Golar LNG reports Q3 results; sees operating earnings improving; the Board may consider reducing the dividend level in the coming six quarters until the GoFLNG Hilli project commences:
Co reported today a 3Q operating loss of $24.2 million as compared to $43.4 million in 2Q. In line with expectations, 3Q reported an improvement in vessel utilisation, albeit from a very low level in 2Q. Although headline charter rates remained relatively constant across the quarters, the increase in utilisation from 33% in 2Q to 43% in 3Q together with improved round trip economics resulted in an increase in time charter revenues from $16.9 million in 2Q to $24.3 million in 3Q. With the exception of the Golar Penguin, all of the carriers recorded utilisation at or above prior quarter levels.
Golar LNG will be trading ex-dividend of a total dividend of $0.45 per share on December 8, 2015. The record date will be December 10, 2015 and the dividend will be paid on or about January 6, 2016.
In order to support the company's growth prospects the Board has evaluated the Company's dividend policy. The dividend was maintained in 3Q however the Board may consider reducing the dividend level in the coming six quarters until the GoFLNG Hilli project commences. The target will be to free up additional capital to fund growth within the FLNG segment. The Board continues to see a regular dividend as a key part of the investment return for shareholders and expects that the long term cashflow generated by the FLNG contracts can provide a good basis for stable dividends when these contracts commence.
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