Golar LNG Q1 Results 2011
Highlights
-
Golar LNG reports consolidated net income of $16.3 million and consolidated operating income of $20.4 million for the first quarter of 2011
-
Golar LNG announces a cash dividend of $0.25 cents per share
-
Significant improvement in charter rates during the quarter
-
Golar secures charters for its 4 modern vessels of between 12 and 18 months. The contracts are expected to generate approximately $80 million of EBITDA on an annualized basis
-
Successful completion of the initial public offering of Golar LNG Partners raising gross proceeds of $310 million
-
Golar LNG orders 6 new LNG carriers from Samsung Heavy Industries and has options on a further 2 vessels
-
In April 2011, Golar LNG acquired shares in subsidiary company Golar LNG Energy Limited via private placement share swaps and cash purchases that increased its ownership to 95.1%. A voluntary offer has subsequently been made for the balance of the outstanding shares of Golar LNG Energy Limited and Golar LNG currently owns 99.4 % of the shares.
-
The West Java FSRU Project time charter agreement with PT Nusantara Regas was executed in April 2011
Financial Review
Golar LNG Limited ("Golar" or the "Company") reports consolidated net income of $16.3 million and consolidated operating income of $20.4 million for the three months ended March 31, 2011 (the "first quarter").
Revenues in the first quarter were $67.5 million as compared to $64.6 million for the fourth quarter of 2010 (the "fourth quarter"). The increase is primarily due to an improved performance from Golar LNG Energy's ("Golar Energy") modern LNG carriers offset in part by the effect of the Golar Grand being in drydock in the first quarter. Vessel utilization for the first quarter was slightly down at 91% as compared to 95% for the fourth quarter, but average daily time charter equivalent rates ("TCEs") for the first quarter increased to $80,694 from $74,206 in the fourth quarter as a result of higher rates for vessels operating in the spot market.
Voyage expenses were slightly higher in the first quarter at $3.8 million as compared to $3.2 million in the fourth quarter but vessel operating expenses were lower at $14.0 million for the first quarter compared to $15.2 million for the fourth quarter.
Other operating losses of $3.6 million in the first quarter represent costs incurred and net mark-to-market valuations related to physical LNG cargo trades and financial derivatives entered into by Golar Commodities in the first quarter. It is expected that gains from the delivery and settlement of these cargos will be realized in the second quarter of 2011.
There were no impairment charges in the first quarter where as in the fourth quarter charges of $4.5 million were recognised principally in connection with the write down of the company's investment in TORP LNG AS.
Net interest expense for the first quarter at $6.9 million was slightly lower than the $7.1 million in the fourth quarter.
Other financial items have decreased by $8.3 million in the first quarter compared to the fourth quarter. This is principally as a result of non-recurring termination costs and the write-off of deferred charges of approximately $13 million relating to certain lease arrangements recognized in the fourth quarter. This has been partly offset by a decrease of $2.9 million in non-cash gains on the mark-to-market valuations of interest rate swaps in the first quarter of $3.6 million as compared to the fourth quarter reported gains of $6.5 million.
Souce: Golar LNG