Golar LNG Limited

Welcome to the GOLA LNG Limited 2025 Q4 results presentation. After the slide presentation by CEO Karl-Frederik Staubo and CFO Eduardo Maranao, Tor Olav Troim will have some closing comments prior to a question and answer session. Information on how to ask a question will be provided then. At this time, all participants are in listen-only mode. I will now pass you over to Carl Fredrik Staudo. Carl, please go ahead.

Thank you, operator, and welcome to GoalArt's Q4 2025 earnings results presentation. My name is Carl Fredrik Staudo, the CEO of GoalArt, and as the operator said, I'm accompanied today by our CFO, Eduardo Maranão, to present this quarter's results, and our chairman, Toro Lopres, to give some closing remarks. Before we get into the presentation, please note the forward-looking statements on slide 2. Starting on slide 3 and an overview of Golar today. Golar owns three FLNG vessels, all with 20 air charter backlogs. Starting on the top left, the Hilly is the best performing FLNG globally and delivered another quarter of 100% economic uptime. The FLNG GIME started its 20-year contract for BP offshore Mauritania and Senegal in June 2025, and is now producing above the contracted volume. The Mark II FLNG is under construction and on schedule for delivery by year 2027, and thereafter to start a 20-year charter in Argentina alongside the GIME. We have three growth designs ranging from 2 to 5 million tons per annum, and we have obtained yard availability and pricing for all three designs during Q4. We're listed in NASDAQ with a market cap of approximately $4.5 billion, and pre-air-end, we had a cash balance of $1.2 billion and a net debt position of $1.5 billion. We have an EBITDA backlog standing at $17 billion before commodity-linked earnings and inflationary adjustments. Our adjusted EBITDA for 2025 was 232 million, and we expect this to grow to about $800 million once the fleet is fully delivered and on their long-term contracts. Turning to slide four is just an illustration of the overview of the long-term cash flow visibility of our 20-year charters. Hilly will end her existing contract for Perenco in Cameroon in July this year, then go via Seatroom Shipyard in Singapore for upgrades and life extension work before starting her 20-year charter in Argentina during the second half of 2017. Gimmi is producing under a 20-year charter for BP offshore Mauritania and Senegal, and the Mark II is on schedule to start her 20-year contract during first half 2018. On slide five, We build up the adjusted EBITDA contribution from the existing credit. Goalart's 70% ownership of the GIMI provides us with an annual EBITDA of $150 million based on the contracted volume. Healy will contribute $285 million once on contract in Argentina, and similarly the MARF2 will contribute $400 million once operational in Argentina. If we then net off our DNA of around $35 million, we foresee long-term EBITDA generation of $800 million a year before commodity upside, inflationary adjustment, and any incremental FLNG. The embedded commodity upside comprises of two components. It's the profit-sharing mechanism in the FLNG contract, as well as our 10% shareholding in Southern Energy. The commodity upside provides Golar with an incremental upside of approximately $100 million. For every dollar, the off-stake price is above $8 Argentina. And a downside of approximately $28 million. For every dollar, the FOB price in Argentina is below FETO's tax rate here. We believe the skewed risk-reward of these commodity exposure will contribute meaningful earnings over the 20-year life of our Argentina contracts. Illustratively, if LNG prices return to 2022 levels, the incremental earnings from the commodity upside would be an annual addition of 2.7 billion. Or if LNG prices remain at current levels, we see an additional commodity upside of approximately $200 million per year. Turning to slide six, highlighting some of the key characteristics of our L&D charter agreements. We aim to structure our L&D contracts at solid infrastructure cash flow with meaningful contractual protections. Some of the key attributes of these protections include that all of our contracts are paid in US dollars. All cash flows are paid offshore, net of any local taxes in the countries where we operate. The contracts are made under English law, and for all the long-term contracts, our operating costs and maintenance capex is either passed through or reimbursable by our counterparts. Moving to the next session and the business of state, starting at slide eight. Starting on the left-hand side, Q4 was another active quarter for Golar, concluding 25 as a record year of execution. During the quarter, all conditions precedent for the 20-year contract for March 2 in Argentina was successfully met. We concluded two financing transactions, totaling $1.7 billion in the quarter, comprising of a new $1.2 billion bank refinancing, increasing from $630 million to $1.2 billion. The new facility has improved terms compared to given the initial financing facility, and the new facility proves the bankability of our FL&D assets once operational on the long-term contract. We also entered the rated U.S. unsecured bond market with a $500 million bond offering with a coupon at 7.5%. During the quarter, CESA signed a letter of agreement for an eight-year offtake deal for the first two million tons of production in Argentina. The LOI was signed with CEFE, which stands for Securing Energy for Europe, a subsidiary of the German government. They are also the existing offtaker for HILI in Cameroon today. So it's an offtaker we know and cooperate well with. The terms of the offtake agreement is 1 million tons is linked to Brent prices, and 1 million tons is linked to Henry Hub plus the premium. We expect these LOIs to be formed into a letter of agreement within Q1 of this year, at which point the details of the commercial terms will be disclosed. During Q4, we bought back and canceled 1.1 million shares at an average share price of 37.76. We're also very pleased with commercial progress made in the quarter for a contemplated fourth FOMG project. We'll describe this in greater detail later in the presentation. Turning to the right-hand side of the full development for the year, 25 was truly a record year of execution, securing $14 billion, in EBITDA backlog across the two 20-year contracts in Argentina. We took new financing facilities of 2.275 billion across the mentioned GIMI bank refinancing and the US-rated bond, as well as the 575 million convertible bond issued in June 25. We obtained the commercial operations date of GIMI and doubled our operating fleet of SLNDs. We continue to perform according to our market-leading operational off-time, and we're especially pleased to see the Gimme join the operational excellence of our sister Hilly, and both vessels produce above their contracted amounts, providing extra value to our stakeholders. In total, during 2025, we bought back 3.6 million shares, confirming the board's and management's view that we see attractive value in our own stock. We truly exited L&D shipping after 50 years in the business with the sale of the Golar Arctic and our investment in Avon Air shipping. So all in all, we're very pleased with the year that passed and hope to keep the same progress in the year we have now started. Turning to slide nine and a snapshot for the Hilly. Hilly continued her market-leading track record For the year, we generated a slight overproduction, recognizing $2.5 million of excess earnings over the 1.4 million tons contracted capacity. In December, we had a major production milestone, producing our 10 million ton of LNG since startup of contract in 2018. At the end of the current charter in July this year, the vessel will sail from Cameroon to Cetrium Shipyard in Singapore for vessel upgrades and life extension work. The required long lead items and equipment needed for the work at Cetrium have been ordered and the prefabrication of certain work scopes has started at the shipyard. During first half of next year, Hilde will sail from Singapore to Argentina to start her 20-year contract expected to start during the summer of next year. She will then contribute $285 million of annual EBITDA, or $5.7 billion of adjusted EBITDA backlog over 20 years. Slide 10 focuses on GIMI. As mentioned, GIMI achieved its TOD in June 25, The unit is still optimizing operations in close collaboration with the upstream partners of the DTA project. Production is ahead of schedule, and solid optimization has been achieved to date. In Q4, we invoice the day rate 3% above the contractual day rate, and we are now frequently producing at volumes that on an annualized basis would significantly surpass even nameplate capacity. It's worth to note that the throughput capacity of any lipofaction plant is sensitive to gas quality and ambient temperatures. Throughput variation between winter and summer months should therefore be expected where colder ambient temperatures during winter benefit the production levels. However, our contracted rate is based on 90% of nameplate and any production over and beyond that number is a pro-rata increase to our earnings. Based on operations to date, we expect Gini to produce above her contracted volumes on an annual average basis, and we'll continue to improve how meaningful that can be in the months to come. Turning to slide 11 under Mark 2 FLNG. The construction of the unit remains on budget and on schedule for delivery by year 2027. Construction is now close to 50% complete, and we have spent approximately 1.1 billion of the total 2.2 billion conversion scope. The full 1.1 billion spent today has been equity financed. As you can see from the pictures on the right-hand side, meaningful construction progress is now advancing. The midship manufacturing, which will house the liquefaction plant, is now well underway, and the new midsection will be approximately 63 meters wide and approximately 80 meters long. We've now also surpassed 6 million man-hours without any lost time injuries. On slide 12, CESA is also making strong progress on the infrastructure required to facilitate for the graft gas grid connection of the FLMD healing, as well as the required land-based infrastructure to support FLMD operations in Argentina. CESA has now awarded approximately $500 million of investments to date, including the pipeline connection to the existing grid, support vessels such as pumps and supply vessels, and construction of the land-based warehouse to facilitate spare parts and operational support for our operations in Argentina. On slide 13, CESA is also moving ahead with a designated pipeline from Vaca Malerta to the Gulf of San Matias. The pipeline comprises of three key components. The first component is the turbo compressors. And the contract for those was awarded in December 25. The second component is the line pipes, which will then bring the gas, the approximate 500 kilometers from Vakamerta to San Matias. Those were also awarded in December last year. The remaining component is the EPC for the actual construction of the line pipes and the compressor. where we have received eight proposals and expect to have an award within the first half of this year, upon which construction will ramp up. Turning to slide 14, during the quarter, we confirmed yard availability and price for the three growth designs that we have in question, ranging from mark one to be built at Seastream in Singapore, mark two at T&C Raffles in China, or a five-million-ton unit that could be built at Samsung in Korea. We're pleased to see that we still obtain attractive capex per ton and around three-year construction time for the conversion candidates and north of four years for the Mark III. This is helpful input in developing our commercial pipeline, and the price point and delivery is confirmed interest with our clients. Turning to slide 15, we see multiple discussions for FLNG deployment. We see an increasingly strong demand for FLNG tonnage, driving positive development of our commercial pipeline. We're currently in discussions for deployment of projects in Africa, Middle East and South America. Based on the pace of the commercial development and differences in vessel design requirements of the project, that will dictate the design that we will order in the end. We do not foresee any meaningful capex expenditure until the commercial terms for the next project have matured. We will revert to the market once we have meaningful updates. on our fourth unit. Turning to slide 16 and some of the overarching developments of the LNG market. Last year, the LNG market was around 434 million tons, expected to grow approximately 50% in the next five years, mainly driven by supply out of the US. We note with interest that US, which is already the largest producer in the world, will take the vast majority of incremental growth. That's particularly interesting as the US is already the incremental producer on the cost curve of LNG. We see strong demand development driven by volumes out of the Far East, where China is currently the most active buyer in the market. Going forward, we need to see additional L&D FIDs to cater for the demand that's coming. And this fits well with the delivery schedule that's just been confirmed by the shipyards and for the commercial discussions and the negotiations. I'll now hand the call over to Eduardo to take us through the group results for the quarter.

Thank you, Karl, and good morning, everyone. I'm happy to share an overview of Golar's financial performance for the fourth quarter of 2025. To move to slide 18, let's review some of the key highlights of the quarter. Total operating revenues significantly increased in 2025, reaching $133 million for the quarter and $394 million during the full year, an increase of over 52% when compared to 2024. This quarter, we report a net income of $23 million and a total of $113 million for the full year of 2025. an increase of 40% compared to 2024. Our Q4 adjusted EBITDA came in at $91 million, reaching a total of $265 million for the year. Some key drivers of this performance were HILI, as Karl mentioned before, has maintained its commercial uptime level of 100% and recognized an additional $2.5 million overproduction in Q4 2025. While GIMI also saw increased earnings in Q4, largely driven by higher production volumes resulting from technical improvements and also improved ambient conditions on site. This quarter, we declare a dividend of 25 cents per share with a record date of March 9 and a payment scheduled for March 18. In November, we approved a new $150 million buyback program of which approximately $41 million was spent during Q4. at an average price of $37.76 per share. Across the full 2025, we have been consistently active on buybacks, and we purchased and canceled a total of 3.6 million shares. I'll provide some further information on this in the next slide. Moving to slide 19. We continue to improve our balance sheet flexibility, and Q4 was a very active quarter in terms of transactions. In October, we issued off $500 million under our first U.S.-rated five-year senior unsecured note with a coupon of 7.5%. And at that time, we repaid $190 million of our previous outstanding 2021 bonds. In November, we closed the new $1.2 billion commercial bank facility for Guinea, equivalent to just over 5.6 times its annual contracted EBITDA. This allows us to release approximately $400 million in liquidity net to Growler. Our cash position remains strong with $1.2 billion of cash in hand at the year end. Our total gross debt stood at $2.7 billion, leaving us with a net debt position of $1.5 billion. On a fully delivered basis in 2028, once all SLNGs are in operation in Argentina, Our net debt to EBITDA ratio is set to reduce significantly to just over 3.4 times. When it comes to the Mark II, we continue to fund its CAPEX commitment, and so far we have spent just over $1.1 billion to date. All of that amount has been funded with equity. So we continue to evaluate further debt optimization alternatives, which may include the refinancing of HILI's current facility and a new long-term debt facility backed by the Mark II. This would allow us to continue to release significant liquidity to continue to support our growth projects. Now moving to slide 20. We continue to focus on accretive growth while maintaining a sustainable quality of shareholder returns. Our plan is to allocate most of operating cash flow after debt service to shareholders, while continuing to recycle capital through asset-level financing and existing debt optimizations to fund growth. In 2025, we returned approximately $250 million in the form of dividends and buybacks, of which $103 million were paid in dividends over the course of the year, and $144 million in buybacks, as explained before. During that same period, we continued to grow, and we've invested over $750 million on CapEx for our FLNG units. Moving to slide 21, we can see that our share count has been significantly reduced over time. with a total of just over 101 million shares outstanding as of today. Over the course of last year, we bought back and subsequently canceled 3.6 million shares as explained before. We currently have a remaining allowance of up to $190 million under our buyback program, and we plan to continue our active approach to accretive buybacks from time to time. Moving to slide 22. When our three SLNGs are in full operations in Argentina, we expect our EBITDA to grow to over $800 million before further commodity upside. This can grow even more, subject to further upside from LNG prices under the contract for Healy and Mark II. Based on that, our free cash flow generation could reach around $500 million per year, or approximately $5 a share, before commodity upside. This could represent a total increase of over five times our current dividend level of a dollar per share, which we are currently paying. Incremental free cash flow could also be resulting under the sales of contracts and can be estimated at approximately $100 million per year for every dollar per million BTU increase in FOB prices above $8. Moving to slide 23, I just wanted to recap that there are many ways that investors can get exposure to gold. We are listed in NASDAQ, and our market cap was just over $4.5 billion, with an average daily volume of over $50 million per day. We currently have $800 million in the two unsecured bonds issued in 24 and 25, and also an existing convertible bond of $575 million, which was issued last year. So there are many different ways that investors can gain exposure to the dollar, and this is a summary of how you can play that. I'll hand now the call back to you, Carl.