Golar LNG Limited

Good day and thank you for standing by. Welcome to the GOLOR LNG Limited Q2 2021 results presentation conference call. Currently, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session, and to ask a question during the session, you will need to press star and 1 on your telephone. I would now like to end the conference. I will be your speaker today, Karl Fredrik Staubo. Thank you. Please go ahead.

Hi everyone and thank you for bearing with us on some interesting conference call coordination there. Anyhow, we would like to welcome you to Golar LNG's second quarter earnings results presentation. We would like to thank you again for taking the time to dial in. My name is Karl Fredrik Staubo, the CEO of Golar LNG. I'm accompanied today by our CFO, Eduardo Maranhao, to present this quarter's results. Before we get into the quarterly results, Please note the forward-looking statement on slide 2. Turning to slide 3, we are delighted to announce Golar's best-ever quarterly net income at $471 million, including of a gain on disposal of Hygo Energy Transition and Golar LNG Partners LT to New Fortress Energy. The gain on disposal proves that there is significantly embedded value in our asset portfolio. EBITDA for the quarter came in at $67 million. Turning to the segment, Hylli continues to deliver 100% uptime with its 59th LNG cargo offloaded. In July, we concluded an agreement to increase the capacity utilization of Hylli The increased production will deliver near-term cash flow at no additional capex the goal are, as well as delivering on our target to increase commodity price exposure to LNG prices. We'll explain this increase in further detail later in the presentation. In addition to the newly acquired gas exposure, we are currently generating Brent Link revenue from Hillys operation. Gimmi remains on schedule and is currently 72% technically complete under construction in Singapore. Turning to shipping, our shipping portfolio achieved a time charter equivalent of 46,700 for the quarter. We have seen increasing counter-seasonal strengthening of LNG freight rates in the quarter and recently fixed one of our carriers on a five-year charter, increasing our shipping revenue backlog to $259 million. We continue to see strengthening near and long-term fundamentals for our shipping segment and upward pressure both on rates and asset values. Turning to corporate, following the close of the sale of Hygo and GMLP to NFE, which closed on April 15th, we have booked a book gain of $575 million. The book gain records our 18.6 million shareholding in NFE, at an NFE share price of $35.38. Following the proceeds from the NFE transaction, we now have cash and marketable securities of approximately $1 billion. Our cash balance for the quarter ended at $287 million, and we're currently in discussion with key relationship banks for new and refinancing term sheets in excess of $500 million. that, if concluded, would release more than $250 million in additional liquidity to Golar. I'll now turn the call over to Eduardo to take us through the second quarter results.

Thank you, Karl, and good morning, everybody. I'm super excited to provide an update on our financial results for the second quarter of 2021. This has been a fantastic quarter for us, as we have managed to close both the HIGO and the GMLP transactions on April 15, but we have also continued to observe great commercial and operational performance from our FLNG segment. If we turn to slide number five, we can see that the group had a very solid performance on Q2. Total operating revenues this quarter were $104 million, or approximately 2% above in the second quarter of 2020. The greatest portion of our revenues came from our FLNG segment, where operating revenues from the HILI which includes the base tolling fees, increased it from $54 million in Q1 to $56 million in Q2. This could be attributed to a result of overproduction in the quarter. This number does not include the Brent oil linked component which further enhanced this figure by another $3 million in the quarter. And we will continue to record those gains as a realized gain on derivative instruments. Revenues from shipping were $42 million, which was down from the $63 million which we observed on Q1, but in line with the numbers of the same quarter of last year. This has been a result of the seasonality in the market, which have pushed overall time-chartered equivalent rates down from the previous quarter. Overall adjusted EBITDA for the group was $67 million, and in line with the same number of the same quarter of 2020. The main contributor to that has been the FLNG segment, with $45 million from the HILI, while shipping added $27 million to that figure. Continuing on, the segment corporate and others, which includes our business activities of vessel management and other corporate overhead costs, recorded a slightly higher number this quarter, with $5 million, This was a result of one-off redundancy costs following the sale of Hygo and GMLP. As alluded by Karl before, we recorded a record net income of $470 million in this quarter, compared to $25 million in Q1. Total gain on disposal from the sale of Hygo and GMLP to NFE contributed to $574 million, and unrealized gains from the Healy Brent Oil Derivative added another $71 million to that figure. That has been further offset by a provision of tax liabilities, which we have accounted in this quarter, and also unrealized mark-to-market losses from our NFE shares. As of the end of June, the carrying value of our NFE stake was equivalent to $35.38 per share. So as explained by Karl before, we ended the quarter with a total net debt of $2 billion. And from a liquidity point of view, we had total cash reserves of $287 million, out of which 207 was unrestricted cash. We have also continued to receive term sheets from key relationship lenders for new and replacement debt facilities. in excess of $500 million. If we continue the presentation and turning over to slide number seven, I will give you further information related to the performance of the FLNG Healy. So the Healy delivers, continues to deliver an amazing performance with 100% of commercial uptime. She has completed its 59th cargo during this quarter. It contributed in total of $45 million in EBITDA in Q2, with further upsides to be captured. Our oil link at sea benefits from a high Brent price, and our expectation is to generate an additional $9 million in the next quarter, which is up from the $3 million we recorded in Q2. We have also agreed with Perenco to increase production in 2022 by 200,000 tons, with the option to further increase it by 400,000 from 2023 to 2026. I'll now turn the call back to Karl so he can talk in more details about these arrangements. Thank you, Eduardo.