Golar LNG Q3 2012 results presentation

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  • 1. Third Quarter Results 2012 28 November 2012

2. Forward Looking Statements This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects managements 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 such as may, could, should, would, expect, plan, anticipate, intend, forecast, believe, estimate, predict, propose, potential, continue or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Golar LNG undertakes no obligation to update publicly any forward- looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward- looking statements are: changes in liquid natural gas (LNG) and floating storage and regasification unit (FSRU) market trends, including charter rates; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers and FSRUs; changes in Golar LNGs ability to retrofit vessels as FSRUs and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels useful lives; and changes in the ability of Golar LNG to obtain additional financing, in particular, currently, in connection with the turmoil in financial markets. Unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements.2 3. Agenda 1. Q3 Highlights 2. Q3 Financial Highlights 3. Business Update 4. Summary and Outlook3 4. Q3 2012: HighlightsConsolidated operating income increases 21% over Q2 to $70.2 million;Net income increases 26% to $44.7 millionQuarterly cash dividend increases to $0.425 per shareAccelerated Q4 dividend of $0.425 per share for the fourth quarter of 2012in December 2012Vendor financing of $222 million provided by Golar LNG in respect of theFreeze is repaid following a successful NOK bond issue by Golar LNGPartnersGolar Partners raises a further $181million in its 2nd successful follow-onequity issue. Proceeds used to part fund the acquisition of the Grand for$265mAgreement signed with Keppel for development of Golars first FloatingLiquefied Natural Gas Vessel (FLNGV)4 5. Financial HighlightsQ3Q2 Q1 Q4 Q312m to (USD million) 20122012 2012 2011 2011 Dec-11 Net operating revenues 117.8103.982.3 79.6 77.4 293.8 Operating expenses19.417.8 27.9 17.6 15.062.9 EBITDA (ex. Commodities)93.479.9 48.4 52.7 57.2 203.9 Net financial expenses (11.0) (12.9)(8.8)(5.6) (24.9)(53.1) Net income / loss 44.735.4 15.2 17.2 13.746.7 Vessel numbers13 13 13 13 1313 Time charter equivalent rates ($ p/day) 98,47397,118 90,464 86,521 91,61487,659 Utilisation (%) 83.2% 89.7%99.5%100% 99.4% 97.1% Dividend 0.4250.40 0.350.325 0.301.15 5 6. Net Revenue, EBITDA & DividendsUSDM USD 1400.45 Net Revenue EBITDA Dividend 0.4 1200.35 1000.3 800.250.2 600.15 400.1 200.050 0Q110 Q210Q310 Q410 Q111 Q211 Q311 Q411Q112 Q212 Q312 Note: EBITDA excludes Golar Commodities and any group gains/losses on sale of assets6 7. Balance Sheet: Assets20122012 20122011 2011 Sep 30Jun 30 Mar 31Dec 31 Sep 30(unaudited) (unaudited) (unaudited)(audited) (unaudited) (USD thousands) Short term assets Cash and cash equivalents 118,464 77,489107,868 66,913115,412 Restricted cash and short-term investments 45,787 37,420 43,895 28,012 27,787 Other current assets 16,412 15,691 16,099 11,041 16,857 Long term assets Restricted cash (relates to leases) 189,409 186,812 189,438 185,270 185,588 Equity in net assets of non-consolidated investees5,677 5,455 5,39022,529 18,936 Vessels and equipment, net 1,791,169 1,800,453 1,770,477 1,704,9071,684,652 Newbuildings 347,437 300,382 296,578 190,100181,964 Other long term assets28,23427,32224,08023,862 33,273 TOTAL ASSETS 2,542,589 2,451,024 2,453,825 2,232,6342,264,469 7 8. Balance Sheet: Liabilities 20122012201220112011Sep 30Jun 30Mar 31Dec 31Sep 30(unaudited) (unaudited) (unaudited) (audited) (unaudited) (USD thousands) Short term liabilities Current portion of long term debt74,76371,636 64,433 64,306 63,139 Current portion of capital lease obligations5,866 6,1316,1525,9095,933 Other current liabilities 155,630 175,701160,661185,925194,683 Long term liabilities Long term debt799,577 811,201839,381627,243729,983 Long term debt to related parties -90,000 90,000 80,000- Long term capital lease obligations 406,430 399,677406,263399,934401,626 Other long term liabilities 108,113 109,912111,702113,497111,785 Golar LNG Ltds stockholders equity841,802 703,192694,234677,765586,760 Non-controlling interest150,40883,574 80,999 78,055170,560 TOTAL LIABILITIES2,542,589 2,451,024 2,453,825 2,232,634 2,264,469 Percentage of Fixed Interest Debt77%8 9. Statement of Cash Flows2012201220122012(USD thousands)Jul-Sep Apr-Jun Jan-Sep Jan-Mar (unaudited) (unaudited) (unaudited) (unaudited)OPERATING ACTIVITIESNet Income before non-controlling interests57,50244,850 126,693 24,341Depreciation and amortization23,28021,459 64,78220,043Drydocking expenditure (2,339) (5,210)(20,753)(13,204)Gain on business acquisition - - (4,084) (4,084)Other changes in operating assets and liabilities(9,675) (1,302)(30,264)(19,285)Net cash provided by operating activities68,76859,797 136,3747,811INVESTING ACTIVITIESAdditions to newbuildings, vessels & equipment (65,865)(38,213)(228,072) (106,478)Other investing activities(6,780) 6,262 (35,686)(52,686)Net cash used in investing activities(72,645)(31,951)(263,758) (159,164)FINANCING ACTIVITIESProceeds from long-term debt- -250,000 250,000Proceeds from long-term debt from related parties30,000 -200,000 170,000Repayments of long-term debt from related parties (120,000) -(280,000) (160,000)Other 134,852(58,225)8,935(67,692)Net cash provided by / (used in) financing activity44,852(58,225)178,935 192,308Net increase / (decrease) in cash & cash equivalents 40,975(30,379) 51,55140,955Cash and cash equivalents at beginning of period 77,489 107,868 66,91366,913Cash and cash equivalents at end of period118,46477,489118,464 107,868 9 10. Market Outlook Q3 saw a downward correction of spot rates as the arbitrage window tightened on the back of weakFar Eastern demand compounded by unanticipated production decreases Rates could easily increase as arbitrage opportunities return, unexpected production issues areresolved and the few undedicated modern vessels are placed on longer term contracts We are seeing some of these triggers now. 10 11. Market OutlookDespite a Recent Softening of Rates, Market Fundamentals Remain Unchanged LNG Supply LNG Shipping Requirement September 2012 (Normalized 160,000m3 ships) 400 350 Speculative Possible 300 34% Probable Development Under Construction Operational 250 mmtpa 200 150 10050 0 2007 2008200920102011 201220132014 20152016 2017 2012 2013 2014 2015 2016 2017Operational 249.4 253.4 252.5 249.0 249.2 250.0Under Construction5.38.9 12.030.450.769.6Probable Development0.00.00.0 0.0 3.9 7.1Possible0.00.00.0 0.0 0.011.5Speculative 0.0 0.0 3.4Total 254.7 262.3 264.5 279.4 303.9 341.6Source: Poten & Partners Source: Wood Mackenzie 11 12. Golars Existing PortfolioCapacityCurrent3ShipOwned Built mContainment Charterer 2012 201320142015 2016 20172018 2019 2020 2021 2022GOLAR LNG PARTNERS:Methane Princess100% 2003138,000Membrane BG GroupBG GROUP (LNGC)Golar Winter100% 2004138,000Membrane Petrobras PETROBRAS (FSRU)Golar Spirit100% 1981129,000Moss Petrobras PETROBRAS (FSRU)Golar Mazo 60% 2000135,000Moss PertaminaPERTAMINA (LNGC)Golar Freeze100% 1977126,000Moss DUSUP DUSUP (FSRU)Nusantara Regas Satu100% 1977125,000Moss Nusantara NUSANTARA REGAS (FSRU)Golar Grand*100% 2006145,700Membrane BG GroupBG GROUP/GOLAR LNG (LNGC)GOLAR LNG LTDGimi100% 1976125,000Moss E&P MajorHilli 100% 1975125,000Moss SpotGandria 100% 1977126,000Moss SpotGolar Viking100% 2005140,000Membrane E&P MajorGolar Maria 100% 2006145,700Membrane SpotGolar Arctic100% 2003140,650Membrane Trading House* Purchased by Golar LNG Partners effective November 8 2012. ContractedOptions ConversionLNGC Reactivation 12 13. Positioned to Capture the Market Capacity Ship/Hull No: Built m3Type2012201320142015 Hilli 1975125,000 LNGC Gandria 1977126,000 LNGC Golar Maria 2006145,700 LNGC Golar Viking2005140,000 LNGC Gimi1976125,000 LNGC Hull 2021 2013160,000 LNGC Hull 2026 2013160,000 LNGC Hull 2031 2013170,000 FSRU Hull 2022 2013160,000 LNGC Hull 2023 2013160,000 LNGC Hull 2027 2014160,000 LNGC Hull 2024 2014160,000 FSRUNEWBUILDS Hull 2055 2014160,000 LNGC Hull 6582014162,000 LNGC Hull 2047 2014160,000 LNGC Hull 6592014162,000 LNGC Hull 2048 2014160,000 LNGC Hull 2056 2015160,000 LNGC* OPEN POSITIONS: LNG Carrier FSRU * Possible conversion t o FSRU subject t o GasAt acama sat isf ying f inal cont ract condit ions 13 14. Financing of Capital Expenditure Target is to fully finance newbuild programme and continue dividend growth without additional equity raising or realising $825 million investment in Golar Partners Drop downs and financing efforts have raised approximately $0.9 billion for Golar LNG Gola

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