Golar LNG ends Q3 with $223 million of cash, $143 million net loss

By Lisa Kerner

Charlotte, N.C., Nov. 30 – Golar LNG Ltd. ended the third quarter in “a good liquidity position,” notwithstanding the current weak shipping market, said chief financial officer Brian Tienzo during the company’s earnings call on Monday.

Cash on hand totaled $223 million, and long-term debt was flat quarter over quarter at about $1.59 billion.

Financing of the Golar Tundra and repayment on Nov. 25 by Golar Partners of the $100 million Eskimo vendor loan provided by Golar added $150 million to liquidity since Sept 30, according to the earnings release.

On Oct. 23, Golar received an underwritten financing commitment for the FSRU newbuild, Golar Tundra. The company drew down $205 million on delivery of the Tundra on Nov. 25.

In an effort to further improve liquidity, Golar said it has agreed to delay the effective dates for the Gandria and Gimi conversion projects until employment contracts for these assets are further advanced.

Financial highlights

Golar had an operating loss for the quarter of $24.2 million, compared with $43.4 million in the second quarter.

Voyage costs were down $9 million from the previous quarter at $12.4 million, and vessel operating expenses were down $1.3 million at $13.5 million.

Net loss for the quarter was $143 million.

As of Sept. 30, Golar had forward contracts to repurchase 3.5 million of its own shares at an average price of $27.88 per share. The company approved a unit purchase program on Aug. 4 under which it may purchase up to $25 million of publicly held Golar Partners common units. To date, 240,000 shares have been purchased outright at a cost of $5 million, according to Golar.

“The current spot LNGC market is showing signs of improvement,” said chief executive officer Gary Smith.

Golar expects operating earnings to improve, driven by an improved shipping market and Golar Tundra beginning operations in the second quarter of 2016.

Golar is a Hamilton, Bermuda-based owner and operator of liquid natural gas carriers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.