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Fourth Quarter Results 2012 4th March 2013

Golar LNG Q4 2012 results presentation

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Page 1: Golar LNG Q4 2012 results presentation

Fourth Quarter Results 2012 4th March 2013

Page 2: Golar LNG Q4 2012 results presentation

This presentation contains forward-looking statements (as defined in Section 21E of the Securities

Exchange Act of 1934, as amended) which reflects 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 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 liquified 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 LNG’s 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.

Forward Looking Statements

2

Page 3: Golar LNG Q4 2012 results presentation

Agenda

1. Q4 Highlights

2. Q4 Financial Highlights

3. Business Update

4. Summary and Outlook

3

Page 4: Golar LNG Q4 2012 results presentation

Q4 2012: Highlights & Subsequent Events

4

Q4 HIGHLIGHTS

Golar reports consolidated operating income of $52.9 million and net

income of $22.8million

Q4 numbers negatively impacted by commercial waiting time for the

Maria and scheduled docking of the Spirit

Company continues to assess whether Golar Partners can be

consolidated from 13 Dec 2012 (GMLP’s first AGM). Deconsolidation a

significant possibility

Golar secures five year charter with energy major for the Golar Maria

Golar Partners repays both Freeze ($222.3m) and Nusantara Regas Satu

($155m) vendor finance facilities using proceeds of $227m unsecured

bond and $155m syndicated debt facility

Page 5: Golar LNG Q4 2012 results presentation

Q4 2012: Highlights & Subsequent Events

5

SUBSEQUENT EVENTS

Golar announces plans to launch new entity that will pursue floating

LNG projects

Golar Partners completes two further follow-on equity issues and uses

net proceeds of $310m to part fund its acquisition of the Golar Grand

($265m) and Golar Maria ($215m) from Golar LNG

Golar chosen as preferred bidder in Jordan FSRU project. TCP

negotiations to commence this quarter

Page 6: Golar LNG Q4 2012 results presentation

Basis of financial reporting

6

Financial highlights and 4th quarter results are presented on a

consolidated basis

However, Company continues to assess whether consolidated-basis of

preparing financial reports is appropriate following GMLP’s first annual

meeting of unitholders when majority of independent directors were

elected

Main impact of deconsolidation are:

De-recognise assets and liabilities associated with GMLP

Book value assets will be replaced by fair value investment in GMLP

Future dropdowns will be at fair value

Share of ongoing profit or losses of GMLP will be recognised as part

of operating income

Casflows to the Company are not affected

Conclusion will be reflected in Form-20F, to be filed in April

Page 7: Golar LNG Q4 2012 results presentation

Financial Highlights

(USD million)

Q4

2012

Q3

2012

Q2

2012

Q1

2012

Q4

2011

12m to

Dec-12

12m to

Dec-11

Net operating revenues

Operating expenses

EBITDA (ex. Commodities)

Net financial expenses

Net income / loss

Vessel numbers

Time charter equivalent rates ($ p/day)

Utilisation (%)

Dividend*

107.5

23.8

76.9

(13.4)

22.8

13

91,479

79.1%

0.425*

117.8

19.4

93.4

(11.0)

44.7

13

98,473

83.2%

0.425

103.9

17.8

79.9

(12.9)

35.4

13

97,118

89.7%

0.40

82.3

27.9

48.4

(8.8)

15.2

13

90,464

99.5%

0.35

79.6

17.6

52.7

(5.6)

17.2

13

86,521

100%

0.325

411.5

88.9

299.2

(46.0)

118.2

13

94,472

87.1%

1.6

293.8

62.9

203.9

(53.1)

46.7

13

87,659

97.1%

1.15

7

* Q3 & Q4 dividend paid together in December 2012

Note: Company continues to assess whether Golar Partners can be consolidated from 13 Dec 2012 (GMLP’s first AGM). In the event it is determined that GMLP is de-consolidated from the

Company’s results, the Q4 2012 numbers will be materially different from the financial statements reported in its Form 20-F.

Page 8: Golar LNG Q4 2012 results presentation

Net Revenue, EBITDA & Dividends

8

Note: EBITDA excludes Golar Commodities and

any group gains/losses on sale of assets

USD’M USD

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0

20

40

60

80

100

120

140

Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Net Revenue

EBITDA

Dividend

Page 9: Golar LNG Q4 2012 results presentation

Balance Sheet: Assets

(USD thousands)

2012

Dec 31 (unaudited)

2012

Sep 30 (unaudited)

2012

Jun 30 (unaudited)

2012

Mar 31 (unaudited)

2011

Dec 31 (audited)

Short term assets

Cash and cash equivalents

Restricted cash and short-term investments

Other current assets

Long term assets

Restricted cash (relates to leases)

Equity in net assets of non-consolidated

investees

Vessels and equipment, net

Newbuildings

Other long term assets

TOTAL ASSETS

491,041

32,451

13,633

190,523

5,592

1,766,394

435,859

38,655

2,974,148

118,464

45,787

16,412

189,409

5,677

1,791,169

347,437

28,234

2,542,589

77,489

37,420

15,691

186,812

5,455

1,800,453

300,382

27,322

2,451,024

107,868

43,895

16,099

189,438

5,390

1,770,477

296,578

24,080

2,453,825

66,913

28,012

11,041

185,270

22,529

1,704,907

190,100

23,862

2,232,634

9

Page 10: Golar LNG Q4 2012 results presentation

Balance Sheet: Liabilities

(USD thousands)

2012

Dec 31 (unaudited)

2012

Sep 30 (unaudited)

2012

Jun 30 (unaudited)

2012

Mar 31 (unaudited)

2011

Dec 31 (audited)

Short term liabilities

Current portion of long term debt

Current portion of capital lease obligations

Other current liabilities

Long term liabilities

Long term debt

Long term debt to related parties

Long term capital lease obligations

Other long term liabilities

Golar LNG Ltd’s stockholders’ equity

Non-controlling interest

TOTAL LIABILITIES

Percentage of Fixed Interest Debt

79,222

5,837

166,751

1,130,203

-

406,534

108,128

896,757

180,716

2,974,148

126%

74,763

5,866

155,630

799,577

-

406,430

108,113

841,802

150,408

2,542,589

71,636

6,131

175,701

811,201

90,000

399,677

109,912

703,192

83,574

2,451,024

64,433

6,152

160,661

839,381

90,000

406,263

111,702

694,234

80,999

2,453,825

64,306

5,909

185,925

627,243

80,000

399,934

113,497

677,765

78,055

2,232,634

10

Page 11: Golar LNG Q4 2012 results presentation

Statement of Cash Flows

11

(USD thousands)

2012

Oct-Dec (unaudited)

2012

Jul-Sep (unaudited)

2012

Jan-Dec (unaudited)

2011

Jan-Dec (audited)

OPERATING ACTIVITIES

Net Income before non-controlling interests

Depreciation and amortization

Drydocking expenditure

Gain on business acquisition

Other changes in operating assets and liabilities

Net cash provided by operating activities

INVESTING ACTIVITIES

Additions to newbuildings, vessels & equipment

Other investing activities

Net cash used in investing activities

FINANCING ACTIVITIES

Proceeds from long-term debt

Proceeds from long-term debt from related parties

Repayments of long-term debt from related parties

Other

Net cash provided by financing activity

Net increase / (decrease) in cash & cash equivalents Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

36,520

23,553

(1,475)

-

23,308

81,906

(95,076)

11,555

(83,521)

353,852

-

-

20,340

374,192

372,577

118,464

491,041

57,502

23,280

(2,339)

-

(9,675)

68,768

(65,865)

(6,780)

(72,645)

-

30,000

(120,000)

134,852

44,852

40,975

77,489

118,464

163,213

88,335

(22,228)

(4,084)

13,039

238,275

(343,147)

(24,131)

(367,278)

603,852

200,000

(280,000)

29,279

553,131

424,128

66,913

491,041

68,275

70,286

(19,773)

-

(2,180)

116,608

(289,182)

(9,462)

(298,644)

23,600

80,000

-

(19,368)

84,232

(97,804)

164,717

66,913

Page 12: Golar LNG Q4 2012 results presentation

Financing of Capital Expenditure

12

Golar’s progress in financing its newbuild programme is proceeding according

to plan

As of year end, the remaining unpaid equity contribution totalled approximately

$500 million. Against this, Golar’s cash reserves stood at approximately $500m

(excluding cash from the Maria dropdown)

Deliveries will be funded by a combination of:

ECA funding – both Korean and Norwegian ECAs have been engaged and

the Company is working through a structure with them

Bank funding - the Company continues to discuss various financing

structures with banks

Capital market transactions (such as bonds) are also under consideration

Dropdowns to GMLP - to date dropdowns have generated approximately

$1 billion for the Company. With its newbuild deliveries and other existing

assets, the Company is confident of further future dropdowns as well as

increased dividends through its IDRs

With the above sources of funds at its disposal, the Company is expected to

continue its dividend growth without additional equity raising

Page 13: Golar LNG Q4 2012 results presentation

Market Outlook

Despite operational disruptions to several existing liquefaction facilities, delays to the delivery of new

ones and reduced arbitration opportunities in Q3, spot rates never fell below $100kpd

Rates increased quickly in late November/December as the LNG spread widened

A shortage of available cargoes has however made it difficult to exploit the many arbitrage

opportunities and this has prevented rates returning to the historical highs reached earlier in the year

13

Historical Spot Charter Rates (2008 – 2012) 2012 Spot Charter Rates (USD,000/day) vs NBP/JKM Arbitrage Window ($/mmbtu)

Source: Poten & Partners

Page 14: Golar LNG Q4 2012 results presentation

Market Outlook

Near-term rebalancing, long-term fundamentals remain attractive

Source: Wood Mackenzie

LNG Supply

14

LNG Shipping Requirement – February 2013 (Normalized 160,000m3 ships)

Source: Poten & Partners

Note: Does not include First Generation Undedicated tonnage

0

50

100

150

200

250

300

350

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

mm

tpa

SpeculativePossibleProbable DevelopmentUnder ConstructionOperational

Liquefaction Capacity by Project Development Status - mmtpa

2012 2013 2014 2015 2016 2017 2018

Operational 240.2 249.9 246.2 240.5 237.6 237.3 236.4

Under Construction 0.0 3.3 7.1 23.3 48.3 70.4 83.3

Probable Development 0.0 0.0 0.0 0.0 0.0 2.2 6.7

Possible 0.0 0.0 0.0 0.0 0.0 3.3 17.1

Speculative 0.0 0.0 0.0 0.0 0.0 0.6 2.3

Total 240.2 253.3 253.3 263.8 285.8 313.8 345.9

44%

Page 15: Golar LNG Q4 2012 results presentation

Golar’s Existing Portfolio

15

* Purchased by Golar LNG Partners effective February 7 2013.

Page 16: Golar LNG Q4 2012 results presentation

Positioned to Capture the Market

16

Capacity

Ship/Hull No: Built m3 Type

Hilli 1975 125,000 LNGC

Gandria 1977 126,000 LNGC

Golar Viking 2005 140,000 LNGC

Gimi 1976 125,000 LNGC

Seal 2013 160,000 LNGC

Celsius 2013 160,000 LNGC

Igloo 2013 170,000 FSRU

Seal 2013 160,000 LNGC

Penguin 2013 160,000 LNGC

Bear 2014 160,000 LNGC

Eskimo 2014 160,000 FSRU

Frost 2014 160,000 LNGC

Glacier 2014 162,000 LNGC

Snow 2014 160,000 LNGC

Kelvin 2014 162,000 LNGC

Ice 2014 160,000 LNGC

Tundra 2015 160,000 LNGC*

OPEN POSITIONS: LNG Carrier FSRU * Possible conversion to FSRU subject to GasAtacama sat isfying f inal contract condit ions

20152013 20142012

NEWBUILDS

Page 17: Golar LNG Q4 2012 results presentation

17

Nusantara Regas Satu

FSRUs: Project Updates

Golar Spirit leaves drydock

Golar Named Preferred Bidder for Jordan FSRU

If finalized project will be operational in 2H

2014 using Golar Hull 2024

Continued Growth of FSRU Franchise

Golar expects 1-2 more projects to make FID

in 1H 2013

Gas Atacama award subject to possible

extension of charterer conditions deadline

FSRU Market Continues to Mature

Most successful tenders are now for terms >5

years – No longer short term solution

Limited undedicated FSRU tonnage in market

Market will require new builds to satisfy future

demand

Golar is Uniquely Positioned to Capture

Opportunities in a Tight FSRU Market

Only FSRU available in 2013

Ability to build speculatively

Only company to have completed fast track

FSRU conversion projects

Page 18: Golar LNG Q4 2012 results presentation

Floating Liquefaction

Significant interest from the market for fast

track modular liquefaction solution that is very

competitive with land based alternatives

FEED with Keppel is on schedule to be

completed by mid 2013

Construction time of less than 24 months once

initial FEED is completed

On going discussions with Douglas Channel

LNG in British Columbia, Canada

Conditionally awarded off take of project

on a joint and several basis with LNG

Partners

Several different commercial structures

being discussed

Projects in multiple countries in early stages of

development

Targeting both liquid and stranded natural gas

markets

18

Page 19: Golar LNG Q4 2012 results presentation

New Floating LNG Production Subsidiary

Golar plans to form a new subsidiary in

the 1H of 2013

Liquefaction subsidiary will own:

Gimi, Hilli and Gandria

All liquefaction technical and FEED

work

Projects under development

New subsidiary will be focused on:

Developing technical liquefaction

concepts and organizational

capabilities

Building and financing liquefaction

vessels

Promoting the development of

integrated midstream LNG projects

Creating new, high value markets for

LNGCs and FSRUs

19

Page 20: Golar LNG Q4 2012 results presentation

Summary and Outlook

Assessing suitability of consolidating Golar LNG Partners results following

election of majority independent directors on December 13, 2012

Q4 Earnings impacted by disruptions in production capacity (resulting in

commercial waiting time on Golar Maria) and schedule drydocking of Spirit

Financing of newbuild orders on track – cash on hand to fund anticipated

equity portion. Active discussions on going for attractive debt instruments to

round out funding

Golar Maria dropped down to Golar LNG Partners – net proceeds of $110

mm

FSRU business progressing well – selected as preferred bidder for Jordan

FSRU project. Golar discussing options for converting additional newbuild

carriers to FSRU’s

FLNGV FEED work progressing on time and budget – completion scheduled

for mid 2013 with anticipation of a 24 month project execution schedule

Golar to launch new entity for pursuing floating LNG production and other

related midstream projects

20