Golar Lng Stock Earnings Reports

Q1 2026 was a strong operational and commercial quarter for Golar. Key operational highlights: Gimi produced 19% above contractual capacity (all-time high) and Hilli maintained 100% economic uptime. Mark II FLNG remains on budget and on schedule for delivery by year-end 2027 with a targeted start of its 20-year charter in summer 2028. Commercial/backlog and growth: backlog stands at $17 billion (before commodity upside and inflation adjustments) and management is actively pursuing accelerated FLNG growth — targeting an order for a fourth FLNG within 2026 and pursuing opportunities for further units thereafter. Management launched a strategic review to explore options to accelerate growth and maximize shareholder returns. Commodity exposure and Argentina: commodity-linked upside in Argentina contracts increased materially during Q1 (estimated incremental value of $200m–$500m per year in early SESA operations); 4 million tonnes of offtake remain to be sold within SESA, with discussions to reserve ~1 million tonnes for spot. Infrastructure and pipeline: Golar invested in the San Matias pipeline (approx. $77m equity expected) to secure year‑round gas supply for Hilli and Mark II; key pipeline contracts have been awarded and construction timelines target readiness for unit start-ups. Financials and capital allocation: Q1 revenues $138m and EBITDA $106m (16% QoQ increase); net income $102m. Cash of just over $1bn and net interest-bearing debt of ~$1.7bn. Management expects run‑rate EBITDA to exceed $800m once three units are operational, implying deleveraging to around 3.4x and providing capacity to fund growth and increase returns. A quarterly dividend of $0.25 per share was declared. Financing flexibility: Mark II remains unencumbered despite $1.2bn invested to date; management sees opportunities for asset-level financing and other optimizations to unlock liquidity for growth. Market view: management argues FLNG offers a cost and shipping advantage versus land-based solutions and expects strong demand for floating liquefaction driven by energy security and diversification needs; they see a long-term industry expansion similar to FPSO growth. Risks/notes: strategic review ongoing (no commentary until complete); Gimi’s 19% outperformance is partially seasonal and should not be fully annualized, though management expects meaningful annual overproduction versus contracted volumes.