Golar LNG posts Q2 net loss of USD 24.2 mln

Golar LNG reported a second quarter 2014 net loss of $24.2 million, including a non-cash loss of $13.6 million on interest rate swaps.

The company’s second quarter results show EBITDA of $1.1 million. Operating revenue at $21.1 million was consistent with first quarter 2014 operating revenue of $21.0 million. Total pro-forma EBITDA on a group-wide basis (including consolidation of Golar Partners) is $84.3 million. Group wide revenues at $119.9 million in the second quarter were up on first quarter revenues of $106.2 million.

Vessel operating costs decreased by $2.0 million from $13.8 million in the first quarter to $11.8 million in the second quarter.

In June 2014, Golar took material steps toward its first floating liquefaction vessel project through a registered equity offering of 12,650,000 shares of its common stock. The issue price was $54.0 per share with total net proceeds to the company of $661 million. A portion of the proceeds of the offering was used to fully fund initial milestone payments under the conversion agreement and instigate the conversion of an LNG carrier, the Hilli, to a floating liquefaction natural gas vessel.

The Board of Directors of Golar is pleased that the company fulfilled its commitment to complete and obtain funding for the company’s maiden FLNG vessel as of the end of the second quarter 2014. The proceeds from the offering put the company on a solid footing to maintain a fast track schedule for yard delivery of the first FLNG vessel in the first quarter of 2017.

Spot and short-term chartering market remained challenging due to negative growth in LNG production caused by underperformance of certain existing production facilities, but with the current improved utilisation of the spot vessels, all of which are currently employed, operating results for the third quarter can however be expected to show some minor improvement over the second quarter.

Press Release, August 27, 2014; Image: Golar LNG