Golar LNG Limited: Preliminary Fourth Quarter And Financial Year 2013 Results

Hamilton, Bermuda, Feb. 28, 2014 (GLOBE NEWSWIRE) --

Highlights
  • Golar LNG ("Golar" or the "Company") reports a fourth quarter 2013 ("fourth quarter") net income of $4.3 million (including a non-cash gain of $13.2 million on interest rate swaps).
  • EBITDA* generated in the quarter amounts to a loss of $5.5 million.
  • The Company takes delivery of the Golar Seal ("Seal") and Golar Celsius ("Celsius") in October.
  • LNG carrier Golar Arctic completes scheduled drydock during November on time and budget.
  • Golar agrees to sell its interest in the floating storage and regasification unit ("FSRU") Golar Igloo to Golar LNG Partners (the "Partnership" or "Golar Partners") for $310 million, subject to certain closing conditions.
  • Golar Partners completes its fourth follow-on equity offering raising net proceeds of $150 million. Concurrent to this public offering, Golar sells 3.4 million of its common units representing limited partner interests in Golar Partners raising net proceeds of $98.9 million.
  • Gimi proceeds to layup in Far-East.
  • Spot and short term chartering market becomes challenging driven by production shutdowns and an increasing number of available vessels.
  • Board maintains dividend at $0.45 for the quarter.

* Adjusted EBITDA is defined as earnings before interest, depreciation and amortization equal to operating income plus depreciation and amortization.

Subsequent events
  • EPC contract negotiations for the floating liquefaction vessel conversion in final stages.
  • The company concludes financing for four of its remaining five unfinanced newbuilds.
  • FSRU Golar Igloo ("Igloo") delivers from yard on February 5 and proceeds toward Kuwait for delivery into five year charter arrangement.

Financial Review

Following the deconsolidation of Golar Partners, effective December 13, 2012, the operating income of Golar LNG excludes the operating results of Golar Partners. Accordingly, the vessels remaining within the Company at year-end are represented by the seven carriers which have not yet been dropped down to Golar Partners including two recently delivered newbuilds, Golar Seal and Celsius together with the Golar Arctic and Viking (both modern operational vessels) and Golar Gandria, Gimi and Hilli (each first generation vessels currently in layup pending conversion projects). Costs incurred by Golar include, primarily, direct operating costs of these seven vessels, general and administration costs, expenses related to the build-up in officer ranks for its eleven remaining newbuilds and project related expenses for prospective FLNG and FSRU projects.

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