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Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
Golar LNG Q4 2012 results presentation
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Golar LNG Q4 2012 results presentation

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  • 1. Fourth Quarter Results 2012 4th March 2013
  • 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 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. 2
  • 3. Agenda 1. Q4 Highlights 2. Q4 Financial Highlights 3. Business Update 4. Summary and Outlook 3
  • 4. Q4 2012: Highlights & Subsequent Events 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 4
  • 5. Q4 2012: Highlights & Subsequent Events 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 ($215m) from Golar LNG Golar chosen as preferred bidder in Jordan FSRU project. TCP negotiations to commence this quarter 5
  • 6. Basis of financial reporting Financial highlights and 4th quarter results are presented on a consolidated basis However, Company continues to assess whether consolidated-basis of preparing financial reports is appropriate following GMLP’s first annual meeting of unitholders when majority of independent directors were elected Main impact of deconsolidation are: De-recognise assets and liabilities associated with GMLP Book value assets will be replaced by fair value investment in GMLP Future dropdowns will be at fair value Share of ongoing profit or losses of GMLP will be recognised as part of operating income Casflows to the Company are not affected Conclusion will be reflected in Form-20F, to be filed in April 6
  • 7. Financial Highlights Q4 Q3 Q2 Q1 Q4 12m to 12m to (USD million) 2012 2012 2012 2012 2011 Dec-12 Dec-11 Net operating revenues 107.5 117.8 103.9 82.3 79.6 411.5 293.8 Operating expenses 23.8 19.4 17.8 27.9 17.6 88.9 62.9 EBITDA (ex. Commodities) 76.9 93.4 79.9 48.4 52.7 299.2 203.9 Net financial expenses (13.4) (11.0) (12.9) (8.8) (5.6) (46.0) (53.1) Net income / loss 22.8 44.7 35.4 15.2 17.2 118.2 46.7 Vessel numbers 13 13 13 13 13 13 13 Time charter equivalent rates ($ p/day) 91,479 98,473 97,118 90,464 86,521 94,472 87,659 Utilisation (%) 79.1% 83.2% 89.7% 99.5% 100% 87.1% 97.1% Dividend* 0.425* 0.425 0.40 0.35 0.325 1.6 1.15 * Q3 & Q4 dividend paid together in December 2012Note: 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 theCompany’s results, the Q4 2012 numbers will be materially different from the financial statements reported in its Form 20-F. 7
  • 8. Net Revenue, EBITDA & DividendsUSD’M USD 140 0.45 Net Revenue EBITDA Dividend 0.4 120 0.35 100 0.3 80 0.25 0.2 60 0.15 40 0.1 20 0.05 0 0 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Note: EBITDA excludes Golar Commodities and any group gains/losses on sale of assets 8
  • 9. Balance Sheet: Assets 2012 2012 2012 2012 2011 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 (unaudited) (unaudited) (unaudited) (unaudited) (audited) (USD thousands) Short term assets Cash and cash equivalents 491,041 118,464 77,489 107,868 66,913 Restricted cash and short-term investments 32,451 45,787 37,420 43,895 28,012 Other current assets 13,633 16,412 15,691 16,099 11,041 Long term assets Restricted cash (relates to leases) 190,523 189,409 186,812 189,438 185,270 Equity in net assets of non-consolidated investees 5,592 5,677 5,455 5,390 22,529 Vessels and equipment, net 1,766,394 1,791,169 1,800,453 1,770,477 1,704,907 Newbuildings 435,859 347,437 300,382 296,578 190,100 Other long term assets 38,655 28,234 27,322 24,080 23,862 TOTAL ASSETS 2,974,148 2,542,589 2,451,024 2,453,825 2,232,634 9
  • 10. Balance Sheet: Liabilities 2012 2012 2012 2012 2011 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 (unaudited) (unaudited) (unaudited) (unaudited) (audited) (USD thousands) Short term liabilities Current portion of long term debt 79,222 74,763 71,636 64,433 64,306 Current portion of capital lease obligations 5,837 5,866 6,131 6,152 5,909 Other current liabilities 166,751 155,630 175,701 160,661 185,925 Long term liabilities Long term debt 1,130,203 799,577 811,201 839,381 627,243 Long term debt to related parties - - 90,000 90,000 80,000 Long term capital lease obligations 406,534 406,430 399,677 406,263 399,934 Other long term liabilities 108,128 108,113 109,912 111,702 113,497 Golar LNG Ltd’s stockholders’ equity 896,757 841,802 703,192 694,234 677,765 Non-controlling interest 180,716 150,408 83,574 80,999 78,055 TOTAL LIABILITIES 2,974,148 2,542,589 2,451,024 2,453,825 2,232,634 Percentage of Fixed Interest Debt 126% 10
  • 11. Statement of Cash Flows 2012 2012 2012 2011 (USD thousands) Oct-Dec Jul-Sep Jan-Dec Jan-Dec (unaudited) (unaudited) (unaudited) (audited) OPERATING ACTIVITIES Net Income before non-controlling interests 36,520 57,502 163,213 68,275 Depreciation and amortization 23,553 23,280 88,335 70,286 Drydocking expenditure (1,475) (2,339) (22,228) (19,773) Gain on business acquisition - - (4,084) - Other changes in operating assets and liabilities 23,308 (9,675) 13,039 (2,180) Net cash provided by operating activities 81,906 68,768 238,275 116,608 INVESTING ACTIVITIES Additions to newbuildings, vessels & equipment (95,076) (65,865) (343,147) (289,182) Other investing activities 11,555 (6,780) (24,131) (9,462) Net cash used in investing activities (83,521) (72,645) (367,278) (298,644) FINANCING ACTIVITIES Proceeds from long-term debt 353,852 - 603,852 23,600 Proceeds from long-term debt from related parties - 30,000 200,000 80,000 Repayments of long-term debt from related parties - (120,000) (280,000) - Other 20,340 134,852 29,279 (19,368) Net cash provided by financing activity 374,192 44,852 553,131 84,232 Net increase / (decrease) in cash & cash equivalents 372,577 40,975 424,128 (97,804) Cash and cash equivalents at beginning of period 118,464 77,489 66,913 164,717 Cash and cash equivalents at end of period 491,041 118,464 491,041 66,913 11
  • 12. Financing of Capital Expenditure 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 $1 billion for the Company. With its newbuild deliveries and other existing assets, the Company is confident of further future dropdowns as well as increased dividends through its IDRs With the above sources of funds at its disposal, the Company is expected to continue its dividend growth without additional equity raising 12
  • 13. Market Outlook Historical Spot Charter Rates (2008 – 2012) 2012 Spot Charter Rates (USD,000/day) vs NBP/JKM Arbitrage Window ($/mmbtu) Source: Poten & Partners  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
  • 14. Market Outlook Near-term rebalancing, long-term fundamentals remain attractive LNG Supply LNG Shipping Requirement – February 2013 (Normalized 160,000m3 ships) 350 Speculative Possible Probable Development 300 44% Under Construction Operational 250 200mmtpa 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 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 Note: Does not include First Generation Undedicated tonnage Total 240.2 253.3 253.3 263.8 285.8 313.8 345.9 Source: Wood Mackenzie Source: Poten & Partners 14
  • 15. Golar’s Existing Portfolio * Purchased by Golar LNG Partners effective February 7 2013. 15
  • 16. Positioned to Capture the Market Capacity Ship/Hull No: Built m3 Type 2012 2013 2014 2015 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 NEWBUILDS 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 t o FSRU subject t o GasAt acama sat isf ying f inal cont ract condit ions 16
  • 17. FSRUs: Project Updates 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 Nusantara Regas Satu  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 Golar Spirit leaves drydock  Only company to have completed fast track FSRU conversion projects 17
  • 18. 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
  • 19. 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
  • 20. 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

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