Golar LNG Sees Revenue Decline, Bermuda

Golar LNG Limited reported consolidated net income of $22.8 million and consolidated operating income of $52.9 million for the three months ended December 31, 2012. Revenues in the fourth quarter were $111.8 million as compared to $121.1 million for the third quarter of 2012.

The decrease in revenue reflects close to two months commercial waiting time by the Golar Maria and the as-scheduled dry-docking of the Golar Spirit which commenced during December.  Together, these two factors also contributed to a reduced fourth quarter Time Charter Equivalent (TCE) of $91,479 per day compared to $98,473 for the third quarter.

Operating costs in the fourth quarter increased to $23.8 million from $19.4 million in the third quarter.  Most of the increase is due to the Company’s move to increase its crewing pool in anticipation of the soon to be delivered newbuilds. Elevated operating costs in connection with preparations for the thirteen vessel deliveries will be on-going throughout 2013 and 2014.

Administrative costs increased from $4.9 million in the third quarter to $6.8 million in the fourth quarter, however, underlying base overhead expenses have remained stable.  Increased expense over third quarter is primarily related to costs for the previously announced front end engineering and design (FEED) study on the FLNG vessel.

Net interest expense at $9.9 million increased by $2.2 million over the third quarter cost of $7.7 million.  This increase is mainly due to the $227 million high yield bond that Golar LNG Partners issued in October to refinance the $222.3 million vendor financing in respect of the Freeze dropdown.  Higher interest expenses following the Norwegian bond issue were partially mitigated by a decrease in Libor.  Other financial charges are in line with last quarter.

[mappress]
LNG World News Staff, March 4, 2013; Image: Golar LNG