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01/11 03:23
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed picture. The company has a strong market position and future prospects with a large EBITDA backlog and new contracts. However, current financial performance is weak with a significant drop in EBITDA and potential supply chain challenges. Shareholder returns are stable with a declared dividend, but management's lack of clarity on strategic alternatives and asset valuation raises concerns. The Q&A session did not provide additional positive insights to offset these issues. Overall, the stock is likely to remain neutral over the next two weeks.
Total Operating Revenues $63 million, no year-over-year change mentioned.
FLNG Tariffs $73 million for the quarter, total FLNG tariffs for the last 12 months reached $336 million, no year-over-year change mentioned.
Total EBITDA $41 million, down from $218 million year-over-year, largely driven by lower Brent and TTF prices.
Net Income $13 million, in-line with the previous quarter, no year-over-year change mentioned.
Cash on Hand Approximately $680 million at quarter end, no year-over-year change mentioned.
Gross Debt Just under $1.5 billion, no year-over-year change mentioned.
Net Debt Position Around $800 million, projected to increase to approximately $2.3 billion upon completion of the MARK II remaining CapEx.
Run Rate EBITDA Expected to reach $835 million by 2028 before any further commodity upside.
Net Debt to EBITDA Ratio 2.8 times, supported by clear earnings visibility extending through 2045.
Dividend $0.25 per share, equating to around $105 million per year on a run rate basis.
EBITDA Backlog $17 billion, no year-over-year change mentioned.
Hilli FLNG Redeployment: Secured a 20-year charter for Hilli in Argentina, generating an EBITDA backlog of $5.7 billion.
Gimi FLNG: Gimi is in final commissioning stages, expected to start a 20-year charter with BP, contributing $151 million in EBITDA.
Mark II FLNG Conversion: Conversion of Fuji into Mark II FLNG is underway, with a 20-year charter agreement in place, expected to generate $400 million in annual EBITDA.
LNG Market Positioning: Golar LNG is positioned as a leading FLNG provider with a $17 billion EBITDA backlog and a focus on Argentina's LNG export potential.
Operational Efficiency: Hilli achieved 100% operational uptime, delivering 132 cargoes since 2018.
Debt Refinancing: Secured a $1.2 billion debt facility to refinance Gimi, enhancing financial flexibility.
Strategic Shift: Exited LNG shipping, focusing solely on FLNG operations, enhancing market positioning.
Earnings Expectations: Golar LNG Limited missed earnings expectations with a reported EPS of $0.18, while expectations were $0.29.
Regulatory Risks: Contracting in Argentina has historically involved risks, but Golar has implemented risk mitigation strategies, including legal frameworks and support from local authorities.
Debt Position: Golar has a gross debt of just under $1.5 billion, which is projected to increase to approximately $2.3 billion upon completion of the MARK II CapEx.
Commodity Price Volatility: Golar's contracts include a downside element where they may offer temporary discounts if annual average FOB prices fall below $7.5, with a maximum exposure of $210 million.
Market Competition: Golar aims to position itself competitively against US LNG exports, which may pose a risk if market conditions change.
Supply Chain Challenges: The conversion of the LNG carrier Fuji into a Mark II FLNG is ongoing, with potential supply chain challenges related to construction and equipment lead times.
Economic Factors: The company faces economic risks related to inflation and commodity price fluctuations, which could impact operational costs and revenue.
Charter Agreements: Secured two 20-year charters for FLNG Hilli and Mark II, with an EBITDA backlog of $5.7 billion for Hilli.
Market Position: Golar is positioned as the only proven provider of FLNG as a service, with a focus on growth.
Contract Backlog: Total contract backlog exceeds 60 years, translating to approximately $17 billion in EBITDA backlog.
Growth Initiatives: Plans to expand FLNG capacity with three designs available for growth and ongoing commercial discussions.
Risk Mitigation: Implemented regulatory frameworks and protections in Argentina to ensure project stability.
Future EBITDA: Projected fully delivered run rate EBITDA expected to reach $835 million by 2028.
Debt Position: Current net debt projected to increase to approximately $2.3 billion upon completion of MARK II.
Equity Release Potential: Refinancing existing debt could unlock over $1.9 billion of equity for growth initiatives.
Commodity Upside: For every dollar above $8 FOB, Golar expects an additional $70 million in annual EBITDA.
Operational Timeline: Gimi's commercial operations expected to commence within Q2 2025.
Dividend per share: $0.25 per share, equating to around $105 million per year on a run rate basis.
Shareholder Return Plan: Golar LNG Limited has declared a dividend of $0.25 per share for Q1 2025, with a record date of June 3 and payment scheduled for June 10.
The earnings call summary and Q&A indicate positive sentiment. Golar's strategic plan highlights significant growth prospects with additional FLNG units, a strong EBITDA backlog, and increased shareholder returns. The Q&A reveals analyst interest in these developments, with management addressing concerns effectively. Despite some uncertainties, such as competition and production increases, the overall outlook is optimistic with potential for stock price appreciation.
The earnings call and Q&A highlight strong financial performance, growth strategies, and efficient operations. The company's backlog and EBITDA projections are robust, with potential upside from commodity prices. Management's focus on share buybacks and asset acquisitions demonstrates confidence in intrinsic value. While some uncertainties remain, such as market recognition and specific project details, the overall sentiment is positive, driven by strategic positioning, contract security, and future growth prospects.
The earnings call presents a mixed picture. The company has a strong market position and future prospects with a large EBITDA backlog and new contracts. However, current financial performance is weak with a significant drop in EBITDA and potential supply chain challenges. Shareholder returns are stable with a declared dividend, but management's lack of clarity on strategic alternatives and asset valuation raises concerns. The Q&A session did not provide additional positive insights to offset these issues. Overall, the stock is likely to remain neutral over the next two weeks.
The earnings call summary indicates strong strategic positioning with a robust EBITDA backlog and competitive market strategies. The Q&A section reveals management's cautious optimism and strategic focus, with no major concerns raised. Dividend declarations and a strong cash position bolster shareholder confidence. Although there are supply chain and debt challenges, these are mitigated by clear long-term growth plans and strong market demand forecasts, leading to a positive sentiment.
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