Q4 2023 Golar LNG Ltd Earnings Call

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Okay.

Operator: Welcome to the Golar LNG Limited fourth quarter 2023 presentation. After the slide presentation by CEO Karl Frederik Staubo and CFO Eduardo Maranhao, there will be a question and answer session. Information on how to ask questions will be provided then. At this time, all participants are in listening only mode.

Speaker Change: Welcome to the Golar LNG limited fourth quarter 2023 presentation.

The slides presentation by CEO, Karl Fredrik, Stopple, and CFO Eduardo Maranhao and there will be a question and answer session information on how to ask questions will be provided but at this time all participants are in listen only mode.

Operator: I will now pass you over to Karl Staubo. Karl, please go ahead. Thank you and good day, and welcome to Golar LNG's Q4 2023 earnings results presentation. My name is Karl Frederik Staubo.

Carl Verdicts: I'll now pass you over to Carl Verdicts travel call. Please go ahead.

Carl Verdicts: Thank you and good day and welcome to Golar Lng's Q4, 2023 earnings results presentation.

Carl: My name is Carl fairly stable on the CEO of Golar, LNG and I'm accompanied today by our CFO, Mr. Eduardo Marni out 2% this quarter's results.

Karl Fredrik Staubo: I'm the CEO of Golar LNG. And I'm accompanied today by our CFO, Mr. Eduardo Maranhao, to present this quarter's results. Before we get into the presentation, please note the forward-looking statements on slide 2. We start on slide 3 with an overview of Golar today. We own two FLNGs.

Speaker Change: Before we get into the presentation. Please note the forward looking statements on slide two.

Speaker Change: We start with slide three and an overview of Golar today.

Speaker Change: We own two applebee's.

Karl Fredrik Staubo: Hilli operating for Perenco in Cameroon, an FLNG GIMI delivered from CITRIUM shipyard in November last year and currently moored to the GTA hub offshore Senegal and Mauritania, which will be her home for the next 20 years. We own two LNG carriers. We agreed to acquire the Fuji intended for Mark 2 FLNG conversion and expect to take delivery of the vessel next year. We also own the LNG carrier, Golar Arctic, which is a non-corporation to our FLNG focus, and we are currently considering options for the vessel, including charter opportunities or a potential sale. We have two financial investments, Avenir LNG, a small-scale LNG shipping company, and Macau Energies, a land-based liquefaction company targeting the monetization of flare gas, focused on operations in the Americas.

Eduardo Maranhao: He lived operating for Branco in Cameroon, and that's M. D give me delivered from Ctrip shipyard in November last year.

Eduardo Maranhao: Currently more to the GTA have offshore Senegal, and Mauritania, which will be her home for the next 20 years.

Eduardo Maranhao: We own two LNG carriers, we agreed to acquire the Fuji intended for Mark two if LNG conversion and expect to take delivery of the vessel next week.

We also own the LNG carrier Golar Arctic.

Eduardo Maranhao: Which is a non core to our LNG focus and we are currently considering options for the vessel, including charter opportunities or a potential sale.

Eduardo Maranhao: We have two financial investments iron ore LNG, a small scale LNG shipping company and Macau entities, a land based liquefaction company targeting monetization of flare gas.

Eduardo Maranhao: Focus on operations in the Americas.

Karl Fredrik Staubo: We're particularly excited about the outlook for Macau, and we'll share more color on developments on that later in the presentation. Turning to slide 4, Golar is the world's largest owner and operator of FLNDs and the only FLND player offering floating liquefaction as a service. This is relevant as gas resource owners of proven reserves, either stranded, re-injected, or flared gas, look to monetize these proven reserves while maintaining meaningful ownership and exposure to their own resources. Golar's position as the only service provider of maritime liquefaction enables us to offer these resource owners a unique value proposition.

Eduardo Maranhao: We're particularly excited about the outlook for Macau, and we will share more color on development on that later in the presentation.

Eduardo Maranhao: Turning to slide four golar as the worlds largest owner and operator of Africa, India, and the only Apple N D player offering floating liquefaction of the service.

Eduardo Maranhao: This is relevant of gas resource owners of proven reserves, either stranded re injected or flared gas.

Eduardo Maranhao: To monetize these proven reserves, whilst maintaining meaningful ownership and exposure to their own resource.

Eduardo Maranhao: Golar is positioned as the only service provider of marathon liquefaction enables us to offer these resource owners a unique value proposition.

Karl Fredrik Staubo: We own and operate the largest FLNG fleet in the world by liquefaction capacity and is at par with ENI and Petronas in the number of units. Golar pioneered the FLND concept with the construction and delivery of HILI, and I've also demonstrated the lowest capex per ton and a market leading operational track record. Turning to slide five, we provide an overview of the global LNG supply and the attractiveness of FLNG project development. The global LNG market is approximately 400 million tons. And based on projects under construction or pending final investment decisions, market supply is estimated to grow by up to 220 million tons, or more than 50% by 2030. The largest incremental producer of LNG will be the US, with a current market share of 22% of global volumes and 57% of planned added production. On the far right-hand side, this compares the cost curves of global supplier volumes landed in Europe.

Eduardo Maranhao: We own and operate the largest LNG fleet in the world by liquefaction capacity and at par with Eni and Petronas in number of units.

Eduardo Maranhao: Golar pioneered the ethylene the concept with the construction and delivery of Hilli and I've also demonstrated the lowest capex per call.

Eduardo Maranhao: And market, leading operational track record.

Eduardo Maranhao: Turning to slide five we provide an overview of the global LNG supply and the attractiveness of ethylene <unk> project development.

Eduardo Maranhao: The global LNG market is approximately 400 million pumps and based on projects under construction or pending final investment decision market supply is estimated to grow by up to 220 million pounds or more than 50% by 2030.

Eduardo Maranhao: The largest incremental producer of LNG will be the U S with the current market share of 22% of global volumes and 57% of planned added production.

Eduardo Maranhao: On the far right hand side. This compares to cost curves are global suppliers volumes landed in Europe.

Karl Fredrik Staubo: This cost stack includes the cost of source gas, liquefaction, and shipping. Based on forward curves for Henry Hub, a significant portion of US volumes have a landed price in Europe of about $10 per mm BTU, providing support for LNG prices. We target LNG developments with significantly cheaper source costs to fill the gap. Based on our demonstrated lower capex per tonne and shorter shipping distance from the locations we are targeting, we see landed gas prices for projects currently in discussion of around $5 per ml. This suggests that the project economics for the FLNG development currently in development by Golar can generate a margin of five dollars per MMBTU to where US exports have break-even landed costs. Hence, at this break-even landed cost for the majority of US projects. The EBITDA of the FLNG project in discussion is ranging between 600 and 875 million dollars, dependent on whether we look at the HILI or a Mark II FLNG solution, where the economics will be shared between the resource owner and Golar. The attractive break-even cost of these projects also ensures a robust business model if gas prices continue to be volatile.

Eduardo Maranhao: This cost includes the cost of source gas liquefaction and shipping.

Eduardo Maranhao: Based on forward curves for Henry hub, a significant portion of U S volumes have landed price into Europe of about $10 per Mb tier providing support for LNG prices.

Eduardo Maranhao: We target the LNG developments with significantly cheaper source cab source cost for the gas.

Eduardo Maranhao: Based on our demonstrated lower capex per tone and shorter shipping distance from the locations. We are targeting we see landed gas prices for projects currently in discussion of around $5 for a midyear.

Eduardo Maranhao: This suggests that the project economics for the F allele developments currently in development by Golar can generate a margin of $5 per MB tier two where U S exports have breakeven landed costs.

Eduardo Maranhao: Hence at this breakeven landed cost for the majority of U S projects.

Eduardo Maranhao: The EBITA of the ethylene <unk> project in discussion is ranging between 600 and $875 million dependent upon whether we look at the heel or in March to a <unk> solution.

Eduardo Maranhao: Where are the economics will be shared between the resource owner Angola.

Eduardo Maranhao: The attractive breakeven cost of these projects also ensure a robust business model if gas prices continue to be volatile.

Karl Fredrik Staubo: Turning to business updates in the next session and a summary of Q4 and subsequent events on slide 7, Hilli continues its operational excellence, having now delivered 108 cargoes since the start-up of its operation in 2018, and more than 7 million tons of LNG today. Gimi, as explained, has now been moored to the GTA hub and is ready to commence operations under her 20-year contract with BP Offshore Senegal and Mauritania

Eduardo Maranhao: Turning to business updates in the next session and a summary of Q4 and subsequent events on slide seven.

Eduardo Maranhao: Hilli continue their operational excellence, having now delivered 108 cargoes since startup of operation in 2018, and more than 7 million tonnes of LNG today.

Eduardo Maranhao: Jimmy as explained has now been more to the GTA hub and is ready to commence operations under a 20 year contract with BP offshore Senegal and Mauritania.

Karl Fredrik Staubo: We continue to progress our Mark 2 growth project, having spent $187 million to date and taking delivery of the Fuji LNG, our vessel conversion candidate, next week. We see strong development for FLNG projects, including redeployment projects for HILI and new projects for MkII FLNG. We're currently in discussions for charter opportunities ranging from 12 to 20 years in duration, and we are pleased that we are aligning commercial terms with gas resource owners. Turning to the right hand side and corporate, and others.

Eduardo Maranhao: We continue to progress our mark to growth project, having spent $187 million to date and taking delivery of the PNG LNG art vessel conversion candidates next week.

Eduardo Maranhao: We see strong development recommended projects, including redeployment projects for Hilli and new projects for Mark <unk>.

Eduardo Maranhao: We're currently in discussions for charter opportunities ranging from 12 to 20 are duration.

Eduardo Maranhao: And we are pleased that we are aligning commercial terms with gas resource owners.

Eduardo Maranhao: Turning to the right hand side of the corporate and other.

Karl Fredrik Staubo: The financial highlight for the quarter was adjusted EBITDA of $114 million, inclusive of the catch-up of 2022 underutilization of the FLNG healing facility. Current liquidity position stands at approximately $800 million, and Eduardo will provide further detail on the financial performance of Port-A-Quarter later in the presentation. We continue our focus on shareholder returns, declaring a dividend of 25 cents for the quarter and share repurchases of 1.3 million shares during Q4. We also resold $61 million of our unsecured treasury bonds. Following this sale, we now have $200 million of bonds outstanding in the market, and $100 million remains in treasury. Turning to slide 8.

Eduardo Maranhao: The financial highlights for the quarter was adjusted EBITDA of $114 million inclusive of the catch up of 2020 to Underutilization of therefore R&D Healy.

Current liquidity position stands at approximately $800 million and Eduardo will provide further detail on the financial performance for the quarter later in the presentation.

Eduardo Maranhao: We continue our focus on shareholder returns declaring a dividend of 25 cents for the quarter and share repurchases of $1 3 million shares during Q4.

We also resold $61 million of our unsecured crystal balls.

Eduardo Maranhao: Following this sale, we now have $200 million of bonds outstanding and the market and $100 million remains in treasury.

Eduardo Maranhao: Turning to slide eight.

Karl Fredrik Staubo: Jimmy, Sail Away, from Citron on November 19th, completing a four-year construction period. This was extended due to COVID effects on the conversion process. We arrived at the GTA field on January 10, 2024, following an efficient journey from Singapore to Senegal, Mauritania. The vessel is now moored to the GT hub with all 26 mooring lines, which will keep the vessel steady and be her home for the next 20 years. As explained, the vessel is ready to commence operations, and we are currently waiting for the feed gas pipeline connection and the commencement of operations. The client advises that first gas is expected in Q3-24, subject to the final completion of upstream activities and installation of the FPSO. Turning to slide 9, and further highlighting the key steps for GIMME and the GTA field to reach COD.

Eduardo Maranhao: Give me sail away.

Eduardo Maranhao: From Ctrip on November 19.

Eduardo Maranhao: Treating a four year construction period.

Eduardo Maranhao: This was extended due to COVID-19 effects on the conversion process.

Eduardo Maranhao: We arrived on the DTA feet on January 10, 2024, following an efficient.

Eduardo Maranhao: Toe from Singapore to Senegal and Mauritania.

Eduardo Maranhao: The vessel is now more to the GT hub.

Eduardo Maranhao: With all 26 mooring lines, which will keep the vessels study and be her home for the next 20 years.

Eduardo Maranhao: As explained the vessel is ready to commence operations and we are currently waiting for feed gas pipeline connection and commencement of operations.

Eduardo Maranhao: The client advisors that first gas is expected in Q3 24 subject to final completion of upstream activities and installation of the F. P. S O.

Eduardo Maranhao: Turning to slide nine and further highlighting the key steps forgive me in the GTA feed to reach C O D.

Karl Fredrik Staubo: With the first two key milestones now concluded, we are waiting to embark on LNG production. The commissioning period is expected to be approximately six months, with commercial operations anticipated thereafter. Jimmy expects to receive a standby day rate and daily commissioning payments ahead of commencement day. The commencement date triggers the start of the 20-year lease and operate agreement that unlocks the equivalent of around $3 billion of adjusted EBITDA backlog for Golar or about $150 million of annual EBITDA. Turning to slide 10 and shifting gears to Helix,

Eduardo Maranhao: With the first two key milestones now concluded we are waiting to embark on LNG production.

Eduardo Maranhao: The commissioning period is expected to be approximately six months with commercial operations anticipated thereafter.

Eduardo Maranhao: You May expect the received standby day rates and daily commissioning payments ahead of commencement date.

Eduardo Maranhao: The commencement date triggers the start of the 20 year lease and operate agreement that unlocks the equivalent of around $3 billion of adjusted EBITA backlog to Golar.

Eduardo Maranhao: We're about $150 million of annual EBITDA.

Eduardo Maranhao: Turning to slide 10, and shifting gears to hilly.

Karl Fredrik Staubo: Hilly produced her highest production since startup during 2023. In total, the unit produced 1.46 mTPa during 23, inclusive of the 2022 underproduction and also exceeding the contractual volume by approximately $300,000. The vessel continued its market-leading operational uptime since delivery, and we continue to be highly pleased with both the unit, the technology, and the operating teams that support the daily operation. Turning to Mark 2 on slide 11.

Eduardo Maranhao: Healy produced our highest production since start up during 2023.

Eduardo Maranhao: In total the unit produced 146 MPA during 'twenty three.

Eduardo Maranhao: Inclusive of the 2022 and the production and also exceeding the contractual volume by approximately $300000.

Eduardo Maranhao: The vessel continue its market, leading operational uptime since delivery and we continue to be highly pleased with both the unit the technology and the operating teams that support the daily operation.

Eduardo Maranhao: Turning to Mark too onside 11.

Karl Fredrik Staubo: As previously guided, we have committed more than $400 million to our planned next FLNG vessel, a Mark 2 FLNG with a 3.5 MTPA liquefaction capacity. Long lead items are now 55% completed with construction, and we have spent $187 million of the commitment to date. Next week, we expect to take delivery of the LNG carrier Fuji, which is intended to be used as a conversion candidate for the project. We plan to operate Fuji as an LNG carrier until she starts her conversion work. We have reconfirmed pricing and yard availability for a potential order of a Mark 2 FLNG and expect 2027 delivery provided that we take a final investment decision within 2024. Progress has also been made on a potential Mark 2 debt facility where terms are being finalized, and the facility will not be dependent on a charter for the unit.

Eduardo Maranhao: As previously guided we have committed more than $400 million toward planned next ethylene the vessel a mark to ethylene D with a $3 five MTA liquefaction capacity.

Normally the items are now 55% completed with construction and we have spent $187 million of the commitments today.

Eduardo Maranhao: Yeah.

Eduardo Maranhao: Next week, we expect to take delivery of the LNG carrier <unk>, which is intended to be used as a conversion candidates for the project.

Eduardo Maranhao: We plan to operate <unk> as an LNG carrier until she will start her conversion work.

Eduardo Maranhao: We haven't reconfirmed pricing and yard availability for a potential order of a mark to F allele and expect 2027 deliver it provided that we take final investment decision within 2024.

Eduardo Maranhao: Progress has also been made on a potential mark to that facility, where terms are being finalized and the facility will not be dependent on a charter party unit.

Karl Fredrik Staubo: Turning to slide 12, we have seen strong development of new FLNG projects during the quarter. We're pleased that we are aligning around commercial terms with gas resource owners and the attractiveness of these potential gas developments with sufficient resources to support 12 to 20-year targets. We recently signed a framework agreement for a potential new FLNG project, which can either utilize the HILI or a MkII FLNG.

Eduardo Maranhao: Turning to slide 12, we have seen strong development of new ethylene <unk> project during the quarter.

Eduardo Maranhao: We're pleased that we are aligning around commercial terms with gas resource owners and the attractiveness of these potential gas developments with sufficient resources to support 12 to 20 our charters.

Eduardo Maranhao: We recently signed a framework agreement for a potential new Apple N V project, which can either utilize the hilli or a mark to F N b.

Karl Fredrik Staubo: In addition to the commercial progress made with these counterparts, we're working on the technical and fiscal terms in parallel. As previously discussed on our quarterly calls, these are large infrastructure projects that need approvals from environmental bodies and governmental sign-offs, in addition to commercial agreements with gas resource owners. We're excited about the development and progress on all these aspects of the potential project in discussion. Turning to slide 13 and an update on Macau, another aspect of our portfolio where we see very positive developments. As a reminder, Macau is a fully owned subsidiary of Golar.

Eduardo Maranhao: In addition to the commercial progress made with his counterparts. We are working on the technical and physical terms in parallel.

Eduardo Maranhao: As previously discussed on our quarterly calls these are large infrastructure projects that need approvals from environmental bodies and governmental sign offs. In addition to commercial agreements with gas resource owners.

Eduardo Maranhao: We're excited about the developments and progress on all these aspects of the potential project in discussions.

Eduardo Maranhao: Turning to slide 13, and an update on Macau.

Eduardo Maranhao: Other aspects of our portfolio, where we see very positive developments.

Eduardo Maranhao: As a reminder, Macao is a fully owned subsidiary of Golar.

Eduardo Maranhao: The company is targeting land-based FLIR to LNG mobile solutions that we have named F2X, where the outer containers containing the LNG will be named liquid. As you can see from the right-hand side of the slide, we have completed the construction of the first unit on time and budget, and we will start production testing in Q2-24. We see strong interest from prospective clients that look to monetize flare gas both for the economic and environmental benefits that this technology enables. Once we have proven production, we will evaluate a separate listing on Macau to facilitate an accelerated rollout of this technology. I'll now hand the call over to Eduardo to present our Q4 results. Good morning, everyone, and thanks, Karl.

Eduardo Maranhao: The company is targeting land based flair to LNG mobile solutions.

Eduardo Maranhao: That we have named X two X.

Eduardo Maranhao: Where the arts of containers containing the LNG will be named liquid drag.

Eduardo Maranhao: As you can see from the right hand side of the slide we have completed the construction of the first units on time on budget.

Eduardo Maranhao: And we will start production testing in Q2 24.

We see strong interest from prospective clients that look to monetize flare gas both for economic and environmental benefits that this technology enables.

Eduardo Maranhao: Once we have proven production, we will evaluate separately sticking with Macao to facilitate an accelerated rollout of this technology.

Eduardo Maranhao: I'll now hand, the call over to Eduardo to present, our Q4 results.

Eduardo: Good morning, everyone and thanks Carl.

Eduardo Maranhao: I would like to share an overview of Golar's financial performance during Q4. Turning over to slide 15, I wanted to show some of the highlights of this quarter. Total operating revenues amounted to $80 million, with total FLNG tariffs reaching $106 million, an increase of 12% compared to last quarter.

Eduardo: I'm glad to share an overview of <unk> financial performance during Q4.

Turning over to slide 15, I wanted to show some of the highlights of this quarter.

Eduardo: Total operating revenues amounted to $80 million with total <unk>, reaching $106 million.

Eduardo: An increase of 12% compared to last quarter.

Eduardo Maranhao: SLNG tariff is a critical metric that reflects a comprehensive approach to liquefaction revenues, including realized gains on oil and gas derivatives. Adjusted EBITDA came in at $114 million, up 52% from the previous quarter, positively impacted by Haley's performance, which exceeded her contracted 2023 production volume, resulting in a release of the remaining 2022 underutilization balance of $29 million. We had a net loss of $31 million in Q4.

Eduardo: LNG tariff is a critical metric, which reflects a comprehensive approach to liquefaction revenues, including realized gains on our oil and gas derivatives.

Eduardo: Adjusted EBITDA came in at $114 million up 52% from the previous quarter.

Eduardo: Positively impacted by helix performance, which exceeded her contracted 2023 production volume, resulting in a release of the remaining <unk> 20 true underutilization balance of $29 million.

Eduardo: We had a net loss of 31 million in Q4.

Eduardo Maranhao: This figure includes a total of $117 million in non-cash items, such as movements in the value of TTF and Brent derivatives and our English language team. We close the year with a total cash position of $753M and total contractual debt of $1.2B. When considering the value of the remaining receivables from our TTF hedges, our net debt position at year-end was $411 million.

Eduardo: This figure includes a total of 117 million noncash items, such as movement in the value of CTF and Brent derivatives in our interest rate swaps.

Eduardo: We closed the year with a total cash position of $753 million in total contract with debt of $1 2 billion.

Eduardo: When considering the value of the remaining receivables from our TGF hedges, our net debt position at year end was $411 million.

Eduardo Maranhao: Now moving to slide 16. We can see the evolution of Healy's EBITDA contribution over the last quarter. Looking on a year-on-year basis, Healey generated $84 million in Q4, which is 15% greater compared to the previous quarter. That number includes $33 million from base tolling. Brent linked fees were up to $20 million from $13 million last quarter, and TTF linked fees of $31 million, up from $28 million in Q

Eduardo: Now moving to slide 16.

We can see the evolution of Chile's EBITDA contribution over the last quarters. We are looking on a year on year basis, Healy generated $84 million in Q4, which is 15% greater compared to the previous quarter.

Eduardo: That number includes $33 million from base storage fees.

Eduardo: Brent linked fees were up to $20 million from 13 million last quarter and CTF linked fees of 31 million up from $28 million in Q3.

Eduardo Maranhao: Moving on to slide 17, you can see that we remain exposed to TTF prices for the remainder of 2024 while, at the same time, expect to benefit from locked-in gains from our previous swaps. These locked-in gains resulting from the unwinding of our TTF hedges will be allocated in addition to our fixed stalling pitch and variable brand and TTF revenue, which represents approximately $49 million of EBITDA or approximately $12 million per quarter in 2021. Total debt service, including principal amortization, is expected to come down to $87 million in 2024, resulting in total free cash flow to equity generation of approximately $174 million, based on forward As you can see on this graph, the total free cash flow to equity generated just between 2022 and 2024 is expected to surpass $620 million, with room for potential upsides subject to oil and gas prices.

Moving onto slide 17.

Eduardo: You can see that we remain exposed to TTS prices for the remainder of 2024, while at the same time expect to benefit from lock in gains from our previous swaps.

Eduardo: He is locked in gains, resulting from the unwinding of our TTS hedges will be allocated in addition to our fixed tolling peach and variable brains in CTF revenues.

Eduardo: That represents approximately $49 million of EBITDA or approximately $12 million per quarter in 2024.

Eduardo: Total debt service, including principal amortization is expected to come down to 87 million in 2024, resulting in total free cash flow to equity generation of approximately $174 million based on forward prices for both brands in GTS.

Eduardo: As you can see on this graph the total free cash flow to equity generated just between <unk> and 'twenty 'twenty four is expected to surpass $620 million with room for potential upsides subject to oil and gas prices.

Eduardo: Now moving to slide 18.

Eduardo: We remain committed to shareholder returns and as you can see in 'twenty two 'twenty three we paid over $430 million in <unk>.

Eduardo: Dividends share buybacks and the purchase of energy in the state in <unk> Hilli <unk>.

Eduardo: This quarter, we declared the dividend of 25 per share with a record date on the 12th of March and payments on the 20th of March.

Eduardo: We have also repurchased one 3 million shares this quarter, leaving $104 6 million shares at screen.

Eduardo: Out of the $150 million approved share buyback program $88 million remains available for further repurchases, which we will continue to opportunistically pursue.

Eduardo: I'll hand, it over to Karl and offer some closing remarks.

Karl: Thanks Rocco.

Karl: So turning to slide 12 for summary, and next steps.

Eduardo Maranhao: Now moving to slide 18. We remain committed to shareholder returns, and as you can see, in 2023, we paid over $430 million in dividends, share buybacks, and the purchase of a field stake in FLNG Helix. This quarter, we declared a dividend of 25 cents a share, with a record date on the 12th of March and payment on the 20th of March.

Karl: We continue to see revenue diversification with delivery of gaming.

Karl: And as we now have he missed three components the base revenue the Brent linked Mttf Lynch.

Karl: And then the commencement of give me a 20 year contract with BP.

Karl: <unk> business development, we see strong progress made both for redeployment of Hilli and the potential mark to your impairments.

Karl: As explained we have signed the framework agreement with a potential customer, but could utilize either of the two liquefaction solutions.

The contracts and discussions are for commercial terms with durations of 12 to 20 or opportunities.

Karl Fredrik Staubo: We have also repurchased 1.3 million shares this quarter, leaving 104.6 million shares. Out of the $150 million approved share buyback program, $88 million remains available for further repurchases, which we will continue to opportunistically pursue. I'll hand it over to Karl now for some closing remarks. Thanks, Eduardo.

On the Mark to potential the long lead items are well progressed yard contract. The final engineering is ready for RFID.

Karl: And provided we ordered the vessel within 24, we see delivery within 27.

Karl: We remain with a strong liquidity position of around $800 million.

Karl: The give me delivery allows for depth optimization.

Karl: We see potential asset sales in noncore assets in particular, the Golar Arctic.

Karl: And we are targeting a separate listing of Macau once the unit has been proven.

Karl: We remain committed to attractive growth and return to shareholders. We.

Karl Fredrik Staubo: So turning to slide 20 for the summary and next step, we continue to see revenue diversification with delivery of gimmicks. And we now have HILI's three components, the base revenue, the Brent link, and the TTF link, and then the commencement of GIMI's 20-year contract with BP. On FL&E business development, we see strong progress made both for the redeployment of HILI and the potential market for employment. As explained, we've signed a framework agreement with a potential customer that could utilize either of the two liquefaction solutions. The contracts in discussions are for commercial terms with durations of 12 to 20 years. On the Mark 2 potential FID, long lead items are well progressed, yard contract design and engineering is ready for FID, and provided we order the vessel within 24, we see delivery within 27. We remain with a strong liquidity position of around $800 million. The GIMME delivery system allows for depth optimization.

Karl: We see upside to the dividend once the game starts her contract.

And we also see potential release of significant liquidity once we look to rebound here.

Karl: We also have continued capacity under our existing share buyback program.

Karl: We utilized a significant portion of during times of 23.

Speaker Change: That concludes the prepared remarks for the Q4 call.

Speaker Change: Thank you for dialing in I'll now hand, the call over to the operator for any questions.

Thank you.

Speaker Change: At this time, we will conduct a question and answer session.

Speaker Change: If you would like to ask a question you will need to press star one on your telephone keypad and wait for your name to be announced.

To withdraw your question. Please press star one again.

Speaker Change: We would like to ask participants to limit their questions to two questions per person.

Speaker Change: Please standby, while we compile the queue.

Speaker Change: Okay.

And our first question comes from the line of.

Benjamin Joel Nolan: Ben Nolan from Stifel.

Benjamin Joel Nolan: Please go ahead.

Benjamin Joel Nolan: Thank you.

Benjamin Joel Nolan: Good morning, guys or afternoon.

Benjamin Joel Nolan: Let's see my two questions. The first relates to the gave me appreciating that the timeline that you laid out there with respect to commissioning et cetera.

Benjamin Joel Nolan: How should we think about the income statement impact up until the point of.

Karl Fredrik Staubo: We see potential asset saves in non-core assets, in particular the Golar Arctic, and we are targeting a separate listing of Macau once the unit has been approved. We remain committed to attractive growth and return to shareholders. We see upside to the dividend once the gimme starts her contract.

Benjamin Joel Nolan: Commissioning.

Benjamin Joel Nolan: Is there any revenue or any expense.

Benjamin Joel Nolan: Are those all just sort of offset against the balance sheet.

Benjamin Joel Nolan: Hi, Eduardo here how are you.

Benjamin Joel Nolan: Okay.

Eduardo: So as you correctly pointed out so the during the commissioning and.

Eduardo: An integration phase, we will be capitalizing those revenues until the actual start dates so those will be <unk>, which will be reflected in our balance sheet up until CRD.

Karl Fredrik Staubo: And we also see potential release of significant liquidity once we look to refinance. We also have continued capacity under our existing share buyback program that we utilized a significant portion of during 2020. That concludes the prepared remarks for the Q4 call. Thank you for dialing in.

Eduardo: Okay.

Be amortized.

Eduardo: Aquila distribute it over the life of the contract.

Speaker Change: Got it and the same is true for cost correct.

Speaker Change: Okay alright good.

Speaker Change: I wanted to know if we could if I could jump to the Hilli quickly.

Operator: I'll now hand the call over to the operator for any questions. Thank you. At this time, we will conduct a question-and-answer session. If you would like to ask a question, you'll need to press star 11 on your telephone keypad and wait for your name to be announced.

Speaker Change: With respect to the framework agreement that you have.

Speaker Change: I was hoping that you might be able to give a little bit more color as to I don't know.

Speaker Change: How do you where do you think that is in terms of its process and if you have any sense as to.

Operator: To withdraw your question, please press star 1 1 again. We would like to ask participants to limit their questions to two questions per person. Please stand by while we compile the questions. And our first question comes from the line of... Ben Nolan from Stifle. Please go ahead. Thank you. And good morning, guys, or afternoon.

Speaker Change: When it might be something that is.

Speaker Change: Able to move into something more broad.

Speaker Change: I think that the purpose of the framework agreement, which were pleased to enter into is that it sets up an alignment of the commercial terms and very specific next steps that both parties need to meet.

Speaker Change: We are highly confident about both parties.

Speaker Change: Ability to meet the timelines to forward in the framework agreement.

Benjamin Joel Nolan: I'll let you see my two questions. First, relating to the GME appreciating the timeline that you laid out there with respect to commissioning, etc. How should we think about the income statement impact up until the point of commissioning? Is there any revenue or any expense, or are those all just sort of offset against the, Hi Ben, Eduardo here, how are you?

Speaker Change: Where theres more uncertainty is how that aligns with the governmental bodies and sign off those haven't been initiatives.

We have had joint meetings with relevant authorities.

Speaker Change: And based on the indications you received thus far they seem to be aligned to our proposed timeline.

Speaker Change: But that continues to be the unknown once we talk about exact timing of when this is Dave.

Eduardo Maranhao: Thank you. So, as you correctly pointed out, during the commission and integration phase, we will be capitalizing those revenues until the actual COD start date. So those will be items which will be reflected in our balance sheet up until COD. They will be amortized equally over the life of the company.

Speaker Change: But we haven't said for prolonged period is that we want to have visibility on delay.

Speaker Change: With incentive for both.

Speaker Change: <unk> because it provides visibility and it also helps us in planning.

Speaker Change: Our next face provided that we need to move from the current location if that'll be the case.

Speaker Change: So.

Eduardo Maranhao: Yeah, and the same is true for costs, correct? That the costs are capitalized. Okay. All right. Good.

Speaker Change: In terms of timing that remains our target.

Speaker Change: Okay.

Speaker Change: Is this west Africa.

Yeah.

Speaker Change: Permanent.

Speaker Change: We're talking about opportunities both places Nonetheless, several places, but the specific framework agreement is marked them at that rate.

Karl Fredrik Staubo: So I wanted to, now if we could, if I could jump to the HILI quickly, with respect to the framework agreement that you have, I was hoping that you might be able to give a little bit more color as to, I don't know, how you think that is in terms of its process, and if you have any sense as to when it might be something that is able to move into something more firm. I think that the purpose of the Framework Agreement, which we're pleased to enter into, is that it sets out an alignment of the commercial terms and very specific next steps that both parties need to meet. We are highly confident about both parties' ability to meet the deadlines put forward in the framework agreement.

Speaker Change: Okay, Alright, I appreciate it thank you.

Speaker Change: Thank you for your question.

Speaker Change: We're not going to transfer to the next question in the queue.

Speaker Change: Please standby.

Speaker Change: And our next question comes from Liam Burke from B Riley Financial Your line is open. Please go ahead, yes. Thanks.

Liam Burke: Hi, Carl how are you today.

Again thanks.

Karl you've got.

Liam Burke: Other investments outside of the of the LNG or the Mark to.

Liam Burke: How are you balancing your investment priorities with the FL your core F. LNG with these other side opportunities.

Karl: As a relevant question so.

Karl: When it comes to Golar have you now for the last two and a half years have been through.

Karl Fredrik Staubo: Where there's more uncertainty is how that aligns with governmental bodies and sign-offs, although those have already been initiated. We've had joint meetings with relevant authorities, and based on the indications received thus far, they seem to be aligned with our proposed timeline. But that continues to be the unknown once we talk about the exact timing of when this is due. What we have said for a prolonged period is that we want to have visibility on Hilli within 24, both because that provides visibility and it also helps us in planning the next phase, provided that we need to move from the current location if that will be the case. So in terms of timing, that remains our target. Okay, is this West Africa?

Karl: The reorganization focusing our efforts on <unk>.

Karl: In that respect we have one legacy investment in Avenir, LNG, which is a small scale shipping company that was.

Karl: Core to us when we owned Golar power.

Karl: Our hydro energy transition.

Karl: It's less quarter off now.

Karl: So the way you should think about <unk>, it's an investment we would like but we're not planning to deploy any more capital into it and we'll be opportunistic <unk> ownership and Avenue.

Karl: When it comes to Macau entities.

Karl: That is something we see to be very much aligned with what we're doing on the floating side.

Karl: What it is.

Karl Fredrik Staubo: We're talking about opportunities in both places, several places, but this specific framework agreement is not for the African market. Okay. All right. I appreciate it.

Karl: Liquefaction of proven reserves and in this context flare gas in particular.

Operator: Thank you for your question. We're now going to transfer to the next question in the queue. Please stand by. And our next question comes from Liam Burke from B. Reilly Financial. Your line is open, please go ahead. Yeah, thank you. Hi Karl, how are you today?

Liam Burke: give thanks. Karl, you've got other investments outside of the FLNG or the MkII. How are you balancing your investment priorities with your core FLNG business and these other side opportunities? Golar, as you know, for the last two and a half years, we have been through a bit of a reorganization focusing our efforts on FOMD. In that respect, we have one legacy investment in Avenir LNG, which is a small-scale shipping company that was core to us when we owned Golar Power or Hygo Energy Transition. It's less core to us now, so the way you should think about Avenir is it's an investment we like, but we're not planning to deploy any more capital into it, and we'll be opportunistic as to our ownership in Avenir. When it comes to Macau Energies, that is something we see to be very much aligned with what we're doing on the floating side. So what did they say?

Karl: Going forward.

Karl: Women reinstated dividends last year, we said, it's very important to us that they're stable predictable and increasing over time.

Karl: Hence the.

Karl: The reason why I'm interested in initially at 25 cents is because we see that that's.

Karl Fredrik Staubo: liquefaction of proven reserves and, in this context, flare gas, in particular. We can use the expertise that we've built up over FLNDs to capture what we think is a massive market opportunity, both economically and environmentally and politically, to fill flare gaps. We see that as a faster way of deploying or getting return on capital investment, which is why we started Macau at this point in time. However, the absolute majority of our capital will be directed towards FLNG growth projects. Hence, we're evaluating a separate spinoff of Macau to accelerate that business. It's not one where we as Golar expect to deploy any significant capital beyond what we have, and our capital is for FLND and FLND only. I got it.

Karl: Highly sustainable we do expect that we can increase dividends over time.

Karl: But when we do we want to ensure that it's a sustainable level, hence we want to see the C. O Z of give me take place.

Karl: Before increasing unless there are other opportunities proceed to increase shareholder returns is extremely high on the agenda.

Karl: Now I'm going forward.

Speaker Change: Alrighty, Thank you Carl.

Carl: Thank you.

Speaker Change: Thank you very much for your question, we're not going to transfer to the final question in the queue and <unk>.

Speaker Change: And our final question comes from Christopher Watson from torture Bank. Your line is open. Please go ahead.

Karl Fredrik Staubo: Okay. And on the dividend policy, is that, are you looking to maintain that dividend through the cycle? Or is that something that you'd consider when you've got these other investment opportunities going forward?

Christopher Warren Robertson: Hi, Good morning. This is spend more calling for Chris Robertson here at Deutsche Bank as we look at the LNG landscape in the coming years, new capacity will be coming online in the U S Gulf Coast and in Qatar in the near future. As you look at the landscape is F. L. N G opportunities in this context.

Karl Fredrik Staubo: When we reinstated dividends last year, we said it's very important to us that they're stable, predictable, and increasing over time. Hence, the reason why we put it in initially at 25 cents is because we see that as highly sustainable. We do expect that we can increase dividends over time. But when we do, we want to ensure that it's a sustainable level, hence we want to see the COD of GIMME take place before increasing it unless there are other opportunities we see to increase it, but shareholder returns are extremely high on the agenda, but now I'm going forward. Thank you, Karl.

Christopher Warren Robertson: Has your perspective changed in the last few quarters as to what types of opportunities are out there.

Speaker Change: No [laughter], we think it's very beneficial.

Speaker Change: Basically when you saw the spike in LNG prices that you have a following.

Speaker Change: The rest of your crime situation in particular, the the Nord stream.

Speaker Change: My plan.

Sorry incident.

Speaker Change: You store gas prices go to a level, where there was a very strong incentive for end users to substitute away from LNG in natural gas.

Operator: Thank you. Thank you very much for your question. We're now going to transfer to the final question in the queue. Please stand by.

Speaker Change: We think it's in the industry interest that you see longterm plentiful supply of LNG.

Operator: And our final question comes from Christopher Robertson from Deutsche Bank. Your line is open, please go ahead. Hi, good morning.

Benjamin Joel Nolan: This is Ben Moore calling for Chris Robertson here at Deutsche Bank. As we look at the LNG landscape in the coming years, new capacity will be coming online in the US Gulf Coast and then Qatar in the near future. As you look at the landscape of FLNG opportunities in this context, has your perspective changed in the last few quarters as to what types of opportunities are out there? No, we think it's very beneficial because basically when you saw the spike in LNG prices that you had following the Russia-Ukraine situation, in particular, the Nord Stream pipeline accident or incident. You saw gas prices go to a level where there was a very strong incentive for end-users to substitute away from LNG and natural gas.

Speaker Change: Further increasing supply sources.

Speaker Change: So a more stable price environment. We think is extremely helpful to end user demand.

Speaker Change: Which should be very good for the industry.

Speaker Change: In particular talking about the expansion of guitar and U S volumes and in particular, you is Williams, we spend some time on slide five to explain that we see landed cost of these volumes to be pretty much double that of the F. A M. D projects. We're currently in discussions for.

Speaker Change: <unk>, we see the self regulating.

Speaker Change: When you have such a large part of the growth in LNG supply.

Benjamin Joel Nolan: We think it's in the industry's interest that you see a long-term plentiful supply of LNG and further increasing supply sources. So a more stable price environment is, we think, extremely helpful to end user demand, which should be very good for the industry. In particular, talking about the expansion of Qatari and U.S. volumes, and in particular U.S. volumes, we spent some time on slide five explaining that we see landed costs for these volumes to be pretty much double that of the FLNG projects we're currently in discussions for. Hence, we see it as self-regulating when you have such a large part of the growth in LNG supply with a break-even of twice what we will hopefully have. That should be a self-regulating measure to further underwrite the attractiveness of the project, so we welcome the development. Thank you. Maybe as a follow-up, can you talk about the current configuration of the hilly area as it relates to the composition of the gas stream? Is the current design equipped to handle wet gas opportunities, or is this something that can be adapted to in the future as you look forward to recontracting opportunities?

Speaker Change: With a breakeven twice will be will hopefully have.

Speaker Change: That should be a self regulating measure in further underwriting the attractiveness of the project.

Speaker Change: So we welcome the development.

Thank you maybe as a follow up can you talk about the current configuration of the hilly as it relates to the composition of the gas Dream is a current design equipped to handle what gas opportunities or is this something that it can be adapted to in the future as you look for to re contracting opera.

Speaker Change: Charity is we just wanted to try to get a better picture of the types of the fields and opportunities this asset commute to play too.

Speaker Change: So across all of our excellent <unk>.

Speaker Change: Founding principle of our <unk> technology is that we have a generic design, we'd do knocked customized to the competition.

Speaker Change: Liquefaction plan is based on pipeline gas quality entering the vessel.

Speaker Change: To the extent the gas composition of the field, we are evaluating the not fit that equality.

Speaker Change: Units are dependent on the pre treatment facility that treats the gas strip liquids.

Karl Fredrik Staubo: We just want to try to get a better picture of the types of fields and opportunities this asset could be deployed in. So across all of our FLNG designs, and the founding principle of our FLNG technology is that we have a generic design. We do not customize to the gas competition. The liquefaction plant is based on pipeline gas quality entering the vessel, to the extent that the gas composition of the fields we are evaluating does not fit that quality. The units are dependent on a pre-treatment facility that treats the gas-strip liquids before they enter the effluent. That's part of the reason why we're able to achieve the capex proton that we are and the operational efficiencies that we have achieved. We see it as far more beneficial and safe for operations to separate the two if there is significant gas treatment required.

Speaker Change: And there's the F O N D.

Speaker Change: That's part of the reason why we're able to achieve the capex per ton that we are in the operational efficiencies that we have achieved.

Speaker Change: We see it as far more beneficial unsafe for operations to separate the two if there is significant gas treatment required.

Speaker Change: Wonderful thank you very much.

Speaker Change: At at this time. Thank you very much for your question at this time, we <unk> run out of time, so I'm not going to hand, it back to you speaker cough. It it's terrible for any closing remarks.

Speaker Change: Thank you all for dialing in and listening to the updates from the company. This quarter. We're excited about the development and look forward to reconnecting in the next quarter.

Speaker Change: Wish you all a good day and.

Speaker Change: Have a nice day.

Speaker Change: Thank you and this concludes today's conference call. Thank you for participating you may now disconnect speakers. Please standby.

Karl Fredrik Staubo: Beautiful, thank you very much. At this time, thank you very much for your question. At this time, we've run out of time, so I'm now going to hand it back to your speaker, Karl Friedrich Staubo, for any closing remarks. Thank you all for dialing in and listening to the updates from the company this quarter. We're excited about the development and look forward to reconnecting in the next quarter. Wish you all a good day and have a nice day. Thank you, and this concludes today's conference call. Thank you for participating; you may now disconnect. Speakers, please stand by. www.larryweaver.com, Music

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