Golar LNG (NasdaqGS:GLNG) Q4 2025 Earnings call February 25, 2026 08:00 AM ET Company ParticipantsChristopher Robertson - DirectorEduardo Maranhão - CFOJohn Mackay - VP of Equity ResearchKarl Fredrik Staubo - CEOLiam Burke - Managing DirectorSherif Elmaghrabi - VP of Equity ResearchSpiro Dounis - DirectorTor Olav Trøim - Chairman of the BoardConference Call ParticipantsAlexander Bidwell - Associate AnalystOperatorWelcome to the Golar LNG Limited 2025 Q4 results presentation. After the slide presentation by ...

FOURTH QUARTER 2025 RESULTS February 25, 2026 Golar LNG Limited 2026 I Forward looking statements This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words ...

Core Points - Golar LNG Limited has successfully closed a new $1.2 billion asset-backed debt facility agreement for refinancing FLNG Gimi, replacing an existing facility with an outstanding amount of $627 million as of Q3 2025 [1][2] - The new debt facility has a 7-year tenor, a 16-year amortization profile, and incurs interest at SOFR plus a margin of 2.50% per annum [2] - Golar's 70% share of the net liquidity released from the refinancing amounts to approximately $400 million after repaying the existing Gimi debt facility and unwinding the existing interest-rate swap [2] - The CEO of Golar, Karl Fredrik Staubo, expressed satisfaction with the strong interest from leading international banks, indicating improved terms compared to the initial financing facility [3] - The new facility demonstrates the bankability of Golar's FLNG assets once operational, with a projected debt to EBITDA ratio of approximately 5.5x [3]

Core Insights - Golar LNG Limited has reported a net income of $31 million for Q3 2025, with an Adjusted EBITDA of $83 million and total cash of $661 million, prior to bond offering proceeds in October 2025 [6][21][26] - The company has secured long-term contracts for its FLNG fleet, with a combined Adjusted EBITDA backlog of $17 billion, indicating strong future earnings visibility [6][8][11] - Golar is actively pursuing growth opportunities in the FLNG sector, with plans for new projects and potential expansions in existing contracts [12][15][19] Financial Performance - Q3 2025 net income attributable to Golar was $31 million, a significant improvement from a net loss of $34.8 million in Q3 2024 [21] - Total operating revenues for Q3 2025 reached $122.5 million, an increase of 89% compared to $64.8 million in Q3 2024 [21] - Adjusted EBITDA for Q3 2025 was $83.4 million, up 41% from $59 million in Q3 2024 [21] Operational Highlights - FLNG Hilli has completed its 142nd cargo and is set for upgrades at Seatrium's Singapore yard in Q3 2026 before commencing operations in Argentina in Q2 2027 [1][6] - FLNG Gimi is performing well under its 20-year charter with BP, with production frequently exceeding base capacity, contributing to a net earnings backlog of approximately $3 billion [4][6] - The MKII FLNG project has received all necessary governmental approvals and is expected to solidify an $8 billion Adjusted EBITDA backlog over 20 years [7][8] Debt and Financing - As of Q3 2025, Golar's share of contractual debt stood at $2.03 billion, with a net debt position of $1.37 billion [28][39] - The company is in advanced stages of securing a new $1.2 billion bank financing agreement for Gimi, expected to close in Q4 2025 [5] - Golar has entered the U.S. bond market with a $500 million offering of senior unsecured notes, which will be used to repay existing debt [6][25] Strategic Initiatives - Golar is focusing on enhancing operational efficiencies and debottlenecking production capacity for the GTA project [5] - The company is evaluating asset-level financing to support growth opportunities in the FLNG sector [10] - A new $150 million share buyback program has been approved, reflecting confidence in the company's financial position and growth outlook [19]

Company Performance - Golar LNG Limited (GLNG) reported second-quarter 2025 earnings of 26 cents per share, missing the Zacks Consensus Estimate of 29 cents and declining year over year [1][8] - Revenues for the quarter were $75.7 million, surpassing the Zacks Consensus Estimate of $66.3 million and improving by 17% year over year [1][8] - Adjusted EBITDA for the quarter was $49.25 million, reflecting a decline of 16% year over year [3] Financial Position - As of June 30, 2025, Golar LNG had cash and cash equivalents of $783.42 million, an increase from $521.43 million at the end of the previous quarter [4] - The company's share of contractual debt rose by 71% year over year to $2.05 billion [4][8] - The board of directors approved a second-quarter 2025 dividend of 25 cents per share, payable on or around September 2, 2025 [4] Operational Developments - In June 2025, the FLNG Gimi achieved its Commercial Operations Date, marking the start of a 20-year lease term with BP [2] - On August 6, 2025, SESA reached a Final Investment Decision for the charter of Golar's 3.5 MTPA MKII FLNG, with completion anticipated by 2025 [3] Industry Comparison - Vista Energy S.A.B. de CV reported second-quarter 2025 adjusted earnings per share of 55 cents, missing estimates, while revenues increased to $610.5 million [6] - ExxonMobil reported second-quarter 2025 earnings per share of $1.64, beating estimates, but total revenues of $81.5 billion missed expectations [7]

Core Insights - Golar LNG Limited has secured a 20-year charter agreement for the FLNG Hilli in Argentina, generating a net charter hire of $285 million per year, totaling $5.7 billion over the contract term [2][6][7] - The company reported a Q2 2025 net income of $16 million and an Adjusted EBITDA of $49 million, with a total cash position of $891 million [6][20][27] - Golar's share of contractual debt as of June 30, 2025, is approximately $2.05 billion, reflecting a significant increase from the previous year [20][28][38] Financial Performance - The company experienced a 13% decrease in net income year-over-year for Q2 2025, with total operating revenues increasing by 17% [20][21] - Adjusted EBITDA backlog increased by $13.7 billion, with significant upside potential from commodity-linked tariffs [6][11] - The company declared a dividend of $0.25 per share for Q2 2025, with a total of 102.3 million shares outstanding [18][20] Operational Developments - The FLNG Gimi achieved Commercial Operations Date (COD) in June 2025, with Golar owning 70% of the asset and an expected net earnings backlog of approximately $3 billion [4][6] - The MKII FLNG conversion project is on schedule, with $0.8 billion spent to date, and is expected to be delivered in Q4 2027 [5][8] - Golar is exploring additional FLNG growth units and has engaged with three prospective shipyards for future projects [12][13] Market Position and Strategy - Golar is positioned as a leading provider of FLNG solutions, capitalizing on the increasing demand for flexible LNG export options [13][14] - The company aims to optimize asset-level debt and secure attractive financing for future FLNG projects [3][5] - Golar's 10% ownership in Southern Energy S.A. (SESA) provides additional commodity exposure, equating to approximately $28 million in annual commodity exposure for every $1/MMBtu change in achieved FOB prices [10][11]

Core Insights - Golar LNG Limited has maintained a strong operational track record with FLNG Hilli, having offloaded 132 cargoes and produced over 9 million tons of LNG since operations began [2] - The company has concluded a Final Investment Decision (FID) for a 20-year redeployment of FLNG Hilli to Southern Energy in Argentina, which is expected to significantly enhance its earnings visibility [2][10] - Golar's financial performance for Q1 2025 shows a net income of $8 million and an Adjusted EBITDA of $41 million, indicating a decline compared to the previous year [7][22] Financial Performance - Q1 2025 net income attributable to Golar was $8 million, a decrease of 85% from $55.2 million in Q1 2024 [22] - Total operating revenues for Q1 2025 were $62.5 million, down 4% from $65.0 million in Q1 2024 [22] - Golar's share of contractual debt increased by 24% year-over-year to $1.495 billion as of March 31, 2025 [22] Operational Developments - FLNG Gimi is in the final stages of commissioning, with the Commercial Operations Date (COD) expected in Q2 2025, which will unlock approximately $3 billion in Adjusted EBITDA backlog for Golar [4][7] - The MKII FLNG conversion project is on schedule for a Q4 2027 delivery, with $0.7 billion already spent on the conversion [8][10] - Golar has signed definitive agreements for a 20-year charter for the MKII FLNG, which, combined with FLNG Hilli, will create one of the largest FLNG development projects globally with a capacity of 5.95 million tons per annum [7][11] Strategic Agreements - The two FLNG agreements with Southern Energy are projected to add $13.7 billion in Adjusted EBITDA backlog over 20 years, with inflationary adjustments and commodity-linked tariff upside [11][12] - Golar's 10% equity stake in SESA provides additional commodity exposure, equating to approximately $28 million in annual exposure for every $1/MMBtu change in achieved FOB prices [13][14] - The charter agreements are subject to strong legal protections under Argentina's Large Investments Incentive Scheme (RIGI), ensuring regulatory stability and security of exports [16][20] Debt and Financing - A $1.2 billion debt facility to refinance FLNG Gimi was signed with a consortium of Chinese leasing companies, expected to generate net proceeds of approximately $530 million for Golar [6] - Golar is exploring alternatives for asset-level financing for MKII FLNG following the secured FID [9] - As of March 31, 2025, Golar's total cash was $678 million, with a net debt position of $817 million after accounting for cash [28][39]

Group 1 - Golar LNG Limited has entered into finance lease agreements with a consortium of leading Chinese leasing companies for refinancing the existing FLNG Gimi debt facility, amounting to approximately $1.2 billion [1] - The sale leaseback facility will have a tenor of 12 years and a 17-year amortization profile, with quarterly repayment installments throughout the lease period [2] - Upon closing and repayment of the existing debt facility, Gimi MS Corporation is expected to generate net proceeds of approximately $530 million, with Golar benefiting from 70% of these proceeds, equivalent to approximately $371 million [2]

Core Insights - Golar LNG Limited has maintained a strong operational track record with FLNG Hilli, exceeding its contracted production volume for 2024, resulting in $0.5 million of overproduction revenue recognized [1] - The acquisition of remaining minority interests in FLNG Hilli for $60 million in cash and an increase in contractual debt has resulted in Golar holding a 100% economic interest in FLNG Hilli [2] - The acquisition is expected to increase Golar's annual Adjusted EBITDA by approximately $7 million, with additional revenue linked to Brent oil and TTF gas prices [3] Financial Performance - For Q4 2024, Golar reported a net income of $3 million, with an Adjusted EBITDA of $59 million, while the full year 2024 net income was $50 million and Adjusted EBITDA was $241 million [6] - Total Golar Cash as of December 31, 2024, was $699 million, consisting of $566 million in cash and cash equivalents and $133 million in restricted cash [22] - Golar's share of contractual debt increased to $1.515 billion as of December 31, 2024, reflecting a 24% increase from the previous year [17] Operational Developments - FLNG Gimi has commenced commissioning, with the first LNG export cargo expected in Q1 2025, and the Commercial Operations Date anticipated in Q2 2025 [5][7] - The MKII FLNG conversion project is on schedule, with $0.6 billion spent to date, and is expected to be delivered in Q4 2027 [8] - Golar has entered into definitive agreements for the deployment of FLNG in Argentina, with a consortium of leading gas producers involved [10] Future Outlook - Golar expects to release significant capital from refinancing FLNG Hilli following the completion of conditions precedent in the SESA 20-year charter [4] - The project in Argentina is projected to generate an annual Adjusted EBITDA of approximately $300 million, plus commodity-linked revenue [11] - Golar is in advanced discussions for additional FLNG units and has options for further conversions at CIMC shipyard [13]