Q4 2025 Golar LNG Ltd Earnings Call

February 25, 2026

Speaker #1: Welcome to the GOLAR LNG LTD 2025 Q4 results presentation. After the slide presentation by CEO Karl Fredrik Staubo and CFO Eduardo Maranhao, Tor Olav Troim will have some closing comments prior to a question-and-answer session.

Operator: Welcome to the Golar LNG Limited 2025 Q4 results presentation. After the slide presentation by CEO Carl Fredrik Staubo and CFO Eduardo Maranhao, Tor Olav Trøim will have some closing comments prior to a question and answer session. Information on how to ask a question will be provided then. At this time, all participants are in listen-only mode. I will now pass you over to Carl Fredrik Staubo. Carl, please go ahead.

Speaker #1: Information on how to ask a question will be provided then. At this time, all participants are in listen-only mode. I will now pass you over to Karl Fredrik Staubo.

Speaker #1: Karl, please go ahead.

Speaker #2: Thank you, Operator, and welcome to GOLAR's Q4 2025 earnings results presentation. My name is Karl Fredrik Staubo, the CEO of GOLAR, and as the Operator said, I'm accompanied today by our CFO Eduardo Maranhao to present this quarter's results.

Karl Fredrik Staubo: Thank you, operator. Welcome to Golar's Q4 2025 earnings results presentation. My name is Karl Fredrik Staubo, the CEO of Golar, and as the operator said, I'm accompanied today by our CFO, Eduardo Maranhao, to present this quarter's results, and our Chairman, Tor Olav Trøim, to give some closing remarks. Before we get into the presentation, please note the forward-looking statements on slide 2. Starting on slide 3. An overview of Golar today. Golar owns three FLNG vessels, all with 20-year charter backlog. Starting on the top left, the Hilli is the best performing FLNG globally and delivered another quarter of 100% economic uptime. The FLNG Gimi started its 20-year contract for BP offshore Mauritania and Senegal in June 2025, and is now producing above the contracted volume.

Speaker #2: And our Chairman, Tor Olav Troim, will give some closing remarks. Before we get into the presentation, please note the forward-looking statements on slide 2.

Speaker #2: Starting on slide 3, and an overview of GOLAR today. GOLAR owns three FLNG vessels, all with 20-year charter backlog. Starting on the top left, the hilly is the best-performing FLNG globally, and delivered another quarter of 100% economic uptime.

Karl Fredrik Staubo: Starting on the top left, the Hilli is the best performing FLNG globally and delivered another quarter of 100% economic uptime. The FLNG Gimi started its 20-year contract for BP offshore Mauritania and Senegal in June 2025, and is now producing above the contracted volume.

Speaker #2: The FLNG gimi started its 20-year contract for BP offshore maritime and Senegal in June '25, and is now producing above-the-contracted volume. The Mark II FLNG is under construction and on schedule for delivery by year-end '27, and thereafter to start a 20-year charter in Argentina alongside the hilly.

Karl Fredrik Staubo: The Mark II FLNG is under construction and on schedule for delivery by year end 2027, and thereafter to start a 20-year charter in Argentina alongside the Hilli. We have three growth designs ranging from 2 to 5 million tons per annum, and we have obtained yard availability and pricing for all three designs during Q4. We're listed in Nasdaq with a market cap of approximately $4.5 billion, and pre-year-end, we had a cash balance of $1.2 billion and a net debt position of $1.5 billion. We have an EBITDA backlog standing at $17 billion before commodity-linked earnings and inflationary adjustments. Our adjusted EBITDA for 2025 was $232 million, and we expect this to grow to about $800 million once the fleet is fully delivered and under long-term contracts.

Speaker #2: We have three growth designs ranging from 2 to 5 million tons per annum, and we have obtained yard availability and pricing for all three designs during Q4.

Speaker #2: We're listed on NASDAQ with a market cap of approximately $4.5 billion, and pre-year-end we had a cash balance of $1.2 billion, and a net debt position of $1.5 billion.

Speaker #2: We have an EBITDA backlog standing at 17 billion dollars before commodity-linked earnings and inflationary adjustments. Our adjusted EBITDA for '25 was 232 million, and we expect this to grow to about 800 million dollars once the fleet is fully delivered, and on their long-term contracts.

Karl Fredrik Staubo: Our adjusted EBITDA for 2025 was $232 million, and we expect this to grow to about $800 million once the fleet is fully delivered and under long-term contracts.

Speaker #2: Turning to slide 4, this is just an illustration of the overview of the long-term cash flow visibility of our 20-year charters. Hilli will end her existing contract for Perenco in Cameroon in July, then go to the Seatrium Shipyard in Singapore for upgrade and life extension work before starting her 20-year charter in Argentina during the second half of '27.

Karl Fredrik Staubo: Turning to slide 4, is just an illustration of the overview of the long-term cash flow visibility of our 20-year charters. Hilli will end her existing contract for Franco in Cameroon in July this year and go via Sea Dream Shipyard in Singapore for upgrades and life extension work before starting her 20-year charter in Argentina during the second half of 2027. Gimi is producing under a 20-year charter for BP, also Mauritania and Senegal. The Mark II is on schedule to start our 20-year contract during first half 2028. On slide 5, we build up the adjusted EBITDA contribution from the existing fleet. Golar's 70% ownership of the Gimi provide us with an annual EBITDA of $150 million, based on the contracted volume.

Speaker #2: Gimi is producing under a 20-year charter for BP offshore maritime and Senegal, and the Mark II is on schedule to start her 20-year contract during first half '28.

Speaker #2: On slide 5, we build up the adjusted EBITDA contribution from the existing fleet. GOLAR's 70% ownership of the gimi provides us with an annual EBITDA of 150 million dollars, based on the contracted volume.

Karl Fredrik Staubo: Golar's 70% ownership of the Gimi provide us with an annual EBITDA of $150 million, based on the contracted volume.

Karl Fredrik Staubo: Hilli will contribute $285 million, once on contract in Argentina. Similarly, the Mark II will contribute $400 million on operational in Argentina. If we net off our G&A of around $35 million, we foresee long-term EBITDA generation of $800 million a year before commodity upside, inflationary adjustments, and any incremental FLNG units. The embedded commodity upside comprise of two components. It's the profit-sharing mechanism in the FLNG contract, as well as our 10% shareholding in Southern Energy. The commodity upside provides Golar with an incremental upside of approximately $100 million for every dollar the offtake price is above $8 Argentina. A downside of approximately $28 million for every dollar the FOB price in Argentina is below Cesar's cash break-even.

Speaker #2: Hilli will contribute $285 million, once on contract in Argentina, and similarly the Mark II will contribute $400 million, once operational in Argentina. If we then net off our G&A of around $35 million, we foresee long-term EBITDA generation of $800 million a year before commodity upside, inflationary adjustment, and any incremental FLNG units.

Speaker #2: The embedded commodity upside comprises two components: it's the profit-sharing mechanism in the FLNG contract, as well as our 10% shareholding in Southern Energy.

Speaker #2: The commodity upside provides GOLAR with an incremental upside of approximately 100 million dollars for every dollar the offtake price is above 8 dollars Argentina.

Karl Fredrik Staubo: The commodity upside provides Golar with an incremental upside of approximately $100 million for every dollar the offtake price is above $8 Argentina. A downside of approximately $28 million for every dollar the FOB price in Argentina is below Cesar's cash break-even.

Speaker #2: And a downside of approximately 28 million dollars for every dollar the FOB price in Argentina is below CESA's cash breakeven. We believe the skewed risk-reward of these commodity exposure will contribute meaningful earnings over the 20-year life of our Argentina contract, illustratively if LNG prices return to 2022 levels, the incremental earnings from the commodity upside would be an annual addition of 2.7 billion.

Karl Fredrik Staubo: We believe the skewed risk reward of this commodity exposure will contribute meaningful earnings over the 20-year life of our Argentina contracts. Illustratively, if LNG prices return to 2022 levels, the incremental earnings from the commodity upside would be an annual addition of $2.7 billion. If LNG prices remain at current levels, we see an additional commodity upside of approximately $200 million per year. Turning to slide 6, highlighting some of the key characteristics of our FLNG charter agreements. We aim to structure our LNG contracts as solid infrastructure cash flow with meaningful contractual protections. Some of the key attributes of these protections include that all of our contracts are paid in US dollars. All cash flows are paid offshore, net of any local taxes in the countries where we operate.

Speaker #2: Or if LNG prices remain at current levels, we see an additional commodity upside of approximately 200 million dollars per year. Turning to slide 6, highlighting some of the key characteristics of our FLNG charter agreements.

Speaker #2: We aim to structure our LNG contract as solid infrastructure cash flow, with meaningful contractual protections. Some of the key attributes of these protections include that all of our contracts are paid in US dollars, all cash flows are paid offshore net of any local taxes in the countries where we operate, the contract is made under English law, and for all the long-term contracts, our operating costs and maintenance capex are either passed through or reimbursable by our counterparts.

Karl Fredrik Staubo: We aim to structure our LNG contracts as solid infrastructure cash flow with meaningful contractual protections. Some of the key attributes of these protections include that all of our contracts are paid in US dollars. All cash flows are paid offshore, net of any local taxes in the countries where we operate.

Karl Fredrik Staubo: The contracts are made under English law, and for all the long-term contracts, our operating costs and maintenance CapEx is either passed through or reimbursable by our counterparts. Moving to the next section, the business update, starting at slide 8. Starting on the left-hand side, Q4 was another active quarter for Golar, concluding 2025 as a record year of execution. During the quarter, all conditions precedent for the 20-year contract for Mark II in Argentina were successfully met. We concluded 2 financing transactions, totaling $1.7 billion in the quarter, comprising of a new $1.2 billion bank refinancing, increasing $630 million to $1.2 billion. The new facility has improved terms compared to Gimi's initial financing facility, and the new facility proves the bankability of our FLNG assets once operational on their long-term contracts.

Speaker #2: Moving to the next session, and the business update starting at slide 8. Starting on the left-hand side, Q4 was another active quarter for GOLAR, concluding '25 as a record year of execution.

Speaker #2: During the quarter, all conditions precedent for the 20-year contract for Mark II in Argentina were successfully met. We concluded two financing transactions, totaling 1.7 billion dollars in the quarter, comprising of a new 1.2 billion dollar bank refinancing increasing 630 million to 1.2 billion.

Karl Fredrik Staubo: totaling $1.7 billion in the quarter, comprising of a new $1.2 billion bank refinancing, increasing $630 million to $1.2 billion. The new facility has improved terms compared to Gimi's initial financing facility, and the new facility proves the bankability of our FLNG assets once operational on their long-term contracts.

Speaker #2: The new facility has improved terms compared to gimi's initial financing facility, and the new facility proves the bankability of our FLNG assets once operational on their long-term contracts.

Speaker #2: We also entered the rated US unsecured bond market with a 500 million dollar bond offering, with a coupon at 7.5%. During the quarter, CESA signed a letter of agreement for an eight-year offtake deal for the first 2 million tons of production in Argentina.

Karl Fredrik Staubo: We also entered the rated US unsecured bond market with a $500 million bond offering, with a coupon at 7.5%. During the quarter, SEFE signed a letter of agreement for an 8-year offtake deal for the first 2 million tons of production in Argentina. The LOI was signed with SEFE, which stands for Securing Energy for Europe, a subsidiary of the German government. They are also the existing offtaker for Hilli in Cameroon today, so it's an offtaker we know and cooperate well with. The terms of the offtake agreement is 1 million tons is linked to Brent prices, and 1 million tons is linked to Henry Hub plus a premium. We expect these LOIs to be formed into a letter of agreement within Q1 of this year, at which point the details of the commercial terms will be disclosed.

Speaker #2: The LOI was signed with CEFA, which stands for Securing Energy for Europe. A subsidiary of the German government, they are also the existing offtaker for Hilly in Cameroon today, so it's an offtaker we know and cooperate well with.

Speaker #2: The terms of the offtake agreement is 1 million tons is linked to Brent prices, and 1 million ton is linked to Henry Hub plus a premium.

Karl Fredrik Staubo: and 1 million tons is linked to Henry Hub plus a premium. We expect these LOIs to be formed into a letter of agreement within Q1 of this year, at which point the details of the commercial terms will be disclosed.

Speaker #2: We expect these LOIs to be formed into a letter of agreement within Q1 of this year, at which point the details of the commercial terms will be disclosed.

Speaker #2: During Q4, we bought back and canceled 1.1 million shares at an average share price of 37.76. We're also very pleased with commercial progress made in the quarter for a contemplated fourth FLNG project.

Karl Fredrik Staubo: During Q4, we bought back and canceled 1.1 million shares at an average share price of $37.76. We're also very pleased with commercial progress made in the quarter for a contemplated fourth FLNG project. We'll describe this in greater detail later in the presentation. Turning to the right-hand side of the full development for the year, 2025 was truly a record year of execution, securing $14 billion in EBITDA backlog across the two 20-year contracts in Argentina. We took new financing facilities of $2.275 billion across the mentioned Gimi bank refinancing and the US-rated bond, as well as a $575 million convertible bond issued in June 2025. We obtained the commercial operations date of Gimi and doubled our operating fleet of FLNGs.

Speaker #2: We'll describe this in greater detail later in the presentation. Turning to the right-hand side and the full developments for the year, '25 was truly a record year of execution, securing 14 billion dollars in EBITDA backlog across the two 20-year contracts in Argentina.

Speaker #2: We took new financing facilities of 2.275 billion across the mentioned gimi bank refinancing and the US rated bond, as well as a 575 million convertible bond issued in June '25.

Karl Fredrik Staubo: as well as a $575 million convertible bond issued in June 2025. We obtained the commercial operations date of Gimi and doubled our operating fleet of FLNGs.

Speaker #2: We obtained the commercial operations date of gimi and doubled our operating fleet of FLNGs. We continue to perform according to our market-leading operational uptime, and we're especially pleased to see the gimi join the operational excellence of our sister Hilly and both vessel produce above their contracted amounts, providing extra value to our stakeholders.

Karl Fredrik Staubo: We continue to perform according to our market-leading operational off-time. We're especially pleased to see the Gimi join the operational excellence of our sister, Hilli. Both vessels produce above their contracted amounts, providing extra value to our stakeholders. In total, during 2025, we bought back 3.6 million shares, confirming the board's and management view that we see attractive value in our own stock. We've fully exited LNG shipping after 50 years in the business, with the sale of the Golar Arctic and our investment in Avenir LNG. All in all, we're very pleased with the year that passed and hope to keep the same progress in the year we have now started. Turning to slide 9 and a snapshot for the Hilli. Hilli continued her market-leading track record.

Speaker #2: In total, during '25, we bought back 3.6 million shares, confirming the board's and management's view that we see attractive value in our own stock.

Speaker #2: We fully exited LNG shipping after 50 years in the business, with the sale of the GOLAR Arctic and our investment in Avenir Shipping. So all in all, we're very pleased with the year that passed and hope to keep the same progress in the year we have now started.

Karl Fredrik Staubo: All in all, we're very pleased with the year that passed and hope to keep the same progress in the year we have now started. Turning to slide 9 and a snapshot for the Hilli. Hilli continued her market-leading track record.

Speaker #2: Turning to slide 9 and a snapshot for the Hilly. Hilly continued her market-leading track record. For the year, we generated a slight overproduction, recognizing $2.5 million of excess earnings over the 1.4 million tons contracted capacity.

Karl Fredrik Staubo: For the year, we generated a slight overproduction, recognizing $2.5 million of excess earnings over the 1.4 million tons contracted capacity. In December, we had a major production milestone, producing our 10 million tons of LNG since start of contract in 2018. At the end of the current charter in July 2024, the vessel will sail from Cameroon to Seatrium Shipyard in Singapore for vessel upgrades and life extension work. The required long-lead items and equipment needed for the work at Seatrium have been ordered, and the pre-fabrication of certain work scopes have started at the shipyard. During first half of 2025, Hilli will sail from Singapore to Argentina to start her 20-year contract, expected to start during the summer of 2025.

Speaker #2: In December, we had a major production milestone, producing our 10 millionth ton of LNG since startup of contract in 2018. At the end of the current charter in July this year, the vessel will sail from Cameroon to Seatrium Shipyard in Singapore for vessel upgrades and life extension work.

Speaker #2: The required long lead items and equipment needed for the work at Seatrium have been ordered and the prefabrication of certain work scopes has started at the shipyard.

Speaker #2: During the first half of next year, Hilly will sail from Singapore to Argentina to start her 20-year contract, expected to start during the summer of next year.

Karl Fredrik Staubo: During first half of 2025, Hilli will sail from Singapore to Argentina to start her 20-year contract, expected to start during the summer of 2025.

Speaker #2: She will then contribute $285 million of annual EBITDA, or $5.7 billion of adjusted EBITDA backlog over a 20-year period. Slide 10 focuses on Gimi.

Karl Fredrik Staubo: She will then contribute $285 million of annual EBITDA, or $5.7 billion over just the EBITDA backlog for the 20-year period. Slide 10 focuses on Gimi. As mentioned, Gimi achieved its COD in June 2025. The unit is still optimizing operations in close collaboration with the upstream partners of the GTA project. Production is ahead of schedule and solid optimization has been achieved to date. In Q4, we invoiced a dayrate 3% above the contractual dayrate, and we are now frequently producing at volumes that on an annual, annualized basis, would significantly surpass even nameplate capacity. It's worth to note that the throughput capacity of any liquefaction plant is sensitive to gas quality and ambient temperatures. Throughput variation between winter and summer months should therefore be expected, where colder ambient temperatures during winter benefit the production levels.

Speaker #2: As mentioned, Gimi achieved its COD in June 2025. The unit is still optimizing operations, in close collaboration with the upstream partners of the GTA project.

Speaker #2: Production is ahead of schedule, and solid optimization has been achieved to date. In Q4, we invoiced a day rate 3% above the contractual day rate.

Speaker #2: And we are now frequently producing at volumes that, on an annualized basis, would significantly surpass even nameplate capacity. It's worth to note that the throughput capacity of any liquefaction plant is sensitive to gas quality and ambient temperatures.

Karl Fredrik Staubo: It's worth to note that the throughput capacity of any liquefaction plant is sensitive to gas quality and ambient temperatures. Throughput variation between winter and summer months should therefore be expected, where colder ambient temperatures during winter benefit the production levels.

Speaker #2: Throughput variation between winter and summer months should therefore be expected, where colder ambient temperatures during winter benefit the production levels. However, our contracted rate is based on 90% of nameplate, and any production over and beyond that number is a pro rata increase to our earnings.

Karl Fredrik Staubo: However, our contracted rate is based on 90% of nameplate, and any production over and beyond that number is a pro rata increase to our earnings. Based on operations to date, we expect Gimi to produce above her contracted values, volumes on an annual average basis, and will continue to improve how meaningful that can be in the months to come. Turning to slide 11 and the Mark II FLNG. The construction of the unit remains on budget and on schedule for delivery by year-end 2027. Construction is now close to 50% complete, and we have spent approximately $1.1 billion of the total $2.2 billion conversion scope. The full $1.1 billion spent to date has been equity financed. As you can see from the pictures on the right-hand side, meaningful construction progress is now advancing.

Speaker #2: Based on operations to date, we expect gimi to produce above her contracted values volumes on an annual average basis. And we'll continue to improve how meaningful that can be in the months to come.

Speaker #2: Turning to slide 11 and the Mark II FLNG. The construction of the unit remains on budget and on schedule for delivery by year end '27.

Speaker #2: Construction is now close to 50% complete, and we have spent approximately $1.1 billion of the total $2.2 billion conversion scope. The full $1.1 billion spent to date has been equity financed.

Karl Fredrik Staubo: The full $1.1 billion spent to date has been equity financed. As you can see from the pictures on the right-hand side, meaningful construction progress is now advancing.

Speaker #2: As you can see from the pictures on the right-hand side, meaningful construction progress is now advancing. The midship manufacturing, which will house the liquefaction plant, is now well underway, and the new midsection will be approximately 63 meters wide and approximately 80 meters long.

Karl Fredrik Staubo: The mid-ship manufacturing, which will house the liquefaction plant, is now well underway. The new midsection will be approximately 63 meters wide and approximately 80 meters long. We've now also surpassed 6 million man-hours without any lost time injuries. On slide 12, SESA is also making strong progress on the infrastructure required to facilitate for the gas grid connection of the FLNG Hilli, as well as the required land-based infrastructure to support FLNG operations in Argentina. SESA has now awarded approximately $500 million of investment to date, including the pipeline connection to the existing grid, support vessels such as tugs and supply vessels, and construction of the land-based warehouse to facilitate spare parts and operational support for our operations in Argentina. On slide 13, SESA is also moving ahead with a designated pipeline from Vaca Muerta to the Gulf of San Matias.

Speaker #2: We've now also surpassed 6 million man-hours without any lost time injuries. On slide 12, CESA is also making strong progress on the infrastructure required to facilitate the gas grid connection of the FLNG Hilly, as well as the required land-based infrastructure to support FLNG operations in Argentina.

Speaker #2: CESA has now awarded approximately 500 million dollars of investment to date. Including the pipeline connection to the existing grid, support vessels such as tugs and supply vessels, and construction of the land-based warehouse to facilitate spare parts and operational support for our operations in Argentina.

Karl Fredrik Staubo: including the pipeline connection to the existing grid, support vessels such as tugs and supply vessels, and construction of the land-based warehouse to facilitate spare parts and operational support for our operations in Argentina. On slide 13, SESA is also moving ahead with a designated pipeline from Vaca Muerta to the Gulf of San Matias.

Speaker #2: On slide 13, CESA is also moving ahead with the designated pipeline from Vaca Muerta to the Gulf of San Matías. The pipeline comprised of three key components.

Karl Fredrik Staubo: The pipeline comprise of 3 key components. The first component is the turbo compressors, and the contract for those was awarded in December 2025. The second component is the line pipes, which will then bring the gas, the approximate 500 km from Vaca Muerta to San Matias. Those were also awarded in December last year. The remaining component is the EPC for the actual construction of the line pipes and the compressor, where we have received 8 proposals and expect to have an award within the first half of this year, upon which construction will ramp up. Turning to slide 14.

Speaker #2: The first component is the turbo compressors and the contract for those was awarded in December '25. The second component is the line pipes which will then bring the gas the approximate 500 kilometers from Vaca Muerta to San Matías.

Speaker #2: Those were also awarded in December last year. The remaining component is the EPC for the actual construction of the line pipes and the compressor.

Speaker #2: We have received eight proposals and expect to have an award within the first half of this year, upon which construction will ramp up.

Speaker #2: Turning to slide 14. During the quarter, we confirmed yard availability and price for the three growth designs that we have in question ranging from Mark I to be built at Seatrium in Singapore, Mark II at TMC Raffles in China, or a 5 million ton unit that could be built at Samsung in Korea.

Karl Fredrik Staubo: During the quarter, we confirmed yard availability and price for the 3 growth designs that we have in question, ranging from Mark I to be built at Seatrium in Singapore, Mark II at CIMC Raffles in China, or a 5 million ton unit that should be built at Samsung in Korea. We're pleased to see that we still obtain attractive CapEx per ton and around 3-year construction time for the conversion candidates, and north of 4 years for the Mark III. This is helpful input in developing our commercial pipeline, and the price point and delivery is confirmed interest with our clients. Turning to slide 15, we see multiple discussions for FLNG deployments. We see an increasingly strong demand for FLNG tonnage, driving positive developments of our commercial pipeline. We're currently in discussions for deployment of projects in Africa, Middle East, and South America.

Speaker #2: We're pleased to see that we still obtained attractive CapEx per ton and around three-year construction time for the conversion candidates and north of four years for the Mark III.

Speaker #2: This is helpful input in developing our commercial pipeline and the price point and delivery is confirmed interest with our clients. Turning to slide 15, we see multiple discussions for FLNG deployment.

Karl Fredrik Staubo: Turning to slide 15, we see multiple discussions for FLNG deployments. We see an increasingly strong demand for FLNG tonnage, driving positive developments of our commercial pipeline. We're currently in discussions for deployment of projects in Africa, Middle East, and South America.

Speaker #2: We see an increasingly strong demand for FLNG tonnage driving positive development of our commercial pipeline. We're currently in discussions for deployment of projects in Africa, Middle East, and South America.

Speaker #2: Based on the pace of the commercial development and differences in vessel design requirements of the projects, that will dictate the design that we will order in the end.

Karl Fredrik Staubo: Based on the pace of the commercial developments and differences in vessel design requirements of the projects, that will dictate the design that we will order in the end. We do not foresee any meaningful CapEx expenditure until the commercial terms for the next project have matured. We will revert to the market once we have a meaningful update on our fourth unit. Turning to slide 16, and some of the overarching developments of the LNG market. Last year, the LNG market was around 434 million tons, expected to grow approximately 50% in the next five years, mainly driven by supply out of the US. We note with interest that US, which is already the largest producer in the world, will take the vast majority of incremental growth. That's particularly interesting, as the US is already the incremental producer on the cost curve of LNG.

Speaker #2: We do not foresee any meaningful CapEx expenditure until the commercial terms for the next project have matured. We will revert to the market once we have meaningful updates on our fourth unit.

Speaker #2: Turning to slide 16 and some of the overarching developments of the LNG market. Last year, the LNG market was around 434 million tons. Expected to grow approximately 50% in the next five years, mainly driven by supply out of the US.

Karl Fredrik Staubo: mainly driven by supply out of the US. We note with interest that US, which is already the largest producer in the world, will take the vast majority of incremental growth. That's particularly interesting, as the US is already the incremental producer on the cost curve of LNG.

Speaker #2: We note with interest that US, which is already the largest producer in the world, will take the vast majority of incremental growth. That's particularly interesting as the US is already the incremental producer on the cost curve of LNG.

Speaker #2: We see strong demand development driven by volumes out of the Far East. Where China is currently the most active buyer in the market. Going forward, we need to see additional LNG FIDs to cater for the demand that's coming.

Karl Fredrik Staubo: We see strong demand development driven by volumes, out of the Far East, where China is currently the most active buyer in the market. Going forward, we need to see additional LNG FIDs to cater for the demand that's coming, and this fits well with the delivery schedule that's just been confirmed by the shipyards and for the commercial discussions, and the negotiations. I'll now hand the call over to Eduardo to take us through the group results for the quarter.

Speaker #2: And this fits well with the delivery schedule that's just been confirmed by the shipyards. And for the commercial discussions under negotiations. I'll now hand the call over to Eduardo to take us through the group results for the quarter.

Speaker #2: Thank you, Carl, and good morning, everyone. I'm happy to share an overview of GOLAR's financial performance for the fourth quarter of 2025. If we move to slide 18, let's review some of the key highlights of the quarter.

Eduardo Maranhao: Thank you, Karl, good morning, everyone. I'm happy to share an overview of Golar's financial performance for Q4 of 2025. If we move to slide 18, let's review some of the key highlights of the quarter. Total operating revenues significantly increased in 2025, reaching $133 million for the quarter, and $394 million during the full year, an increase of over 52% when compared to 2024. This quarter, we report a net income of $23 million and a total of $113 million for the full year of 2025, an increase of 40% compared to 2024. Our Q4 adjusted EBITDA came in at $91 million, reaching a total of $265 million for the year.

Eduardo Maranhão: Thank you, Karl, good morning, everyone. I'm happy to share an overview of Golar's financial performance for Q4 of 2025. If we move to slide 18, let's review some of the key highlights of the quarter. Total operating revenues significantly increased in 2025, reaching $133 million for the quarter, and $394 million during the full year, an increase of over 52% when compared to 2024. This quarter, we report a net income of $23 million and a total of $113 million for the full year of 2025, an increase of 40% compared to 2024.

Speaker #2: Total operating revenues significantly increased in 2025, reaching 133 million dollars for the quarter. And 394 million dollars during the full year. An increase of over 52% when compared to 2024.

Speaker #2: This quarter, we report a net income of 23 million dollars and a total of 113 million for the full year of 2025. An increase of 40% compared to 2024.

Eduardo Maranhão: Our Q4 adjusted EBITDA came in at $91 million, reaching a total of $265 million for the year.

Speaker #2: Our Q4 adjusted EBITDA came in at 91 million dollars, reaching a total of 265 million dollars for the year. Some key drivers of this performance were Hilly as Carl mentioned before, has maintained its commercial uptime level of 100% and recognized an additional two and a half million dollars over production in Q4 '25.

Eduardo Maranhao: Some key drivers of this performance were Hilli, as Karl mentioned before, has maintained its commercial uptime level of 100% and recognized an additional two and a half million dollars over production in Q4 2025. Gimi also saw increased earnings in Q4, largely driven by higher production volumes, resulting from technical improvements and improved ambient conditions on site. This quarter, we declare a dividend of $0.25 per share, with a record date of 9 March, and a payment scheduled for 18 March. In November 2025, we approved a new $150 million buyback program, of which approximately $41 million was spent during Q4 at an average price of $37.76 per share. Across the full 2025, we have been consistently active on buybacks, and we purchased and canceled a total of 3.6 million shares.

Eduardo Maranhão: Some key drivers of this performance were Hilli, as Karl mentioned before, has maintained its commercial uptime level of 100% and recognized an additional two and a half million dollars over production in Q4 2025. Gimi also saw increased earnings in Q4, largely driven by higher production volumes, resulting from technical improvements and improved ambient conditions on site. This quarter, we declare a dividend of $0.25 per share, with a record date of 9 March, and a payment scheduled for 18 March.

Speaker #2: While Gimi also saw increased earnings in Q4, largely driven by higher production volumes resulting from technical improvements and also improved ambient conditions on site.

Speaker #2: This quarter, we declare a dividend of 25 cents per share with a record date of March 9 and a payment scheduled for March 18.

Eduardo Maranhão: In November 2025, we approved a new $150 million buyback program, of which approximately $41 million was spent during Q4 at an average price of $37.76 per share. Across the full 2025, we have been consistently active on buybacks, and we purchased and canceled a total of 3.6 million shares.

Speaker #2: In November, we approved a new 150 million dollar buyback program, of which approximately 41 million dollars was spent during Q4 at an average price of 37 dollars and 76 cents, per share.

Speaker #2: Across the full year 2025, we have been consistently active on buybacks and have repurchased and canceled a total of 3.6 million shares. I'll provide some further information on this in the next slides.

Eduardo Maranhao: I'll provide some further information on this in the next slide. Moving to slide 19. We continue to improve our balance sheet flexibility. Q4 was a very active quarter in terms of transactions. In October, we issued of $500 million under our first US-rated 5-year senior unsecured notes with a coupon of 7.5%. At that time, we repaid $190 million of our previous outstanding 2021 bonds. In November, we closed a new $1.2 billion commercial bank facility for Guinea, equivalent to just over 5.6x its annual contracted EBITDA. This allows us to release approximately $400 million in liquidity net to Golar. Our cash position remains strong, with $1.2 billion of cash in hand at the year-end.

Eduardo Maranhão: I'll provide some further information on this in the next slide. Moving to slide 19. We continue to improve our balance sheet flexibility. Q4 was a very active quarter in terms of transactions. In October, we issued of $500 million under our first US-rated 5-year senior unsecured notes with a coupon of 7.5%. At that time, we repaid $190 million of our previous outstanding 2021 bonds. In November, we closed a new $1.2 billion commercial bank facility for Guinea, equivalent to just over 5.6x its annual contracted EBITDA. This allows us to release approximately $400 million in liquidity net to Golar.

Speaker #2: Moving to slide 19. We continue to improve our balance sheet flexibility and Q4 was a very active quarter in terms of transactions. In October, we issued a 500 million dollars under our first US rated five-year senior unsecured note with a coupon of seven and a half percent.

Speaker #2: And at that time, we repaid 190 million dollars of our previous outstanding 2021 bonds. In November, we closed the new 1.2 billion dollar commercial bank facility for Gimi equivalent to just over 5.6 times its annual contracted EBITDA.

Speaker #2: This allows us to release approximately $400 million in liquidity net to Golar. Our cash position remains strong with $1.2 billion of cash in hand at the year end.

Eduardo Maranhão: Our cash position remains strong, with $1.2 billion of cash in hand at the year-end.

Speaker #2: Our total gross debt stood at 2.7 billion dollars. Leaving us with a net debt position of one and a half billion dollars. On a fully delivered basis, in 2028, once all FLNGs are in operation in Argentina, our net debt to EBITDA ratio is set to reduce significantly to just over 3.4 times.

Eduardo Maranhao: Our total gross debt stood at $2.7 billion, leaving us with a net debt position of one and a half billion dollars. On a fully delivered basis in 2028, once all FLNGs are in operation in Argentina, our net debt to EBITDA ratio is set to reduce significantly to just over 3.4x. When it comes to the Mark II, we continue to fund its CapEx commitment. So far we have spent just over $1.1 billion to date. All of that amount has been funded with equity. We continue to evaluate further debt optimization alternatives, which may include the refinancing of Hilli's current facilities and a new long-term debt facility backed by the Mark II. This would allow us to continue to release significant liquidity to continue to support our fund, our growth projects.

Eduardo Maranhão: Our total gross debt stood at $2.7 billion, leaving us with a net debt position of one and a half billion dollars. On a fully delivered basis in 2028, once all FLNGs are in operation in Argentina, our net debt to EBITDA ratio is set to reduce significantly to just over 3.4x. When it comes to the Mark II, we continue to fund its CapEx commitment. So far we have spent just over $1.1 billion to date. All of that amount has been funded with equity. We continue to evaluate further debt optimization alternatives, which may include the refinancing of Hilli's current facilities and a new long-term debt facility backed by the Mark II.

Speaker #2: When it comes to the Mark II, we continue to fund its CapEx x commitment. And so far, we have spent just over 1.1 billion dollars to date.

Speaker #2: All of that amount has been funded with equity. So we continue to evaluate further debt optimization alternatives, which may include the refinancing of Hilli's current facility and a new long-term debt facility backed by the Mark II.

Speaker #2: This would allow us to continue to release significant liquidity to continue to support our growth projects. Now moving to slide 20. We continue to focus on accretive growth while maintaining a sustainable policy of shareholder returns.

Eduardo Maranhão: This would allow us to continue to release significant liquidity to continue to support our fund, our growth projects.

Eduardo Maranhao: Now moving to slide 20. We continue to focus on accretive growth while maintaining a sustainable quality of shareholder returns. Our plan is to allocate most of operating cash flow after debt service to shareholders, while continuing to recycle capital through asset-level financings and existing debt optimizations to fund growth. In 2025, we returned approximately $250 million in the form of dividends and buybacks, of which $103 million were paid in dividends over the course of the year, and $144 million in buybacks, as explained before. During that same period, we continued to grow and we invested over $750 million on CapEx for our FLNG units.

Eduardo Maranhão: Now moving to slide 20. We continue to focus on accretive growth while maintaining a sustainable quality of shareholder returns. Our plan is to allocate most of operating cash flow after debt service to shareholders, while continuing to recycle capital through asset-level financings and existing debt optimizations to fund growth. In 2025, we returned approximately $250 million in the form of dividends and buybacks, of which $103 million were paid in dividends over the course of the year, and $144 million in buybacks, as explained before.

Speaker #2: Our plan is to allocate most of operating cash flow after debt service to shareholders while continuing to recycle capital through asset-level financing and existing debt optimizations to fund growth.

Speaker #2: In 2025, we returned approximately 250 million dollars in the form of dividends and buybacks. Of which 103 million dollars were paid in dividends over the course of the year and 144 million dollars in buybacks as explained before.

Speaker #2: During that same period, we continued to grow, and we've invested over $750 million on CapEx for our FLNG units. Moving to slide 21, we can see that our share count has been significantly reduced over time.

Eduardo Maranhão: During that same period, we continued to grow and we invested over $750 million on CapEx for our FLNG units.

Eduardo Maranhao: Moving to slide 21, we can see that our share count has been significantly reduced over time, with a total of just over 101 million shares outstanding as of today. Over the course of last year, we bought back and subsequently canceled 3.6 million shares, as explained before. We currently have a remaining allowance of up to $190 million under our buyback program, and we plan to continue our active approach to accretive buybacks from time to time. Moving to slide 22. When our three FLNGs are in full operations in Argentina, we expect our EBITDA to grow to over $800 million before further commodity upside. This can grow even more, subject to further upside from LNG prices under the contract for Gilu and Mark II.

Eduardo Maranhão: Moving to slide 21, we can see that our share count has been significantly reduced over time, with a total of just over 101 million shares outstanding as of today. Over the course of last year, we bought back and subsequently canceled 3.6 million shares, as explained before. We currently have a remaining allowance of up to $190 million under our buyback program, and we plan to continue our active approach to accretive buybacks from time to time. Moving to slide 22. When our three FLNGs are in full operations in Argentina, we expect our EBITDA to grow to over $800 million before further commodity upside.

Speaker #2: With a total of just over 101 million shares outstanding as of today, over the course of last year we bought back and subsequently canceled 3.6 million shares, as explained before.

Speaker #2: We currently have a remaining allowance of up to 190 million dollars under our buyback program. And we plan to continue our active approach to accretive buybacks from time to time.

Speaker #2: Moving to slide 22. When our three FLNGs are in full operation in Argentina, we expect our EBITDA to grow to over $800 million before further commodity upside.

Speaker #2: This can grow even more subject to further upside from LNG prices under the contract for Hilly and Mark II. Based on that, our free cash flow generation could reach around 500 million dollars per year or approximately 5 dollars a share before commodity upside.

Eduardo Maranhão: This can grow even more, subject to further upside from LNG prices under the contract for Gilu and Mark II.

Eduardo Maranhao: Based on that, our free cash flow generation could reach around $500 million per year, or approximately $5 a share before commodity upside. This could represent a total increase of over 5 times our current dividend level of $1 per share, which we were currently paying. Incremental free cash flow could also be re-resulting under the SESA contracts, and can be estimated at approximately $100 million per year for every $ per million BTU increase in FOB prices above $8. Moving to slide 23, I just wanted to recap that there are many ways that investors can get exposure to Golar. We are listed in Nasdaq, and our market cap was just over $4.5 billion, with an average daily volume of over $50 million per day.

Eduardo Maranhão: Based on that, our free cash flow generation could reach around $500 million per year, or approximately $5 a share before commodity upside. This could represent a total increase of over 5 times our current dividend level of $1 per share, which we were currently paying. Incremental free cash flow could also be re-resulting under the SESA contracts, and can be estimated at approximately $100 million per year for every $ per million BTU increase in FOB prices above $8. Moving to slide 23, I just wanted to recap that there are many ways that investors can get exposure to Golar.

Speaker #2: This could represent a total increase of over five times our current dividend level of a dollar per share, which we were currently paying. Incremental free cash flow could also be resulting under the sales of contracts and can be estimated at approximately 100 million dollars per year for every dollar per million BTU increase in FOB prices above 8 dollars.

Speaker #2: Moving to slide 23, I just wanted to recap that there are many ways that investors can get exposure to GOLAR. We are listed in NASDAQ and our market cap was just over four and a half billion dollars.

Eduardo Maranhão: We are listed in Nasdaq, and our market cap was just over $4.5 billion, with an average daily volume of over $50 million per day.

Speaker #2: With an average daily volume of over 50 million dollars per day. We currently have 800 million dollars under two unsecured bonds issued in '24 and '25.

Eduardo Maranhao: We currently have $800 million on the two unsecured bonds issued in 2024 and 2025, and also an existing convertible bond of $575 million, which was issued last year. There are many different ways that investors can gain exposure to Golar, and this is a summary of how you can play that. I'll hand now the call back to you, Carl.

Eduardo Maranhão: We currently have $800 million on the two unsecured bonds issued in 2024 and 2025, and also an existing convertible bond of $575 million, which was issued last year. There are many different ways that investors can gain exposure to Golar, and this is a summary of how you can play that. I'll hand now the call back to you, Carl.

Speaker #2: And also an existing convertible bond of 575 million dollars, which was issued last year. So there are many different ways that investors can gain exposure to GOLAR.

Speaker #2: And this is a summary of how you can play that. I'll hand now the call back to you, Carl.

Speaker #1: Thank you, Eduardo. And turning to slide 25 and a look ahead at what can our focus on continued value creation. Near term, we see increasing commodity prices that will boost the commodity-linked earnings for Hilly until end of contract in July this year.

Karl Fredrik Staubo: Thank you, Eduardo. Turning to slide 25, and a look ahead at Our focus on continued value creation. Near term, we see increasing commodity prices that will boost the commodity-linked earnings for Golar until end of contract in July this year. Based on the strong performance on Gimi, we also expect to see increased capacity utilization payments that will somewhat improve the adjusted EBITDA from unit. We believe one of the most or least understood parts of Golar is the commodity upside of our Argentina contracts. Within this quarter, we expect the commercial terms for the SESA offtake to be announced, and hopefully that can ease the market's understanding of those, of that potential offer. We've done a proven to do accretive buyback and cancellation of Golar shares, and we have more capacity under the existing buyback program.

Speaker #1: Based on the strong performance on Gimi, we also expect to see increased capacity utilization payments that would somewhat improve the adjusted EBITDA from the unit.

Speaker #1: We believe one of the most or least understood parts of GOLAR is the commodity upside of our Argentina contracts. And within this quarter, we expect to commercial terms for the CEFA offtake to be announced and hopefully that can ease the market's understanding of those of that potential upside.

Karl Fredrik Staubo: Within this quarter, we expect the commercial terms for the SESA offtake to be announced, and hopefully that can ease the market's understanding of those, of that potential offer. We've done a proven to do accretive buyback and cancellation of Golar shares, and we have more capacity under the existing buyback program.

Speaker #1: We've done a reproving to do accretive buyback and cancellation of GOLAR shares. And we have more capacity under the existing buyback program. Through last year, and we'll continue to look for asset-level debt optimization and there's plenty of opportunity to do so across Hilly and the Mark II that could release significant liquidity to fund a fourth FLNG unit and enhance equity returns.

Karl Fredrik Staubo: Through last year, we'll continue to look for asset-level debt optimization. There's plenty of opportunity to do so across Gimi and the Mark II, that could release significant liquidity to fund a fourth FLNG unit and enhance equity returns. The startup of the Gimi and the Mark II contract in Argentina is obvious step changes in earnings growth as well. The commercial pipeline of new projects, new FLNG projects, remains under strong development. We see the terms in which we believe we can obtain to be highly accretive to our platform value. The commodity exposure on the SESA contract will come into fruition as the two units become operational. As Eduardo just explained, the dividend capacity and the capacity to multiply increase that is evident once we're fully operational.

Speaker #1: The startup of the Hilly and the Mark II contract in Argentina is obvious step changes in earnings growth as well. The commercial pipeline of new projects new FLNG projects remains under strong development.

Speaker #1: And we see the terms in which we believe we can obtain to be highly accretive to our platform value. The commodity exposure on the CEFA contract will come into fruition as the two units become operational.

Karl Fredrik Staubo: The commodity exposure on the SESA contract will come into fruition as the two units become operational. As Eduardo just explained, the dividend capacity and the capacity to multiply increase that is evident once we're fully operational.

Speaker #1: As Eduardo just explained, the dividend capacity, and the capacity to multiply and increase that is evident once we're fully operational. We continue to see structurally strong LNG demand beyond 2030 onwards.

Karl Fredrik Staubo: We continue to see structural, strong LNG demand beyond 2030 onwards, our focused FLNG strategy with proven FLNG conversion expertise and the recently reconfirmed price and delivery schedules from the conversion shipyards to further testimony to our business model. Another interesting thing to note is that the net present value of Golar is increasing daily until both FLNGs are operational in Argentina as a function of time. Turning to slide 26, Golar remains the only proven service provider of FLNG globally. We have an adjusted EBITDA backlog of $17 billion before commodity upside and inflationary adjustments. We remain with strong balance sheet flexibility of around 3.4x net debt to EBITDA once fully delivered. This enables growth while still increasing shareholder returns.

Speaker #1: And our focused FLNG strategy with proven FLNG conversion expertise and the recently reconfirmed price and delivery schedules from the conversion shipyards to further testimony to our business model.

Speaker #1: Another interesting thing to note is that the net present value of GOLAR is increasing daily until both FLNGs are operational in Argentina. That's a function of time.

Speaker #1: Turning to slide 26, Golar remains the only proven service provider of FLNG globally. We have an adjusted EBITDA backlog of $17 billion before commodity upside and inflationary adjustments.

Speaker #1: We remain with strong balance sheet flexibility of around 3.4 times net debt to EBITDA once fully delivered. This enables growth whilst still increasing shareholder returns.

Karl Fredrik Staubo: We remain with strong balance sheet flexibility of around 3.4x net debt to EBITDA once fully delivered. This enables growth while still increasing shareholder returns.

Operator: I'll now hand the call over to our Chairman, Tor Olav Trøim, for some closing remarks before we open up for Q&A. Please go ahead, sir.

Speaker #1: I'll now hand the call over to our chairman, Tor Olav Treim, for some closing remarks before we open up for Q&A. Please go ahead, Tor.

Speaker #3: Yeah. Thanks, Carl. First of all, I want to give you some thanks to management for a good execution in the year we have behind us.

Tor Olav Trøim: Yeah, thanks, Karl. First of all, I want to give some thanks to management for a good execution in the area we have behind us, to effectively secure $14 billion in EBITDA backlog and do more than $3 billion in financing, pay more than $1 billion in debt, in installment on the Mark II, and end the year with more than $1 billion in cash. It puts us in a very strong position to execute what we think should be an aggressive growth strategy, being the world's leading FLNG player in the market. We see today significant more demand for products than we ever have seen. It's more a question about concentrating our efforts into the products we think can give the highest possible overall return.

Speaker #3: To effectively secure 14 billion dollars in EBITDA backlog and do more than 2 billion in financing, pay more than a billion dollar in debt in installment on the Mark II.

Speaker #3: And end the year with more than a billion in cash. It puts us in a very strong position to execute what we think should be an aggressive growth strategy being the world's leading FLNG player in the market.

Speaker #3: We see today significant more demand for projects than we ever have seen. And it's more a question about concentrating our efforts into the projects we think can give the highest possible overall return.

Tor Olav Trøim: It's more a question about concentrating our efforts into the products we think can give the highest possible overall return.

Tor Olav Trøim: It's one of the board's mission to maximize the value of the company for all shareholders, both on long and short-term basis. To have an effectively priced equity is a major condition for growing this business. The value of Golar today, as Karl alerted to, is linked to three things. It's the value of the existing contract, it's the value of the options agreement we have, which is pretty much a one-sided call on gas for the next 20 years, and it's effectively the value of the Golar franchise. I know everybody's pretty good in calculating the value of the existing contracts. I don't think anybody really pay attention to the value of the options, but I'd like to focus a little bit about the third thing, the value of the Golar franchise.

Speaker #3: It is one of the board's missions to maximize the value of the company for all shareholders, both on a long- and short-term basis. To have an effectively priced equity is a major condition for growing this business.

Speaker #3: The value of GOLAR today, as Carl alerted to, is linked to three things. It's the value of the existing contract, it's the value of the options agreement we have, which is pretty much a one-sided call on gas for the next 20 years, and it's effectively the value of the GOLAR franchise.

Speaker #3: I know everybody's pretty good in calculating the value of the existing contracts. I don't think anybody really pays attention to the value of the options.

Tor Olav Trøim: I don't think anybody really pay attention to the value of the options, but I'd like to focus a little bit about the third thing, the value of the Golar franchise.

Speaker #3: But I like to focus a little bit about the third thing, the value of the GOLAR franchise. If 26 years since Frederiksen took over GOLAR and we effectively started the venture to build a massive LNG company, it's now 16 years since we effectively started the work on the FLNG activities.

Tor Olav Trøim: It's 26 years since Fredriksen took over Golar, we effectively started the venture to build a massive LNG company. It's now 16 years since we effectively started the work on the FLNG activities, which started in 2010. In 2014, we ordered the fourth vessel, the first vessel. It was in operation in 2018, we now have 8 years of extremely successful operation. That franchise, I don't think anybody fully understands the value, to illustrate a little bit, we have been approached by one of the largest oil companies in the world, who effectively said we cannot do this. Can you be your service arm to deliver FLNG activities going forward? I think that's a question.

Speaker #3: We've started in 2010. In '14, we ordered the fourth vessel. The first vessel it was in operation in 2018. And we now have eight years of extremely successful operation.

Speaker #3: That franchise, I don't think anybody fully understands the value of it. But to illustrate a little bit, we have been approached by one of the largest oil companies in the world who effectively said, "We cannot do this.

Tor Olav Trøim: Can you be your service arm to deliver FLNG activities going forward? I think that's a question.

Speaker #3: Can you be our service arm to deliver FLNG activities going forward?" I think that's a question to take those kind of things is probably a limited return compared to a lot of the other things we can do.

Tor Olav Trøim: To take those kind of things is probably a limited return compared to a lot of the other things we can do, I think in many ways to illustrate the value of the franchise we have built, which I think people are grossly estimating when they're trying to do the value. When it comes to the way we in the board look at the value, I think so far it's represented by the fact that we're buying back stocks. That's a reflection on the fact that we don't think that it's almost better to buy back your own stock at an undervaluation than to effectively do anything else.

Speaker #3: But I think in many ways, to illustrate the value of the franchise we have built, which I think people are grossly estimating when they're trying to do the value.

Speaker #3: When it comes to the way we in the board look at the value, I think so far it's represented by the fact that we're buying back stocks.

Speaker #3: And that's a reflection of the fact that we don't think the value we think that it's almost better to buy back your own stock at an undervaluation.

Speaker #3: And to effectively do anything else. We have also decided to push out vessel number four, and maybe also vessel number five, a little bit.

Tor Olav Trøim: We have also decided to push out the vessel number 4 and maybe also vessel number 5 a little bit, not because of lack of progress, but we're going through 2 years in 2026 and 2027, where we have limited cash flow because the Mark II has not started and releasing for a pair. I think what we want to do is to push the investment phase closer to the period where we are effectively running with an $800 million EBITDA and are actually self-service with capital for growth purposes. I was on the call in connection with the Q4 numbers. I've said then that if an undervaluation compared to the real value exists over time, then the board will kind of start processes which try to take out part of that benefit.

Speaker #3: Not because of lack of projects, but we're going through two years in 2006 and 2007 where we have limited cash flow because the Mark II has not started.

Speaker #3: And the Hilli is in for repair. So I think what we want to do is to push the investment phase closer to the period where we effectively are running with an $800 million EBITDA and are actually self-serviced with capital for growth purposes.

Speaker #3: I was on the call in connection with the Q&A numbers. And I've said then that, if an undervaluation compared to the real value exists over time, then the board will kind of start processes which try to take out part of that benefit.

Tor Olav Trøim: I've said then that if an undervaluation compared to the real value exists over time, then the board will kind of start processes which try to take out part of that benefit.

Tor Olav Trøim: Even if the share price in the latter weeks have shown some signs of recovery, the board still feels that the value of this company, including the value drivers I just mentioned, particularly number two and number three, should mean that the share price should have been higher than where it is today. What we have seen in other situations in this industry is that the valuation typically come when the cash is coming. It doesn't come when the contract is signing. I'm referring to companies like Cheniere, where you actually saw that the share price started to move when the cash finally came from the discussions. In order to kind of look at what we can do in the meantime, we have to explore alternative ways to enhance the value for the period under the cash flow coming in 2028.

Speaker #3: Even if the share price in the latter weeks have shown some signs of recovery, the board still feels that the value of this company including the value drivers I just mentioned, particularly number two and number three, should mean that the share price should have been higher than where it is today.

Speaker #3: What we have seen in other situations in this industry is that the valuation typically comes when the cash is coming. It doesn't come when the contract is signing.

Tor Olav Trøim: I'm referring to companies like Cheniere, where you actually saw that the share price started to move when the cash finally came from the discussions. In order to kind of look at what we can do in the meantime, we have to explore alternative ways to enhance the value for the period under the cash flow coming in 2028.

Speaker #3: I'm referring to companies like Cheniere, where you actually saw that the share price started to move when the cash finally came from the discussions.

Speaker #3: So in order to kind of look at what we can do in the meantime, we have had to explore alternative ways to enhance the value for the period under the cash flow coming 2028.

Speaker #3: We have asked the board to start the process where we're going to seek external advice to consider several ways to improve this the value for our shareholders.

Tor Olav Trøim: We have, as the board, started a process where we're going to seek external advice to consider several ways to improve the value for our shareholders. This thing includes processes, which includes talk to shareholders, it includes talk to industrial and financial potential partners, which can help us in enhancing the value of the company on a more shorter term basis. The market should be aware that we, several years ago, received unsolicited offer for the company, several ones. We structured that into a process, and then all the offers were, at that time, significantly higher than the share price. The board decided, however, not to recommend the sale of the company, which I think in retrospect has been the right decision to see how we later have built the company.

Speaker #3: This thing includes processes which includes talk to shareholders. It includes talk to industrial and financial potential partners, which can help us in enhancing the value of the company on a more shorter-term basis.

Speaker #3: The market should be aware that we several years ago received unsolicited offers for the company, several ones. We structured that into a process. And all the offers were at that time significantly higher than the share price.

Speaker #3: The board decided however not to recommend the sale of the company. Which I think in retrospect has been the right decision to see how we later have built the company.

Tor Olav Trøim: The board decided, however, not to recommend the sale of the company, which I think in retrospect has been the right decision to see how we later have built the company.

Speaker #3: The board of GOLAR today consists of board members including myself. We represent significant capital invested in the company. And you should be assured that the board has no other consideration than to do what we believe is the best interest for all shareholders.

Tor Olav Trøim: The board of Golar today consists of board members, including myself, which represent significant capital invested in the company, and you should be assured that the board have no other considerations than to do what we believe is the best interest for all shareholders. There is no other agendas here. The outcome of such a strategic process is kind of we are in the process of starting, combined with the board's internal discussion, is too early to be expected, but we'll keep the market updated. If these processes are likely to lead to material changes in Golar's operational or corporate structure. I hope this confirm the commitment I gave to the shareholders in connection with the Q1 report last year, where I said that we intend to do things if we don't see a material improvement of share price.

Speaker #3: There is no other agendas here. The outcome of such a strategic process, which kind of we are in the process of starting, combined with the board's internal discussion, is too early to be expected.

Speaker #3: But we'll keep the market updated if these processes are likely to lead to material changes in Golar's operational or corporate structure. I hope this confirms the commitment I gave to the shareholders in connection with the Q1 report last year.

Tor Olav Trøim: I hope this confirm the commitment I gave to the shareholders in connection with the Q1 report last year, where I said that we intend to do things if we don't see a material improvement of share price.

Speaker #3: Where I said that we intend to do things if we don't see a material improvement of share price. We have seen some. But I think we still feel that with 14 with 17 billion dollars of EBITDA backlog, and an industry-leading position including in derivative, which is significant value, that there are rooms for improvement.

Tor Olav Trøim: We have seen some, but I think we still feel that with 14, with $17 billion of EBITDA backlog and industry-leading position, including in derivative, which is significant value, that there are rooms for improvement. I generally hope that you all guys kind of give us some time to go through this process. As I said, no outcome is given, but I can assure you that the commitment we gave a year ago to explore alternatives way to extract value is kind of on the agenda for the board. That's the only thing I want to say about this thing. We will report back to the board, to the shareholders as we make progress on this thing.

Speaker #3: And I genuinely hope that you all guys kind of give us some time to go through this process. And as I said, no outcome is given.

Speaker #3: But I can assure you that the commitment we gave a year ago to explore alternative ways to extract value is kind of on the agenda for the board.

Speaker #3: That's the only thing I want to say about this thing. And we will report back to the board to the shareholders as we make progress on this thing.

Speaker #3: In the meantime, as Karl said, the value of the company should increase day by day as closer we get to the window in 2028.

Tor Olav Trøim: In the meantime, as Karl said, the value of the company should increase day by day as closer we get to the window in 2028. What I want to end with is that eventually we started 16 years ago, which was to effectively become a dominant FLNG player, pays off. I'm very proud of the performance of the Hilli contract. I'm equally improved that we now can deliver to BP and probably be the only part of the Greater Tortue Project which had delivered on time and on budget, and effectively, you know, delivering more than we should, according to the contract. Thanks. I hope that was enough to confirm that what we saying in earlier calls are lived up to by the board. Thank you.

Speaker #3: What I want to end with is that, eventually, we started 16 years ago, which was to effectively become a dominant FLNG player, paid off.

Speaker #3: I'm very proud of the performance of the Hilly contract. I'm equally improved that we now can deliver to BP and probably be the only part of the greater to two project which had delivered on time.

Speaker #3: And on budget. And effectively now delivering more than we should according to the contracts. So, thanks. I hope that was enough to confirm that what we're saying in earlier calls is lived up to by the board.

Tor Olav Trøim: Thanks. I hope that was enough to confirm that what we saying in earlier calls are lived up to by the board. Thank you.

Speaker #3: Thank you.

Speaker #1: Thank you, Tor. So operator, we are now ready for Q&A.

Karl Fredrik Staubo: Thank you, Tor. Operator, we are now ready for Q&A.

Speaker #2: Thank you. To ask a question, you will need to press star one and one on your telephone. And wait for your name to be announced.

Operator: Thank you. To ask a question, you will need to 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. There will be a limit of two questions per person on today's call. Following that, you may reenter the queue. Our first question comes from the line of John Mackay from Goldman Sachs & Co. Please go ahead. Your line is open.

Speaker #2: To withdraw your question, please press star one and one again. There will be a limit of two questions per person on today's call. Following that, you may re-enter the queue.

Speaker #2: Our first question comes from the line of John McKay from Goldman Sachs & Co. Please go ahead. Your line is open.

Speaker #3: Hey everyone. Thank you for the time. I appreciate all the thoughts around this strategic review. I just want to drill into the details a little bit to understand it's kind of a multifaceted process.

John Mackay: Hey, everyone. Thank you for the time. I appreciate all the thoughts around the strategic review. I just want to, you know, drill into the details a little bit. I understand it's kind of a multifaceted process, but can you walk us through what the specific process you're focused on right now looks like? You know, what could timing be? What are you watching to decide how to move forward? Maybe to put a bow on it, you mentioned you were approached. Is one of the options on the table here, a potential sale of the company?

Speaker #3: But can you walk us through what the specific process you're focused on right now looks like? What could timing be? Where do you watching to decide how to move forward?

Speaker #3: And maybe to put a bow on it, you mentioned you were approached. Is one of the options on the table here a potential sale of the company?

Tor Olav Trøim: I think, in view of the discussion we have had in the board, how we want to orientate the market around this, I don't want to give any further comments than what I've effectively already said. I think hopefully the shareholders have some respect for the fact that these kind of processes kind of need to be kept a little bit close to the board and not effectively be a public process.

Speaker #4: I think, in view of the discussion we have had in the Board, how we want to orientate the market around this, I don't want to give any further comments than what I've effectively already said.

Speaker #4: I think hopefully the shareholders have some respect for the fact that these kinds of processes kind of need to be kept a little bit close to the board and not effectively be a public process.

Speaker #3: Okay. Maybe asking a different way. You highlighted the current value of the company, and your desire to push maybe some of the next vessels to the right a little bit to reallocate capital.

John Mackay: Okay, maybe asking it a different way. You highlighted, you know, the current value of the company, your desire to push maybe some of the next vessels to the right a little bit to reallocate capital. Is the message here that the focus right now should be on further buybacks, specifically? I guess at what point do you decide to switch from maybe investing in the base business to, or, you know, buying effectively the base business to commercializing the next vessel? Thanks.

Speaker #3: Is the message here that the focus right now should be on further buybacks specifically? And I guess, at what point do you decide to switch from maybe investing in the base business, or buying—effectively—the base business, to commercializing the next vessel?

Speaker #3: Thanks.

Speaker #1: I can answer that one. So, there's no change in our committed focus to develop attractive FLNG projects. And none of the actions taken today will pause the pace of the commercial evolvement of the contract in discussion.

Karl Fredrik Staubo: I can answer that one. There's no change in our committed focus to develop attractive FLNG projects, and none of the actions taken today will pause the pace of the commercial involvement of the contract in discussion. That said, an FLNG project, if it's just to agree commercial terms with the counterpart, that would be fairly easy. These are very large infrastructure projects that require significant regulatory, governmental, tax, and environmental approvals, including LNG export laws. Most of the, or some of the countries we're in discussions for didn't export LNG before we started it. That's true for Cameroon, that's true for Mauritania, that's true for Senegal, and it's true for Argentina. There is absolutely no change whatsoever in Golar's committed focus for accretive FLNG growth. What we're saying is some of the projects in discussion have different vessel design requirements.

Speaker #1: That said, an FLNG project if it's just to agree commercial terms with the counterpart, that would be fairly easy. These are very large infrastructure projects that require significant regulatory governmental tax and environmental approvals.

Speaker #1: Including LNG export laws. And most of the or some of the countries we're in discussions for didn't export LNG before we started it. That's true for Cameroon.

Karl Fredrik Staubo: That's true for Cameroon, that's true for Mauritania, that's true for Senegal, and it's true for Argentina. There is absolutely no change whatsoever in Golar's committed focus for accretive FLNG growth. What we're saying is some of the projects in discussion have different vessel design requirements.

Speaker #1: That's true for Mauritania. That's true for Senegal. And it's true for Argentina. So there is absolutely no change whatsoever in GOLAR's committed focus for a creative FLNG growth.

Speaker #1: What we're saying is some of the projects in discussion have different vessel design requirements. Hence, instead of going on speculation—number one, because of the different requirements from the various commercial discussions, and number two, for the cash flow profile reasons mentioned by Tor—we've decided to not go on speculation as speculatively as we have previously done.

Karl Fredrik Staubo: Hence, instead of going on speculation, number one, because of the different requirements from the various commercial discussions, and number two, for the cash flow profile reasons mentioned by Tor, we've decided to not go on speculation as speculatively as we have previously done, and then continue to mature the commercial pipeline before we commit significant capital. Both because we believe that's right from a vessel design selection point of view, and also for the cash flow profile that Tor mentioned.

Speaker #1: And then continue to mature the commercial pipeline before we commit significant capital. Both because that we believe that's right from a vessel design selection point of view.

Speaker #1: And also for the cash flow profile that Tor alluded to.

Tor Olav Trøim: ... Let me add a little bit to that, Karl. I think kind of, just have one thing in mind, the process which we're talking about now, where we seeking some external advice for what the kind of options is for the future of Golar, is not in any way influencing the day-to-day business. What the board has given a clear mandate to management do, is run the business as we run it to the best interest of things, and don't let any kind of strategic discussions influence what we do in short term. I think any kind of strategic discussion will benefit from building, continue to building the company like we do. I think that's the most important thing. This is business as usual and nothing else happening, but I think we're looking at some other alternatives.

Speaker #4: Let me add a little bit to that, Karl. I think kind of just have one thing in mind. The process which we're talking about now where we're seeking some external advice for what to kind of options is for the future of GOLAR.

Speaker #4: It's not in any way influencing the day-to-day business. What the board has given a clear mandate to management to do is run the business as we run it, to the best interest of things, and don't let any kind of strategic discussions influence what we do in the short term.

Speaker #4: I think any kind of strategic discussion will benefit from building continued to building the company like we do. So I think that's the most important thing.

Tor Olav Trøim: I think that's the most important thing. This is business as usual and nothing else happening, but I think we're looking at some other alternatives.

Speaker #4: This is business as usual and nothing else happening. But I think we're looking at some other alternative. If there are cheaper access to capital, for instance, then effectively we have today.

Tor Olav Trøim: If there are cheaper access to capital, for instance, than effectively we have today. I think that's important. I think when what Carl says about 27 and 28 is, or 26 and 27, is that if we push the current cash back a little bit, maybe half a year to a year, we will be in a very different situation. Because in the end of the period, when we have the heavy installments on ship 4 and potential 5, you will also meet that with a massive cash flow coming out from the business. I think it's a pretty thorough decision, which I also know is supported by some of our major shareholders who have given us the same input.

Speaker #4: So I think that's important. I think when Karl's what Karl says about 27 and 28 is or 26 and 27 is that if he pushed the kind of cash back a little bit, maybe half a year, two year, we will be in a very different situation because in the end of the period when we have the heavy installments on ship four and potential five, you will also meet that with a massive cash flow coming out from the business.

Speaker #4: So I think it's a pretty sort of decision which I also know is supported by some of our major shareholders who have given us the same input.

Speaker #4: We have been through a history here in this company where we've done $3 billion projects or more than a billion dollar project with a pretty tiny balance sheet.

Tor Olav Trøim: We have been through a history here in this company, where we've done three billion dollar projects or more than a billion-dollar project with a pretty finer balance sheet that had put the balance sheet under stress in some of the cases. I don't think we want that. We want to have a very, very strong and solid balance sheet to execute on multibillion-dollar projects, which we're talking about here.

Speaker #4: That had put the balance sheet under stress in some of the cases. I don't think we want that. We want to have a very, very strong and solid balance sheet to execute on multi-billion dollar projects which we're talking about here.

Speaker #3: Okay. Yes. I appreciate the time. Thank you.

Sherif Elmaghrabi: Okay, guys, I appreciate the time. Thank you.

John Mackay: Okay, guys, I appreciate the time. Thank you.

Speaker #5: Thank you. We'll now move on to our next question. Our next question comes from the line of Chris Robertson from Deutsche Bank Securities, Inc. Please go ahead.

Operator: Thank you. We'll now move on to our next question. Our next question comes from the line of Christopher Robertson from Deutsche Bank Securities Inc. Please go ahead. Your line is open.

Speaker #5: Your line is open.

Speaker #6: Thank you, operator. Thank you for taking my questions, guys. Just given the strong operational performance of the GIMI over the last several months, it's producing slightly above nameplate, as you say here.

Christopher Robertson: Thank you, operator. Thank you, for taking my questions, guys. Just given the strong operational performance of the Gimi over the last several months, it's producing slightly above nameplate, as you say here. How are the counterparties now thinking about the future of expansion at GTA? What other data points do they need to see or evaluate to make a decision around that? What's the current thinking, potentially around if an expansion would include a floating asset?

Speaker #6: How are the counterparties now thinking about the future of expansion at GTA? What other data points do they need to see or evaluate to make a decision around that?

Speaker #6: And what's the current thinking potentially around if an expansion would include a floating asset?

Karl Fredrik Staubo: That question is probably better placed to BP and Kosmos. What BP has consistently said is that they want 12 to 18 months of well data before a decision is made on expansion. It has to do with how the wells perform. Given that we're now producing above the contracted amount, suggests that the, not only the FLNG, but the flow from the upstream and the other infrastructure is also working at least as expected, if not better, and that should help a decision for expansion. Given that the incremental cost of expansion should be significantly lower than the initial phase, any growth should be accretive to the project economics.

Speaker #1: That question is probably better placed to BP and Kosmos. But the fact—what BP has consistently said is that they want 12 to 18 months of well data before a decision is made on expansion.

Speaker #1: But it has to do with how the wells perform. Given that we're now producing above the contracted amount, it suggests that not only the FLNG, but the flow from the upstream and the other infrastructure, is also working at least as expected, if not better.

Speaker #1: And that should help a decision for expansion. And given that the incremental cost of expansion should be significantly lower than the initial phase, any growth should be accretive to the project economics.

Speaker #6: Thanks for that, Karl. My follow-up question here is, Karl, you mentioned getting quotes at the yards recently. Is this kind of a two-part question?

Christopher Robertson: Thanks for that, Carl. My follow-up question here is, Carl, you mentioned getting quotes at the yards recently. This is kind of a two-part question. One, what's the current thinking around the cost for Hilli upgraded redeployment work? Has that range narrowed at all as we get kind of closer here to the summer months? Two, could you clarify kind of where things are shaking out in terms of where you're getting quotes at, in terms of a $ per metric ton? Have we seen any cost inflation since the Fuji project? Any commentary around that would be helpful.

Speaker #6: One, what's the current thinking around the cost for Hilli upgrade and redeployment work? Has that range narrowed at all as we get kind of closer here to the summer months?

Speaker #6: And then two, could you clarify kind of where things are shaking out in terms of where you're getting quotes at in terms of a dollar per metric ton?

Speaker #6: Have we seen any cost inflation since the Fuji project? Any commentary around that would be helpful.

Speaker #1: Sure. So on hilly, the conversion budget when we say conversion budget, that includes everything from disconnecting in Cameroon towing the or towing and bunkering the vessel from Cameroon to Singapore.

Karl Fredrik Staubo: Sure. On Hilli, the conversion budget, when we say conversion budget, that includes everything from disconnecting in Cameroon, towing, or towing and bunkering the vessel from Cameroon to Singapore, the yard stay and sailing back to Argentina and connecting and commissioning, OpEx, training, spares, and upgrade work. All in, we estimate $350 million, including a certain level of contingencies. As we continue to execute on the Hilli redeployment, as most of the equipment is now ordered, we feel comfortable with that budget, and we'll try not to eat into all of the contingencies built into the 350. That's the budget. It's important to highlight that that includes everything, not just the upgrade to the ship. The second part of the question, do we see price inflation? Yes.

Speaker #1: The yard stay and sailing back to Argentina and connecting and commissioning OPEX, training, spares, and upgrade work all in. We estimate 350 million dollars including a certain level of contingencies.

Speaker #1: We as we continue to execute on the hilly redeployment as most of the equipment is now ordered, we feel comfortable with that budget. And we'll try not to eat into all of the contingencies built into the 350.

Karl Fredrik Staubo: That's the budget. It's important to highlight that that includes everything, not just the upgrade to the ship. The second part of the question, do we see price inflation? Yes.

Speaker #1: But that's the budget. But it's important to highlight that that includes everything, not just the upgrades to the ship. And then the second part of the question, do we see price inflation?

Speaker #1: Yes. The price inflation is not so much on the yard scope. It's more on the top side. And in particular, the long lead equipment on the top side.

Karl Fredrik Staubo: The price inflation is not so much on the yard scope, it's more on the top side, and in particular, the long-lead equipment on the top side. The primary driver of that cost inflation is competition for the equipment, mainly from AI data centers. We're using the same gas turbines and some of the other critical components, and the massive surge in such developments has caused lead times to go out and prices for that equipment to go meaningfully up. If we look across an FLNG, we see a very limited cost inflation of the Mark II compared to where we ordered last time. We do see a higher cost inflation on the Mark I compared to where we ordered, that's obviously a function also of it's a longer time since we ordered a Mark I.

Speaker #1: The primary driver of that cost inflation is competition for the equipment, mainly from AI data centers. We're using the same gas turbines and some of the other critical components.

Speaker #1: And the massive surge in such developments has caused lead times to go out and prices for that equipment to go meaningfully up. If we then look across an FLNG, we see a very limited cost inflation of the Mark II compared to where we ordered last time.

Speaker #1: We do see a higher cost inflation on the Mark I compared to where we ordered. But that's obviously a function also of it's a longer time since we ordered a Mark I.

Karl Fredrik Staubo: We do see a higher cost inflation on the Mark I compared to where we ordered, that's obviously a function also of it's a longer time since we ordered a Mark I.

Speaker #1: And the biggest cost inflation is without a doubt on the Mark III at that for the Mark III, it's also driven by competition at the shipyard, namely Samsung.

Karl Fredrik Staubo: The biggest cost inflation is without a doubt on the Mark III, and that's for the Mark III, it's also driven by competition at the shipyard, namely Samsung. That's how we see it, but we still see that we can obtain a cost advantage compared to land base of up to 40% lower CapEx per ton. For Mark I and II, not so much for Mark III.

Speaker #1: So that's how we see it. But we still see that we can obtain a cost advantage compared to land-based, of up to 40% lower capex per ton.

Speaker #1: For Mark I and II, not so much for Mark III.

Speaker #6: Got it. All right. That's helpful. Thank you, Karl.

Sherif Elmaghrabi: Got it. All right, that's helpful. Thank you, Karl.

Christopher Robertson: Got it. All right, that's helpful. Thank you, Karl.

Speaker #5: Thank you. We will now move on to our next question. Our next question comes from the line of Alexander Bidwell from Weber Research and Advisory.

Operator: Thank you. We will now move on to our next question. Our next question comes from the line of Alexander Bidwell from Webber Research & Advisory. Please go ahead. Your line is open.

Speaker #5: Please go ahead. Your line is open.

Speaker #7: Good afternoon. Appreciate the time. With the performance thus far on GIMI, how should we think about production above contractual base going forward? You had mentioned ambient temperature and gas composition are both key drivers.

Alexander Bidwell: Good afternoon. Appreciate the time. With the performance thus far on Gimi, how should we think about production above contractual base going forward? You had mentioned ambient temperature and gas composition are both key drivers. Are there any other factors, such as maintenance, which would impact production quarter-over-quarter?

Speaker #7: Are there any other factors such as maintenance which would impact production quarter over quarter?

Speaker #1: Sure. So, maintenance is built into the difference between the nameplate of 2.7 and the contractual amount of 2.4. So that's already taking into account scheduled maintenance.

Karl Fredrik Staubo: Sure. Maintenance is built into the difference between nameplate of 2.7 and the contractual amount of 2.4. That's already taken into account, scheduled maintenance. When it comes to the ambient temperature effects, you will see a level of seasonality over and above the 2.4. We don't expect to go under the 2.4 in the summer months, and we expect to be meaningfully higher in the winter months. If you smooth it out, on average, we expect to be well above the contracted amount. In the case of Q4, that amount was 3%, but we're still undergoing optimizations, and we think more than 3% is fair to assume across the year. Exact percentages, we don't want to commit to right now as we are in the midst of these optimizations.

Speaker #1: When it comes to the ambient temperature effects, you will see a level of seasonality over and above the 2.4. We don't expect to go under the 2.4 in the summer months.

Speaker #1: And we expect to be meaningfully higher in the winter months. So, if you smooth it out on average, we expect to be well above the contracted amount.

Speaker #1: For in the case of Q4, that amount was 3%. But we're still undergoing optimizations. And we think more than 3% is fair to assume across the year.

Karl Fredrik Staubo: and we think more than 3% is fair to assume across the year. Exact percentages, we don't want to commit to right now as we are in the midst of these optimizations.

Speaker #1: Exactly percentages we don't want to commit to right now as we are in the midst of these optimizations. To have this type of production this early in the project exceeds the expectation both of GOLAR and of the charter.

Karl Fredrik Staubo: To have this type of production this early in the project exceeds the expectation, both of Golar and of the charter.

Speaker #7: All right. Thank you. Great color there. Turning over to Argentina, could you walk us through the startup and commissioning cadence for Hilli and the Mark II once the assets are actually on site?

Alexander Bidwell: All right. Thank you. Great color there. Turning over to Argentina, could you walk us through the startup and commissioning cadence for Hilli and the Mark II, once the assets are actually on site? Are there any lessons learned from Cameroon and GTA that you plan to apply for the deployments?

Speaker #7: And are there any lessons learned from Cameroon and GTA that you plan to apply for the deployments?

Speaker #1: Yes. So when it comes to there will be slightly different because hilly is obviously operated for eight years whilst the Mark II will be and never operated.

Karl Fredrik Staubo: Yes. When it comes to. Well, they will be slightly different because Hilli is obviously operated for 8 years, while the Mark II have never operated. We expect the commissioning process of Hilli to be quicker than the Mark II. For simplicity, we expect the commissioning of Hilli to be around 3 to 4 months, and we expect up to 6 months for the Mark II, simply because the equipment hasn't been running in the same way. The actual process is that we arrive on site, we connect to the mooring system, and then we start commissioning through gas in production. The key learning effect that we are debating with Tessa, but are likely to adopt, is that we do expect to arrive cold.

Speaker #1: So we expect the commissioning process of hilly to be quicker than the Mark II. And for simplicity, we expect commissioning of hilly to be around three to four months.

Speaker #1: And we expect up to six months for the Mark II simply because the equipment hasn't been running in the summer. The actual process is that we arrive on site.

Speaker #1: We connect to the mooring system. And then we start commissioning through gas. Gas introduction. The key learning effect that we are debating with CESA but are likely to adopt is that we do expect to arrive cold.

Karl Fredrik Staubo: The key learning effect that we are debating with Tessa, but are likely to adopt, is that we do expect to arrive cold.

Speaker #1: What that means is that we will arrive or likely will arrive with some LNG on the tanks. That allows us to start commissioning before we are reliant on gas flowing through the pipeline.

Karl Fredrik Staubo: What that means is that we will arrive or likely will arrive with some LNG on the tanks. That allows us to start commissioning before we are reliant on a gas flowing through the pipeline. Hence, we can save any time that it would take to connect to the grid, and secondly, the cool down process itself. That has a slight cost, but in the scheme of FLNG Capex, almost negligible. This can save significant time, and it's the same as what we did both for Hilli and Gimi commission.

Speaker #1: Hence, we can save any time that it would take to connect to the grid. And secondly, the cooldown process itself. That has a slight cost.

Speaker #1: But in the scheme of FLNG capex, almost negligible. But this can save significant time. And it's the same as what we did both for hilly and GIMI commission.

Speaker #7: All right. That makes sense. I'll turn it back over. Thank you.

Alexander Bidwell: All right. That, that makes sense. I'll turn it back over. Thank you.

Speaker #5: Thank you. We'll now move on to our next question. Our next question comes from the line of Sharif El-Maghrabi from BTIG. Please go ahead.

Operator: Thank you. We'll now move on to our next question. Our next question comes from the line of Sharif El-Mghrabi from BTIG. Please go ahead. Your line is open.

Speaker #5: Your line is open.

Speaker #6: Hey. Thanks for taking my questions. Maybe to start off, sticking with the GIMI, our project partners given production has been surprised to the upside.

Sherif Elmaghrabi: Hey, thanks for taking my questions. Maybe to start off, sticking with the Gimi, our project partners, given production has been surprised to the upside. Are project partners still interested in debottlenecking? What needs to happen to debottleneck, given Gimi is already capable of exceeding nameplate by a fair margin?

Speaker #6: Our project partners still interested in debottlenecking and what needs to happen to debottleneck given GIMI's already capable of exceeding nameplate by a fair margin.

Speaker #1: Again, it's a question for the upstream partners more than us. But it's in everybody's interest to debottleneck, provided you can do so at, call it, capex accretive to the capex per to the unit economics of the project.

Karl Fredrik Staubo: Again, it's a question for the upstream partners more than us, but it's in everybody's interest to debottleneck, provided you can do so at, quote, CapEx, accretive to the unit economics of the project. We do expect that such that the debottlenecking will be at a very meaningful accretion to unit economics. That's certainly in the interest of all stakeholders, including Eni.

Speaker #1: And we do expect a touch debottlenecking will be at a very meaningful accretion to unit economics. And a surplus in the interest of all stakeholders.

Speaker #1: Including GOLAR.

Speaker #6: Okay. Thanks for that. And then turning to a fourth or fifth unit, can you elaborate on these Middle Eastern opportunities? That's not something that was on my radar.

Sherif Elmaghrabi: Okay, thanks for that. Turning to a fourth or fifth unit, can you elaborate on these Middle Eastern opportunities? That's not something that was on my radar, but it's interesting, and I'm wondering if that's linked to ramping unconventional gas production in the region.

Speaker #6: But it's interesting. And I'm wondering if that's linked to ramping unconventional gas production in the region.

Speaker #1: You are right that that is a region that has called it saved up as more and more actively pursuing FLNG. And it's one of the regions where we like to pace of progress in our commercial or in the project development of a potential FLNG project.

Karl Fredrik Staubo: You are right, that that is a region that has, quote, "saved up as..." more and more actively pursuing FLNG, and it's one of the regions where we like the pace of progress in our commercial or in the project development of potential FLNG project. For that one, you are right, that one we haven't spoken as much as about previously, but what we are hopeful that we can continue to develop our pace.

Speaker #1: So for that one, you are right. That's one we haven't spoken as much about previously. But one we are hopeful that we can continue to develop at pace.

Speaker #6: All right. Thanks for taking my questions.

Liam Burke: All right, thanks for taking my questions.

Sherif Elmaghrabi: All right, thanks for taking my questions.

Speaker #5: Thank you. We'll now move on to our next question. Our next question comes from the line of Spiro Dunis from Citi. Please go ahead.

Operator: Thank you. We'll now move on to our next question. Our next question comes from the line of Spiro Dounis from Citi. Please go ahead. Your line is open.

Speaker #5: Your line is open.

Speaker #6: Thanks, operator. Morning, team. I wanted to go back to demand. I think I heard you guys say several times that you're seeing more demand than ever before for this LNG infrastructure.

Spiro Dounis: Thanks, operator. Good morning, team. wanted to go back to demand. I think I heard you guys say several times that you're seeing more demand than ever before for this LNG infrastructure. I was just wondering if you could expand on that. Is that macro related, or is that specific to more of an FLNG solution, or maybe both?

Speaker #6: And I was just wondering if you could expand on that. Is that macro-related? Or is that specific to more of an FLNG solution or maybe both?

Speaker #1: Well, I think it's twofold. One of them is the increasing industry recognition of the efficiency of FLNG versus alternative liquefaction solutions. The fact that you can construct this unit at up to a 40% discount to land-based, and the flexibility a movable FLNG provides versus land-based, is one key driver.

Karl Fredrik Staubo: I think it's twofold. One of it is the increasing industry recognition of the efficiency of FLNG versus alternative liquefaction solutions. The fact that you can construct this unit at up to 40% discount to land base and the flexibility a movable FLNG provides versus land-based is one key driver. The other key driver is that the vast majority of incremental production of LNG will come out of the US. All US projects, or the vast majority of US projects, source at Henry Hub. The attraction is when you can find reserves that you can source in addition to the CapEx savings, but significantly cheaper gas sourcing than Henry Hub, that's the other component that drives the interest. For us, it's increasing industry recognition and the attraction of sourcing cheaper molecules.

Speaker #1: The other key driver is that the vast majority of incremental production of LNG will come out of the US. And all US projects, or the vast majority of US projects, source at Henry Hub.

Speaker #1: So the attraction is when you can find reserves that you can source in addition to the capex saving but significantly cheaper gas sourcing than Henry Hub.

Karl Fredrik Staubo: but significantly cheaper gas sourcing than Henry Hub, that's the other component that drives the interest. For us, it's increasing industry recognition and the attraction of sourcing cheaper molecules.

Speaker #1: That's the other component that drives the interest. So for us, it's the increasing industry recognition and the attraction of sourcing cheaper molligers.

Speaker #6: Gotcha. It's helpful color. Second one, maybe for you, Eduardo, just you mentioned on this latest refinancing or financing that it sort of proves out the bankability of these structures.

Spiro Dounis: Got you. It's helpful color. Second one, maybe for you, Eduardo. Just you mentioned on this latest refinancing or financing, that it sort of proves out the bankability of these structures. Could you maybe expand on that as we think about the go forward here? You obviously have a lot more financings to do. Does this latest one prove as a blueprint? What lessons did you learn during this last go around?

Speaker #6: Could you maybe expand on that as we think about the go-forward here? You obviously have a lot more financing to do. Does this latest one prove as a blueprint what lessons did you learn during this last go-around?

Speaker #1: Yeah. That's a great point, Pashkuru. So you have absolutely right when it comes to the data point that we had on the latest financing.

Eduardo Maranhao: Yeah, that's a great point, Spiro. You're absolutely right when it comes to the data point that we had on the latest financing. When we look at the Gimi deal that we closed in November, we raised $1.2 billion, which is just over 5.6x Gimi's annual EBITDA. If we try to apply, and we are in discussions of potential similar transactions to that one. If we were to apply the same multiple to both Hilli and/or the Mark II, we could be looking to raise in excess of one and a half billion dollars for Hilli and over $2 billion for the Mark II. That really shows the whole potential of financing capacity that we have under this contract.

Eduardo Maranhão: Yeah, that's a great point, Spiro. You're absolutely right when it comes to the data point that we had on the latest financing. When we look at the Gimi deal that we closed in November, we raised $1.2 billion, which is just over 5.6x Gimi's annual EBITDA. If we try to apply, and we are in discussions of potential similar transactions to that one. If we were to apply the same multiple to both Hilli and/or the Mark II, we could be looking to raise in excess of one and a half billion dollars for Hilli and over $2 billion for the Mark II. That really shows the whole potential of financing capacity that we have under this contract.

Speaker #1: So when we look at the GIMI deal that we closed in November, we raised $1.2 billion, which is just over $5.6 times GIMI's annual EBITDA.

Speaker #1: So if we try to apply and we are in discussions of potential similar transactions to that one, if we were to apply the same multiple to both hilly and/or the Mark II, we could be looking to raise in excess of $1.5 billion for hilly and over $2 billion for the Mark II.

Speaker #1: So that really shows the whole potential of financing capacity that we have under this contract. These are long-term, 20-year agreements. And we really believe in the bankability of this contract that we have signed up to.

Eduardo Maranhao: These are long-term, 20-year agreements, and we really believe on the bankability of this contract that we have signed up to.

Eduardo Maranhão: These are long-term, 20-year agreements, and we really believe on the bankability of this contract that we have signed up to.

Speaker #6: Great. I'll leave it there for today. Thank you, gentlemen.

Spiro Dounis: Great. I'll leave it there for today. Thank you, gentlemen.

Speaker #1: Thank you. Thank you.

Karl Fredrik Staubo: Thank you.

Operator: Thank you. We'll now move on to our next question. Our next question comes from the line of Liam Burke from B. Riley Securities. Please go ahead. Your line is open.

Speaker #5: Thank you. We'll now move on to our next question. Our next question comes from the line of Liam Berg from B-Riley Securities. Please go ahead.

Speaker #5: Your line is open.

Speaker #7: Yes. Thank you. Karl, you've talked about a lot of interest in potential negotiations for future FLNG projects. Does shipyard capacity ever come into the negotiation?

Liam Burke: Thank you. Karl, you talked about a lot of interest in potential negotiations for future FLNG projects. Does shipyard capacity ever come into the negotiation, or I mean, Chris touched on cost, but shipyard capacity, does that ever come into future discussions?

Speaker #7: Or does that—I mean, Chris touched on cost. But shipyard capacity, does that ever come into future discussions?

Speaker #1: Absolutely, yes. That is why it's been critical as part of this commercial pipeline development to have confirmed the art availability and updated yard pricing in continuing such discussions because delivery is obviously a key part of this.

Karl Fredrik Staubo: Absolutely, yes. That is why it's been critical as part of this commercial pipeline development to have confirmed the yard availability and updated yard pricing in continuing such discussions, because delivery is obviously a key part of this. What we see is that for the conversions, Mark I and II, we are still able to maintain a very, very competitive conversion period of somewhere between 36 and 40 months, whether or not we go Mark II or Mark I. What we see is that if you go bigger on the Mark III, it's meaningfully pushed out, even since we had the update with the shipyard six to nine months ago. On that one, we see the yard availability as a negative. On the first two, we still see it as attractive.

Speaker #1: What we see is that for the conversions, Mark I and II, we are still able to maintain a very, very competitive conversion period of somewhere between 36 and 40 months, whether or not we go Mark II or Mark I.

Speaker #1: What we see is that if you go bigger on the Mark III, it's meaningfully pushed out even since we had the update with the shipyard six to nine months ago.

Speaker #1: So on that one, we see the yard availability as a negative. On the first two, we still see it as attractive.

Karl Fredrik Staubo: On that one, we see the yard availability as a negative. On the first two, we still see it as attractive.

Speaker #7: Great. And then other FLNGs out there, mostly operated by the major energy companies, has there been any potential competition on the FLNG as a service-only from any other providers?

Liam Burke: Great. Other FLNGs out there, mostly operated by the major energy companies. Has there been any potential competition on the FLNG as a service only from any other providers?

Karl Fredrik Staubo: Nobody else in the world has done vessel conversions, FLNG vessel conversions. We think that the CapEx and delivery time is better obtained in the current yard and long lead situations for vessel conversions than it is for new builds. As part of the updates we've had with the shipyards, we have also explored new builds on the smaller sizes. That reconfirms that conversion is the cheapest and most efficient way to do, but obviously comes with significant engineering complications that Golar has built up over time. We do see that there are more and more majors going for this type of technology, but there are significant advantages doing it with us as a service provider, as opposed to replicating this through a new build, because you can also obtain the same benefit.

Speaker #1: Nobody else in the world has done that for conversions. FLNG vessel conversions. We think that the capex and delivery time is better obtained in the current yard and long-lead situations for vessel conversion than it is for new builds.

Speaker #1: As part of the updates we've had with the shipyards, we have also explored new builds on the smaller sizes that reconfirms that conversion is the cheapest and most efficient way to do.

Speaker #1: But obviously, it comes with significant engineering complication that GOLAR has built up over time. So we do see that there are more and more majors going for this type of technology.

Karl Fredrik Staubo: We do see that there are more and more majors going for this type of technology, but there are significant advantages doing it with us as a service provider, as opposed to replicating this through a new build, because you can also obtain the same benefit.

Speaker #1: But there are significant advantages doing it with us as a service provider as opposed to replicating this through a new build because you cannot obtain the same benefits.

Speaker #7: Great. Thank you, Karl.

Liam Burke: Great. Thank you, Karl.

Speaker #5: There are no further questions at this time. So I'll hand the call back to Karl for closing remarks.

Operator: There are no further questions at this time, so I'll hand the call back to Carl for closing remarks.

Speaker #1: Thank you all for joining in and listening to the queue for the presentation. Have a great day.

Karl Fredrik Staubo: Thank you all for dialing in and listening to the Q4 presentation. Have a great day!

Operator: This concludes today's presentation. Thank you for participating. You may now disconnect. Speakers, please stand by.

Q4 2025 Golar LNG Ltd Earnings Call

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