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Golar LNG Ltd GLNG
Q4 2012 Earnings Call Transcript

Transcript Call Date 03/04/2013

Operator: Welcome to the Golar LNG Ltd. Q4 2012 Earnings Call.

Brian Tienzo - CFO: Thank you, and hello, everyone. Sincere apologies for the delay in starting the presentation. In any event, welcome to Golar LNG's Fourth Quarter Results Presentation. As the administrator said, my name is Brian Tienzo. As usual, I'll be taking you through the fourth quarter highlights, as well as the financial highlights. I'm also joined here by our CEO, Doug Arnell, who will take you through the business update and summary and outlook section.

Let's now turn to Page 4 for the Q4 highlights. Golar reports consolidated operating income of $52.9 million and net income of $22.8 million for the quarter. The Q4 numbers, as most of you will have expected, were negatively impacted by commercial waiting time for the Golar Maria and scheduled drydocking of the Golar Spirit.

As per our press release, you will have seen a notice to investors and the Company has announced that we continue to assess where the Golar Partners can be consolidated from 13th of December 2012 following the Golar Partners' first AGM. Deconsolidation is a significant possibility, but that is something that we're continuing to assess.

During the quarter, Golar secures 5-year charter with energy major for the Golar Maria and that's commenced at the end of November. Golar Partners repaid both Freeze and Nusantara Regas Satu vendor financing using proceeds from its Norwegian bonds and also the $155 million syndicated debt facility ended in December.

After the quarter and following various mentions of our pursuit on FLNG projects, we announced plans to launch new entity that will pursue floating LNG projects. Golar Partners also completed two further follow-on equity issues and uses net proceeds of $310 million to part fund its acquisition of the Golar Grand $265 million and Golar Maria $215 million from Golar LNG

Finally, and most recently Golar was chosen as preferred bidder in Jordan FSRU project. It is expected that time charter negotiations will commence during this quarter.

Turning over to Page 6, as most of you have read our press release, you will note that we put a note to investors regarding the presentation of the press release. I'd just like to spend a few minutes on that.

The Golar LNG Partners had its first annual meeting of unitholders on December 13, 2012. At which point, the composition of its Board of Directors changed, so that majority of them were elected in by the unitholders. The Company, Golar LNG Limited nominated all of the elected directors. By virtue of this, it could be argued that because the majority of the Board of Directors are independents, that they could also make decisions on behalf of Golar LNG Partners, which are independent to Golar LNG Limited.

Nevertheless, there are other factors to consider, such as the shareholding of the Company of Golar LNG Limited of the partnership, the Company's ownership, their general partner and so on. As mentioned, the Company's management continues to assess this and, where it continues to be appropriate to consolidate Golar Partners' numbers.

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