Golar LNG Limited (NASDAQ: GLNG), a leader in marine infrastructure for LNG liquefaction and regasification, has released its Q3 2024 earnings report. The company maintains its position as the frontrunner in Floating LNG (FLNG) technology while pursuing ambitious expansion plans.
Golar LNG reported operating revenues of $65 million in Q3 2024, with FLNG tariffs reaching $89 million. The company maintained a steady adjusted EBITDA of $59 million, despite additional expenses related to Gimi’s commissioning. However, the quarter saw a net loss of $35 million, primarily attributed to non-cash adjustments in derivative valuations due to lower oil and gas prices.
- Strong liquidity position with $807 million in cash and $646 million in net debt
- Maintained quarterly dividend of $0.25 per share
- Hilli FLNG achieved 100% economic uptime with EBITDA exceeding $68 million
- Successful commercial reset with BP for Gimi project, securing approximately $220 million in pre-COD compensation
- Ordered Mark II FLNG, increasing liquefaction capacity by 70%
Mark II FLNG Development
The company’s ordered third FLNG vessel represents a significant milestone in Golar’s growth strategy. With an annual liquefaction capacity of 3.5 million tonnes, the Mark II FLNG is scheduled for delivery in Q4 2027. The project’s total cost is approximately $2.2 billion, and Golar aims to secure a charter contract by 2025.
Operational Excellence
Hilli FLNG continues to demonstrate outstanding performance, maintaining 100% economic uptime and exporting over 8 million tons of LNG since its 2018 launch. The vessel is expected to generate adjusted EBITDA of approximately $273 million for the year and transition to a new 20-year charter in Argentina by 2027.
Golar projects significant EBITDA growth potential:
- Combined annual EBITDA of $515 million from Hilli and Gimi once operational
- Potential for $1 billion run rate EBITDA by 2028 with three operational vessels
- Possibility of reaching $1.5 billion run rate EBITDA by 2030 with a second Mark II
Several key risks warrant investor attention:
- Market volatility affecting TTF and Brent derivative values
- Pre-operational expenses impacting current financial performance
- Commissioning-related challenges for the Gimi project
The company is making progress in Argentina, with the Hilli project confirmed as the first LNG export facility in the region. A dedicated pipeline from Vaca Muerta to the FLNG location is planned, with an estimated two-year construction timeline.
Golar LNG presents a mixed picture for investors. While current market conditions have resulted in short-term challenges, the company’s strategic positioning and growth initiatives suggest strong long-term potential. The successful track record of existing operations, combined with expansion plans and strong liquidity, positions Golar well for future growth.
For a detailed analysis of Golar LNG’s Q3 2024 performance and future outlook, visit the full earnings call report on EarningsCall SamurAI.
