- 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 0.00.00.0 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 Golar LNG Partners IPO together with
subsequent dropdowns of theFreeze, Nusantara Regas Satu and Grand
has generated approximately$0.9 billion for Golar LNG (assuming
refinancing of the $155m vendor loan) Newbuild vessels with
deliveries from late 2013 will generate a steepincrease in earnings
and be potential candidates for further dropdowns Material debt
capacity with the underlying value of the combined existingand
newbuild fleet $500m cash on balance sheet today (assuming vendor
loan refinanced) Potential additional dropdowns and Partnership IDR
higher splits to furtherimprove financing 14 15. FSRUs: Project
Updates Growing the FSRU Franchise Shortlisted for 5 projects
(2012-2013 awards) Gas Atacama award subject to possibleextension
of charterer conditions deadline Robust Demand for New FSRUs 25+
new projects being developed Middle East activity continues to be
verystrongNusantara Regas Satu Rising demand has led to a
significantincrease in FSRU fleet utilization - very fewFSRUs
available before 2015 Well positioned for New Awards 2 FSRU
newbuilds in 2013/2014 Only uncommitted newbuild FSRU in 2013
Conversions to suit market needs Strong presence with shipyards
Demonstrable track record toward clientsFreeze FSRUPicture courtesy
of DUSUP15 16. Floating Liquefaction Simple proven liquefaction
concept with minimal gas treatment and low cost execution model
Floating solutions for liquefaction of clean and relatively dry gas
Construction time of less than 24 months once initial FEED is
completed Builds on Golars floating regassification model with
proven concept and world class partners Modular and scalable for
efficient expansions: can be offshore or connected to a jetty
Initial vessel based on conversion of 125,000m3 Moss LNG Carrier
Golar is also evaluating barge based liquefaction concepts16 17.
Floating Liquefaction: Commercialization Current focus is on two
types of markets: Pipeline Gas markets in the Americas:
rapidlygrowing markets with significantunconventional production
Stranded Gas markets in Africa and SE Asia:clean and dry gas
reserves that are currentlyuneconomic Both markets are very well
suited for Golarsliquefaction model Flexible commercial approach:
Integrated midstream transactions Golar can offer complete range of
midstreamLNG solutions including liquefaction, shippingand
regassification 17 18. Summary and OutlookRecord earnings
contribution announced to date resulting from long-term
andopportunistic charters coupled with efficient operationsOn track
for coverage on newbuild commitments and future increases
individends without additional equity or realising Golar Partners
investmentCurrent short-term weakness in shipping set to improve
over the medium tolong-termQ4 results negatively influenced by
Golar Spirit and reduced revenue onGolar MariaStrong presence in
FSRU sphere - shortlisted in five current projectsFLNGV initiative
signed with Keppel supports Golars target for a fullyintegrated
midstream positionCompany is well positioned to capitalise on high
growth in LNG tradevolumes in the years to come 18
