Golar LNG Limited (NASDAQ:GLNG) Q1 2023 Results Conference Call May 30, 2023 8:00 AM ET

Company Participants

Karl Fredrik Staubo - CEO

Eduardo Maranhão - CFO

Conference Call Participants

Chris Robertson - Deutsche Bank

Ben Nolan - Stifel

Craig Shere - Tuohy Brothers

Gregory Lewis - BTIG

Sean Morgan - Evercore

Operator

Welcome to the Golar LNG Limited Q1 2023 Results Presentation. After the slide presentation by CEO, Karl Fredric Staubo; and CFO, Eduardo Maranhão, there will be a question-and-answer session. Information on how to ask a question will be provided then. At this time, all participants are in a listen-only mode.

I will now pass you over to Karl Fredrik Staubo. Karl, please go ahead.

Karl Fredrik Staubo

Thank you, operator, and welcome to Golar LNG's Q1 2023 earnings results presentation. My name is Karl Fredrik Staubo, CEO of Golar LNG, and I'm accompanied today by our CFO, Mr. Eduardo Maranhão, to present this quarter's results.

Before we get into the presentation, please note the forward-looking statements on Slide 2. On Slide 3, we present our company overview. During the quarter, we exited our investments in Cool Company Limited as well as New Fortress Energy. We also reacquired New Fortress equity stake in the FLNG Hilli.

We also sold the LNG carrier, Golar Gandria, and acquired the LNG carrier, Fuji LNG intended for FLNG conversion. Hence, our key assets continue to be the FLNG Hilli operating for Perenco in Cameroon and the FLNG Gimi delivering later this year to start a 20-year contract for BP on the Tortue field offshore Mauritania and Senegal.

With the acquisition of Fuji LNG, we are advancing the potential ordering of our third FLNG, which we intend to be a Mark II FLNG with an annual liquefaction capacity of 3.5 MTPA.

Turning to Slide 4 and highlights for the quarter. On the left-hand side, starting with Hilli, As previously announced, we reacquired NFE's equity stake in Hilli for a total consideration of $100 million, plus our remaining 4.1 million NFE shares and taking over $323 million of debt associated with New Fortress Energy stake in the unit.

We also unwound our TTF hedges, locking in a total of $140 million of operating cash flow on the hedges whilst maintaining exposure to TTF-linked production. We also agreed to compensate the 0.04 tons of underproduction in '22 with a similar amount of overproduction during 2023.

We're also pleased to announce that we have agreed and received credit approval for improved terms under our existing debt financing on Hilli. This will lower our debt margin and increase our free cash flow to equity from that unit. Eduardo will explain the amendments in further detail later in the presentation.