Q2 2025 Golar LNG Ltd Earnings Call

Bye now.

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

As normal we start on slide three and an overview of Golar today.

Golar is a focused <unk> company, we own three units were twos on the water and one under conversion.

The key events of the quarter is securing the.

20 year charter for the Hilli.

As well as signing definitive agreements and consequent final investment decision for the Mark to F N B.

On the back of securing 'twenty, our charters for our existing fleet, we're increasing focus on adding additional LNG unit as we see strengthening demand for LNG solutions to monetize stranded associated and re injected gas opportunities.

During the quarter, we increased our cash position through a $575 million convertible bond issuance and we now have a cash position of just under $900 million.

With a frito delivered net debt to EBITDA ratio of around 354 times <unk>.

$17 billion of EBITDA backlog before commodity upside.

And 'twenty are cash flow visibility.

We have capacity to fund the incremental <unk> growth units from financing proceeds.

Turning to slide four and look at our EBITDA backlog and cash flow visibility.

On the back of the Q2 contracting events our existing fleet is now fully contracted for 20 years.

The highlights as mentioned was fulfillment of all the Cps and <unk> of the Healy as well as the definitive agreements for our Marc II in May as well as <unk> now on August six.

The Mark to have Linda charter remains subject to regulatory approvals and customary conditions precedent.

We expect all of these C piece to be met within 2025, and we are progressing according to schedule to meet them.

The backlog stands at $17 billion before inflationary adjustments and commodity exposure through the SASSA contracts that came together add significant further upside to the backlog.

Yeah.

Turning to slide five and an overview of the global LNG fleet.

Golar remains the market leader measured by liquefaction capacity.

The global fleet consists of seven units on the water and four units under construction.

We expect to see increased new building activity from the existing ethylene D owners combined adding up to five units.

Of announced <unk> project plans, if they all progress according to schedule.

We also see increased interest from gas resource owners increasingly interested in F LNG solutions to monetize yes.

This development is a testimony to the attractive costs.

Proven operational track record and flexibility that <unk> offer versus traditional land based liquefaction solutions.

Golar remains the only proven provider of ethylene Ges's service.

Other companies as presented on this slide only monetize gas that they control.

Ah contemplated fourth of LNG unit by Golar will therefore likely be the only available open ethylene capacity with delivery within this decade.

We believe we can drive best value in ordering our next unit before locking in an associated charter.

This is similar to the successful strategy executed when ordering the Hilli and later to Mark two F LNG.

Operator: Welcome to the Golar LNG Limited's second quarter 2025 presentation conference call and webcast. After the slide presentation, the CEO, Karl Fredrik Staubo, and CFO, Eduardo Maranhao, there will be a question and answer session. Information on how to ask a question will be provided then. At this time, all participants are in a listen-only mode. I would now like to pass it over to Karl Fredrik Staubo. Karl, please go ahead.

Speaker #2: Welcome to the Golar LNG Ltd second quarter 2025 presentation conference call and webcast. After the slide presentation, the CEO, Karl Fredrik Staubo, and CFO Eduardo Maranhao will lead a question and answer session.

Once we do secure a potential long term contract for our next unit we plan on continuing our growth ambitions with 50 units.

We will remain with our strategy to only have one open <unk> at the time and we expect to be able to fund all visible growth plans with proceeds from debt financing activities of the existing fleet.

Speaker #2: Information on how to ask a question will be provided then. At this time, all participants are in a listen-only mode. I would now like to pass over to Karl Fredrik Staubo.

Speaker #2: Karl, please go ahead.

And the overall balance sheet flexibility.

Karl Fredrik Staubo: Thank you, operator, and welcome to Golar's Q2 2025 earnings results presentation. My name is Karl Fredrik Staubo. I am the CEO of Golar LNG, and today I am accompanied by our CFO, Eduardo Maranhao. Before we get into the presentation, please note the forward-looking statements on slide two. As normal, we start on slide three and an overview of Golar today. Golar is a focused FLNG company. We own three units, where two are underwater and one under conversion. The key event of the quarter is securing the 20-year charter for the FLNG Hilli, as well as signing definitive agreements and consequent final investment decisions for the MARK II FLNG. On the back of securing 20-year charters for our existing fleet, we are increasing focus on adding additional FLNG units as we see strengthening demand for FLNG solutions to monetize stranded, associated, and reinjected gas opportunities.

Speaker #3: Thank you, operator, and welcome to Golar's Q2 2025 earnings results presentation. My name is Karl Fredrik Staubo. I'm the CEO of Golar LNG, and today I'm accompanied by our CFO, Eduardo Maranhao.

We plan on continuing our growth trajectory as long as we can obtain accretive and solid economic returns to our shareholders.

Speaker #3: Before we get into the presentation, please note the forward-looking statements on slide two. As normal, we start on slide three, and an overview of Golar today.

Turning to slide seven and quarterly highlights and developments.

The second quarter was a very active and very successful quarter for golar with several key milestones Smith.

Speaker #3: Golar is a focused FLNG company. We own three units, where two are underwater and one is under conversion. The key event of the quarter is securing the 20-year charter for the Heli, as well as signing definitive agreements and the consequent final investment decision for the Mark II FLNG.

As alluded to a few times already all the Cps and <unk> for Heelys redeployment charter in Argentina was met.

Simultaneously, we signed a definitive agreement for the Mark to and later the <unk> now on August 6th.

In June we issued $575 million of convertible bonds and used around $103 million of the proceeds to buy back two and a half million shares or just under two 5% of our company.

Speaker #3: On the back of securing 20-year charters for our existing fleet, we're increasing focus on adding additional FLNG units as we see strengthening demand for FLNG solutions, to monetize stranded associated and re-injected gas opportunities.

Eduardo will detail some of the benefits of the CB later in the presentation.

In July we issued our annual ESG report containing detailed information about our operations and the benefit to the countries we operate in.

Karl Fredrik Staubo: During the quarter, we increased our cash position through a $575 million convertible bond issuance, and we now have a cash position of just under $900 million. With a fully delivered net debt-to-EBITDA ratio of around 3.4 times, $17 billion of EBITDA backlog before commodity upside, and 20-year cash flow visibility, we have capacity to fund incremental FLNG growth units from financing proceeds. Turning to slide four and a look at our EBITDA backlog and cash flow visibility. On the back of the Q2 contracting events, our existing fleet is now fully contracted for 20 years. The highlights, as mentioned, were fulfillment of all the CPs and FID of the FLNG Hilli, as well as the definitive agreements for the MARK II in May, as well as FID now on August 6th. The MARK II FLNG charter remains subject to regulatory approvals and customary conditions precedent.

Speaker #3: During the quarter, we increased our cash position through a $575 million convertible bond issuance, and we now have a cash position of just under $900 million.

It's worth a read for those interested in development that we provide to the countries we operate in.

Speaker #3: With a fully delivered net debt to EBITDA ratio of around 3.4 times, 17 billion dollars of EBITDA backlog before commodity upside, and 20-year cash flow visibility, we have capacity to fund incremental FLNG growth units from financing proceeds.

During the quarter, we saw the exit of two of our existing board members <unk> and two life annually.

We would like to thank them for their long term contribution to Golar Board.

We also welcomed three new board members.

Speaker #3: Turning to slide four, let's take a look at our EBITDA backlog and cash flow visibility. Following the Q2 contracting events, our existing fleet is now fully contracted for 20 years.

Been offered cardiac knee, Hong Yoon and Stephen Schafer.

We're excited to have the addition of these three members and look forward to their contribution to Golar continued success.

Consistent with our communicated strategy of adding accretive LNG growth once the existing fleet has been de risked and committed on long term charters, we have increased our efforts for our fourth unit.

Speaker #3: We highlight, as mentioned, was fulfillment of all the CPs and FID of the heli as well as the definitive agreements for the Mark II in May, as well as FID now on August 6th.

We have signed agreements with our target shipyards to confirm EPC price and delivery schedule for the next unit and we expect to decide on the sign side and shipyard in the coming months.

Speaker #3: The Mark II FLNG charter remains subject to regulatory approvals and customary conditions precedent. We expect all of these CPs to be met within 2025, and we are progressing according to schedule to meet them.

Karl Fredrik Staubo: We expect all of these CPs to be met within 2025, and we are progressing according to schedule to meet them. The backlog stands at $17 billion before inflationary adjustments and commodity exposure through the CESA contracts that can together add significant further upside to the backlog. Turning to slide five and an overview of the global FLNG fleet. Golar remains the market leader measured by liquefaction capacity. The global fleet consists of seven units underwater and four units under construction. We expect to see increased new building activity from the existing FLNG owners, combined adding up to five units of announced FLNG project plans if they all progress according to schedule. We also see increased interest from gas resource owners, increasingly interested in FLNG solutions to monetize gas.

Turning to slide eight for an update on Hilli.

Speaker #3: The backlog stands at 17 billion dollars before inflationary adjustments and commodity exposure through the CESA contracts that can together add significant further upside to the backlog.

Again, the key milestone for Haley during the quarter was the conclusion over 'twenty I redeployment charter in Argentina, which adds $5 7 billion and EBITDA backlog before commodity upsides.

Speaker #3: Turning to slide five, and an overview of the global FLNG fleet. Golar remains the market leader measured by liquefaction capacity. The global fleet consists of seven units underwater and four units under construction.

Under our existing contract Hilli continued her.

Perfect economic uptime and have now delivered 137 cargoes since contract startup.

Or exports with more than nine and a half million tons of LNG from Cameron.

Speaker #3: We expect to see increased new building activity from the existing FLNG owners, combined with up to five units of announced FLNG project plans if they all progress according to schedule.

We're in the final phase of entering into redeployment upgrades and life extension contract for the shipyard scope in between the units contract in Cameroon, and before starting up to 'twenty our contract in Argentina.

We expect this yard contract to be concluded within the third quarter of this year and the contract is in line with our budgeted redeployment scope.

Speaker #3: We also see increased interest from gas resource owners, who are increasingly interested in FLNG solutions to monetize gas. This development is a testimony to the attractive costs, proven operational track record, and flexibility that FLNGs offer versus traditional land-based liquefaction solutions.

Karl Fredrik Staubo: This development is a testimony to the attractive costs, proven operational track record, and flexibility that FLNGs offer versus traditional land-based liquefaction solutions. Golar remains the only proven provider of FLNG as a service. The other companies, as presented on this slide, only monetize gas that they control. A contemplated fourth FLNG unit by Golar will therefore likely be the only available open FLNG capacity with delivery within this decade. We believe we can drive best value in ordering our next unit before locking in an associated charter. This is similar to the successful strategy executed when ordering the FLNG Hilli and later the MARK II FLNG. Once we do secure a potential long-term contract for our next unit, we plan on continuing our growth ambitions with a fifth unit.

Okay.

Turning to slide nine and gaming.

The key milestone forgive me during the quarter were reaching commercial operations date in June.

This is a massive milestone for golar and our partners BP Cosmos, Petro Sam and SMH and.

Speaker #3: Golar remains the only proven provider of FLNG as a service. The other companies as presented on this slide only monetize gas that they control.

And concludes a long awaited project startup.

The unit is now conducting an appraisal period, where we will fine tune the <unk> to maximize liquefaction capacity.

Speaker #3: A contemplated fourth FLNG unit by Golar will therefore likely be the only available open FLNG capacity, with delivery within this decade. We believe we can drive best value in ordering our next unit before locking in an associated charter.

We're satisfied with the vessel performance to date and we're now in the progress of Offloading cargo number eight since starting operations.

The contemplated $1 2 billion Chinese sale leaseback refinancing facility has taken longer.

Speaker #3: This is similar to the successful strategy executed when ordering the heli and later the Mark II FLNG. Once we do secure a potential long-term contract for our next unit, we plan on continuing our growth ambitions with a fifth unit.

And then approved by our stakeholders.

The facility is fully concluded between Golar and our Chinese counterparts, the delays cost our cost mud stakeholders outside of our controller.

Karl Fredrik Staubo: We will remain with our strategy to only have one open FLNG at the time, and we expect to be able to fund all visible growth plans with proceeds from debt financing activities of the existing fleet and the overall balance sheet flexibility. We plan on continuing our growth trajectory as long as we can obtain accretive and solid economic returns to our shareholders. Turning to slide seven and quarterly highlights and developments. The second quarter was a very active and very successful quarter for Golar, with several key milestones met. As alluded to a few times already, all the CPs and FID for FLNG Hilli's redeployment charter in Argentina were met. Simultaneously, we signed the definitive agreements for the MARK II and later the FID now on August 6th.

Speaker #3: We will remain with our strategy to only have one open FLNG at the time, and we expect to be able to fund all visible growth plans with proceeds from debt financing activities of the existing fleet and the overall balance sheet flexibility.

However, with commercial operations date now concluded we will work to develop alternative refinancing structures and believe that we can obtain facilities with improved terms versus the $1 2 billion Chinese sale leaseback proceeds.

Speaker #3: We plan on continuing our growth trajectory as long as we can obtain accretive and solid economic returns to our shareholders. Turning to slide seven and quarterly highlights and developments.

The picture on the bottom left is from the first cargo celebration on the GTA field in May on May 22nd.

And the event was attended by the precedence of Mauritania, and Senegal, as well as the CEO and senior management of all the stake holding companies.

Speaker #3: The second quarter was a very active and very successful quarter for Golar with several key milestones met. As alluded to a few times already, all the CPs and FID for heli's redeployment charter in Argentina was met, simultaneously we signed a definitive agreement for the Mark II and later the FID now on August 6th.

This marks the first phase of the GTA project and the partners. We will now turn attention to the next phases of the project with planned production increases that may involve additional <unk> units.

Turning to slide 10, and the Mark to F <unk>.

Karl Fredrik Staubo: in June, we issued $575 million of convertible bonds and used around $103 million of the proceeds to buy back 2.5 million shares, or just under 2.5% of our company. Eduardo Maranhao will detail some of the benefits of the CB later in the presentation. In July, we issued our annual ESG report containing detailed information about our operations and the benefit to the countries we operate in. It's worth a read for those interested in development that we provide to the countries we operate in. During the quarter, we saw the exit of two of our existing board members, Georgina Sousa and Turlaif Egeli. We would like to thank them for their long-term contribution to Golar's board.

The second quarter as alluded to was also an eventful quarter for the Mark to F. LNG ordered in September last year.

Speaker #3: In June, we issued $575 million of convertible bonds and used around $103 million of the proceeds to buy back two and a half million shares or just under two and a half percent of our company.

We signed the definitive agreements for the 20 year charter on May 2nd to operate alongside Healy for SASSA in Argentina.

Speaker #3: Eduardo will detail some of the benefits of the CB later in the presentation. In July, we issued our annual ESG report containing detailed information about our operations and the benefit to the countries we operate in.

On August 6th we obtained the final investment decision for the charter and as explained we're expecting the remaining cps to be fulfilled within 25.

The conversion itself is progressing according to schedule now almost 19% complete.

Speaker #3: It's worth a read for those interested in development that we provide to the countries we operate in. During the quarter, we saw the exit of two of our existing board members, Georgina Souza and Tourleif Egli.

The unit is scheduled to be delivered during Q4 27.

And upon completion <unk> will sell to Argentina, just torture 'twenty our operations during 2028.

As you can see from the pictures the donor vessel the LNG carrier Fuji has now been cut in half and skidded onto land.

Speaker #3: We would like to thank them for their long-term contribution to Golar's board. We also welcomed three new board members, Benoit Forcadier, Mi Hong Yoon, and Steven Schaefer.

Karl Fredrik Staubo: We also welcomed three new board members, Benoit Forcadeir, Mi Hong Yoon, and Steven Schaeffer. We are excited to have the addition of these three members and look forward to their contribution to Golar's continued success. Consistent with our communicated strategy of adding accretive FLNG growth once the existing fleet has been de-risked and committed on long-term charters, we have increased our efforts for our fourth unit. We have signed agreements with our target shipyards to confirm EPC price and delivery schedule for the next unit, and we expect to decide on the size and shipyard in the coming month. Turning to slide eight for an update on FLNG Hilli. Again, the key milestone for FLNG Hilli during the quarter was the conclusion of our 20-year redeployment charter in Argentina, which adds $5.7 billion in EBITDA backlog before commodity upside.

The picture to the bottom right is from the fabrication of the sponsors that will be added to the width of the vessel.

Speaker #3: We're excited to have the addition of these three members and look forward to their contribution to Golar's continued success. Consistent with our communicated strategy of adding accretive FLNG growth once the existing fleet has been de-risked and committed on long-term charters, we have increased our efforts for our fourth unit.

We have funded approximately $800 million of the $2 2 billion dollar conversion budget fully with equity today.

On the back of securing a long term charter, we're progressing financing initiatives for the unit and expect to add asset level debt within 2026.

Speaker #3: We have signed agreements with our target shipyards to confirm EPC price and delivery schedule for the next unit, and we expect to decide on the signed size and shipyard in the coming months.

The proceeds from such financing will be used to fully fund the financial delivery and an equity components into Golar next <unk>.

As.

Of the yard contract. We also hold an option for a second Marc <unk> with an estimated construction time of about 38 months from ordering.

Speaker #3: Turning to slide eight for an update on Heli. Again, the key milestone for Heli during the quarter was the conclusion of our 20-year redeployment charter in Argentina, which adds $5.7 billion in EBITDA backlog before commodity upside.

Turning to slide 11, where we provide an overview of the key commercial terms of our existing F LNG contracts and some of the risk mitigation and embedded upside in the contract.

Karl Fredrik Staubo: Under her existing contract, FLNG Hilli continued her perfect economic uptime and has now delivered 137 cargoes since contract startup. Or exported more than 9.5 million tons of LNG from Cameroon. We are in the final phase of entering into a redeployment upgrade and life extension contract for the shipyard scope in between the units contracting Cameroon and before starting up the 20-year contract in Argentina. We expect this yard contract to be concluded within the third quarter of this year, and the contract is in line with our budgeted redeployment scope. Turning to slide nine and FLNG Gimi. The key milestone for FLNG Gimi during the quarter was reaching commercial operations date in June. This is a massive milestone for Golar and our partners, BP, COSMOS, Petrosen, and SMH, and concludes a long-awaited project startup.

Speaker #3: Under our existing contract, Heli has continued her perfect economic uptime and has now delivered 137 cargoes since contract startup, exporting more than 9.5 million tons of LNG from Cameroon.

Golar does not control where attractive gas reserves are located in the world, but we can structure our contracts to mitigate risks and maximize return for our stakeholders.

Speaker #3: We're in the final phase of entering into a redeployment upgrade and life extension contract for the shipyard scope in between the units contracting Cameroon and before starting up the 20-year contract in Argentina.

Some of the means to do so is highlighted on this slide.

All of our LNG contracts are on English law paid in U S dollars and paid offshore.

Speaker #3: We expect this yard contract to be concluded within the third quarter of this year, and the contract is in line with our budgeted redeployment scope.

We work with strong child charter Counterparties that effectively creates a buffer between us and the host governments in the geographies, where we operate.

Speaker #3: Turning to slide nine and GIMI. The key milestone for GIMI during the quarter was reaching commercial operations date in June. This is a massive milestone for Golar and our partners BP Cosmos, Petrosan, and SMH.

In the case of Hilli in Cameroon, Cameroon that buffer is perenco.

Forgive me offshore Mauritania, and Senegal, it's BP and.

And for our Argentina contracts.

<unk>, which is a consortium comprising Pan American energy.

Ips.

Speaker #3: And concludes a long-awaited project startup. The unit is now conducting an appraisal period where we will fine-tune the FLNG to maximize liquefaction capacity. We're satisfied with the vessel performance to date and we're now in the progress of offloading cargo number eight, since starting operations.

Panel here Harbor energy and Golar LNG.

Karl Fredrik Staubo: The unit is now conducting an appraisal period where we will fine-tune the FLNG to maximize liquefaction capacity. We are satisfied with the vessel performance to date, and we are now in the progress of offloading cargo number eight since starting operations. The contemplated $1.2 billion Chinese Sale Leaseback Refinancing Facility has taken longer than approved by our stakeholders. The facility is fully concluded between Golar and our Chinese counterparts. The delays caused are caused by the stakeholders outside of our control. However, with commercial operations date now concluded, we will work to develop alternative refinancing structures and believe that we can obtain facilities with improved terms versus the $1.2 billion Chinese Sale Leaseback Facility. The picture on the bottom left is from the first cargo celebration on the GTA field on May 22nd.

Some of our contracts have meaningful.

Upside through commodity linked.

For the case of Hilli in Cameroon, Golar earned $3 $1 million in excess cash earnings for every dollar Brent is above $60.

Speaker #3: The contemplated 1.2 billion dollar Chinese sail leaseback refinancing facility has taken longer than approved by our stakeholders. The facility is fully concluded between Golar and our Chinese counterparts, the delays caused are caused by the stakeholders outside of our control.

We also make $3 7 million of annual free cash flow for every incremental dollar per btu of the Tcf gas price with no ceiling.

In the case of gave me we do not have a commodity linked oxide that we have utilization linked upside if we achieve commercial utilization north of 90% of nameplate.

Speaker #3: However, with commercial operations date now concluded, we will work to develop alternative refinancing structures and believe that we can obtain facilities with improved terms versus the 1.2 billion Chinese sail leaseback facility.

In the case of the SASSA contracts for Hilli, Mark too and our ownership in southern energy.

We make approximately $100 million.

Speaker #3: The picture on the bottom left is from the first cargo celebration on the GTA field in May 22nd, and the event was attended by the presidents of Mauritania and Senegal, as well as the CEOs and senior management of all the stakeholding companies.

In excess annual earnings for every dollar offtake is above $8 per <unk>.

Karl Fredrik Staubo: The event was attended by the Presidents of Mauritania and Senegal, as well as the CEOs and senior management of all the stakeholding companies. This marks the first phase of the GTA project, and the partners will now turn attention to the next phases of the project with planned production increases that may involve additional FLNG units. Turning to slide 10 and the MARK II FLNG. The second quarter, as alluded to, was also an eventful quarter for the MARK II FLNG ordered in September last year. We signed the definitive agreements for the 20-year charter on May 2nd to operate alongside FLNG Hilli for CESA in Argentina. On August 6th, we obtained the final investment decision for the charter, and as explained, we are expecting the remaining CPs to be fulfilled within 2025. The conversion itself is progressing according to schedule, now almost 19% complete.

The total downside is around 28, so we have a $28 million downside.

Speaker #3: This marks the first phase of the GTA project and the partners will now turn attention to the next phases of the project, with planned production increases that may involve additional FLNG units.

Less than seven and a half.

From a furby and.

And we have $100 million upside so it's a highly skewed risk reward and one that we think could provide significant excess value to golar.

Speaker #3: Turning to Slide 10 and the Mark II FLNG, the second quarter, as alluded to, was also an eventful quarter for the Mark II FLNG, ordered in September last year.

Turning to slide 12, and the progress made on our LNG growth units.

We have three key vessel the science and we differentiate them by March one two and three.

Speaker #3: We signed a definitive agreement for a 20-year charter on May 2nd to operate alongside Heli for CESA in Argentina. On August 6th, we obtained the final investment decision for the charter, and as explained, we're expecting the remaining conditions precedent to be fulfilled within 25 days.

The difference is effectively the liquefaction capacity, so you could categorize them, a small medium and large.

Mark one can produce up to $2 7 million tonnes per annum, mark to $3 5 million tons on the Mark 354 million tons.

Speaker #3: The conversion itself is progressing according to schedule, now almost 19% complete. The unit is scheduled to be delivered during Q4 2027, and upon completion, the FLNG will sail to Argentina to start our 20-year operations during 2028.

Both Marc one and two would be vessel conversions are mark three would be a newbuild.

Karl Fredrik Staubo: The unit is scheduled to be delivered during Q4 2027, and upon completion, the FLNG will sail to Argentina to start her 20-year operations during 2028. As you can see from the pictures, the donor vessel, the LNG carrier Fuji, has now been cut in half and skidded onto land. The picture to the bottom right is from the fabrication of the sponsons that will be added to the width of the vessel. We have funded approximately $800 million of the $2.2 billion conversion budget fully with equity to date. On the back of securing a long-term charter, we are progressing financing initiatives for the unit and expect to add asset-level debt within 2026. The proceeds from such financing will be used to fully finance the delivery and an equity component into Golar's next FLNG.

Given the slight slightly different approach to construction.

Construction.

We would also select shipyards accordingly.

Both Hilli and give me is built at Ctrip shipyard in Singapore, and if we are to proceed with a mark one that's the likely shipyard selection.

Speaker #3: As you can see from the pictures, the donor vessel, the LNG carrier Fuji, has now been cut in half and skidded onto land. The picture in the bottom right is from the fabrication of the sponsons that will be added to the width of the vessel.

We are currently working with Ctrip to confirm an updated EPC price and delivery schedule.

The mark to <unk>.

Speaker #3: We have funded approximately $800 million of the $2.2 billion conversion budget fully with equity to date. On the back of securing a long-term charter, we're progressing financing initiatives for the unit and expect to add asset-level debt within 2026.

Is currently under construction at CMC Raffles and as already explained we hold an option to do a second unit at CMC Raffles.

And we already know that the sign and the price as we have just ordered vision.

For the March three we see a slightly longer conversion time, we see around 38 months for the first two and <unk> 48 for the Mark three given that you start from scratch and not with the conversion vessel.

Speaker #3: The proceeds from such financing will be used to fully finance the delivery and an equity component into Golar's next FLNG. As part of the yard contract, we also hold an option for a second Mark II FLNG with an estimated construction time of about 38 months from ordering.

Karl Fredrik Staubo: As part of the yard contract, we also hold an option for a second MARK II FLNG with an estimated construction time of about 38 months from ordering. Turning to slide 11, where we provide an overview of the key commercial terms of our existing FLNG contracts and some of the risk mitigations and embedded upsides in the contract. Golar does not control where attractive gas reserves are located in the world, but we can structure our contracts to mitigate risks and maximize return for our stakeholders. Some of the means to do so are highlighted on this slide. All of our FLNG contracts are on English law, paid in U.S. dollars, and paid offshore. We work with strong charter counterparties that effectively create a buffer between us and the host governments in the geographies where we operate. In the case of FLNG Hilli in Cameroon, that buffer is PERENCO.

We've also signed agreements with Samsung heavy industries to develop updated pricing and delivery schedule. If we are to orders such a vessel.

Within this year.

As explained earlier in the presentation, we expect to get the final price and delivery schedule in the coming months and thereafter make the final decision for where we will continue with our fourth units.

Speaker #3: Turning to slide 11, where we provide an overview of the key commercial terms of our existing FLNG contracts and some of the risk mitigations and embedded upsides in the contract.

Speaker #3: Golar does not control where attractive gas reserves are located in the world, but we can structure our contracts to mitigate risks and maximize returns for our stakeholders.

We do see.

Increasing and long lead times for critical components, and we therefore plan on securing sloped reservations within Q3 2025.

Speaker #3: Some of the means to do so are highlighted on this slide. All of our FLNG contracts are governed by English law, paid in US dollars, and paid offshore.

During the quarter. We have also completed inspections for potential donor vessels should we continue with the Mark one and Mark two F LNG conversion.

Okay.

Speaker #3: We work with strong charter counterparties that effectively create a buffer between us and the host governments in the geographies where we operate. In the case of Heli in Cameroon, that buffer is Perenco.

If we do secure charter of our contemplated fourth unit, we expect to.

Rapidly thereafter order a 50 unit, which is why we are progressing our discussions with all three yards at the moment.

Karl Fredrik Staubo: For FLNG Gimi offshore Mauritania and Senegal, it is BP, and for our Argentina contracts, it is CESA, which is a consortium comprising Pan American Energy, YPF, Pampa Energia, Harbor Energy, and Golar LNG Limited. Some of our contracts have meaningful upside through commodity links. For the case of FLNG Hilli in Cameroon, Golar earns $3.1 million in excess cash earnings for every dollar Brent is above $60. We also make $3.7 million of annual free cash flow for every incremental dollar per MMBtu of the TTF gas price with no ceiling. In the case of FLNG Gimi, we do not have a commodity-linked upside, but we have a utilization-linked upside if we achieve commercial utilization north of 90% of nameplate.

Speaker #3: For GIMI, offshore Mauritania and Senegal, it's BP. For our Argentina contracts, it's CESA, which is a consortium comprising Pan American Energy, YPF, Pampa Energía, Harbor Energy, and Golar LNG.

Turning to slide three in 13, and highlighting some of the cost benefits of <unk> versus land based solutions.

Yeah.

As you can see from the far left there is plenty of proven gas reserves in the world that are currently not being produced.

It's not being produced and its proven you tend to get them cheap.

Speaker #3: Some of our contracts have meaningful upside through commodity links. For the case of Heli in Cameroon, Golar earns $3.1 million in excess cash earnings for every dollar Brent is above $60.

The second graph is the cost of liquefaction.

As we are building a generic standardize the sign and the far east were able to obtain a far better capex per ton compared to land based solution, mainly built in the middle East and in the U S.

Speaker #3: We also make 3.7 million dollars of annual free cash flow for every incremental dollar per MMBTU of the TTF gas price with no ceiling.

We still expect.

New <unk> orders to have a capex of around $600 per ton truly delivered versus approximately double that price for greenfield developments in the U S.

Speaker #3: In the case of GIMI, we do not have a commodity-linked upside, but we have a utilization-linked upside if we achieve commercial utilization north of 90% of nameplate.

The lost cost component of gas production is the shipping distance to end users from where the gas is produced to where it will be consumed.

Karl Fredrik Staubo: In the case of the CESA contracts for FLNG Hilli, MARK II, and our ownership in Southern Energy S.A., we make approximately $100 million in excess annual earnings for every dollar offtake is above $8 per MMBtu. The total downside is around 28, so we have a $28 million downside of less than $7.5 per FOB, and we have $100 million upside. It is a highly skewed risk reward and one that we think could provide significant excess value to Golar. Turning to slide 12 and the progress made on our FLNG growth units. We have three key vessel designs, and we differentiate them by MARK I, II, and III. The difference is effectively the liquefaction capacity, so you could categorize them as small, medium, and large. MARK I can produce up to 2.7 million tons per annum, MARK II 3.5 million tons, and the MARK III 5.4 million tons.

Speaker #3: In the case of the CESA contracts for Hili, Mark II, and our ownership in Southern Energy, we make approximately $100 million in excess annual earnings for every dollar offtake above $8 per MMBtu.

Subject to which field, we are discussing we see significant shipping advantages shipping distance advantages.

Versus the key global exporter being the U S.

Hence if you have a business with three cost drivers the coastal gas the cost of liquefaction in the shipping distance and Youre cheaper on all three we believe you have a good and sustainable business over time.

Speaker #3: The total downside is around 28. So we have a 28 million dollar downside of less than seven and a half, dollars per FOB, and we have a hundred million dollars upside.

Turning to slide 14, and elaborating on these points.

When we entered this year the global LNG production was around 430 million tons.

Speaker #3: So it's a highly skewed risk-reward, and one that we think could provide significant excess value to Golar. Turning to slide 12, let's discuss the progress made on our FLNG growth units.

We were around 23% or 100 million tonnes is supplied by the U S.

Global LNG supply is set to grow by around 40% between now and 2030.

Speaker #3: We have three key vessel designs, and we differentiate them by Mark I, II, and III. The difference is effectively the liquefaction capacity, so it could categorize them as small, medium, and large.

However, the absolute majority of that volume is expected to come out of the U S increasing its global market share from 23% to 37% of the global markets.

This is interesting because the U S is already the marginal producer of LNG globally.

Speaker #3: Mark I can produce up to 2.7 million tons per annum, Mark II 3.5 million tons, and Mark III 5.4 million tons. Both Mark I and II would be vessel conversions, while Mark III would be a new build.

Hence if you're more than double the volume.

Increased domestic demand for natural gas on the back of Trump's policies on America first and increased data center build outs in the U S. We see upward pressure on Henry hub.

Karl Fredrik Staubo: Both MARK I and II would be vessel conversions, and MARK III would be a new build. Given the slightly different approach to construction, we would also select shipyards accordingly. Both FLNG Hilli and FLNG Gimi are built at Cetrium Shipyard in Singapore, and if we are to proceed with a MARK I, that is the likely shipyard selection. We are currently working with Cetrium to confirm an updated EPC price and delivery schedule. The MARK II FLNG is currently under construction at CMC Raffles, and as already explained, we hold an option to do a second unit at CMC Raffles, and we already know the design and the price as we have just ordered this unit. For the MARK III, we see a slightly longer conversion time.

Speaker #3: Given the slightly different approach to construction, we would also select shipyards accordingly. Both Heli and GIMI are built at SeaTrium Shipyard in Singapore, and if we are to proceed with a Mark I, that's the likely shipyard selection.

Cost inflation of land based liquefaction plants are suggesting increased tolling fees and shipping distances are obviously unchanged.

However, if two of the three cost drivers of the incremental producer of LNG globally see upward pressure.

Speaker #3: We are currently working with SeaTrium to confirm an updated EPC price and delivery schedule. The Mark II FLNG is currently under construction at CMC Raffles and has already explained we hold an option to do a second unit at CMC Raffles and we already know the design and the price as we have just ordered this unit.

We see that as a strong support to international LNG prices and if you then can obtain cheaper source gas cheaper liquefaction and shorter shipping distance.

We believe we have significant upside potential in our commodity exposure in our southern energy contract.

Turning to page 15 in our slide first introduced by our chairman on our Q1 call.

Speaker #3: For the Mark III, we see a slightly longer conversion time. We see around 38 months for the first two and 48 for the Mark III, given that you start from scratch and not with a conversion vessel.

How big is the <unk> opportunity well the first ever <unk> to be delivered was golar hilli and delivered in 2018.

Karl Fredrik Staubo: We see around 38 months for the first two and 48 for the MARK III, given that you start from scratch and not with a conversion vessel. We have also signed agreements with Samsung Heavy Industries to develop updated pricing and delivery schedule if we are to order such a vessel within this year. As explained earlier in the presentation, we expect to get the final price and delivery schedule in the coming months and thereafter make a design decision for where we will continue with our fourth unit. We do see increasing long lead times for critical components, and we therefore plan on securing slot reservations within Q3 2025. During the quarter, we have also completed inspections for potential donor vessels should we continue with a MARK I and MARK II FLNG conversion.

Speaker #3: We've also signed agreements with Samsung Heavy Industries to develop updated pricing and delivery schedules if we are to order such a vessel within this year.

The industry was skeptic to introduce complex liquefaction technology and our maritime environment.

Since that time, we now have seven vessels on the water four new buildings under construction and at least another five vessels planned by the same group of existing owners.

Speaker #3: As explained earlier in the presentation, we expect to get the final price and delivery schedule in the coming months, and thereafter make the signed decision for where we will continue with our fourth unit.

We believe this trajectory is similar to what we saw happen in the <unk> industry in the 19 eighties.

The first half BSO globally was delivered an 85.

Speaker #3: We do see increasing long lead times for critical components, and we therefore plan on securing slot reservations within Q3 2025. During the quarter, we have also completed inspections for potential donor vessels, should we continue with a Mark I and Mark II FLNG conversion.

We believe we're now in the early nineties compared to the <unk> industry.

And the S band, if peso industry now stands at more than 250 units.

Basically the cost competitiveness flexibility and time of construction.

Is what is increasingly driving recognition of <unk> technology and build out of what we think is.

Karl Fredrik Staubo: If we do secure a charter of a contemplated fourth unit, we expect to rapidly thereafter order a fifth unit, which is why we are progressing yard discussions with all three yards at the moment. Turning to slide 13 and highlighting some of the cost benefits of FLNG versus land-based solutions. As you can see from the far left, there are plenty of proven gas reserves in the world that are currently not being produced. It is not being produced, and it is proven you tend to get them cheap. The second graph is the cost of liquefaction. As we are building a generic standardized design in the Far East, we are able to obtain a far better CapEx per ton compared to land-based solutions mainly built in the Middle East and in the U.S.

Speaker #3: If we secure a charter for a contemplated fourth unit, we expect to rapidly thereafter order a fifth unit, which is why we're progressing yard discussions with all three yards at the moment.

Industry and strong growth.

This is why we feel very comfortable with continuing to add units and we'll continue to do so for as long as we are the only service provider and can secure economics similar to those secured on our existing contracts.

Speaker #3: Turning to slide three and 13 and highlighting some of the cost benefits of FLNG versus land-based solutions. As you can see from the far left, there is plenty of proven gas reserves in the world that are currently not being produced.

I'll now hand, the call over to Eduardo to take us through the group results and key developments on the financial highlights during the quarter.

Thank you Carl and good morning, everyone.

I am pleased to provide an overview of <unk> financial performance for the second quarter of 2025 move.

Speaker #3: It's not being produced, and it's proven you tend to get them cheap. The second graph is the cost of liquefaction. As we are building a generic standardized design in the Far East, we're able to obtain a far better CAPEX per ton compared to land-based solutions, mainly built in the Middle East and in the U.S.

Moving to slide 17, let's review some of the key financial highlights of this quarter.

We achieved total operating revenues of $75 million.

With <unk>, reaching $82 million in the quarter.

A significant increase from the previous quarter as a result of gaming.

Which took place on June 12.

Going forward, we will always refer to LNG tariffs two illustrates the total revenues generated from ethylene Chilean gaming, including realized gains from Tcf and Brent linked fees as well as all revenues under the <unk> contract.

Karl Fredrik Staubo: We still expect new FLNG orders to have a CapEx of around $600 per ton fully delivered versus approximately double that price for greenfield developments in the U.S. The last cost component of gas production is the shipping distance to end users from where the gas is produced to where it will be consumed. Subject to which field we are discussing, we see significant shipping advantages, shipping distance advantages versus the key global exporter being the U.S. Hence, if you have a business with three cost drivers: the cost of gas, the cost of liquefaction, and the shipping distance, and you are cheaper on all three, we believe you have a good and sustainable business over time. Turning to slide 14 and elaborating on this point.

Speaker #3: We still expect new FLNG orders to have a CAPEX of around $600 per ton, fully delivered, versus approximately double that price for greenfield developments in the U.S.

Total EBITDA reached $49 million in Q2 positively impacted by <unk> total.

Speaker #3: The last cost component of gas production is the shipping distance to end users from where the gas is produced to where it will be consumed.

Total EBITDA for the last 12 months ended in Q2 stood at $208 million.

Speaker #3: Subject to which field we are discussing, we see significant shipping advantages and shipping distance advantages versus the key global exporter being the U.S. Hence, if you have a business with three cost drivers—the cost of gas, the cost of liquefaction, and the shipping distance—and you're cheaper on all three, we believe you have a good and sustainable business over time.

This quarter, we reported net income of $31 million.

This figure is inclusive of certain noncash items, such as adjustments in the value of embedded DTF and Brent derivatives within the heated contract.

As well as changes in interest rates swaps.

But also.

$30 million gain recognized on day, one after the startup of gammage contracts, we deemed it gave me a contract as a sales type lease and now that we have reached COPD with derecognize the capitalized amounts under assets under development in our balance sheet to our net investment as a sales type lease.

Speaker #3: Turning to slide 14 and elaborating on these points: when we entered this year, the global LNG production was around 430 million tons, where around 23% or 100 million tons is supplied by the U.S.

Karl Fredrik Staubo: When we entered this year, the global LNG production was around 430 million tons, where around 23% or 100 million tons is supplied by the U.S. Global LNG supply is set to grow by around 40% between now and 2030. However, the absolute majority of that volume is expected to come out of the U.S., increasing its global market share from 23% to 37% of the global market. This is interesting because the U.S. is already the marginal producer of LNG globally. Hence, if you more than double the volume, you increase domestic demand for natural gas on the back of Trump's policies on America First and increased data center buildout in the U.S., we see upward pressure on Henry Hub. Cost inflation of land-based liquefaction plants is suggesting increased tolling fees, and shipping distances are obviously unchanged.

Please refer to the appendix of this presentation for a detailed walkthrough of the accounting treatment of gaming contract.

Speaker #3: Global LNG supply is set to grow by around 40% between now and 2030. However, the absolute majority of that volume is expected to come out of the U.S., increasing its global market share from 23% to 37% of the global market.

In June we raised $575 million of convertible bonds and repurchased two 5 million shares for a total consideration of just under $103 million.

Following that our liquidity position has been significantly strengthened with just under $900 million of cash on hand at the quarter end.

Speaker #3: This is interesting because the US is already the marginal producer of LNG globally. Hence, if you more than double the volume, you increase domestic demand for natural gas on the back of Trump's policies on America first and increased data center buildout in the US, we see upward pressure on Henry Hub.

I'll talk more about this transaction in the next slides.

Further to that our net debt position at the end of the quarter stood at just under $1 2 billion.

Lastly, we're pleased to declare a dividend of <unk> 25 per share this quarter with a record date of August 26, and payment scheduled for around seven September 4th.

Speaker #3: Cost inflation of land-based liquefaction plants is suggesting increased tolling fees, and shipping distances are obviously unchanged. However, if two of the three cost drivers of the incremental producer of LNG globally see upward pressure, we see that as strong support to international LNG prices. If you then can obtain cheaper source gas, cheaper liquefaction, and shorter shipping distances, we believe we have significant upside potential in our commodity exposure in our Southern Energy contracts.

Now moving to slide 18.

Here, we can see the breakdown of our Q2, EBITDA and the contributions coming from Healey and gaming, resulting in total <unk> for the quarter of $82 million.

Karl Fredrik Staubo: However, if two of the three cost drivers of the incremental producer of LNG globally see upward pressure, we see that as a strong support to international LNG prices. If you then can obtain cheaper source gas, cheaper liquefaction, and shorter shipping distance, we believe we have significant upside potential in our commodity exposure in our Southern Energy S.A. contract. Turning to page 15 and a slide first introduced by our Chairman on our Q1 call. How big is the FLNG opportunity? The first ever FLNG to be delivered was Golar's FLNG Hilli, delivered in 2018. The industry was skeptic to introduce complex liquefaction technology in a maritime environment. Since that time, we now have seven vessels underwater, four new buildings under construction, and at least another five vessels planned by the same group of existing owners.

Healy revenues are split between base, Brent and Tcf linked fees as you can see on the slide <unk> revenues going forward will be recognized between a capital element as well as an operational limits as you can see on the graph below.

Total EBITDA from ethylene G operations alone was $57 million.

Speaker #3: Turning to page 15 and a slide first introduced by our Chairman on our Q1 call, how big is the FLNG opportunity? Well, the first-ever FLNG to be delivered was Golar's Heli, delivered in 2018.

After certain project development expenses associated with our growth projects as explained before.

When we consider or a corporate cost and other overhead expenses, our total reported EBITDA in the quarter ended at $49 million.

Speaker #3: The industry was skeptic to introduce complex liquefaction technology in a maritime environment. Since that time, we now have seven vessels underwater, four new buildings under construction, and at least another five vessels planned by the same group of existing owners.

Now moving to slide 19.

In June we raised $575 million of convertible bonds.

As part of this transaction. We also bought back two 5 million shares for just under $103 million.

At an average share price of $41 90 per share.

Karl Fredrik Staubo: We believe this trajectory is similar to what we saw happen in the FPSO industry in the 1980s. The first FPSO globally was delivered in 1985. We believe we are now in sort of the early 1990s compared to the FPSO industry, and the FPSO industry now stands at more than 250 units. Basically, the cost competitiveness, flexibility, and time of construction is what is increasingly driving recognition of FLNG technology and buildout of what we think is an industry in strong growth. This is why we feel very comfortable with continuing to add units and will continue to do so for as long as we are the only service provider and can secure economics similar to those secured on our existing contracts. I will now hand the call over to Eduardo Maranhao to take us through the group results and key developments on the financial highlights during the quarter.

Speaker #3: We believe this trajectory is similar to what we saw happen in the FPSO industry in the 1980s. The first FPSO globally was delivered in 1985.

The notes were priced with a fixed coupon of 275 and the 40% premium.

One important point to note is the effect of the buyback when considering them denotes our net dilutive to our share count prior to the notes offering only when our share price exceeds seven to $6 $7 at maturity in December 2030, before adjusting any dividends paid in the period.

Speaker #3: We believe we're now in sort of the early 90s compared to the FPSO industry. And the FPSO industry now stands at more than $250 units.

Speaker #3: Basically, the cost competitiveness, flexibility, and time of construction are increasingly driving recognition of FLNG technology and the buildout of what we think is an industry in strong growth.

This represents a premium of.

Close to 87% above the reference price of $41 nine.

After the share repurchase we received total net proceeds of approximately $464 million.

Speaker #3: This is why we feel very comfortable with continuing to add units and will continue to do so for as long as we are the only service provider and can secure economics similar to those secured on our existing contracts.

Giving us extra flexibility to fund our growth developments with a fourth or fifth unit.

As explained by call.

Turning now to slide 20.

Looking back during the first four and a half years, we can see over historical record of shareholder returns I wanted to highlight a few points. We did a total of $787 million of dividend share and asset buybacks over this period.

Speaker #3: I'll now hand the call over to Eduardo Maranhao to take us through the group results and key developments on the financial highlights during the quarter.

Eduardo Maranhao: Thank you, Karl, and good morning, everyone. I am pleased to provide an overview of Golar's financial performance for the second quarter of 2025. Moving to slide 17, let us review some of the key financial highlights of this quarter. We achieved total operating revenues of $75 million, with FLNG tariffs reaching $82 million in the quarter, a significant increase from the previous quarter as a result of FLNG Gimi's COD, which took place on June 12. Going forward, we will always refer to FLNG tariffs to illustrate the total revenues generated from FLNG Hilli and FLNG Gimi, including realized gains from TTF and Brent linked fees, as well as all revenues under the FLNG Gimi contract. Total EBITDA reached $49 million in Q2, positively impacted by FLNG Gimi's COD. Total EBITDA for the last 12 months ended in Q2, stood at $208 million.

Speaker #4: Thank you, Karl, and good morning, everyone. I'm pleased to provide an overview of Golar's financial performance for the second quarter of 2025. Moving to slide 17, let's review some of the key financial highlights of this quarter.

<unk> is an operating cash flow after debt service of around $500 million in the same period.

During that time, we bought back over nine 3 million shares at an average price of $125, bringing the total share count to 102 3 million shares at the end of the future.

Speaker #4: We achieved total operating revenues of $75 million, with FLNG tariffs reaching $82 million in the quarter. A significant increase from the previous quarter, as a result of GIMI COD, which took place on June 12th.

We have also spent over $560 million in dividends assets and asset buybacks during the same period.

Speaker #4: Going forward, we'll always refer to FLNG tariffs to illustrate the total revenues generated from FLNG's heli and GIMI, including realized gains from TTF and Brent-linked fees, as well as all revenues under the GIMI contract.

Going forward, we plan to use our liquidity released from debt financing proceeds to be allocated to fund accretive if LNG growth, while using our free cash flow generation to significantly increase our shareholder returns.

Speaker #4: Total EBITDA reached $49 million in Q2, positively impacted by GIMI COD. Total EBITDA for the last 12 months ended in Q2, stood at $208 million.

So let's take a closer look at that on the slide 21.

When looking at the time when our three vessels are fully delivered and operation and in operation. We expect to have fully contracted EBITDA to grow by more than four times. Our current last 12 months figure. This.

Eduardo Maranhao: This quarter, we report a net income of $31 million. This figure is inclusive of certain non-cash items, such as adjustments in the value of embedded TTF and Brent derivatives within the FLNG Hilli contract, as well as changes in interest rate swaps, but also a $30 million gain recognized on day one after the startup of FLNG Gimi's contract. We deemed the FLNG Gimi contract as a sales-type lease, and now that we have reached COD, we derecognize the capitalized amounts under assets under development in our balance sheet to a net investment as a sales-type lease. Please refer to the appendix of this presentation for a detailed walkthrough of the accounting treatment of the FLNG Gimi contract. In June, we raised $575 million of convertible bonds and repurchased 2.5 million shares for a total consideration of just under $103 million.

Speaker #4: This quarter, we report a net income of $31 million. This figure is inclusive of certain non-cash items, such as adjustments in the value of embedded TTF and Brent derivatives within the heli contract, as well as changes in interest rate swaps, but also a $30 million gain recognized on day one after the startup of GIMI's contract.

This huge increase is even before further commodity upside coming from Healey, Mark <unk> and our stake in system.

As you can see on this slide from 2000 2008, when Mark II comes online our contracted free cash flow generation could be in excess of $600 million.

Or approximately $6 per share before further commodity upside.

Speaker #4: We deem the GIMI contract as a sales type lease, and now that we have reached COD, we de-recognize the capitalized amounts under assets under development in our balance sheet to a net investment as a sales type lease.

Further free cash flow generation under the SaaS charters can be estimated at approximately $100 million per year or $1.

Per share for every dollar per million Btu increase in LNG fob prices above $8.

Speaker #4: Please refer to the appendix of this presentation for a detailed walkthrough of the accounting treatment of the GIMI contract. In June, we raised $575 million of convertible bonds, and we purchased 2.5 million shares for a total consideration of just under $103 million.

On a fully delivered basis, our estimated net debt at that point in time would be at three four times to adjusted EBITDA all fully backed by long term 20 year charters. These will provide us with ample financing capacity to support even more additional LNG growth units.

Eduardo Maranhao: Following that, our liquidity position has been significantly strengthened with just under $900 million of cash on hand at the quarter end. I will talk more about this transaction in the next slide. Further to that, our net debt position at the end of the quarter stood at just under $1.2 billion. Lastly, we are pleased to declare a dividend of $0.25 per share this quarter with a record date of August 26 and payment scheduled for around September 4. Now moving to slide 18. Here we can see the breakdown of our Q2 EBITDA and the contributions coming from FLNG Hilli and FLNG Gimi, resulting in total FLNG tariffs for the quarter of $82 million. FLNG Hilli revenues are split between base, Brent, and TTF linked fees, as you can see on the slide.

Speaker #4: Following that, our liquidity position has been significantly strengthened, with just under $900 million of cash on hand at the quarter end. I will talk more about this transaction in the next slides.

Now moving to slide 22 and.

And as explained by call before.

Following the confirmation of our contracts in Argentina, with <unk> of Hilli and the Mark to we.

Speaker #4: Further to that, our net debt position at the end of the quarter stood at just under $1.2 billion. Lastly, we're pleased to declare a dividend of 25 cents per share this quarter, with a record date of August 26.

You can now see the full breakdown of our total firm EBITDA backlog of more than $17 billion over the next 20 years one points to highlight is that dish numbers issue before further commodity upside and further inflation adjustments that will happen over time.

Speaker #4: And payment scheduled for around September 4th. Now, moving to slide 18. Here we can see the breakdown of our Q2 EBITDA, and the contributions coming from heli and GIMI.

Moving to the next slide we can see how changes to LNG prices could positively affect our contract with system.

Speaker #4: Resulting in total FLNG tariffs for the quarter of $82 million. Heli revenues are split between base Brent and TTF-linked fees, as you can see on the slide, while GIMI revenues going forward will be recognized between a capital element as well as an operating element, as you can see on the graph below.

We have a limited downside with a very significant upside for example, assuming <unk> LNG prices of $10 per million Btu, our estimated EBITDA could be in excess of $1 billion per year as you can see on the graph.

Eduardo Maranhao: FLNG Gimi revenues going forward will be recognized between a capital element as well as an operating element, as you can see on the graph below. Total EBITDA from FLNG operations alone was $57 million after certain project development expenses associated with our growth projects, as Karl Fredrik Staubo explained before. When we consider our corporate costs and other overhead expenses, our total reported EBITDA in the quarter ended at $49 million. Moving to slide 19, in June, we raised $575 million of convertible bonds. As part of this transaction, we also bought back 2.5 million shares for just under $103 million at an average share price of $41.09 per share. The notes were priced with a fixed coupon of 2.75% and a 40% premium. One important point to note is the effect of the buyback.

This number could even grow further so Ed for example, $15 per million Btu Theres number would grow to one $5 billion of annual EBITDA.

Speaker #4: Total EBITDA from FLNG operations alone was $57 million, after certain project development expenses associated with our growth projects, as Karl explained before. When we consider our corporate costs and other overhead expenses, our total reported EBITDA in the quarter ended at $49 million.

Just to illustrate the potential scenario and as a reference if all of our units were in operation in 2022, and assuming average LNG prices during that time, we would be earning close to three 5 billion on that particular year. This really shows the scale and significant upside potential of the embedded kickers in these contracts.

Speaker #4: Now, moving to slide 19. In June, we raised $575 million of convertible bonds. As part of this transaction, we also bought back 2.5 million shares for just under $103 million.

That now concludes my update I will hand, the call back over to Carl.

Thank you Eduardo moving to the final section of the prepared remarks and the summary.

Speaker #4: At an average share price of $41 and 9 cents per share. The note repriced with a fixed coupon of 2.75 and a 40% premium.

On Slide 25, we show our key 25 milestones on our focus for the reminder of the air.

This year, we have obtained the give me commercial operations dates and we're now offloading cargo number eight.

Speaker #4: One important point to note is the effect of the buyback. When considering them, the notes are net diluted to our share count prior to the notes offering, only when our share price exceeds $76.70 at maturity in December 2030.

Eduardo Maranhao: When considering them, the notes are net dilutive to our share count prior to the notes offering only when our share price exceeds $76.7 at maturity in December 2030, before adjusting any dividends paid in the period. This represents a premium of close to 87% above the reference price of $41.09. After the share repurchased, we received total net proceeds of approximately $464 million, giving us extra flexibility to fund our growth development with a fourth or a fifth unit, as explained by Karl Fredrik Staubo. Turning now to slide 20, looking back during the first four and a half years, we can see our historical record of shareholder returns. I wanted to highlight a few points. We did a total of $787 million of dividends, share, and asset buybacks over this period versus an operating cash flow after debt service of around $500 million in the same period.

We've achieved in conclusion of all conditions precedent for 'twenty, our charter of southern energy for the Hilli following her existing contract in Cameroon.

Speaker #4: Before adjusting any dividends paid in the period. This represents a premium of close to 87% above the reference price of $41 and 9 cents.

We are also obtain a 20 year charter and the RFID for Mark <unk>.

As Eduardo has explained in detailed we've issued $575 million of convertible bonds and repurchased two 3% of our company.

Speaker #4: After the share repurchase, we received total net proceeds of approximately $464 million, giving us extra flexibility to fund our growth developments with a fourth or a fifth unit as explained by Karl.

And we have sold the remaining noncore assets, including our shareholding in iron ore shipping and our lost LNG carrier Golar Arctic.

Speaker #4: Turning now to slide 20. Looking back during the first four and a half years, we can see our historical record of shareholder returns. I wanted to highlight a few points.

For the reminder of the error, we plan on optimizing RF LNG financing on the back of the 20th charters conclude the regulatory conditions precedent on the 20 year contract for the Mark to.

Speaker #4: We did a total of 787 million dollars of dividends, share, and asset buybacks over this period. Versus an operating cash flow of after that service of around $500 million in the same period.

And add further <unk> growth units as explained in detail.

Turning to slide 26 to summarize some of the key developments following a very strong quarter there.

Eduardo Maranhao: During that time, we bought back over 9.3 million shares at an average price of $125, bringing the total share count to 102.3 million shares at the end of Q2. We have also spent over $560 million in dividends, asset, and asset buybacks during the same period. Going forward, we plan to use our liquidity release from debt financing proceeds to be allocated to fund accretive FLNG growth while using our free cash flow generation to significantly increase our shareholder returns. Let's take a closer look at that on slide 21. When looking at the time when our three vessels are fully delivered in operation, we expect our fully contracted EBITDA to grow by more than four times our current last 12 months figure. This huge increase is even before further commodity upside coming from FLNG Hilli, MARK II, and our stake in CESA.

Speaker #4: During that time, we bought back over 9.3 million shares at an average price of under $25, bringing the total share count to 102.3 million shares at the end of Q2.

This quarter, we have added $13 7 billion of EBITDA backlog.

Now, giving our total backlog at around $17 billion.

Our adjusted fully delivered adjusted EBITDA is set to grow four times versus the last 12 months EBITA before commodity oxide.

Speaker #4: We have also spent over $560 million in dividends, assets, and asset buybacks during the same period. Going forward, we plan to use our liquidity released from debt financing proceeds to be allocated to fund accretive FLNG growth.

This provides a pathway to increase our dividend distributions to shareholder by more than or significantly more than four times as truly delivered adjusted EBITA is far greater than the debt service increase.

Speaker #4: While using our free cash flow generation to significantly increase our shareholder returns. So let's take a closer look at that on the slide 21.

Our balance sheet with a further delivered net debt to EBITA standing at three four times provides capacity to fund additional <unk> growth, while maintaining an attractive and increasing free cash flow to equity.

Speaker #4: When looking at the time when our three vessels are fully delivered in operation and in operation, we expect our fully contracted EBITDA to grow by more than four times our current last 12 months figure.

Our focus is now on ordering and accretive fourth LNG unit and Thats, what we will turn our attention to.

Speaker #4: This huge increase is even before further commodity upside coming from heli Mark II and our stake in CESA. As you can see on the slide, in 2028, when Mark II comes online, our contracted free cash flow generation could be in excess of $600 million.

Eduardo Maranhao: As you can see on the slide, in 2028, when MARK II comes online, our contracted free cash flow generation could be in excess of $600 million, or approximately $6 per share before further commodity upside. Further free cash flow generation under the CESA charters can be estimated at approximately $100 million per year or $1 per share for every dollar per million BTU increase in LNG FOB prices above $8. On a fully delivered basis, our estimated net debt at that point in time would be at 3.4 times to adjusted EBITDA, all fully backed by long-term 20-year charters. This will provide us with ample financing capacity to support even more additional FLNG growth units.

That concludes the prepared remarks, and we will like to turn the call over to the operator for any questions.

Thank you Sir.

Speaker #4: Or approximately $6 per share before further commodity upside. Further free cash flow generation under the CESA charters can be estimated at approximately $100 million per year, or $1 per share for every dollar per million BTU increase in LNG FOB prices above $8.

As a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced until we've got a question. Please press star one and one again.

Once again, please press star one and one on your telephone and wait for your name to be announced until we'll take a question. Please press star one and one again.

For the benefit of all participants on today's call. Please limit yourself to two questions per person. Thank you.

Speaker #4: On a fully delivered basis, our estimated net debt at that point in time would be at $3.4 times to adjusted EBITDA, all fully backed by long-term 20-year charters.

We are now going to proceed with our first question.

Okay.

Speaker #4: This will provide us with ample financing capacity to support even more additional FLNG growth units. Now, moving to slide 22, and as explained by Karl before, following the confirmation of our contracts in Argentina, with the FIDs of Heli and Mark II, we can now see the full breakdown of our total firm EBITDA backlog of more than $17 billion over the next 20 years.

And the question comes from the line of Chris Robertson from Deutsche Bank. Please ask your question. Your line is open.

Eduardo Maranhao: Moving to slide 22, as explained by Karl Fredrik Staubo before, following the confirmation of our contracts in Argentina with the FIDs of FLNG Hilli and MARK II, we can now see the full breakdown of our total firm EBITDA backlog of more than $17 billion over the next 20 years. One point to highlight is that this number is still before further commodity upside and further inflation adjustments that will happen over time. Moving to the next slide, we can see how changes to LNG prices could positively affect our contract with CESA. We have a limited downside with a very significant upside. For example, assuming FOB LNG prices of $10 per million BTU, our estimated EBITDA could be in excess of $1 billion per year, as you can see on the graph. This number could even grow further.

Thank you operator, and good morning, everybody. Thank you for taking my questions.

Just wanted to touch base on the New Board members that you mentioned the three just what types of skills or networks and connections that they bring to the table for golar and if they are driving any commercial discussions.

Yeah, Hi, Chris sure so.

Speaker #4: $1. To highlight is that this number is still before further commodity upside and further inflation adjustments that will happen over time. Moving to the next slide, we can see how changes to LNG prices could positively affect our contract with CESA.

Hong.

Actively replacement of <unk> with our Bermuda representative she comes with a strong accounting background and knows the company well.

And then.

To life.

Speaker #4: We have a limited downside, with a very significant upside. For example, assuming FOB LNG prices of $10 per million BTU, our estimated EBITDA could be in excess of $1 billion per year, as you can see on the graph.

Partners and to some extent can be seen as replaced by Stephen Schafer.

Steven is the chairman of talent entity.

In the U S.

He has got extensive financing background and has worked his entire career in large energy infrastructure assets, including Nash.

Speaker #4: This number could even grow further, so at, for example, $15 per million BTU, this number would grow to $1.5 billion of annual EBITDA. Just to illustrate the potential scenario, and as a reference, if all of our units were in operation in 2022 and assuming average LNG prices during that time, we would be earning close to $3.5 billion for that particular year.

Eduardo Maranhao: So at, for example, $15 per million BTU, this number would grow to $1.5 billion of annual EBITDA. Just to illustrate the potential scenario, and as a reference, if all of our units were in operation in 2022 and assuming average LNG prices during that time, we would be earning close to $3.5 billion on that particular year. This really shows the scale and significant upside potential of the embedded kickers in these contracts. That now concludes my update. I will hand the call back over to Karl Fredrik Staubo.

Natural gas.

And gas fired power plants. So we expect him to add significant capacity, both on financing and other industry connections.

Lastly, we have the introduction of <unk>, the former CEO of Perenco and <unk> is the single largest shareholder of Golar owning just shy of 10% and are also the charter of.

Speaker #4: This really shows the scale and significant upside potential of the embedded kickers in these contracts. That now concludes my update. I'll hand the call back over to Karl.

The Healy today in Cameroon and.

Karl Fredrik Staubo: Thank you, Eduardo. Moving to the final section of the prepared remarks and the summary. On slide 25, we show our key milestones and the focus for the remainder of the year. This year, we have obtained the FLNG Gimi commercial operations dates, and we are now offloading cargo number eight. We have achieved FID and conclusion of all conditions precedents for the 20-year charter of Southern Energy S.A. for the FLNG Hilli following her existing contract in Cameroon. We have also obtained a 20-year charter and the FID for the MARK II FLNG. As Eduardo Maranhao has explained in detail, we have issued $575 million of convertible bonds and repurchased 2.3% of our company, and we have sold the remaining non-core assets, including our shareholding in Avenir Shipping and our last LNG carrier, the Golar Arctic.

<unk> is also one of the world's largest independent producers of oil and gas and they have several fields around the world that should see <unk> deployment.

Speaker #3: Thank you, Eduardo. Moving to the final section of the prepared remarks, and the summary. On slide 25, we show our key 25 milestones and the focus for the remainder of the year.

So we expect then all his background to be highly relevant for us in particular, when it comes to identification of attractive gas fields.

Speaker #3: This year, we have obtained the GIMI commercial operation state, and we're now offloading cargo number eight. We've achieved FID and concluded all conditions precedents for the 20-year charter of Southern Energy, for the heli following her existing contract in Cameroon.

And upstream Knowhow.

Thanks, Carl My second question I think you mentioned earlier as it relates to that.

That there is a contemplation around maybe a second asset there as it relates to discussions, let's say a mark three was contemplated that.

Speaker #3: We've also obtained a 20-year charter and the FID for the Mark II FLNG. As Eduardo has explained in detail, we've issued $575 million of convertible bonds and repurchased 2.3% of our company.

That was large enough to encompass any kind of growth.

Our expansion of GTA could you then swap out to give me and have that be open for employment elsewhere or would that be in addition to.

Speaker #3: And we have sold the remaining non-core assets including our shareholding in Avenir shipping and our last LNG carrier, the Golar Arctic. For the remainder of the year, we plan on optimizing our FLNG financing on the back of the 20-year charters, conclude the regulatory conditions precedent on the 20-year contract for the Mark II, and add further FLNG growth units as explained in detail.

I think right now all options are being evaluated.

<unk> three.

Be introduced to the project.

Karl Fredrik Staubo: For the remainder of the year, we plan on optimizing our FLNG financing on the back of the 20-year charters, conclude the regulatory conditions precedent on the 20-year contract for the MARK II, and add further FLNG growth units, as explained in detail. Turning to slide 26 to summarize some of the key developments following a very strong quarter. This quarter, we have added $13.7 billion of EBITDA backlog, now giving our total backlog at around $17 billion. Our fully delivered adjusted EBITDA is set to grow four times versus the last 12 months EBITDA before commodity upside. This provides a pathway to increase our dividend distributions to shareholders by significantly more than four times, as fully delivered adjusted EBITDA is far greater than the debt service increase.

It could either swap out to give me or be in addition to that depends on the rest of the infrastructure. The way we understand it it's a relatively low cost to double the throughput capacity of the Fps, though.

Hence it should be highly accretive to double the capacity from today's two and a half to five MTA.

Speaker #3: Turning to slide 26 to summarize some of the key developments following a very strong quarter, this quarter we've added 13.7 billion dollars of EBITDA backlog, now giving our total backlog at around $17 billion.

Arguably one of the simpler ways of doing that is stored remarks, III and that we take we swap it out with gaming.

Subject to final commercial arrangements, that's a deal that we would welcome because we see very strong demand for that type of size elsewhere.

Speaker #3: Our adjusted fully delivered adjusted EBITDA is set to grow four times versus the last 12 months EBITDA before commodity upside. This provides a pathway to increase our dividend distributions to shareholder by more than or significantly more than four times, as fully delivered adjusted EBITDA is far greater than the debt service increase.

So that's absolutely not something we would rule out.

But it could also be in addition to but then theres other constraints on the upstream that needs to be unlocked.

Yes.

Alright, Thank you I'll turn it over.

Yeah.

We are now going to proceed with our next question.

Karl Fredrik Staubo: Our balance sheet with a fully delivered net debt-to-EBITDA ratio standing at 3.4 times provides capacity to fund additional FLNG growth while maintaining an attractive and increasing free cash flow to equity. Our focus is now on ordering an accretive fourth FLNG unit, and that is what we will turn our attention to. That concludes the prepared remarks, and we would like to turn the call over to the operator for any questions.

Speaker #3: Our balance sheet with a fully delivered net debt to EBITDA standing at $3.4 times, provides capacity to fund additional FLNG growth, while maintaining an attractive and increasing free cash flow to equity.

And the next question comes from the line of <unk> <unk> from Clarksons <unk> Securities. Please ask your question.

Hi, guys.

All right.

My father.

Speaker #3: Our focus is now on ordering and accretive fourth FLNG unit, and that's what we will turn our attention to. That concludes the prepared remarks, and we will like to turn the call over to the operator for any questions.

Yes, just wanted to pick your brain on valuation.

Of course, we have a huge.

Background, and I feel like as an analyst.

A lot of discussion I have with investors.

To stand up and talking about.

Operator: Thank you, sir. As a reminder to ask a question, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. For the benefit of all participants on today's call, please limit yourself to two questions per person. Thank you. We are now going to proceed with our first question. The questions come from the line of Chris Robertson from Deutsche Bank. Please ask a question. Your line is opened.

Speaker #2: Thank you, sir. As a reminder to ask a question, please press star one and one on your telephone and wait for your name to be announced.

The valuation of that backlog right, so, particularly well.

Appropriate discount rate.

Yes.

<unk>.

Speaker #2: To withdraw your question, please press star one and one again. Once again, please press star one and one on your telephone and wait for your name to be announced.

Which of course is our downturn assessing.

Risk right.

So I just wanted to hear what kind of framework.

Speaker #2: To withdraw your question, please press star one and one again. For the benefit of all participants on today's call, please limit yourself to two questions per person.

Think is useful.

He is diluted.

Yeah.

Sure so.

Speaker #2: Thank you. We are now going to proceed with our first question. And the questions come from the line of Chris Robertson from Deutsche Bank, please ask a question.

In terms of understanding the devaluation, which I guess is the question on the backlog here.

We obviously have a fixed set of EBITA, which comprise of.

Mark too and give me and if you combine them all in net of G&A, it's around $800 million per year before CPI adjustments and commodity upside.

Speaker #2: Your line is opened.

Analyst: Thank you, operator. Good morning, everybody. Thank you for taking my questions. Karl, I just wanted to touch base on the new board members that you mentioned, the three. Just what types of skills or networks and connections that they bring to the table for Golar LNG Limited and if they are driving any commercial discussions?

Speaker #5: Thank you, operator. Good morning, everybody. Thank you for taking my questions. Karl, I just wanted to touch base on the new board members that you mentioned, the three.

The right discount factor on those we will leave it to you to decide but what we historically have seen that some of our peers, including Cheniere and venture global and that type of companies trade at.

Speaker #5: Just what types of skills or networks and connections that they bring to the table for Golar? And if they are driving any commercial discussions.

Karl Fredrik Staubo: Yeah. Hi, Chris. Sure. Mi Hong Yoon is effectively a replacement of Georgina Sousa and is our Bermuda representative. She comes with a strong accounting background and knows the company well. Turlaif Egeli, who departed, to some extent can be seen as replaced by Steven Schaeffer. Steven is the Chairman of Talon Energy in the U.S. He has got an extensive financing background and has worked his entire career in large energy infrastructure assets, including natural gas and gas-fired power plants. We expect him to add significant capacities both on financing and other industry connections. Lastly, we have the introduction of Benoit. Benoit is the former CEO of PERENCO, and PERENCO is the single largest shareholder of Golar, owning just shy of 10%, and are also the charter of the FLNG Hilli today in Cameroon.

Speaker #3: Yeah, hi Chris. Sure. So Mi Hong Yun is effectively a replacement of Georgina Souza and is our Bermuda representative. She comes with a strong accounting background and knows the company well.

We see that probably north of 10 times that the market can decide what the right multiple factories.

Where we think the biggest.

Sort of misunderstanding or arguably mispricing is understanding the upside of our commodity exposure.

Speaker #3: Then Tourleif Egli, departed and to some extent can be seen as replaced by Steven Schaefer, Steven is the chairman of Talon Energy, in the US.

We believe the uniqueness of that exposure is that we have fixed the breakeven of which we get a profit share from at around $8 per M and Btu for 20 years.

Speaker #3: He's got extensive financing background and has worked his entire career in large energy infrastructure assets including natural gas and gas-fired power plants. So we expect him to add significant capacities both on financing and other industry connections.

If you look at the developments of where Henry hub is likely to develop on the back of significant increase.

Henry hub gas, both domestically and for exports as explained earlier on we see upward pressure on Henry hub.

And in line with what Sandy our venture global and other U S. Liquefaction providers have explained on each call. They have is that the tolling fees for U S. Exports is on its way up and according to venture global it needs to go north of $4 to justify any exports.

Speaker #3: Lastly, we have the introduction of Benoit. Benoit is the former CEO of Perenco, and Perenco is the single largest shareholder of Golar, owning just shy of 10%.

Speaker #3: And are also the charter of the heli today in Cameroon, and Perenco is also one of the world's largest independent producers of oil and gas, and they have several fields around the world that could see FLNG deployment.

If those two are our true the eight dollar fixed.

Karl Fredrik Staubo: PERENCO is also one of the world's largest independent producers of oil and gas, and they have several fields around the world that could see FLNG deployment. We expect Benoit's background to be highly relevant for us, in particular when it comes to identification of attractive gas fields and upstream know-how.

The profit.

Profit share mechanism. We have we think is unique in the market you contemplated anywhere else and we think its worth.

Speaker #3: So we expect Benoit's background to be highly relevant for us, in particular when it comes to identification of attractive gas fields, and upstream know-how.

A lot to have that <unk>.

In addition, we also don't think that the market price. Our platform is the only proven service provider of ethylene in the world and certainly not growth.

Analyst: Thanks, Karl. My second question, I think you mentioned earlier as it relates to the FLNG Gimi that there's a contemplation around maybe a second asset there. As it relates to discussions, let's say a MARK III was contemplated that was large enough to encompass any kind of growth or expansion of GTA. Could you then swap out the FLNG Gimi and have that be open for employment elsewhere, or would that be in addition to?

Speaker #5: Thanks, Karl. My second question, I think you mentioned earlier as it relates to the GIMI, that there's contemplation around maybe a second asset there.

And.

I don't think we want to enter into conversation today are exactly what we think it's worth but we do think as much as if we bought two 3% of the company at $41 nine as late as June. So I think that speaks to where we think it is and I think over the last four and a half years, we bought back nine 3 million shares.

Speaker #5: As it relates to discussions let's say a Mark III was contemplated that was large enough to encompass any kind of growth. Or expansion of GTA.

Speaker #5: Could you then swap out the GIMI and have that be open for employment elsewhere? Or would that be in addition to?

And we have bought back assets, where we've been able to buy them back more accretive than buying our own share, which is effectively buying back healy from NFC and Healy from minority interest from.

Karl Fredrik Staubo: So, I think right now all options are being evaluated. If a MARK III would be introduced to the project, it could either swap out the FLNG Gimi or be in addition to. That depends on the rest of the infrastructure. The way we understand it is that it is a relatively low cost to double the throughput capacity of the FPSO. Hence, it should be highly accretive to double the capacity from today's 2.5 to 5 MTPA. Arguably, one of the simpler ways of doing that is to order a MARK III and that we swap it out with FLNG Gimi. Subject to final commercial arrangements, that is a deal that we would welcome because we see very strong demand for that type of size elsewhere. So, that is absolutely not something we would rule out, but it could also be in addition.

Speaker #3: So, I think right now all options are being evaluated. If a Mark III were to be introduced to the project, it could either swap out the GIMI or be in addition to it.

Black and veatch in sequence. So I think overall, we are putting money, where our mouth. This and we continue to do so as late as June.

Speaker #3: That depends on the rest of the infrastructure. The way we understand it, it's that it's a relatively low cost to double the throughput capacity of the FPSO.

Yes.

That's great let's call it I guess, what youre, saying, but of course this.

Speaker #3: Hence, it should be highly accretive to double the capacity from today's two and a half to five MTPA. Arguably, one of the simpler ways of doing that is to order a Mark III and that we take we swap it out with GIMI.

You think there is.

Stock costs.

<unk> intrinsic value.

Markets price right. So I guess anything buying back stock as I said, but just generally speaking how important is it for you too.

Speaker #3: Subject to final commercial arrangements, that's a deal that we would welcome because we see very strong demand for that type of size elsewhere. So that's absolutely not something we would rule out.

Close that gap so to speak.

Would you just prefer to let the cash flow speaks for themselves.

Market.

Rice's adjust over time.

Speaker #3: But it could also be in addition to, but then there's other constraints on the upstream that needs to be unlocked.

They consider activating boosting.

Karl Fredrik Staubo: to, but then there's other constraints on the upstream that need to be unlocked.

Alright.

Operator: All right, thank you. I'll turn it over.

So speaking of management, what we can do is to run the company to the best of our ability and that's what we try to do every single day getting into this office.

Speaker #5: All right, thank you. I'll turn it over.

Karl Fredrik Staubo: We are now going to proceed with our next question. The next questions come from the line of Frode Mokudam from Kloxon Securities. Please ask your question.

Speaker #2: We are now going to proceed with our next question. The next questions come from the line of Freud Mokedom from Clarkson Securities. Please ask your question.

It is also our job to see that that value is reflected in the stock market or in the value of the business.

Eduardo Maranhao: Hi, guys.

Speaker #6: Hi, guys.

Karl Fredrik Staubo: Hi, Frode.

Speaker #3: Hi, Freud.

As our chairman.

Eduardo Maranhao: I just wanted to pick your brain on valuation. Of course, we have a huge backlog. I feel like as an analyst, a lot of the discussion I have with investors, you know, just end up in talking about the valuation of that backlog, right? So particularly what is the appropriate discount rate, which of course is what down to assessing the risk, right? But I just wanted to hear what kind of framework you think is useful when you value that backlog.

Speaker #6: Yeah, I just wanted to pick your brain on valuation. Of course, you have a huge backlog, and I feel like as an analyst, a lot of the discussion I have with investors just end up in talking about the valuation of that backlog, right?

He joined our quarterly call for the first time in a very long time last quarter alluded to is that if the market fails to recognize that value. The board will seek other alternatives to.

To crystallize the value.

I'll, let him stand for that statement, but I saw him.

Reconfirming those intentions in newspapers is latest July of this year so.

As management's our work is to run the business to the best of our ability and if there are price discrepancies between <unk>.

Private versus public money, we will look to identify for us the key effort on a daily basis is to run the business on the best of our ability and we think there is a lot of attractive growth that can be executed I think we showed that this latest ordering our third unit in September and fixing it in may and we intend.

Karl Fredrik Staubo: Sure. In terms of understanding the valuation, which I guess is the question in the backlog here, we obviously have a fixed set of EBITDA which comprises FLNG Hilli, MARK II, and FLNG Gimi. If you combine them all, net of G&A, it is around $800 million per year before CPI adjustment and commodity offsite. The right discount factor on those, we will leave it to you to decide. What we historically have seen is that some of our peers, including Cheniere and Venture Global and that type of companies, trade at, we see that probably north of 10 times, but the market can decide what the right multiple factor is. We think the biggest sort of misunderstanding or arguably mispricing is understanding the upside of our commodity exposure.

To do a similar type of structure for unit number for.

Perfect that's very clear thank you.

Thank you.

We are now going to proceed with our next question.

And the next question comes from the line of Alexander <unk> from Weber Research and Advisory. Please ask your question.

Good afternoon, alright, Thank you for the time.

Could you provide a little bit more color on some of the commercial prospects for a fourth unit.

What sort of demand are you seeing around contracts start up and are you seeing any gravitation towards a particular LNG spec.

Karl Fredrik Staubo: We believe the uniqueness of that exposure is that we have fixed the break-even of which we get a profit share from at around $8 per MMBTU for 20 years. If you look at the development of where Henry Hub is likely to develop on the back of a significant increase for Henry Hub gas, both domestically and for exports, as explained earlier on, we see upward pressure on Henry Hub. In line with what Cheniere, Venture Global, and other U.S. liquefaction providers have explained on each call they have, is that the tolling fees for U.S. exports are on its way up. According to Venture Global, it needs to go north of $4 to justify any exports. If those two are true, the $8 fixed profit share mechanism we have, we think is unique in the market. You can't obtain it anywhere else.

Yeah, So it's down to when it comes to startup I think the construction time that we have three years or more or less three years from our quantum two.

Is sufficient to provide the.

Required upstream infrastructure, so we do not see the upstream infrastructure being the gating item.

Most of the opportunities we are discussing in West Africa is likely mark one or two.

And then some of the projects we are discussing in South America and.

In the middle East could be a March three.

So that's sort of broadly where we see it naturally just given highest and throughput there are more commercial opportunities for smaller sizes.

But as long as you have a few people in the running on the larger size you can still drive competitive tension and that's what we're focused on in terms of number the smaller is where there's more larger you still need to create have enough for competitive attention.

Karl Fredrik Staubo: We think it's worth a lot to have that 20 years out. In addition, we also don't think that the market price our platform as the only proven service provider of FLNG in the world, and certainly not growth. I don't think we want to enter into a conversation today of exactly what we think it's worth. We do think as much as if we bought 2.3% of the company at $41.09 as late as June. I think that speaks to where we think it is. I think over the last four and a half years, we bought back 9.3 million shares. We have bought back assets where we've been able to buy them back more accretively than buying our own share, which is effectively buying back FLNG Hilli from NFE and FLNG Hilli from minority interest from Black & Veatch and Cetrium.

Alright, Thank you I appreciate.

Great color.

And then turning over to long lead items, you had mentioned that.

Some of the timelines have been increasing.

Increasing.

I'm just curious is there any cross compatibility between long lead items for the Mark one two and three could you say order.

Certain long lead items, and then I guess change which direction to go in terms of asset.

That's a very good question and the answer is yes.

It is compatible so basically we use black and veatch topside technology for all the three of the science.

Just a matter of how much of the equipment you put all the.

Karl Fredrik Staubo: I think overall, we are putting money where our mouth is, and we continue to do so as late as June.

The key long lead items that has been dragged out in time as gas turbines on the back of very strong demand from.

Eduardo Maranhao: Yeah, that's great. Good call. I guess what you're saying is that, of course, you think this stock has higher intrinsic value than the current market price, right? I guess, and you've been buying back stock, as you said. But just generally speaking, how important is it for you to close that gap, so to speak? Would you just prefer to let the cash flow speak for themselves and, you know, market prices adjust over time, or are you actually considering actively boosting that value further, right?

The aviation industry.

Data centers.

So those are the ones, we're likely to pit slope reservation on first and Thats interchangeable between the designs. It's just a number of turbines you need is different so the whole idea is to do the slot reservation and decide on the number of turbines later.

Alright that makes sense. Thank you very much I'll turn it back over.

Thank you.

We are now going to proceed with our next question.

And the question is come from the line of Sherri Mcabee from BPI. Please ask a question.

Hi, Thanks for taking my questions.

First I just wanted to follow up on Chris's questions beginning.

Karl Fredrik Staubo: Speaking as management, what we can do is to run the company to the best of our ability. That is what we try to do every single day getting into this office. It is also our job to see that that value is reflected in the stock market or in the value of the business. As our Chairman, who joined our quarterly call for the first time in a very long time last quarter, alluded to, he said if the market fails to recognize that value, the board will seek other alternatives to crystallize the value. I will let him stand for that statement, but I saw him reconfirming those intentions in newspapers as late as July this year. I think as management, our work is to run the business to the best of our ability.

Last week, one of the GTA partners mentioned the possibility of Debottlenecking journey to increase production can you shed some light on what that would entail.

And so as I explained in the prepared remarks, we're currently in the appraisal periods, we're fine tuning the operations of the <unk>.

And if you want to get very technical it has to do with the air Inlet chilling. It has to do with a turbo expander. Thus we can tweak.

And some other of the equipment that we are currently fine tuning to boost production.

As our chairman, um, who joined our quarterly call for the first time in a very long time. Uh, last quarter, alluded to he said, if the market fails to recognize that value, the board will seek other Alternatives, uh, to crystallize the value.

That's really.

The key technical.

Technical items there are also certain.

Improvements that can be extracted from the interaction between the <unk>.

Karl Fredrik Staubo: If there are price discrepancies between private versus public money, we will look to identify it. For us, the key effort on a daily basis is to run the business on the best of our ability. We think there is a lot of attractive growth that can be executed. I think we showed that as late as ordering our third unit in September and fixing it in May. We intend to do a similar type of structure for unit number four.

And.

And therefore, LNG so throughput drove a liquefaction plant is highly linked to ambient temperature and gas quality. So if you can.

I'll let him stand for that statement, but I saw him reconfirming those intentions in newspapers as late as July this year. So I think as management, our work is to run the business to the best of our ability. And if there are price discrepancies between...

Through air in the Chillers.

Impacted the ambient temperatures and through interaction between the peso and therefore LNG.

Weak the gas composition, you can boost throughput.

That's good color and then.

Private versus public money, we will look to identify it. But for us, the key effort on a daily basis is to run the business on the best of our ability. And we think there is a lot of attractive growth that can be executed. I think we showed that as late as ordering our third unit in September and fixing it in May and we intend to do a similar type of structure for unit. Number 4,

Eduardo Maranhao: Perfect. That is very clear. Thank you.

For the range between a mark wanted to Mark three I appreciate you, giving us kind of a $1 rough dollar per ton given pricing still.

Karl Fredrik Staubo: Thank you.

Karl Fredrik Staubo: We are now going to proceed with our next question. The next questions come from the line of Alexander Bidwell from Weber Research and Advisory. Please ask your question.

Perfect. That's very clear. Thank you. Thank you.

We are now going to proceed with our next question.

<unk> been unknown, but are there economies of scale associated with going for a large like our mark III versus and Mark one.

Operator: Good afternoon. Thank you for the time. Could you provide a little bit more color on some of the commercial prospects for a fourth unit? What sort of demand are you seeing around contract startup, and are you seeing any gravitation towards a particular FLNG spec?

And the next question is come from the line of Alexander Bidwell from Weber research and advisory please ask your question.

In terms of.

Capex per ton.

Good afternoon, thank you for the time. Um,

Yes in terms of Capex per ton capex per ton I would actually say less so because you save a lot of time and money starting with the conversion unit versus building from scratch. However in terms of operating costs. There is significant economies of scale because you don't need twice as many people to run our mark III as a mark on you.

Could you provide a little bit more uh color on some of the commercial prospects for a fourth unit, uh, what sort of demand are you seeing around contract startup? And are you seeing any gravitation towards a particular, uh, flng spec?

Karl Fredrik Staubo: Yeah, so it is down to when it comes to startup. I think the construction time that we have three years or more or less three years from MARK I and II is sufficient to provide the required upstream infrastructure. We do not see the upstream infrastructure being the gating item. Most of the opportunities we are discussing in West Africa is likely MARK I or II. Some of the projects we are discussing in South America and in the Middle East could be a MARK III. That is broadly where we sit. Naturally, just given size and throughput, there are more commercial opportunities for smaller sizes. As long as you have a few people in the running on the larger size, you can still drive competitive attention, and that is what we are focused on.

Probably need the same.

So on a unit economics point of view, it's more efficient both in terms of Opex and demurrage and Offloading.

Yeah, so it's down to when it comes to the startup. I think the construction time that we have, 3 years or more or less 3 years from Mark 1 and 2, is sufficient to provide the.

Okay.

Got it thanks Carl.

Required Upstream infrastructure. So we do not see the the Upstream infrastructure, being the the gating item. Um,

We are now going to proceed with our next question.

And the question comes from the line of Liam Burke from B Riley Securities. Please ask your question.

Thank you hi, Carl how are you.

Well thanks Harry.

Carl you want you stepped up the Mark wanted to Mark for a three rather and you essentially doubled your capacity.

Most of the opportunities we are discussing in invest Africa, is likely Mark 1 or 2. Um and then some of the projects we are discussing in South America and uh in the Middle East could be a Mark 3.

Do you anticipate further capacity growth on next generation.

Um, so that's sort of broadly where we see it naturally. Just given size and throughput. There are more commercial opportunities for smaller sizes.

LNG or is this just a function of the offshore reserves.

Karl Fredrik Staubo: In terms of number, the smaller is where there is more, and larger, you still need to have enough for competitive attention.

We do not know Youre right, we don't see.

We don't expect to grow for like a 10 M Tpa and if thats. The question because then you start.

Operator: All right. Thank you. Appreciate the color. Turning over to long lead items, you had mentioned that some of the timelines have been increasing. Just curious, is there any cross-compatibility between long lead items for the MARK I, II, and III? Could you say order certain long lead items and then, I guess, change which direction you go in terms of asset?

Um, but as long as you have a few people in the running on the larger size, you can still drive competitive tension and and that's what we're focused on. In terms of Number the smaller is is where there's more and larger, you still need to create have enough for competitive attention.

Far too few fields. One thing is that you need larger reserves. The other thing you need is be able to service the <unk>.

Throughput so.

And upstream expert with some wells, even if you have a massive reserve if you empty too quickly you can have a pressure losses and you can destroy the recoverability of the entire reserve so.

It becomes very sensitive if you start to go beyond this.

All right, thank you. Appreciate, uh, appreciate the color. Um, and then turning over, uh, to Long lead items, you'd mentioned that uh, some of the the timelines have been, uh, increasing just curious. Is there any, uh, cross compatibility uh, between long lead items for the Mark 1 2 and 3? Uh, could you say order certain uh, long lead items and then uh I guess change?

Karl Fredrik Staubo: is a very good question, and the answer is yes. It is compatible. So basically, we use Black & Veatch topside technology for all the three designs. It is just a matter of how much of the equipment you put on. The key long lead items that have been dragged out in time are gas turbines on the back of very strong demand from the aviation industry and data centers. So those are the ones we are likely to put the slot reservation on first, and that is interchangeable between the designs. It is just the number of turbines you need is different. So the whole idea is to do the slot reservation and decide on the number of turbines later.

Which direction do you go in terms of asset?

Okay.

At the higher capacity levels.

That's a very good question. And the answer is yes.

LNG is generally the original ones generated mid to high teens returns on invested capital when you get to twice the capacity.

It is compatible. So basically, we use black and Beach topside technology for all the 3 designs. It's just a matter of how much of the equipment you put on

How do you see those returns increasing.

If you look at what we did in Argentina with a mark to.

the key long lead items that has been dragged out in time is is gas turbines on the back of very strong demand from

April to do 20 or contracts at around that one is five five times capex to EBITA before inflation adjustments and before commodity upside.

Opex on an asset level taxes pass through to the off taker. So I think if.

If we are able to do 20 or business at around five times with commodity exposure and CPI adjustments I think we think that's a good business for 20 year contracts.

Operator: All right. That makes sense. Thank you very much. I'll turn it back over.

The aviation industry and data centers are the ones we're likely to put the slot reservation on first, and that's interchangeable between the designs. It's just the number of turbines you need that is different. So, the whole idea is to do the slot reservation and decide on the number of turbines later.

Karl Fredrik Staubo: Thank you.

All right, that makes sense. Thank you very much. I'll turn it back over.

Karl Fredrik Staubo: We are now going to proceed with our next question. The question comes from the line of Sharif Al-Maghabi from BTIG. Please ask a question.

Thank you.

And Thats.

Similar to what we would target on any new projects.

We are now going to proceed with our next question.

Got it.

Thank you Carl.

Analyst: Hi, thanks for taking my questions. First, I just want to follow up on Chris's question at the beginning. Last week, one of the GTA partners mentioned the possibility of de-bottlenecking FLNG Gimi to increase production. Can you shed some light on what that would entail?

Thank you.

Yeah.

We are not going to take our next question.

Tinder questions come from the line of Craig Shere from <unk> investment research. Please ask your question.

Good morning, New York time.

Karl Fredrik Staubo: As I explained in the prepared remarks, we are currently in the appraisal period. We are fine-tuning the operations of the FLNG. If you want to get very technical, it has to do with air inlet chilling. It has to do with a turbo expander that we can tweak and some other of the equipment that we are currently fine-tuning to boost production. That is really the key technical item. There are also certain improvements that can be extracted from the interaction between the FPSO and the FLNG. Throughput of a liquefaction plant is highly linked to ambient temperature and gas quality. If you can, through air inlet chillers, impact the ambient temperatures and through interaction between the FPSO and the FLNG, tweak the gas composition, you can boost throughput.

And the questions come from the line of sheriff. Alma, Gabby from btig. Please ask a question. Hi, thanks for taking my questions. Um, first I just want to follow up on Chris's question at the beginning. Uh, last week, 1 of the GTA Partners mentioned the possibility of deep bottlenecking Jimmy uh to increase production, can you shut some light on what that would entail?

Thank you for taking the questions.

So so it seems your focus is on projects with commodity Kickers.

So.

Yeah, so as I explained in the prepared remarks, we're currently in the appraisal period, we're fine-tuning. The operations of the flng.

In that respect ultimately.

As given me something that you might contemplate divesting and two degree BP needs to double the size of that project.

um, and if you want to get very technical, it has to do with the air Inlet chilling, it has to do with the turbo expander, uh, that we can tweak

That we are currently fine-tuning to boost production. Um,

Would they be amenable to the next phase having similar commodity Kickers is what you're looking at in Argentina and elsewhere.

That's really.

And to the first part of the question we've extended some some previous calls.

The the key technical items. Uh there are also certain uh, improvements that can be extracted from the interaction between the fpso and um

The gaming contract is or what's very important to prove the concept Healy was the first LNG to ever be delivered.

And the flng. So, 3 Patrol. The liquefaction plant is highly linked to ambient temperature and gas quality. So, if you can.

It's well known in the maritime industry that BP has the highest operational standards in the industry and.

And if a golar <unk>.

Can qualify as sufficiently safe and reliable to operate for BP.

Through the Chillers, we impact the ambient temperatures. Through interaction between the FPSO and the FLNG tweak, we can adjust the gas composition and boost efficiency.

Analyst: That is good color. For the range between a MARK I and a MARK III, I appreciate you giving us a rough dollar per ton given pricing is still a bit of an unknown. Are there economies of scale associated with going for a large, like a MARK III versus a MARK I?

Then it's a proof of concept so for us the BP contract is attractive in itself, but it's mainly a proof of concept.

That's a good color. And and then, um,

It has opened the doors for.

Significant further LNG deployments.

Just sort of put some more color into that.

Karl Fredrik Staubo: In terms of CapEx per ton?

For the the range between a Mark 1 and a Mark III. I appreciate you giving us kind of a dollar. Rough dollar per ton, given pricing still a bit of an unknown, but are their economies of scale associated with going for a large, like a Mark III versus a Mark 1.

Pan American entity, which is the largest counterparty intesa is owned 50% by BP.

Analyst: Right, yeah, in terms of CapEx per ton.

Karl Fredrik Staubo: CapEx per ton, I would actually say less so because you save a lot of time and money starting with the conversion unit versus building from scratch. However, in terms of operating costs, there are significant economies of scale because you don't need twice as many people to run a MARK III as a MARK I. You probably need the same. So on a unit economic point of view, it's more efficient both in terms of OpEx and demerge in offloading.

The fact that they have seen.

Both our assets and the company can deliver in.

Mauritania, Senegal has given them confidence to continue to expand the working relationship.

We have no current plans of divesting that asset.

In terms of uh, capex purton, uh, right? Yeah. In terms of capex per ton capex per ton? I, I would actually say less so because you save a lot of time and money starting with the conversion unit versus building, uh, from scratch. However, in terms of operating costs, there is significant economies of scale because you don't need twice as many people to run a

Mark III as a Mark 1, you probably need the same.

And we think the way the structure of the contract. This you can obviously leverage it differently and still get very attractive equity returns.

So in a unit economic point of view, it's more efficient both in terms of Opex and the merging of loading.

Analyst: Got it. Thanks, Paul.

As for growth on the GTA, that's subject to commercial negotiation, but we do expect any incremental liquefaction capacity to comments of higher tariffs and that'll give me.

Got it. Thanks Carl.

Karl Fredrik Staubo: We are now going to proceed with our next question. The question comes from the line of Liam Burke from P. Reilly Securities. Please ask your question.

We are now going to proceed with our next question.

Analyst: Thank you. Hi, Karl. How are you?

And the questions come from the line of lean back from B Riley Securities. Please ask your question.

And not only a higher tariff, but a commodity linked like everything else you're focused on.

Karl Fredrik Staubo: Well, thanks. How are you?

Uh, thank you. Hi, Carl, how are you?

Analyst: Karl, I mean, you stepped up the MARK I to the MARK III, rather, and you essentially doubled your capacity. Do you anticipate further capacity growth on next-generation FLNGs, or is this just a function of the offshore reserves?

Well, thank you.

Yes, so when we do contracts, it's always a tradeoff between the fixed component versus commodity. So if people don't want commodity and had to pay up on the fixed it's a tradeoff.

Gotcha, Okay and last question I, just wanted to get clear on the order of things that you've laid out.

Karl Fredrik Staubo: We do not, no, you are right. We do not see very, we do not expect to go for like a 10 MTPA unit if that is the question because then you start to get into far too few fields. One thing is that you need larger reserves. The other thing you need is to be able to service the throughput. I am not an upstream expert, but some wealth, even if you have a massive reserve, if you empty it too quickly, you can have pressure losses and you can destroy the recoverability of the entire reserve. It becomes very sensitive if you start to go beyond this size.

Uh, Coral, I mean, you work you stepped up the Mark 1 to the mark IV, a 3 rather, and you essentially doubled your uh, capacity. Um, do you anticipate further capacity growth on Next Generation? Uh, flgs, or is this just a function of the offshore Reserves?

So youre spending balance sheet cash on long lead items.

We do not know you're right, we don't see.

Ahead of the next Friday and contracting mostly you mentioned about.

The turbines.

But you won't.

<unk>.

The fourth.

LNG shipyard commitment until you have a contract in hand.

But after you have that.

Go on balance sheet for a fifth LNG project do I have that right.

Yes, so we do long leads now.

A very, we we don't expect to go for like a 10, mtpa unit, if that's a question because then you start to get into far too. Few few Fields, 1 thing, is that you need large reserves. The other thing you need is be able to Service, uh, the throughput. So I'm not an upstream expert, but some wealth, even if you have a massive Reserve, if you emptied it too quickly, you can have pressure losses and you can destroy the recoverability of the entire Reserve. So it becomes very sensitive if you start

Analyst: Okay. At the higher capacity levels, the FLNGs generally, the original ones generated mid to high teens returns on invested capital. When you get to twice the capacity, how do you see those returns increasing?

Big go beyond this size.

And when we get sufficiently comfortable with order unit number for once unit number four is locked in a 20 or a long term contract. We then go and order unit number five.

We will constantly ensure that we have ample financial flexibility to do it.

We will never ever put this company in a growth position that challenges the balance sheets.

Okay at the higher capacity levels, I mean the the flng is generally, the original ones. Generated mid to high teens Returns on invested Capital. When you get to twice the capacity uh how do you see those returns increasing?

Karl Fredrik Staubo: If you look at what we did in Argentina with the MARK II, we are able to do 20-year contracts at around, that one is 5.5 times CapEx to EBITDA before inflation adjustment and before commodity offside, where OpEx and asset level tax is passed through to the offtaker. I think if we are able to do 20-year business at around 5 times with commodity exposure and CPI adjustments, I think we think that is good business for 20-year contracts. That is similar to what we would target on any new project.

Okay Gotcha. Thank you.

We have no further questions at this time I will now hand back to you Mr. Friedrichs tableau for closing remarks.

That concludes Golar Q2 earnings call. Thank you all for dialing in and have a good day.

If you look at what we did in Argentina with the Mark II, uh we're able to do 20 are contracts at around that 1 is 5 and a half times capex to ebit up before inflation adjustment and before uh commodity upside we're Opex and and asset level tax is passed through to the off taker. So I think

If we are able to do 20, our business at around 5 times with commodity exposure and CPI adjustments, I think we think that's good business for 20-year contracts.

And, and that's

Analyst: Got it. Thank you, Karl.

Similar to what we would target on any new project.

Karl Fredrik Staubo: Thank you.

Got it.

Thank you, call.

Thank you.

Karl Fredrik Staubo: We are now going to take our next question. The questions come from the line of Craig Shria from True Heat Brothers Investment Research. Please ask a question.

We are not going to take our next question.

Analyst: Good morning, New York Time. Thank you for taking the questions. It seems your focus is on projects with commodity kickers. In that respect, ultimately, is FLNG Gimi something that you might contemplate divesting? To the degree BP needs to double the size of that project, would they be amenable to the next phase having similar commodity kickers as what you are looking at in Argentina and elsewhere?

And the questions come from the line of Craig Shia from true. He Brothers investment research, please ask a question.

Good, good morning, New York time. Um, thank you for taking the questions.

Uh, so so it seems your focus is on projects with commodity kickers.

um, so

uh, in in that respect, uh, ultimately

Is is give me something that you might contemplate divesting. And to the degree, BP needs to double the size of that project. Uh, would they be amendable to the next phase? Having similar commodity kickers is what you're looking at in Argentina and elsewhere.

Karl Fredrik Staubo: To the first part of the question, we have explained this on some previous calls, but the Gimi contract was very important to prove the concept. FLNG Hilli was the first FLNG to ever be delivered. It is well known in the maritime industry that BP has the highest operational standards in the industry. If a Golar FLNG can qualify as sufficiently safe and reliable to operate for BP, then it is a proof of concept. For us, the BP contract is attractive in itself, but it is mainly a proof of concept. It has opened the doors for significant further FLNG deployments. To put some more color into that, Pan American Energy, which is the largest counterpart in CESA, is owned 50% by BP.

To the first part of the question and we've explained this some some previous calls but the Gimme contract is or was very important to prove the concept Haley was the first flng to ever be delivered.

um it's well known in the maritime industry that BP has the highest operational standards in the industry and if a goal or flng um

Can qualify as sufficiently safer. Reliable to operate for BP; then it's a proof of concept. So for us, the BP contract is attractive in itself, but it's mainly a proof of concept and it has opened the doors for significant further FMG deployments.

Karl Fredrik Staubo: The fact that they have seen what both our assets and the company can deliver in Mauritania and Senegal has given them confidence to continue to expand the working relationship. We have no current plans of divesting that asset. We think the way the structure of the contract is, you can obviously leverage it differently and still get very attractive equity returns. As for growth on the GTA, that is subject to commercial negotiation, but we do expect any incremental liquefaction capacity to come at a higher tariff than that of FLNG Gimi.

To to, to sort of put some more color into that um, Pan-American energy, which is the largest counterpart. In cesa is owned, 50% by BP.

so, the fact that they have seen um, what both are assets and the company can deliver in,

Or a 10 in Sagal, has given them confidence to continue to, to expand the working relationship.

Uh, we have no current plans of divesting that asset.

Um, we think the way the structure of the contract is you can obviously leverage it differently and still get very attractive Equity returns.

As for growth on the GTA, that's subject to commercial negotiation. But we do expect any incrementally, Perfection capacity to come at a higher tariff than that of gimme.

Analyst: Not only a higher tariff, but a commodity link, like everything else you're focused on?

Karl Fredrik Staubo: When we do contracts, it is always a trade-off between the fixed component versus commodity. If people do not want commodity, you need to pay up on the fixed. It is a trade-off.

And not only a higher tariff, but but a commodity link, like everything else you're focused on.

Analyst: Gotcha. Okay. Last question, I just want to get clear on the order of things that you've laid out. You're spending balance sheet cash on long lead items ahead of the next FID and contracting. Mostly, you mentioned about the turbines. You won't FID a fourth FLNG shipyard commitment until you have a contract in hand. But after you have that, you'll go on balance sheet for a fifth FLNG project. Do I have that right?

Yeah, so when we do contracts, it's always a trade-off between the fixed component versus commodity. So, if people don't want commodity, you need to pay up on the fixed. It's a trade-off.

Gotcha, okay? And and, and last question, I just want to get clear on the order of things that you've laid out.

Um, so you're you're spending balance sheet, cash and, and long lead items, uh, ahead of the next, FID and Contracting. Um, mostly you mentioned about, um, the the turbines. Uh, but you, you won't FID, uh, a fourth, uh, flng Shipyard commitment until you have a contract in hand.

but after you have that,

you'll go on balance sheet for a fifth flng project. Do I have that, right?

Karl Fredrik Staubo: Yes. So we do long leads now. Then when we get sufficiently comfortable, we order unit number four. Once unit number four is locked in a 20-hour or a long-term contract, we then go and order unit number five. But we will constantly ensure that we have ample financial flexibility to do it. We will never, ever put this company in a growth position that challenges the balance sheet.

Yes, so we do long leads now.

Then, when we get sufficiently comfortable, we order unit number 4. Once unit number 4 is locked in a 20-year or a long-term contract, we then go and order unit number 5. However, we will constantly ensure that we have ample financial flexibility to do it. We will never, ever put this company in a growth position that challenges the balance sheet.

Analyst: Okay. Gotcha. Thank you.

Okay, gotcha. Thank you.

Karl Fredrik Staubo: We have no further questions at this time. I will now hand back to you, Mr. Karl Fredrik Staubo, for closing remarks.

Karl Fredrik Staubo: That concludes Golar's Q2 earnings call. Thank you all for dialing in, and have a good day.

We have no further questions at this time. I will now hand back to you. Uh, Mr. Cal, Frederick's taboo for closing remarks.

That concludes goar's Q2 earnings call. Thank you all for dialing in and um have a good day.

Karl Fredrik Staubo: This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you and have a great day.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you. And have a great day.