Q2 2024 Golar LNG Ltd Earnings Call Transcript
Key Points
- Golar LNG Ltd (GLNG) has a strong market position as the world's largest owner and operator of FLNGs, with a proven track record.
- The company is closing in on ordering its third FLNG unit, Mark II, which will significantly increase its liquefaction capacity.
- Golar LNG Ltd (GLNG) has secured a 20-year charter for the Gimi FLNG unit with BP offshore Senegal and Mauritania, ensuring long-term revenue.
- The company has a robust financial position with a market cap of around $3.5 billion and a net debt of just under $600 million.
- Golar LNG Ltd (GLNG) has a strong EBITDA backlog of around $11 billion, providing visibility into future earnings.
- The company faces significant capital expenditure for the construction and deployment of new FLNG units.
- There are risks associated with the commissioning and operational startup of new FLNG units, such as the Gimi and Mark II.
- Golar LNG Ltd (GLNG) is exposed to fluctuations in Brent and TTF prices, which can impact its earnings.
- The company has ongoing discussions and potential regulatory hurdles for new projects, such as the 20-year LNG export project in Argentina.
- There is competition in the FLNG market, and other companies are pursuing similar projects, which could impact Golar LNG Ltd (GLNG)'s market share.
Welcome to Golarâs second quarter 2024 results. My name is Karl Fredrik Staubo, 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 started slide 3 and the overview of Golar today. We have two existing FLNG assets, the Hilli, which is the world's first FLNG with a market-leading operational track record, and the Gimi about to commence a 20-year charter for BP offshore Senegal and Mauritania.
We are closing in on ordering our third FLNG, Mark II with an annual liquefaction capacity of 3.5 million tons per annum. The Mark II FLNG will utilize the LNG carrier Fuji as its donor vessel for the FLNG conversion. Our financial investments include a 23.5% shareholding in Avenir LNG and a fully owned subsidiary Macaw Energies, which is a startup focused on onshore flare-to-LNG liquefaction.
We're encouraged by the development in both of these companies. Avenir is a leading small
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