Golar LNG Q1 Revenues Climb (Bermuda)
Golar LNG reported consolidated net income of $15.2 million and consolidated operating income of $27.8 million for the first quarter of 2012.
– Golar LNG increases quarterly cash dividend by $0.025 cents to $ 0.35 cents per share
– Golar raises $250 million through a convertible bond transaction
– Golar expands its newbuilding fleet further with a firm order of four additional carriers bringing its total order book to 13 vessels
– Golar Arctic and Golar Grand commence new charters with a combined annualized EBITDA of $84 million
– FSRU Conversion of Nusantara Regas Satu (formerly Khannur) completed and vessel delivered to Charterer with start of operation May 4th
– Hilli and Gandria in final stages of reactivation and will be marketed for future trading in June
– LNG shipping market to remain structurally tight through middle of the decade.
Revenues in the first quarter were $83.1 million as compared to $80.6 million for the fourth quarter of 2011. The increase is primarily as a result of the additional revenue contribution from Gimi which was on charter throughout the quarter and further enhanced by the commencement of the new 3 year charters for Golar Grand and Golar Arctic. This is reflected in an improved TCE for the first quarter at $90,464 compared to $86,521 for the fourth quarter. As in the fourth quarter, vessel utilization in the first quarter is effectively 100%.
As expected, operating costs in the first quarter at $27.9 million is higher than the fourth quarter at $17.6 million. This is mainly due to the expensed reactivation costs for both Hilli and Gandria and represents costs which cannot be capitalized as they are deemed to be repairs in nature. Given that both vessels’ re-activation is nearing completion, it is not expected that operating costs will continue at this high level into the second quarter of 2012.
The Company booked an accounting gain of $4.1 million during the quarter arising from its purchase, in January 2012, of the remaining fifty percent (50%) interest in the company that owns the Gandria. This has arisen as the Company is required to re-measure the carrying value of it’s existing 50% share in the company and compare that to its fair value which is represented by the $19.5m purchase price. This resulted in a gain of $2.4million. Furthermore, the Company also recognized a gain on a bargain purchase of $1.7 million as the cost of the acquisition is less than the fair value of the net assets acquired.
Net interest expense for the first quarter at $6.1 million is slightly higher than the $5.6 million incurred in the fourth quarter mainly due to interest accruing on the Company’s March 2012 convertible bond issue.
Other financial items increased to a loss of $2.6 million in the first quarter compared to a small loss of $0.05 million in the fourth quarter. This is mainly due to the negative movement in the valuation of currency swaps and forward contracts.
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LNG World News Staff, May 30, 2012; Image: Golar LNG