Second Quarter Results - Golar LNG/media/Files/G/Golar-Lng/documents/presentation/2017-q2...FSRU Nanook to deliver 3Q 2018; Power station expected to be ready for commissioning 1Q

Second

Quarter

2017

Results© Golar LNG Limited

© Golar LNG Limited

FORWARD

LOOKING

STATEMENT

2

This press release contains forward-looking statements (as defined in Section 21E of the SecuritiesExchange Act of 1934, as amended) which reflects management’s current expectations, estimates andprojections about its operations. All statements, other than statements of historical facts, that addressactivities 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 andsimilar expressions are intended to identify such forward-looking statements. These statements are notguarantees of future performance and are subject to certain risks, uncertainties and other factors, some ofwhich are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differmaterially from what is expressed or forecasted in such forward-looking statements. You should not placeundue reliance on these forward-looking statements, which speak only as of the date of this press release.Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statementswhether 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 LNG carriers, FSRU and floating LNG vessel market trends, includingcharter rates, ship values and technological advancements; changes in the supply and demand for LNG;changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers,FSRUs; and floating LNG vessels; changes in Golar’s ability to retrofit vessels as FSRUs and floating LNGvessels, Golar’s ability to obtain financing for such retrofitting on acceptable terms or at all and the timingof the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability ofvessels to purchase, the time it takes to construct new vessels, or the vessels’ useful lives; changes in theability of Golar to obtain additional financing; changes in Golar’s relationships with major charteringparties; changes in Golar’s ability to sell vessels to Golar LNG Partners LP; Golar’s ability to integrate andrealize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs andfloating LNG vessels; our inability to achieve successful utilization of our expanded fleet or inability toexpand beyond the carriage of LNG and provisions of FSRUs particularly through our innovative FLNGstrategy and our JVs; changes in domestic and international political conditions, particularly where Golaroperates; as well as other factors discussed in Golar’s most recent Form 20-F filed with the Securities andExchange Commission. Unpredictable or unknown factors also could have material adverse effects onforward-looking statements.

As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differmaterially from those expressed or implied by such forward-looking statements. The Company undertakesno obligation to publicly update or revise any forward-looking statements, whether as a result of newinformation, future events or otherwise unless required by law.


Highlights

3

Operating Loss and EBITDA in the quarter reported a loss of $24.0 million and $6.6 million,respectively, compared to a Q1 loss of $41.4 million and $16.2 million.

OneLNG’s Fortuna joint venture executes Umbrella Agreement with the Republic ofEquatorial Guinea to establish the fiscal and legal framework for the Fortuna FLNG project.

Put Option in respect of FSRU Golar Tundra exercised by Golar Partners. The Company and Golar Partners enter into a purchase option agreement for Golar Partnersto acquire up to a 25% interest in FLNG Hilli Episeyo.

OneLNG enters into a Memorandum of Understanding with the Republic of EquatorialGuinea to find a monetization solution for stranded gas focusing on Blocks O and I offshoreMalabo.

Golar and Delfin Midstream sign agreement to jointly develop the Delfin LNG Project in theUS Gulf of Mexico.

Subsequent Events:

Entered into a Purchase and Sale Agreement for the sale of an interest in the Hilli Episeyo. LNG bunkers ordered for mid-September delivery to FLNG Hilli Episeyo ahead of departurefor Cameroon in late September/early October.

Fortuna joint venture awards LNG offtake to Gunvor Group Ltd.


Financial Highlights

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Unaudited Audited

(USD millions) Q2 Q1 Q2 12 months to

2017 2017 2016 Dec-16

Total operating revenues 28.4 25.1 18.4 80.3

Voyage, charter-hire and commission expenses

Grand charter and fair value guarantee (0.8) (9.6) (5.8) (22.3)

Other voyage expenses (11.0) (7.3) (6.4) (25.3)

Net operating revenues 16.6 8.2 6.3 32.7

Operating expenses (12.1) (12.9) (14.1) (53.2)

Administration expenses (11.1) (11.4) (9.7) (46.0)

EBITDA (6.6) (16.2) (17.5) (66.4)

Other non-operating income (loss) 0.1 0.1 - (8.6)

Net financial (expense) income (40.9) (3.8) (40.6) (59.5)

Equity in net earnings (losses) of affiliates 0.7 (13.9) 2.1 47.9

Net (loss) income (73.8) (65.8) (75.2) (186.5)

Vessel numbers 14 14 16 14

Dividend 0.05 0.05 0.05 0.20


Balance Sheet

5

(USD thousands)

2017

Jun 30

(Unaudited)

2016554

Dec 31

(Audited)

Current assets

Cash and cash equivalents

Restricted cash and short-term receivables

Other current assets

Non-current assets

Restricted cash

Investment in affiliates

Cost method investments

Vessels and equipment, net

Asset under development

Other non-current assets

TOTAL ASSETS

Current liabilities

Current portion of long-term debt and short-term debt

Other current liabilities

Non-current liabilities

Long-term debt

Other long-term liabilities

Golar LNG Ltd’s stockholders’ equity

TOTAL LIABILITIES & EQUITY

343,226

205,227

19,781

233,144

668,707

7,347

2,110,537

855,949

54,340

4,498,258

919,918

193,825

1,403,112

158,757

1,822,646

4,498,258

224,190

183,693

18,334

232,335

648,780

7,347

2,153,831

731,993

56,408

4,256,911

451,454

317,673

1,525,744

52,214

1,909,826

4,256,911


Shipping Update

6

Active spot vessels v Historical spot ratesSpot market ship availability v Rates

Source: Pareto Securities Equity Research, Bloomberg, Clarkson Research Services,

Poten & Partners, Fearnley LNGSource: Poten and Partners, Morgan Stanley Research Estimates


FSRU Update

7

The Sergipe project is proceeding to plan:

Financial close on track for end 2017. Samsung selected to do required modifications to FSRU withdelivery pushed back from November 2017 to September 2018as a result.

GE expect to be ready to commission power plant in 1Q 2019.

Other opportunities:

Most identified opportunities for new-build FSRUs have astart-date of 1H 2019 and beyond.

This will govern decisions concerning Golar Tundra charterand conversion of the Golar Celsius.

Niche market for smaller FSRUs is active and Golar Partnersexpects to secure new business for one of its two availableFSRUs in the coming months.

Growing pipeline of LNG-to-power projects developing acrossLatin America, the Caribbean, West Africa, Indiansubcontinent and South East Asia.

New competitors are starting to affect margins for genericFSRU tenders.

View of groundworks for Sergipe Power Station


Hilli Episeyo Project Update

8

FLNG Hilli schedule:

All equipment installed. Cost forecast materially under budget. Pre-commissioning and testing areongoing.

Vessel expected to leave yard by mid-September. Seawater trials to follow.

LNG bunkering booked for mid-September.

Vessel expected to depart Singapore endSeptember/early October.

Voyage to Cameroon expected to take32-40 days.

Mooring installation in Camerooncomplete.

Hook-up to mooring expected around1st /2nd week of November.

Notice of Readiness expected to betendered mid-November.



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Fortuna Project Update

9

Fortuna project FID delayed to 2H 2017:

Done:

Umbrella Agreement that covers legal and fiscal framework for project in Equatorial Guinea. Award of amended midstream EPC contracts for conversion of LNG vessel Gandria.Effectiveness of contracts subject to project FID.

Agreed LNG sales structure and awarded LNG offtake to Gunvor Group Ltd: 2.2mtpa Brent-linked FOB basis. 10-year term. Principal commercial terms agreed subject to finalizing a Sale and PurchaseAgreement ahead of FID.

OneLNG, Ophir and EG government entitled to market 1.1mpta of this LNG tohigher priced markets for two years immediately following FID.

Still to do:

Execute financing – this is the time critical trigger for FID. Obtain Ophir shareholder approval. Final sign-off from Government of Equatorial Guinea.


FLNG General Update

10

Golar LNG and Delfin Midstream have agreed to jointly develop the Delfin LNG project on the US GulfCoast: Brownfield deep-water port that requires minimal additional infrastructure. MARAD environmental and non-FTA export permits secured. Up to four 3mtpa Mark II FLNG units required to liquefy 13mtpa of LNG. Multiple expressions of interest in LNG offtake received; Mark II FLNG FEED study underway.

OneLNG S.A. and Republic of Equatorial Guinea have entered into a binding MoU to exploreLiquefaction and monetization of stranded gas from blocks O & I offshore Malabo.

OneLNGworking on a further 3-4 FLNG projects, two of which are seeking a 2021 delivery. LNG prices would have to rise above $7-8/mmbtu to support most new projects. Golar’s FLNG cantake FID at current LNG prices.

Estimated FOB Breakeven Source: IHS Connect, Morgan Stanley Research, Note: estimates by IHS Connect based on average oil price of $70/bbl, an upstream IRR of 12%, a liquefaction

IRR of 10% and a pipeline IRR of 7%


Summary and Outlook

11

Delivering and commissioning FLNG Hilli Episeyo is Golar’s overriding priority.Additional testing in Singapore is expected to speed up commissioning. The projectremains materially under budget.

Golar’s balance sheet to be further strengthened by dropdown of first tranche of HilliEpiseyo. Structure now in place to facilitate future dropdowns as and when marketconditions permit.

Good progress with government and offtake from Fortuna project not yet matched byprogress on financing facility. FID delayed to 2H 2017.

Shipping market closer to its inflection point. More tenders for term business beingpresented to market, round-trip economics making a comeback, 3Q utilization isimproving.

The Sergipe project is proceeding to plan. Financial close on track for 4Q 2017; ModifiedFSRU Nanook to deliver 3Q 2018; Power station expected to be ready for commissioning1Q 2019.

Delfin LNG project generating surprising amount of interest from potential LNG off-takers. Mark II FEED study looks to be time-critical step to FID.

OneLNG is actively pursuing a number of projects, some with multiple FLNG unitrequirements.

THANK

YOU


Documents

Second Quarter Results - Golar LNG/media/Files/G/Golar-Lng/documents/presentation/2017-q2...FSRU Nanook to deliver 3Q 2018; Power station expected to be ready for commissioning 1Q