Golar LNG has suffered a third quarter 2021 net loss of $91 mill and Adjusted EBITDA of $74.5 mill, compared to a net income of $471.4 mill, and an adjusted EBITDA of $67 mill for the previous quarter.
Total operating revenues increased slightly to $106.6 from $104.3 mill in 2Q21 and were further supported by a decrease in voyage, charter hire and commission expenses.
This revenue increase was attributable to a seasonally improving shipping performance, Golar said.
Revenue from shipping, net of voyage, charter hire and commission expenses was $44.6 mill an increase of $4.8 mill from $39.8 mill recorded in the second quarter.
The third quarter began with quoted TFDE LNGC headline spot rates at around $68,000 per day and ended with rates of about $71,000 per day. Golar’s full fleet TCE earnings increased from $43,700 in 2Q21 to $49,500 in the third quarter.
Total operating revenues from ‘FLNG Hilli’, including base tolling fees and amortisation of pre-acceptance amounts recognised normalised at $54.5 mill, against $55.7 mill in 2Q21, which benefited from some over production during the quarter.
Scheduled repairs to damaged equipment on one of the LNGCs contributed to a $0.5 mill increase in vessel operating expenses, up from $31.4 mill to $31.9 mill.
Golar LNG’s cash position as at 30th September, 2021 was $268.2 mill. This was made up of $123.7 mill of unrestricted cash and $144.5 mill of restricted cash.
The company said that it expected adjusted EBITDA generation from the FLNG segment to quadruple from current levels over the next two to three years on the back of contracted earnings from ’Gimi’ and increased earnings from its commodity exposure on ’Hilli’.
New FLNG projects
The LNG price strength and favourable price outlook further increases the attractiveness of the FLNG solutions, Golar said. This is driving momentum for potential new FLNG projects.
Constructive discussions are continuing with an existing customer for the use of a Golar Mark III newbuilding design and rapid progress is being made on potential integrated projects.
The company recently announced a new 12-month timecharter with a gross hire rate of around $100,000 per day during a period of escalating charter rates.
Golar also said that it expected to see a significant increase in adjusted EBITDA generation over the next two to three years, benefiting from operating and financial leverage from its existing asset portfolio in shipping and FLNG.
This includes the commencement of earnings from Golar’s current $540 mill of pro-rata capital invested in ’Gimi’ in around two years.
