Golar LNG Limited (NASDAQ:GLNG) Q3 2022 Results Conference Call November 16, 2022 8:00 AM ET
Company Participants
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Conference Call Participants
Chris Tsung - Webber Research
Frank Galanti - Stifel
Craig Shere - Tuohy Brothers
Liam Burke - B. Riley Financial
Sean Morgan - Evercore
Greg Lewis - BTIG
Operator
Welcome to the Golar LNG Limited Q3 2022 Results Presentation. At this time, all participants are in a listen-only mode. After the slide presentation by CEO, Karl Fredrik Staubo; and CFO, Eduardo Maranhão, there will be a question-and-answer session. [Operator Instructions]
I will now pass you over to Karl Fredrik Staubo. Karl, please go ahead.
Karl Fredrik Staubo
Thank you, operator, and good morning and good afternoon to all. Welcome to Golar LNG’s Q3 earnings results presentation. My name is Karl Fredrik Staubo, CEO of Golar LNG. I’m accompanied today by our CFO, Mr. Eduardo Maranhão to present this quarter’s results.
Please note our forward-looking statements on slide 3. Slide 3 provides an overview of Golar. We own two FLNGs, the Hilli, operating for Perenco in Cameroon, and the Gimi that was part 20-year contract for BP next year.
We are focusing our efforts on FLNG growth projects and we have developed three different FLNG designs. All three designs are based on the same proven liquefaction technology and maritime interface, but defer in liquefaction capacity.
During the quarter, we have placed orders for long lead items for a new Mark II FLNG with a total liquefaction capacity of 3.5 million tons.
The most notable change in the Company overview since our last quarters, our share sales totaling $430 million, reducing our CoolCo shareholding from 31.3% to 8.3%. And the sale of NFE shares, reducing our shareholding from around 6% to just shy of 3%.
Turning to slide 4 and the highlights of the quarter. Hilli generated an EBITDA to Golar of $64.1 million, a 2.6 times increase from Q3 last year. Perenco declared its 0.2 million tons of production increase from Jan ‘23 to end of contract in July of 2026, meaning that we will maintain production at 1.4 million tons per annum for the period. The incremental volume has a tariff linked to TTF gas prices.
During the quarter we entered into hedges for 50% of our Q4 2022 exposure at $70 per MMBtu. We hedged 100% of our 2023 exposure at $50 per MMBtu. And we hedged 50% of our 2024 gas exposure at $51.2 per MMBtu. In total, these hedges provide the cash flow visibility for EBITDA to Golar of around $260 million. As of today, the TTF hedges are currently about $75 million in the money.