Golar LNG tightens third-quarter loss

LNG shipper Golar reported a third-quarter net loss of $82.3 million in the third quarter of the year, tightening from the previous quarter. 

The figures compare to a net loss of $112.6 million in the previous quarter and a $66.2 million profit in the corresponding quarter last year.

Golar’s time charter equivalent (TCE) rates reached $35,200 in the third quarter, negatively influenced by a weak start to the quarter and by positioning and repositioning for 5 dry dockings.

However, the company noted that the last of its eight scheduled 2019 vessel dry docks commenced and concluded in the fourth quarter. All vessels have now completed their scheduled five-year dry-docking. Fourth-quarter TFDE TCE is anticipated to be in the range of $75,000 to $80,000 per day, more than double that in the third quarter of the year.

Golar LNG CEO, Iain Ross said that further progress has been made this quarter toward the company’s goal of being the leading independent developer of long-term LNG infrastructure.

Ross did, however, noted that the proposed shipping spin-off in its planned form, has, disappointingly for the Board, not yet been completed.

“This is due to a misalignment between the founding parties of the proposed newco causing Golar to withdraw from the process,” he said.

Golar LNG added that as a result of the strong operational performance of FLNG Hilli Episeyo and recent multi-year low LNG prices, interest in low-cost FLNG solutions is strong.

Golar continues to develop its FLNG pipeline with four major oil and gas/national oil companies. These will, however, take time to mature.

Nearer term, outline interest from potential investors interested in buying into existing FLNG contract backlog and supporting the company going forward has been received and is under evaluation. Work with Asian yards to find ways to standardize their FLNG production and design model to achieve lower costs and more efficient financing, particularly between FID and COD, is ongoing.