Golar LNG Energy Announces Preliminary Fourth Quarter and Financial Year 2010 Results (Bermuda)

Golar LNG Energy Limited  reports a net loss of $14.6 million and operating loss before depreciation and amortisation of $2.3 million for the three months ended December 31, 2010.

Revenues in the fourth quarter at $16.1 million decreased from $19.1 million for the third quarter of 2010 (the “third quarter”). The reduction was primarily due to no revenue in the fourth quarter for the Gimi and Khannur the charters for which ended in the third quarter. However, this was partly offset by an improved performance from the vessels operating in the sport market. Overall utilisation for the fourth quarter was up at 90% as compared to 71% for the third quarter and fourth quarter average daily time charter equivalents (“TCEs”) were $29,819 as compared to a second quarter TCE of $27,036.

Voyage expenses of $3.1 million were $1.4 million lower than the third quarter due to improved utilisation and therefore lower fuel costs incurred by the Company.

The loss arising on transfer of asset to parent is a non-cash item and relates to the completion of the transfer of the Golar Freeze back to Golar LNG Limited as a result of the ending of the leasing arrangements. The lease obligation, capital lease asset and restricted cash have now been removed from the Company’s balance sheet. The loss arises as a result of the effective reversal of previous credit to amortisation.

The other operating expense of $2.9 million represents realised losses on physical cargo trades, financial derivative contracts and proprietary trades transacted by Golar Commodities that primarily relate to cargo transactions entered into in the third quarter.

Net interest expense for the fourth quarter of $2.0 million was down from $2.8 million in the third quarter.

Impairment of long term investments of $3 million represents a write down of the Company’s cost of investment in TORP LNG AS.

The net gain on sale of investee of $2.4 million represents the sale of the Company’s remaining 7.1 million LNG Limited shares for a total consideration of $4.2 million.

The Company has entered into arrangements during the quarter to end the leasing arrangements in respect of the Hilli, Gimi and Khannur via the acquisition of the companies that lease the vessels to Golar Energy. The lease obligation and the related restricted cash have therefore been removed from the Company’s balance sheet.

For the twelve months ended December 31, 2010 Golar Energy reports net loss of $45.5 million, operating loss of $30.3 million and operating revenues of $64.2 million as compared to, a net loss of $2.2 million, operating loss of $1.1 million and operating revenues of $33.9 million for the period ended December 31, 2009. The Company was however dormant until August 12, 2009 and so 2009 comparable numbers only reflect trading from this date.

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Source: Golar LNG Energy, March 1, 2011;