Golar LNG Posts Q2 2011 Results (Bermuda)

Golar LNG Limited reported consolidated net loss of $0.6 million and consolidated operating income of $21.3 million for the three months ended June 30, 2011 (second quarter).

Highlights

– Golar LNG reports consolidated operating income of $21.3 million for the second quarter of 2011 and a net loss of $0.6 million after interest rate swap valuation losses of $5.7 million

– Golar LNG increases its cash dividend to $0.275 cents per share

– Golar’s total order book increased to 8 LNG carriers and 1 newbuild FSRU

– Significant improvement in TCE rates for the quarter due to all modern vessels on charter

– Golar reports weak results from trading operation and will reduce this activity

– Spot and short-term LNG shipping market continue to improve

– Successful acquisition of 100% of Golar LNG Energy Limited shares through transactions involving raising $352 million in new Golar LNG equity

Revenues in the second quarter were $74.0 million as compared to $67.5 million for the first quarter of 2011 (the “first quarter”). The improvement reflects the fact that the Company’s four modern vessels were all fully employed during the quarter at improved rates, partly offset by the effect of Golar Maria being in drydock. These vessels will now continue under their current charters through the balance of 2011 until the charters cease during 2012. Vessel utilization for the second quarter increased to 97% as compared to 91% for the first quarter. Average daily time charter equivalent rates (“TCEs”) for the second quarter increased to $91,666 from $80,694 in the first quarter as a result of improved utilisation.

 Voyage expenses decreased during the second quarter to $0.8 million as compared to $3.8 million in the first quarter. Vessel operating expenses were however higher at $16.2 million for the second quarter compared to $14.0 million for the first quarter, mainly due to the reactivation costs incurred for the Gimi prior to the vessel entering the charter market. Operating costs have also increased though as a function of the US dollar weakening against the Euro and thereby increasing the cost of crew remunerated in Euro’s.

 The total loss for Golar Commodities in the second quarter amounts to $11.7 million, of which $2.5 million is included in administrative expenses, $0.5 million in financial expenses and $0.1 million in depreciation. The remaining $8.7 million represents trading losses, inclusive of unrealised mark-to-market valuation losses, as at the end of the quarter. All trades entered into to date have now been delivered and a gain of approximately $5.0 million is expected to be recognised so far in the third quarter.

 Net interest expense for the second quarter at $6.7 million is slightly down from $6.9 million in the first quarter due to a slight reduction in LIBOR.

 Other financial items have increased to a loss of $9.0 million for the second quarter from a small loss in the first quarter. The increase is largely a result of increased losses on the mark-to-market valuation of interest rate swaps of $5.7 million due to the reduction in longer term interest rates. The Company will however, due to its floating interest rate exposure show improved long term results as a function of the lower interest.

 The Company reports operating revenues of $141.4 million, operating income of $41.8 million and a net income of $16.4 million for the six months ended June 30, 2011. This compares to operating revenues of $109.0 million, operating income of $23.7 million and a net loss of $8.5 million for the six months ended June 30, 2010.

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Source: Golar LNG, August 18, 2011;