Golar LNG Ltd GLNG
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/28/2012

Operator: Good day and welcome to the Golar LNG Limited Q3 2012 Results Presentation Conference Call. Today's conference is being recorded

At this time, I would like to turn the conference over to Mr. Brian Tienzo. Please go ahead, sir.

Brian Tienzo - CFO: Thank you. Good afternoon, everyone or good morning to those over the Atlantic. Welcome to Golar LNG's third quarter results presentation. My name is Brian Tienzo, and I will be talking you through the third quarter highlights, as well as the financial highlights. I am joined here today by our CEO, Doug Arnell, who will take you through the business updates and outlook section.

So, let's now turn to Page 4 for the Q3 highlights. Reported consolidated operating income in Q3 increased by 21% from Q2 to $70.2 million. Similarly, net income has increased by 26% to $44.7 million. Both of those have been positively impacted by a full quarter earnings contribution from NR Satu and Golar Viking. Also, another good quarter that the Board of Directors have declared an increase in dividends from $0.40 in Q2 to now $0.425 per share in Q3. Furthermore, it's been decided that an accelerated Q4 dividends of $0.425 per share will be paid also in December.

In September, the vendor financing of $22 million in respect of the Golar Freeze from its drop down from LNG Limited to LNG Partners last year was repaid following a successful (note) bond issuance by Golar LNG Partners. More recently, Golar Partners raised a further $181 million in its second successful follow-on equity issue and proceeds for that used to part fund the acquisition of the Grand of $265 million purchase price.

We recently announced also signs agreement with Keppel for the development of Golar's first Floating Liquified Natural Gas Vessel. The FEED is continuing on that projects with the conversion expected to commence in June 2013.

Let's now turn to Page 5 for our financial highlights. So, our net operating revenues for the quarter at $117.8 million has increased from $103.9 million in Q2. In comparison, Q3 20111 was $77.4 million which is an increase of 52% to this quarter.

Our operating expenses in Q3 have increased from $17.8 million in Q2 to $19.4 million in Q3, mainly as a result of the NR Satu being in operating throughout the quarter versus a partial operation in Q2.

Both the Satu and the Viking contribution in the quarter has led to an increase in 13.5% in our EBITDA from $79.9 million in Q2 to $93.4 million in Q3. In contrast, our EBITDA has increased by 63% since Q3 2011.

Net financial expenses for the quarter dropped slightly from $12.9 million to $11 million in Q3. This is mainly as a result of a repaid loan during the quarter from when Golar LNG Limited received the contribution for the NR Satu dropdown in July. We also saw a slight decrease in LIBOR during the quarter.

All of those factors have resulted in an increase in net income of $44.7 million in the quarter against $35.4 million in Q2 2012. That's an increase of 26%.

Moving down the list, the Time Charter Equivalents for Q3 has increased very slightly to $98,500 a day versus Q2 $97,200 a day, and that's – the main contributors there were again full quarter contribution from Satu, from Viking and negatively impacted by the Gandria being off-hire.

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