Golar LNG Revenues Rise (Bermuda)

Golar LNG Limited reported consolidated net income of $35.4 million and consolidated operating income of $58.0 million for the three months ended June 30 .

Revenues in the second quarter were $107.0 million as compared to $83.1 million for the first quarter of 2012. The increase is primarily as a result of increased rates for Golar Arctic and Golar Grand throughout the quarter following the commencement of their new 3 year charters and, both NR Satu and Golar Viking commencing new charters in May. This is reflected in an improved average Time Charter Equivalent (TCE) rate for the second quarter at $97,118 per day compared to $90,464 for the first quarter.

Operating costs in the second quarter at $17.8 million are lower than the first quarter at $27.9 million. This is mainly due to the majority of the expensed reactivation costs for both Hilli and Gandria being incurred in the first quarter of 2012 as both vessels completed their reactivation in April.

Net interest expense for the second quarter at $8.5 million is higher than the $6.1 million incurred in the first quarter mainly due to a full quarter’s interest charge accruing on the Company’s convertible bond issue in March 2012.

Other financial items increased to a loss of $4.4 million in the second quarter compared to $2.6 million in the first quarter. This is mainly due to the negative movement in the valuation of currency swaps and forward contracts.

Tax expense is higher this quarter at $0.4 million compared to a first quarter’s tax credit of $1.2 million. This is mainly due to tax provisions made in respect of the company’s Indonesian operations related to the ownership and management of the company’s fourth FSRU, the NR Satu. However, the tax exposure in Indonesia is mitigated by the recognition of revenue from the charterer such that the taxes paid are fully recovered.

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LNG World News Staff, August 23, 2012