Golar LNG Limited (NASDAQ:GLNG) Q2 2022 Earnings Conference Call August 11, 2022 8:00 AM ET

Company Participants

Karl Fredrik Staubo - Chief Executive Officer

Eduardo Maranhao - Chief Financial Officer

Conference Call Participants

Chris Tsung - Webber Research & Advisory

Ben Nolan - Stifel

Craig Shere - Tuohy Brothers

Sean Morgan - Evercore

Wayne Cooperman - Private Investor

Barry Haimes - Sage Asset Management

Frode Morkedal - Clarksons

Operator

Welcome to the Golar LNG Limited Q2 2022 Results Presentation. After the slide presentation by CEO, Karl Fredrik Staubo and CFO, Eduardo Maranhao, there will be a question-and-answer session. [Operator Instructions] I will now pass the floor over to Karl Fredrik Staubo. Karl, please go ahead.

Karl Fredrik Staubo

Thank you and welcome to Golar LNG’s Q2 earnings results presentation. My name is Karl Fredrik Staubo, the CEO of Golar LNG. Before we get into the presentation, please note the forward-looking statements on Slide 2. I am accompanied today by our CFO, Mr. Eduardo Maranhao to present this quarter’s results.

Turning to Slide 4. This provides an overview of Golar today. Following a group simplification and sale of about $6.8 billion of assets during the last 18 months, we are now a focused FLNG owner and operator. We own 2 FLNG vessels, the Hilli, which has been in operation since 2018 under a contract with Perenco in Cameroon. She is the best performing FLNG globally with 100% operational utilization since delivery. Secondly, we have the FLNG Gimi, currently 86% complete under construction at Keppel Shipyard in Singapore. She will start a 20-year contract for BP on the Tortue field, located offshore Mauritania and Senegal and will unlock an EBITDA earnings backlog of $3 billion to Golar or $151 million of EBITDA annually from next year and until 2043.

We are focusing our efforts on FLNG growth project and have developed 3 different FLNG designs. All 3 designs are based on the same proven liquefaction technology and maritime interface. However, they differ in liquefaction capacity and shipyard location. The Mark I has a liquefaction capacity of up to 2.7 million tons per annum. Both our existing units, Hilli and Gimi, are Mark I design FLNGs, and they’re based on conversion of existing LNG [indiscernible] tankers. The Golar Gandria remains a Golar own conversion candidate for potential future incremental Mark I units.

The Mark II design has a liquefaction capacity of up to 3.5 million tons. Mark II is also based on converting an existing LNG carrier, but instead of adding liquefaction equipment to the width of the ship, Mark II places the liquefaction topside on a new ship mid-section added to an existing carrier. This allows for larger liquefaction capacity and reduces the conversion – construction time. Lastly, our Mark III newbuild design is one we have worked to develop for more than a decade. Mark III has a liquefaction capacity of up to 5 million tons, and it’s based on a newbuild hole, which allows for increased storage and deck space.