehensive income attributable to: Stockholders of Golar LNG Limited | 9,327 | 55,590 | | Non-controlling interests | 4,742 | 11,275 | UNAUDITED CONSOLIDATED BALANCE SHEETS Total assets slightly increased as of March 31, 2025, driven by assets under development, while liabilities remained stable and equity saw a minor increase Unaudited Consolidated Balance Sheets (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Total current assets | 744,038 | 739,866 | | Total assets | 4,375,825 | 4,367,677 | | Total current liabilities | (873,876) | (841,524) | | Total liabilities | (1,998,439) | (1,998,273) | | Stockholders' equity | (1,994,493) | (2,014,151) | | Non-controlling interests | (382,893) | (355,253) | | Total liabilities and equity | (4,375,825) | (4,367,677) | - Assets under development increased to $2.486 billion from $2.261 billion, reflecting ongoing FLNG conversion projects[67] - Vessels and equipment, net, decreased to $967.1 million from $1.080 billion, partly due to the reclassification of Fuji LNG to assets under development[67] UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS Net cash from operating activities significantly increased in Q1 2025, while net cash used in investing and financing activities decreased, resulting in a net decrease in cash Unaudited Consolidated Statements of Cash Flows (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net cash provided by operating activities | 100,577 | 36,471 | | Net cash used in investing activities | (61,965) | (102,443) | | Net cash used in financing activities | (60,881) | (65,471) | | Net decrease in cash and cash equivalents, restricted cash and short-term deposits | (22,269) | (131,443) | | Cash and cash equivalents, restricted cash and short-term deposits at the end of the period | 694,313 | 640,027 | UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Total equity increased as of March 31, 2025, reflecting net income, stock compensation, and equity subscriptions, partially offset by dividends and unit reacquisition Unaudited Consolidated Statements of Changes in Equity (Q1 2025 vs. Q1 2024) | (in thousands of $) | March 31, 2025 | March 31, 2024 | | :------------------------------------------ | :------------- | :------------- | | Balance at period start | 2,369,404 | 2,602,443 | | Net income | 12,939 | 66,495 | | Dividends | (26,146) | (27,804) | | Employee stock compensation | 3,015 | 2,738 | | Proceeds from subscription of equity interest in Gimi MS Corporation | 18,993 | 21,916 | | Other comprehensive income | 1,130 | 370 | | Total Equity at period end | 2,377,386 | 2,651,967 | Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed notes to the unaudited condensed consolidated financial statements Note 1. General Golar, incorporated in Bermuda, focuses on FLNG operations with Hilli, Gimi, and MKII FLNG, pursuing liquidity initiatives for significant capital commitments - Golar's operations focus on designing, constructing, owning, and operating marine infrastructure for LNG liquefaction, storage, and offloading[77] - The fleet includes operational FLNG Hilli, FLNG Gimi undergoing commissioning, and MKII FLNG under conversion[77] - The company has significant capital expenditure commitments for MKII FLNG and FLNG Hilli redeployment, and is considering debt optimization, corporate debt issuance, and new loan facilities to strengthen liquidity[79][80][82] Note 2. Accounting Policies Financial statements adhere to U.S. GAAP, with management's estimates and judgments for asset recoverability and derivative valuations inherently uncertain - Financial statements are prepared in accordance with U.S. GAAP and are consistent with the 2024 audited annual financial statements[83][84] - Management's estimates and assumptions are used for asset recoverability, valuation of oil and gas derivative instruments, and other areas, which are subject to change[86] Note 3. Recently Issued Accounting Standards Golar adopted ASU 2023-05 for joint ventures and is assessing other recently issued ASUs related to income tax, expense disaggregation, and debt - ASU 2023-05 (Business Combinations - Joint Venture Formations) was adopted, requiring a new basis of accounting for certain joint ventures[87] - The company is assessing the impact of ASU 2023-09 (Income Tax Disclosures), ASU 2024-03 (Expense Disaggregation), ASU 2024-04 (Debt with Conversion and Other Options), and ASU 2025-03 (Determining the Accounting Acquirer in VIE Acquisition)[88][89] Note 4. Segment Information Golar exited shipping in Q1 2025, reclassifying activities to the 'Corporate and other' segment, now operating with 'FLNG' as its primary reportable segment - Golar exited shipping operations in Q1 2025, reclassifying all legacy shipping activities to the 'Corporate and other' segment[90] - The company now operates in two reportable segments: 'FLNG' (FLNG vessels and projects) and 'Corporate and other' (legacy shipping, vessel management, administrative services, corporate overhead, other investments)[90][94] Adjusted EBITDA Reconciliation (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net income | 12,939 | 66,495 | | Income tax | 179 | 138 | | Depreciation and amortization | 12,638 | 12,476 | | Unrealized loss/(gain) on oil and gas derivative instruments | 25,001 | (2,148) | | Interest income | (8,699) | (10,026) | | Loss/(gain) on derivative instruments, net | 6,795 | (6,202) | | Other financial items, net | 2,292 | 2,640 | | Net (income)/losses from equity method investments | (10,209) | 214 | | Adjusted EBITDA | 40,936 | 63,587 | Note 5. Revenue Total operating revenues decreased in Q1 2025, with a slight decline in liquefaction services revenue and an increase in vessel management fees Revenue Disaggregation (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Liquefaction services revenue | 55,688 | 56,368 | | Vessel management fees and other revenues | 5,938 | 5,386 | | Time and voyage charter revenues | 876 | 3,205 | | Total operating revenues | 62,502 | 64,959 | Contract Assets and Liabilities (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Contract assets | 18,415 | 19,696 | | Total contract liabilities | (5,349) | (6,365) | - Liquefaction services revenue includes base tolling fees, amortization of Day 1 gains, incremental base tolling fees, and amortization of deferred commissioning period revenue[100] Note 6. Earnings Per Share Basic and diluted earnings per share significantly decreased in Q1 2025, reflecting lower net income attributable to stockholders Earnings Per Share (Q1 2025 vs. Q1 2024) | Metric | 2025 | 2024 | | :----- | :--- | :--- | | Net income net of non-controlling interests - basic and diluted (in thousands of $) | 8,197 | 55,220 | | Weighted average number of common shares outstanding (Basic) | 104,596 | 104,236 | | Weighted average number of common shares outstanding (Diluted) | 105,114 | 104,679 | | Basic and diluted EPS ($) | 0.08 | 0.53 | Note 7. Realized and Unrealized (Loss)/Gain on Oil and Gas Derivative Instruments Golar reported a combined realized and unrealized loss on oil and gas derivative instruments in Q1 2025, a significant reversal from a gain in Q1 2024 Realized and Unrealized (Loss)/Gain on Oil and Gas Derivative Instruments (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Realized gain on oil and gas derivative instruments | 21,213 | 34,147 | | Unrealized (loss)/gain on oil and gas derivative instruments | (25,001) | 2,148 | | Realized and unrealized (loss)/gain on oil and gas derivative instruments | (3,788) | 36,295 | - The commodity swaps hedging exposure to TTF-linked earnings on FLNG Hilli matured on December 31, 2024, resulting in no realized or unrealized MTM adjustments from these swaps in Q1 2025[110] - Unrealized (loss)/gain on oil and gas derivative instruments results from movements in forecasted oil and natural gas prices and Euro/U.S. Dollar exchange rates[111] Note 8. (Loss)/Gain on Derivative Instruments and Other Financial Items, Net Golar reported a net loss on derivative instruments in Q1 2025, primarily due to unrealized MTM losses on IRS derivatives and foreign exchange losses (Loss)/Gain on Derivative Instruments, Net (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Unrealized MTM adjustment for interest rate swap ("IRS") derivatives | (7,237) | 3,901 | | Net interest income on undesignated IRS derivatives | 442 | 2,301 | | (Loss)/gain on derivative instruments, net | (6,795) | 6,202 | Other Financial Items, Net (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Foreign exchange (loss)/gain on operations | (1,497) | 213 | | Financing arrangement fees and other related costs | (813) | (3,137) | | Amortization of debt guarantees | 62 | 419 | | Other financials items, net | (2,292) | (2,640) | - The increase in foreign exchange loss of $1.7 million was mainly driven by the weakening of the U.S. Dollar against the Norwegian Krone[35] Note 9. Operating Leases Total operating lease income decreased in Q1 2025, primarily due to a significant reduction in variable lease income Operating Lease Income (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Operating lease income | 596 | 1,447 | | Variable lease income | 280 | 1,758 | | Total operating lease income | 876 | 3,205 | Note 10. Variable Interest Entities ("VIEs") Golar consolidates three VIEs (Lessor, Golar Hilli LLC, Gimi MS Corporation) which significantly impact its balance sheet and cash flows - Golar leases FLNG Hilli from a Lessor VIE (CSSC entity) under a sale and leaseback agreement, with payment obligations totaling $60.4 million for the remaining nine months of 2025[115][116] - Golar acquired 100% of Hilli LLC's non-controlling interest on December 23, 2024, ceasing its classification as a VIE but continuing consolidation as a Voting Interest Entity[120] - Gimi MS Corporation, related to FLNG Gimi, is consolidated as a VIE where Golar is the primary beneficiary, with significant assets under development and cash flow impacts from debt repayments and equity subscriptions[122][123] Note 11. Restricted Cash and Short-term Deposits Total restricted cash and short-term deposits increased as of March 31, 2025, primarily due to FLNG Gimi pre-COD contractual cash flows and FLNG Hilli collateral Restricted Cash and Short-term Deposits (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Restricted cash in relation to the FLNG Gimi | 81,315 | 58,107 | | Restricted cash in relation to the FLNG Hilli | 60,944 | 60,955 | | Restricted cash and short-term deposits held by lessor VIE | 16,745 | 17,472 | | Restricted cash relating to the LNG Hrvatska O&M Agreement | 12,850 | 12,715 | | Total restricted cash and short-term deposits | 172,879 | 150,198 | - Restricted cash for FLNG Gimi pre-commissioning contractual cash flows is utilized for debt service prior to COD and will be released upon achieving COD[124] - The $60.9 million cash collateral for FLNG Hilli's performance guarantee is expected to be released in Q2 2025 and has been reclassified to current restricted cash[125][126] Note 12. Other Current Assets Other current assets decreased as of March 31, 2025, mainly due to a reduction in 'Other' receivables, including a waived dividend Other Current Assets (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Prepaid expenses | 3,519 | 2,939 | | Interest receivable from money market deposits and bank accounts | 2,515 | 2,053 | | Receivable from IRS derivatives | 1,429 | 1,745 | | Inventories | 408 | 2,077 | | Other | 27,828 | 38,646 | | Other current assets | 35,699 | 47,882 | - Receivables from bp totaling $23.4 million (March 31, 2025) and $31.6 million (December 31, 2024) are included in 'Other'[128] Note 13. Assets Under Development Assets under development increased significantly as of March 31, 2025, reflecting capital expenditures for FLNG Gimi and MKII FLNG conversion projects Assets Under Development (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | FLNG Gimi | 1,800,944 | 1,762,632 | | MKII FLNG | 685,097 | 498,565 | | Total | 2,486,041 | 2,261,197 | - Additions to assets under development totaled $121.9 million in Q1 2025, with $26.6 million in capitalized interest costs[129] - The Fuji LNG vessel, the donor for MKII FLNG, was reclassified from 'Vessels and equipment, net' to 'Assets under development' at a net book value of $76.3 million[129][140] 13.1. FLNG Gimi FLNG Gimi is expected to achieve COD in Q2 2025 with estimated conversion costs of $1.7 billion, following a resolved contract dispute with bp - FLNG Gimi's COD is expected in Q2 2025, with total expected conversion cost, including financing, of approximately $1.7 billion[131] - A Settlement Deed and Amendment Deed with bp resolved a contract interpretation dispute, realigning commissioning and simplifying pre-COD contractual cash flows[133][134] - Net pre-COD contractual cash flows amounted to $67.0 million as of March 31, 2025, reflecting payments from bp partially offset by liquidated damages paid to bp[136][138] 13.2. MKII FLNG Golar entered an EPC agreement for MKII FLNG with CIMC, with the Fuji LNG vessel undergoing conversion and delivery expected in Q4 2027 at an estimated $2.2 billion budget - Golar approved an EPC agreement with CIMC for a MKII FLNG with an annual liquefaction capacity of 3.5 mtpa[137] - The Fuji LNG donor vessel arrived at CIMC's yard in February 2025 for conversion, with its net book value of $76.3 million reclassified to 'Assets under development'[140] - The total estimated budget for the MKII FLNG conversion is $2.2 billion, excluding financing costs, with delivery expected in Q4 2027[142] Estimated Outstanding Payments for MKII FLNG Conversion | Period ending December 31, | Amount (in thousands of $) | | :------------------------- | :------------------------- | | 2025 (9 months) | 544,418 | | 2026 | 412,756 | | 2027 | 449,729 | | 2028 | 270,550 | | Total | 1,677,453 | Note 14. Equity Method Investments Net income from equity method investments in Q1 2025 was primarily driven by a gain on the disposal of Avenir shares and a new investment in SESA Net Income/(Loss) from Equity Method Investments (Q1 2025 vs. Q1 2024) | (in thousands of $) | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Share of net loss of other equity method investments | (79) | (214) | | Gain on disposal | 10,288 | — | | Net income/(loss) from equity method investments | 10,209 | (214) | Carrying Values of Equity Method Investments (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Southern Energy S.A. ("SESA") | 9,783 | — | | Logística e Distribuição de Gás S.A. ("LOGAS") | 7,784 | 7,183 | | Egyptian Company for Gas Services S.A.E ("ECGS") | 5,511 | 5,502 | | Aqualung Carbon Capture AS ("Aqualung") | 2,011 | 2,046 | | Avenir LNG Limited ("Avenir") | — | 28,934 | | Equity method investments | 25,089 | 43,665 | - Golar divested its remaining 39.1 million shares in Avenir in February 2025, recognizing a gain on disposal of $10.3 million[146] - Golar contributed $9.8 million to SESA, securing a 10% equity interest and significant influence, with a remaining funding commitment of $65.2 million[145] Note 15. Other Non-Current Assets Other non-current assets decreased as of March 31, 2025, mainly due to lower fair values of oil and gas derivative instruments and MTM assets on IRS derivatives Other Non-Current Assets (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Oil derivative instrument | 46,116 | 58,676 | | Gas derivative instrument | 34,710 | 47,152 | | MTM asset on IRS derivatives | 26,181 | 32,995 | | Pre-operational assets | 8,968 | 8,782 | | Operating lease right-of-use-assets | 7,507 | 6,771 | | Other | 8,213 | 5,855 | | Other non-current assets | 131,695 | 160,231 | - Pre-operational assets include $9.0 million in capitalized engineering and other costs for Macaw Energies' F2X project, with a remaining funding commitment of $1.1 million[147] Note 16. Debt Total debt, net of deferred financing costs, decreased as of March 31, 2025, primarily comprising the Gimi facility, Unsecured Bonds, and CSSC VIE debt Total Debt (Gross) (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Gimi facility | (656,250) | (670,833) | | 2021 Unsecured Bonds | (189,660) | (189,642) | | 2024 Unsecured Bonds | (300,000) | (300,000) | | CSSC VIE debt - FLNG Hilli facility | (293,852) | (314,466) | | Total debt (gross) | (1,439,762) | (1,474,941) | | Total debt, net of deferred financing costs | (1,418,816) | (1,452,255) | Debt Breakdown (as of March 31, 2025) | (in thousands of $) | Golar debt | VIE debt | Total debt | | :------------------------------------------ | :--------- | :------- | :--------- | | Current portion of long-term debt and short-term debt | (243,396) | (273,094) | (516,490) | | Long-term debt | (883,945) | (18,381) | (902,326) | | Total | (1,127,341) | (291,475) | (1,418,816) | Note 17. Other Current Liabilities Other current liabilities significantly increased as of March 31, 2025, primarily due to a rise in FLNG Gimi pre-COD contractual cash flows Other Current Liabilities (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Pre-COD contractual cash flows | (67,042) | (23,842) | | Day 1 gain deferred revenue - current portion | (12,783) | (12,783) | | Deferred revenue | (4,220) | (5,360) | | Current portion of operating lease liability | (1,888) | (1,587) | | Other | (14,506) | (11,693) | | Other current liabilities | (100,439) | (55,265) | - Pre-COD contractual cash flows for FLNG Gimi increased to $67.0 million, reflecting a net deferred income position[150] Note 18. Other Non-Current Liabilities Other non-current liabilities slightly decreased as of March 31, 2025, primarily including a VIE dividend payable and pension obligations Other Non-Current Liabilities (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | VIE dividend payable | (184,000) | (184,000) | | Pension obligations | (20,880) | (21,209) | | Non-current portion of operating lease liabilities | (5,922) | (5,124) | | Day 1 gain deferred revenue | (3,512) | (6,604) | | Deferred commissioning period revenue | (1,129) | (2,145) | | Other | (6,794) | (6,694) | | Other non-current liabilities | (222,237) | (225,776) | - The $184.0 million VIE dividend payable is unsecured, interest-free, and due for payment in 2026[151] Note 19. Financial Instruments Golar values financial instruments using a fair value hierarchy, with 2024 Unsecured Bonds reclassified to Level 1, and holds significant interest rate swap positions - Fair value estimates are recognized using a three-level hierarchy based on input reliability[155] - The fair value hierarchy for 2024 Unsecured Bonds transferred from Level 2 to Level 1 in March 2025 due to their listing on the Oslo Børs[160] - As of March 31, 2025, Golar was party to interest rate swap transactions with a notional value of $408.3 million, receiving floating rates and paying a fixed rate of 1.93% until November 2029[163] Note 20. Related Party Transactions Amounts due from related parties significantly decreased as of March 31, 2025, primarily due to the full repayment of a shareholder loan from First FLNG Holdings Amounts Due from Related Parties (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Higas | 5,754 | 6,006 | | Avenir | 1,666 | 1,733 | | First FLNG Holdings | — | 18,621 | - First FLNG Holdings repaid its $20.0 million shareholder loan and accrued interest in full on March 28, 2025[167] - An allowance for credit losses of $0.9 million was recognized on the Higas shareholder loan due to uncertainty regarding Higas' potential inclusion in Sardinia's regulatory framework[165] Note 21. Other Commitments and Contingencies The book value of vessels secured against loans was $965.4 million as of March 31, 2025, excluding FLNG Gimi, which is secured against its own debt facility Assets Pledged (as of March 31, 2025 vs. December 31, 2024) | (in thousands of $) | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Book value of vessels secured against loans | 965,445 | 977,326 | - FLNG Gimi is classified as an 'Asset under development' and is secured against its specific debt facility[168] Note 22. Subsequent Events Subsequent events include 20-year FLNG deployment agreements in Argentina for FLNG Hilli and MKII FLNG, and a Q1 2025 dividend declaration - On May 2, 2025, Golar announced 20-year agreements for FLNG Hilli and MKII FLNG deployment in Argentina, totaling 5.95 mtpa liquefaction capacity[169][170] - FLNG Hilli's commercial operations are expected in 2027, with $285 million fixed annual charter hire plus commodity-linked tariff[169] - MKII FLNG's commercial operations are expected in 2028, with $400 million fixed annual charter hire plus commodity-linked tariff[170] - In May 2025, a dividend of $0.25 per share was declared for Q1 2025, payable around June 10, 2025[171]