• Adjusted EBITDA (Full Year 2024): $241 million.
• Cash Position: Approximately $700 million.
• Dividend Declared: $0.25 per share for the quarter.
• Total Operating Revenues (Q4 2024): $66 million.
• FLNG Tariffs (Q4 2024): $86 million.
• Total FLNG Tariff (Full Year 2024): $350 million.
• Net Income (Q4 2024): $15 million.
• Net Income (Full Year 2024): $81 million.
• EBITDA Backlog: Over $11 billion.
• Free Cash Flow Generation (Full Year 2024): $170 million.
• Gross Debt Position (End of Q4 2024): $1.5 billion.
• Net Debt Position (End of Q4 2024): Just over $800 million.

• Warning! GuruFocus has detected 6 Warning Signs with GLNG.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Golar LNG Ltd (NASDAQ:GLNG) has successfully transitioned into a pure FLNG company, enhancing its focus and market position.
• The company has secured a 20-year contract for the FLNG Hilli in Argentina, contributing to a substantial EBITDA backlog of $11 billion.
• Golar LNG Ltd (NASDAQ:GLNG) achieved a strong financial performance with an adjusted EBITDA of $241 million for the full year of 2024.
• The acquisition of the remaining minority interest in FLNG Hilli is expected to provide immediate cash flow accretion and increased earnings visibility.
• The company is in advanced discussions for the deployment of the Mark II FLNG, indicating strong commercial interest and potential future growth.

Negative Points

• The exit from the LNG shipping market marks the end of a 50-year presence, which may impact diversification.
• There is inflationary pressure on CapEx for FLNG projects, which could affect future profitability.
• The company remains exposed to commodity price fluctuations, particularly Brent and TTF prices.
• The successful deployment of future FLNG units is contingent on securing long-term charters, which introduces uncertainty.
• The need for infrastructure development in Argentina, such as pipelines, could delay the commencement of operations for new projects.

Q & A Highlights

Q: Can you clarify your plans regarding the Mark II and the potential fourth FLNG vessel? Are you considering using an alternative shipyard? A: We are progressing on multiple fronts with commercial developments. The fourth FLNG may be a Mark I, Mark II, or even a Mark III, depending on commercial needs. We are not ruling out any options, but the decision will be based on the commercial development and the size required for the fourth FLNG.

Q: Regarding the Gimi, you mentioned a capacity of 2.7 million tonnes. How does this relate to the previous capacity, and is there potential for upside? A: For production above the base capacity of 2.4 million tonnes per year, we receive a proportionate payment aligned with the $215 million annual EBITDA. If we achieve 100% utilization of the 2.7 million tonnes capacity, the annual EBITDA would increase to $241 million.

Q: Have you spent on long lead items for the second Mark II during Q1, and what does "on schedule" mean for the Mark II FLNG contract commitment? A: We have not spent on long lead items in Q1, but we are monitoring the situation closely. "On schedule" means we aim to charter the vessel within 2025, which aligns with our target to secure a contract for the Mark II this year.

Q: Have you identified conversion candidates for the fourth FLNG vessel, and what is the timeline for acquisition? A: We have started identifying and inspecting potential vessels for conversion. The LNG carrier market currently has downward price pressure, so we are not in a rush to acquire but are monitoring the situation closely.

Q: Can you provide more details on the infrastructure needs for a second unit in Argentina and the timeline for these developments? A: The Hilli will use existing pipeline capacity. For additional units, a designated pipeline from Vaca Muerta to the San Matias Gulf is needed. An oil pipeline FID has created a right of way for a gas pipeline, which can be constructed faster than the delivery of the Mark II. The involvement of major gas producers in the project indicates strong economic interest in establishing Argentina as an LNG exporter.

Q: How does the potential increase in US LNG exports affect your discussions with customers? A: While increased US production is part of discussions, our projects remain competitive due to cost advantages and diversified LNG sources. Our contracts include a fixed base tariff and upside sharing, making them competitive with US projects.

Q: What are the potential benefits of considering other shipyards for FLNG construction? A: We see inflationary pressure on critical components, so we don't expect lower prices than those secured for the Mark II. The decision to consider other yards is based on commercial opportunities and building the right vessel for the right opportunity.

Q: What are the key criteria for prospective fields for the Mark II contract? A: Prospective fields should have at least 40 CF of reserve and sufficient gas flow. We are looking at associated production or stranded reserves that can be developed within the delivery window of the Mark II. There are strong opportunities alongside existing and new projects.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.