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Interim results for the period ended June 30, 2024
FLNGFLEX LNG .(FLNG) GlobeNewswire News Room·2024-08-15 10:48

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 26millionandanAdjustedEBITDAof26 million and an Adjusted EBITDA of 59 million, with a backlog of approximately 11billion[1][14]−GolarandbphaveenteredintocommercialresetarrangementsforFLNGGimi,whichisexpectedtoreleaseliquidityofupto11 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 25.9million,asignificantincreasefromalossof25.9 million, a significant increase from a loss of 4.5 million in Q2 2023 [14] - Total operating revenues for Q2 2024 were 64.7million,down1764.7 million, down 17% from 77.5 million in Q2 2023 [14] - Adjusted EBITDA for Q2 2024 was 58.7million,adecreaseof2958.7 million, a decrease of 29% compared to 82.8 million in Q2 2023 [14] Operational Highlights - FLNG Hilli Episeyo generated 69millionofQ2DistributableAdjustedEBITDA,withGolar′ssharebeing69 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 220millioninpre−CODcompensationforFLNGGimiacross2024and2025,includingmilestonebonuses[3]StrategicDevelopments−GolarandPanAmericanEnergyhaveenteredintodefinitiveagreementsfora20−yearFLNGdeploymentprojectinArgentina,expectedtocommenceLNGexportsby2027[7]−TheFLNGHilliEpiseyoisexpectedtogenerateanannualAdjustedEBITDAofapproximately220 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 604million,withashareofcontractualdebtamountingto604 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]