2. 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
4. Q1 2013: Highlights & Subsequent Events
4
Q1 HIGHLIGHTS
On the basis that the results of Golar Partners are no longer consolidated,
Golar reports operating income of $75.9 million and net income of $85.6
million.
Golar Partners completes its third follow-on equity offering raising net
proceeds of $130 million.
Golar sells its interests in the company that owns and operates the LNG
carrier Golar Maria to Golar Partners for $215 million.
Golar Spirit completes its first post FSRU retrofit drydock.
Golar chosen as preferred bidder for Jordan FSRU. Time Charter
discussions progressing well.
Board declares increased dividend of $0.45 for the quarter.
5. Q1 2013: Highlights & Subsequent Events
5
SUBSEQUENT EVENTS
Golar agrees terms for participation in the Douglas Channel LNG
project with a view to reaching Final Investment Decision (FID) in Q3
2013 and on stream date of late 2015 or early 2016.
Golar Winter drydocking and modification work commenced.
Hilli and Gandria enter layup in Indonesia.
6. Deconsolidation of Golar Partners
6
Company determines that Golar Partners is deconsolidated effective from
13 December, 2012.
Q1 results reflect deconsolidation but also show consolidated basis to
help with prior quarter comparatives.
Main impact of deconsolidation are:
De-recognise assets and liabilities associated with GMLP, replaced
by recognising the fair value of its investment in GMLP
Future dropdowns will be at fair value (vs common control treatment),
and gains/losses recognised
Cash distributions received from GMLP derived from ownership of
common units, GP units and IDRs are recognised as Dividend
Income
Company re-iterates that cashflows in respect of its relationship with
GMLP are not affected
(See appendices for detailed accounting guidance on treatment of investments in GMLP)
7. Financial Highlights
Stand
alone
Consolidated audited
(USD million)
Q1
2013
Q1
2013
Q4
2012
Q3
2012
Q2
2012
Q1
2012
12m to
Dec-12
Net operating revenues
Operating expenses
EBITDA (ex. Commodities)
Gain on dropdown of Maria
Gain on loss of control
Net financial expenses
Net income
Vessel numbers
Time charter equivalent ($p/day)
Utilisation (%)
Dividend
33.4
9.6
19.5
65.2
-
(1.8)
85.6
5
66,152
61.8%
0.45
105.5
21.6
78.3
-
-
(11.1)
39.0
13
94,748
82.9%
0.45
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
400.5
86.7
288.8
-
854.0
(42.9)
971.3
6
94,400
87.1%
1.6
7
8. Balance Sheet: Assets
(USD thousands)
2013
Mar 31
(unaudited)
2012
Dec 31
(audited)
2012
Sep 30
(unaudited)
2012
Jun 30
(unaudited)
2012
Mar 31
(unaudited)
Short term assets
Cash and cash equivalents
Restricted cash and short-term investments
Other current assets
Long term assets
Restricted cash (relates to leases)
Investments in available-for-sale securities
Investment in affiliates
Cost method investments
Vessels and equipment, net
Newbuildings
Other long term assets
TOTAL ASSETS
373,971
1,551
17,370
-
404,079
362,294
201,144
435,648
603,656
47,824
2,447,537
424,714
1,551
13,660
-
353,034
367,656
198,524
573,615
435,859
45,786
2,414,399
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
8
9. Balance Sheet: Liabilities
(USD thousands)
2013
Mar 31
(unaudited)
2012
Dec 31
(audited)
2012
Sep 30
(unaudited)
2012
Jun 30
(unaudited)
2012
Mar 31
(unaudited)
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
9,400
-
51,815
404,784
-
-
90,965
1,890,573
-
2,447,537
14,400
-
72,659
490,506
-
-
72,515
1,764,319
-
2,414,399
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
9
10. Statement of Cash Flows
10
(USD thousands)
2013
Jan-Mar
(unaudited)
2012
Oct-Dec
(unaudited)
2012
Jul-Sep
(unaudited)
2012
Jan-Dec
(audited)
OPERATING ACTIVITIES
Net Income before non-controlling interests
Depreciation and amortization
Drydocking expenditure
Gain on business acquisition
Gain on loss of control
Gain on disposal to Golar Partners
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 (used in) provided by financing activity
Net (decrease) increase in cash & cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
85,564
8,806
(789)
-
-
(65,239)
(25,857)
2,485
(167,797)
116,919
(50,878)
-
-
-
(2,350)
(2,350)
(50,743)
424,714
373,971
887,749
20,742
(186)
-
(853,996)
-
23,131
77,440
(94,915)
87,972
(6,943)
192,241
-
-
43,512
235,753
306,250
118,464
424,714
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
1,014,443
85,524
(20,939)
(4,084)
(853,996)
-
12,862
233,810
(342,987)
52,287
(290,700)
442,241
200,000
(280,000)
52,450
414,691
357,801
66,913
424,714
11. Financing of Newbuilding Programme
11
Golar’s progress in financing its newbuild programme is proceeding positively
To date the Company has paid $688m in pre-delivery instalments . A further
$101m is expected to be paid before the first delivery in August. The Company
currently have unrestricted cash reserves of approximately $270m
Deliveries will be funded by a combination of:
ECA funding – Korean ECAs have been engaged and a financing plan in
respect of a number of deliveries is being structured with them.
Bond market proposals under consideration
Bank funding - the Company continues to discuss various financing
structures with banks and termsheets agreed
Dropdowns to GMLP – this continues to be major source of funding for the
Company. To date this structure has generated more than $1bn and the
Company remains confident of further dropdowns (and increased dividends
through its IDRs ) to assist the funding programme
A big portion of the financing will be in place prior to the first newbuild delivery
12. Douglas Channel LNG
Golar establishes a presence in a key
development region with excellent partners and
significant expansion optionality
Framework agreement executed between Golar,
Haisla First Nation, LNG Partners and a large
energy company
Project partners have made firm funding
commitments to take project to Final Investment
Decision (FID), expected in Q3 2013
Golar has secured a minimum of 25% of the
project
0.6–0.7 mmtpa of capacity expected on stream
late 2015/early 2016
Golar has opportunity to provide shipping
The project partners will investigate the execution
of additional train of 1.1 mmtpa
Golar will have an option to own a minimum of
25% of additional liquefaction train
Project is stepping stone for further opportunities
in the region
12
13. Floating Liquefaction
Additional projects are at various stages
of development
Developing projects based on pipeline
quality gas in the Americas and stranded
or flared gas in West Africa
Building relationships with world class
partners in the upstream and downstream
is key to the successful execution of
projects
Douglas Channel model of partnering with
project sponsors and off takers to be
replicated globally
Initial projects have very strong
economics but significant execution
hurdles remain
Golar Production will be formed as
funding commitments ramp up – currently
expected in 2H 2013
Golar is receiving rights to provide
shipping to multiple projects
13
14. Market Outlook
Strong demand in Asia coupled with weak European demand should keep the Europe – Asia spread
wide. This will pull Atlantic Basin cargoes east and be supportive for day rates for the balance of 2013
Vessels will arrive before liquefaction ramps up to full capacity
• Golar will manage portfolio with a mixture of spot, mid and long term charters to allow Golar to
capture value as trains ramp up to capacity
Spot market remains firm with steady rates – beginning to see increased activity as seasonal demand
ramps back up from Q2 low
Newbuild DFDE’s have a significant fuel efficiency advantage over steam turbines and older vessels
First Generation tonnage will exit the market over 2014 and 2015 offsetting some of the new build
additions
14
Vessels Arrive Before Liquefaction Day Rates vs. Asia-NBP
Source: Arctic Securities
15. Market Outlook – US LNG Exports
15
Freeport LNG becomes second project to receive
DOE permit to export LNG to non-FTA countries
Sabine Pass and Freeport create 28 million tonnes
per annum of nameplate export capacity
US Exports will lead to a material increase in tonne
miles if targeted at Asia
Australia to Japan ~ 0.75 LNGCs per 1.0
mmtpa of LNG
USGC to Japan ~ 1.5 LNGCs per mmtpa (using
Panama)
USGC to Japan ~ 2.25 LNGCs per mmtpa
(using Suez)
Project off takers are pursuing a variety of strategies
to secure tonnage – including long term charters
Some additional projects that may receive export
authorization in the next 24 months:
Cove Point (5.0), Cameron (13.5) and Lake
Charles (15.0) combined could be an additional
~ 33 mmtpa of nameplate capacity
Sabine Pass Liquefaction
1st 5 projects ~ 60 mmtpa
18. 18
Nusantara Regas Satu
FSRUs: Project Updates
Golar Spirit leaves drydock
Commercial discussions with Jordan are nearing
completion on Golar Eskimo
Project expected be operational by end of
2014 or early 2015
Golar Igloo is attracting significant interest in the
market
Only uncommitted FSRU available before
2015
Short listed for 2 tenders
Direct negotiations with project developers
are also underway
Gas Atacama – Golar remains exclusive provider
but project remains in indefinite delay
FSRU market continues to expand – Middle East
and South America remain key development areas
West Africa, South Asia and South East Asia are
beginning to see more credible projects
19. Summary and Outlook
Minimal operational downtime and continued superior safety performance
Q2 results will be impacted by further drydockings and longer term results
affected by volatility in shipping rates
Growth in dividends highlights Board’s confidence in Company’s
performance with firm intention to maintain current levels
Financing of newbuild deliveries progresses positively. Company looking to
put into place a multi-vessel facility prior to receiving its first delivery
FSRU opportunities continue to expand. Jordan FSRU contracts substantially
agreed and the Company is short-listed for another 2 projects
DC Project provides Golar with its first liquefaction deal and a significant
stepping stone for further opportunities in that region
Additional liquefaction projects are under development
Golar schedules launch of new FLNG entity to coincide with completion of
FEED work and funding requirement of active opportunities become more
material
19
21. Appendix A
Investment type
Accounting Classification
During Subordination period*
Following expiry of subordination
period*
Common Units
Available-for-sale securities. (These are
re-measured each quarter with
movement taken to Accumulated Other
Comprehensive Income “AOCI”).
Associate (equity method of
accounting)
Subordinated Units (Convert into
common units upon expiry of
subordination period*)
Associate N/a
General Partner Units (“GP”) Cost-method investment Associate
Incentive Distribution Rights (“IDRs”) Cost-method investment Cost-method investment
Balance Sheet Treatment of Investments in Golar Partners
22. Appendix B
Income Statement Treatment of Investments in Golar Partners
Accounting treatment
During Subordination period* Following expiry of subordination period*
OPERATINGINCOME
A) Gain on dropdowns to Golar
Partners
Deferred profit allocated (on a fair value basis) to the
subordinated units only.
Deferred Profit calculated based on interests in:
- common,
- GP units.
Deferred Profit is amortised on a straight-line basis and based on
the underlying asset allocated on a pro rata basis to – vessels (UEL)
and charters (term).
NON-OPERATINGINCOME
B) Gain on loss of control
(deconsolidation)
One-off Q4’12 gain, being difference of fair value less the carrying
value of Golar Partner’s net assets and non-controlling interest.
N/a
The gain will result in a basis difference that will be amortized
going forwards.
C) Dividend income (excluding
income on associate portion)
Dividends receivable from: Dividends receivable from
Common units, IDRs only
GP interest and IDRs
D) Gain on disposal or deemed
disposal of Available-for-sale
securities
Unrealized gain or loss in Accumulated Other Comprehensive
Income (“AOCI”) will be recognized in the P&L upon disposal.
The common units will be reclassified as an Associate interest and
considered a deemed disposal. The unrealized gain or loss in AOCI
will be recognized in the P&L.
E) Equity in net earnings of affiliates
(comprises 2 components)
i) Share of associate earnings based on subordinated units, only. To be based on interests in common units and GP units.
ii) Less: Amortization expense of basis difference arising on Gain
on loss of control. The “basis difference” (defined in B above) is
allocated only to subordinated units (fair value basis).
Amortization to increase to reflect share of basis difference relating
to common & GP units.
