Golar LNG Limited (NASDAQ:GLNG) Q3 2024 Results Conference Call November 12, 2024 8:00 AM ET

Company Participants

Karl Fredrik Staubo - Chief Executive Officer
Eduardo Maranhao - Chief Financial Officer

Conference Call Participants

Ben Nolan - Stifel
Chris Robertson - Deutsche Bank
Kristoffer Barth Skeie - Arctic Securities
Alexander Bidwell - Weber Research & Advisory
Liam Burke - B. Riley Financial
Sherif Elmaghrabi - BTIG

Operator

Good day, and thank you for standing by. Welcome to the Golar LNG Limited Third Quarter 2024 Presentation. After the slide presentation by CEO, Karl Fredrik Staubo; and CFO, Eduardo Maranhao, 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 listen-only mode.

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

Karl Fredrik Staubo

Thank you. Hello, and good morning and welcome to Golar LNG's Q3 2024 earnings results presentation. My name is Karl Fredrik Staubo, the CEO of Golar LNG, and I'm accompanied today by our CFO, Mr. Eduardo Maranhao, to present this quarter's results.

Before we get into the presentation, please note the forward-looking statements on Slide 2. We start on Slide 3 and an overview of Golar. During Q3, we ordered our third FLNG, a Mark II FLNG with an annual liquefaction capacity of 3.5 million tonnes per annum. This represents a 70% increase to Golar's own liquefaction capacity and the Mark II FLNG will deliver within 2027. This will be the first available FLNG for a charter globally. We will provide further information on the value proposition of the Mark II FLNG later in the presentation.

We've also seen positive progress for our two existing FLNGs on the water. Hilli continued her market leading operational performance during the quarter and positive progress have been made on the conditions precedent for her redeployment under a new 20 year charter in Argentina, following expiry of our existing contract in Cameroon ending in July ‘26.

During the quarter, we agreed a commercial reset of pre-COD contractual arrangements for the FLNG Gimi under her 20-year contract with BP. An accelerated commissioning has now started and based on the latest schedule from BP, we anticipate commercial operations date starting the full cash flow from the 20-year contract to occur in Q2 next year.

We maintain two LNG carriers in the fleet. One is the Golar Arctic, which is our legacy assets that we consider for long term charter or sale. The second carrier, the Fuji is currently on charter until Q1 2025 and following that charter, she will enter CIMC Shipyard in China for conversion to the Mark II FLNG. Our financial investments include a 23.5% shareholding in Avenir LNG and Macaw Energies, which is a fully-owned Golar founded startup focused on onshore flare to LNG liquefaction.