Golar LNG Limited (NASDAQ:GLNG) Q2 2023 Earnings Conference Call August 10, 2023 8:00 AM ET
Company Participants
Karl Staubo - CEO
Eduardo Maranhao - CFO
Conference Call Participants
Benjamin Nolan - Stifel, Nicolaus & Company
Christopher Robertson - Deutsche Bank
Chris Tsung - Webber Research & Advisory
Operator
Welcome to the Golar LNG Limited Q2 2023 Results Presentation. After the slide presentation by the CEO, Karl Staubo; and the CFO, Eduardo Maranhao, there will be a question-and-answer session. Information on how to ask a question will be provided then. [Operator Instructions].
I will now pass you over to Karl Staubo. Karl, please go ahead.
Karl Staubo
Hi, everyone, and welcome to Golar LNG's Q2 2023 Earnings Results Presentation. My name is Karl Staubo, CEO of Golar LNG; and I'm accompanied today by our CFO, Eduardo. Before we get into the presentation, please note the forward-looking statements on Slide 2.
On Slide 3, we present our company overview. We are a focused FLNG player with 2 FLNGs; Hilli operating in Cameroon and Gimi about to deliver and start a 20-year contract for BP. The key changes to our asset portfolio in the quarter was high grading of our FLNG conversion candidate, selling the LNG carrier Gandria and acquiring the LNG carrier, Fuji.
Fuji has significantly more storage capacity, younger age and lower boil-off and is therefore more suitable for our intended Mark II 3.5 MTPA FLNG conversion. Snam of Italy has an option to convert the Golar Arctic into an FSRU. This option lapsed in July, and we are now reviewing alternatives for her, including long-term charter or asset sale.
Our investments include Avenir LNG, a small-scale LNG carrier business and Macaw Energies, a company founded with Golar as sponsor, targeting small-scale land-based liquefaction and gas monetization through proprietary technology currently under construction. Golar is the world's only independent proven FLNG company.
Turning to Slide 4 to illustrate our near-term cash flow growth and the further earnings upside in recontracting of the Hilli and potentially Mark II FLNG. Hilli continues its market-leading operational off time with another quarter of 100% economic utilization. The vessel will operate for Perenco in Cameroon until July 26, and we see strong earnings generation supported by the increasingly attractive commodity exposed earnings for the unit.
However, the vessel is currently only 58% utilized versus nameplate capacity, and we see significant potential for increased capacity utilization, combined with higher earnings for recharter of Hilli.