Golar LNG reports Q1 results
- Co reports Q1 net loss of ($21.0 mln) vs $3.8 mln last quarter; revs of $66.2 mln vs $80.65 mln Capital IQ Consensus Estimate
- "Post acceptance, hire at the full rate is expected to generate approximately $164 million of base level annual EBITDA, 50% of which will accrue to Golar Partners. Assuming the current price of $76.63/bbl is sustained, the Brent link associated with contracted trains 1 and 2 would add approximately $50 million in additional annual cashflows, all of which would accrue to Golar."
Golar LNG (-27%) falls to near 3-month low after Schlumberger pulls out of OneLNG JV
- Golar missed Q1 estimates this morning and announced Schlumberger is pulling out of the (51% GLNG/49 SLB) OneLNG JV
- Recent LNG price increases enhance the already solid financial returns expected from the Fortuna project. Despite an agreed development plan and extensive efforts over the last twelve months by OneLNG and Ophir management, it has not been possible to finalize an attractive debt financing package. This, together with other capital and resource priorities, has resulted in a decision from Schlumberger to end their participation in the project. Golar and Schlumberger, as a result of this, and based on the structure of the BP project, plan to wind down OneLNG and work on FLNG projects as required on a case-by-case basis.
- Efforts to find the optimum capital structure that maximizes value for all Fortuna project stakeholders, including the government of Equatorial Guinea, continue. Golar does not see extensive issuance of new equity at current share price levels as an attractive financing solution. Use of alternative yards that are able to provide financing and the potential introduction of a new industrial partner are, however, being considered.
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