Golar LNG (US:GLNG)2023-11-21 16:02Financial Data and Key Metrics Changes - Total operating revenues for Q3 2023 amounted to $67 million, with total FLNG tariffs reaching $95 million [12] - Net income for the quarter was $114 million, a significant improvement compared to Q2, including $39 million in non-cash items [13] - Adjusted EBITDA came in at $75 million, slightly down from Q2, but expected to improve in Q4 due to higher Brent and TTF prices [70][72] - Current liquidity position is close to $1 billion, supporting growth ambitions and shareholder returns [13][73] Business Line Data and Key Metrics Changes - Hilli delivered its 100th cargo in October 2023, continuing to demonstrate strong operational performance [5][91] - Gimi is expected to transition from CapEx to cash flow with operations starting in 2024, contributing to increased shareholder returns [9][17] - Hilli generated $73 million in Q3, a 14% increase year-on-year [98] Market Data and Key Metrics Changes - Golar LNG is positioned as the only provider of FLNG as a service, with a focus on expanding African gas exports due to lower shipping costs compared to US projects [6][7] - The company anticipates a positive impact from higher oil and gas prices driving increased tariffs for the remainder of 2023 [14] Company Strategy and Development Direction - Golar LNG aims to target integrated projects that align FLNG economics with upstream partners, enhancing exposure to LNG offtake prices [64] - The company is actively pursuing re-chartering opportunities for Hilli, with detailed discussions ongoing for three different projects [88] - Golar is committed to FLNG growth, with plans for Mark II and Mark III designs to increase liquefaction capacity [58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing increased interest in re-chartering Hilli and the potential for higher capacity utilization and improved economics in new contracts [47][132] - The commissioning period for Gimi is targeted to take six months, with efforts to reduce this timeframe [45][78] - Management highlighted the importance of maintaining a balance between shareholder returns and funding growth projects [115] Other Important Information - The company declared a dividend of $0.25 per share for the quarter and continued its share buyback program [65][101] - Golar finalized the sale of the LNG carrier Gandria for a net consideration of $15 million [92] Q&A Session Summary Question: What is the expected revenue and cash flow during the commissioning period for Gimi? - Management indicated that operating expenses would be passed through to customers during the commissioning phase, allowing for some revenue realization [109] Question: How does the company view the balance between dividends and buybacks? - Management believes that operating cash flow can be returned to shareholders through a combination of buybacks and dividends, with a focus on sustainable dividends [115] Question: What are the expected CapEx requirements for the Mark II project? - Management stated that the total projected CapEx for Mark II would be around $2 billion, with significant liquidity available to support this [115][131] Question: What is the timeline for Gimi's arrival and commissioning? - Gimi is expected to arrive at the GTA hub around late December, with a commissioning period of approximately six months [30][66] Question: What are the prospects for re-chartering Hilli? - Management is in detailed discussions for three different re-chartering opportunities, with expectations for higher capacity utilization and improved economics [88][132]