Golar LNG (GLNG) - 2021 Q4 - Annual Report

Financial Position - As of December 31, 2021, Golar LNG Limited had cash and cash equivalents of $418.8 million, including $150.2 million in restricted cash[256]. - Total contractual obligations as of December 31, 2021, amounted to $3,477.8 million, with $1,266.9 million due in 2022[271]. - Golar LNG Limited's medium and long-term liquidity requirements are primarily for funding future investments and repayment of long-term debt[259]. - As of December 31, 2021, Golar LNG Limited was in compliance with all covenants under its various loan agreements[268]. Cash Flow - Net cash provided by continuing operating activities increased by $108.1 million to $253.9 million for the year ended December 31, 2021, compared to $145.8 million in 2020[263]. - Net cash used in continuing investing activities was $194.3 million in 2021, with significant contributions to asset development related to the Gimi conversion[263]. - The company reported a net cash provided by discontinued investing activities of $120.0 million in 2021, compared to $8.2 million in 2020[265]. Corporate Expenses - The company experienced a $4.5 million increase in corporate expenses due to one-off redundancy costs[257]. Market Impact - The ongoing Ukraine-Russia war has led to increased global demand for oil, natural gas, and LNG, which may materially impact earnings and cash flow for the 2022 fiscal year[275]. Interest Rate and Derivatives - As of December 31, 2021, the notional amount of interest rate swaps outstanding was $505.0 million, representing approximately 50.3% of the floating rate loans[409]. - A one-percentage point increase in the floating interest rate would increase interest expense by $4.0 million per annum[409]. - The Hilli oil derivative asset was valued at $127.5 million as of December 31, 2021, linked to Brent Crude prices above $60.00 per barrel[412]. - The Hilli gas derivative asset was valued at $79.6 million as of December 31, 2021, linked to TTF prices above $0.5652/MMBTU[413]. - The notional quantity of commodity swaps outstanding was 23,249 tons, with a 10% increase in TTF prices resulting in a loss of $2.3 million per annum[414]. Currency Impact - A 10% depreciation of the U.S. Dollar against GBP would have increased expenses by $1.8 million based on GBP expenses for 2021[410]. - A 10% depreciation of the U.S. Dollar against NOK would have increased expenses by $2.6 million based on NOK administrative expenses for 2021[411]. - A 10% depreciation of the U.S. Dollar against the Euro would have increased crew costs by $2.9 million for 2021[411]. Impairment Assessment - Management performs an annual impairment assessment for vessels, with no impairment loss recognized for nine vessels as projected undiscounted net cash flows exceeded carrying values[281]. - The carrying value of certain vessels was higher than their estimated market values, indicating a potential impairment trigger, but no impairment loss was recognized due to favorable cash flow projections[284].