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News Article | February 28, 2017
Site: globenewswire.com

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP. Golar reports today a 4Q 2016 operating loss of $32.7 million as compared to a 3Q loss of $28.3 million.  As stated in the 3Q report, the observed improvements in shipping rates and activity levels during the final weeks of 4Q will not translate into improved net revenues until 1Q 2017.  Utilisation and voyage expenses during 4Q remained relatively stable at 39% and $12.6 million respectively (versus 37% and $11.7 million in 3Q). Included in voyage, charter-hire and commission expenses is $4.9 million in respect of the cost of chartering the Golar Grand from Golar Partners. Vessel operating expenses decreased a further $0.7 million to $11.4 million in 4Q following settlement of a 2014 insurance claim in respect of the Golar Viking. Administration costs on the other hand reflected a $5.1 million increase over 3Q to $14.9 million in 4Q.  Increases in non-cash share option charges following the awards made in November 2016 and project costs due to increased project development activity make up the majority of the movement from 3Q.  Depreciation and amortisation at $16.8 million is in line with 3Q. Relative to 3Q the above resulted in a $4.6 million increase in EBITDA* losses from a loss of $11.3 million in 3Q to a loss of $15.9 million in 4Q and a $4.4 million increase in operating losses from a loss of $28.3 million in 3Q to a loss of $32.7 million in 4Q. In 4Q the Company generated a net loss of $13.7 million. Notable contributors to this are summarised as follows: The reported financial results contained herein for the fourth quarter of 2016 are preliminary in particular in relation to two outstanding items as explained further below In October 2016, the Company's affiliate, Golar Power elected to buy out the project developer's, Genpower, 50% equity interest in the entity which holds the investment in the Sergipe project company. Accordingly, Golar Power has accounted for this step acquisition as a business combination. The initial accounting requires a valuation exercise to be performed in order to reflect all identifiable assets and liabilities acquired at fair value. This valuation exercise is in progress and is expected to be finalized by the time the Company's Form 20-F is filed. Adjustments arising from this valuation, which are expected to result in a gain, will impact the following line items in the financial statements, "investments in affiliate" and "Equity in net earnings in affiliates" in the Company's balance sheet and income statement, respectively. There will be no impact on the Company's reported net cashflows. The Company's preliminary fourth quarter results presented herein exclude all fair value adjustments arising from this transaction and the valuation exercise. In October 2016, the Company received 3.7 million common units and 0.1 million general partner units (inclusive of 0.8 million earn-out units) in exchange for enabling Golar Partners to reset its IDRs. The accounting for this transaction is complex.  As a result the Company is still in the process of completing its assessment as to the appropriate accounting treatment under US GAAP for this transaction.  With regard to the Company's preliminary fourth quarter results, no gain or loss has been recognized in the Company's statement of income in respect of this transaction and the Company has presented all interests exchanged in Golar Partners on a historical carrying value basis. The alternative accounting treatment would be to recognize this transaction on a fair value basis. Accordingly, the potential impact, once the final accounting has been determined may be quantitatively material to the Company's income statement and balance sheet. However, this would not impact the Company's reported net cash flows. Any adjustment to reflect the final conclusion will be made in the financial statements included when the form 20-F is filed. LNG chartering activity was light for the first half of the quarter.  Into December fixing activity increased as stronger Asian demand coincided with supply outages at Gorgon T1 and Brunei.  Asian LNG prices quickly responded rising steeply toward $10mmbtu. This widened the export spread for US cargoes, many of which were redirected from their more proximate markets of South America, Europe, the Middle East and India toward the Far East.  The resultant increase in ton miles combined with thin tonnage availability resulted in a step-up in rates for available Atlantic based vessels. The increase in ton miles was also sufficient to negate the negative impact of supply outages in the Pacific basin where rates also responded to firming expectations. Into January, a cold snap in Europe saw European LNG prices ramp up to equalise with Eastern indices.  Inter-basin arbitrage opportunities closed and spot LNG prices in both basins subsequently declined in lock-step as Gorgon production resumed and European temperatures rose.  Vessel rate expectations have since eased back. Seasonal fluctuations and supply outages aside, new production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass now in ramp-up mode. Gorgon T3 and Sabine Pass T3 & 4 together with Wheatstone are all on track for start-up this year. Consensus estimates indicate that approximately 35 million tons of new LNG will reach the market in 2017, more than twice the new production delivered in 2016. It is however important to note that a material portion (approximately 24 million tons) of the new 2017 production is due to commence in the second half of the year and that this will not therefore influence the shipping balance until the end of the year.  All in, approximately 125 million tonnes of new production equivalent to 47% of current LNG production is expected to deliver between now and 1Q 2021. Although the market remains long, prompt available shipping is approximately half what it was in January 2016.  Increased activity in the market for short to medium term charter arrangements from the major operators has been noted. The existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 100% availability during scheduled 4Q operations. On December 23, Golar Partners received notice of Petrobras' intention to terminate the FSRU Golar Spirit charter in June 2017, 14 months ahead of schedule.  Current rainfall is supporting reliable hydro power in Brazil which in turn has facilitated Petrobras' inclusion of its nearest expiring FSRU contract in its cost savings program.  The Partnership will receive a termination fee approximately equivalent to 62% of EBITDA* which would have otherwise been earned between June 2017 and August 2018.  Golar Spirit is now being actively marketed for new opportunities with particular focus on smaller scale developments. The FSRU Golar Tundra remains at anchor off the coast of Ghana. Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their gas sales agreement in October and have commenced some works but the major construction works of a connecting pipeline, jetty and breakwater are yet to be completed.  Until this infrastructure is in place the FSRU cannot commence operations. While Golar remains in dialogue with WAGL regarding an alteration of the existing charter agreement, including a later start-up and an extension of the charter period, we are actively protecting our legal right with regard to collection of  amounts due under the charter.  In order to mitigate the consequences of non-payment, Golar has requested and awaits WAGLs permission to trade the ship in the short term market. Golar Partners right to put the vessel back to Golar expires in late May.  In view of the current situation, if a mutually agreeable alternative arrangement cannot be found there is a risk that the vessel will be put back.   This being the case, the Company will assume legal ownership of the vessel and repay approximately $107 million to the Partnership. On October 17, CELSE, a project company 50% owned by Golar Power and 50% by Ebrasil, reached a FID on its 25 year Brazilian FSRU-to-power project.  CELSE subsequently entered into two agreements: 1) A lump-sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5GW combined cycle power station, and 2) A flexible Sale and Purchase Agreement with Ocean LNG Limited, an affiliate of Qatar Petroleum and ExxonMobil to provide the power station with LNG. All-in capital expenditure for the power station and supporting infrastructure is expected to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion.  Additional returns can be earned if the power station is called upon to dispatch. Good development progress is now being made and the project remains on track to distribute power to its 26 committed off takers from January 2020. Site groundworks and offshore engineering together with procurement, licencing, logistic and permitting activities necessary to bring the 90+ large modules to site and import the new build FSRU Nanook are all underway. When called upon to dispatch, the FSRU Nanook will be approximately 35% utilised. Remaining capacity can be used for an expansion of the Sergipe power complex.  This is actively being developed to be offered into future energy auctions. Structures for commercialising the remaining FSRU capacity via its integration into the Brazilian grid are also being independently pursued by Golar Power and CELSE.  Any returns generated from this will be additional to the FSRUs 25-year $39 million annual EBITDA*, all of which accrues to Golar Power. Long-lead items for Golar Power's first FSRU conversion were ordered in January. This enables Golar Power to commit to provide an FSRU for a project start-up as early as May 2018.  Several commercial leads with the potential to crystallise into time charters by mid-2017 are in the pipeline. LNG prices remain competitive on a burn parity basis even after seasonal uplifts. The scale of new production soon to arrive can be expected to place a de-facto lid on LNG prices until new markets have been opened up to absorb the uncontracted length.  Inexpensive LNG can therefore be expected to remain very supportive of the FSRU business for at least the next 2-3-years.  Golar Power is actively pursuing several specific integrated LNG to power opportunities globally. The FLNG Hilli conversion is proceeding to plan and remains under budget. During recent months approximately 4,500 contractors have been working on the vessel. Testing and pre-commissioning has commenced and will continue in Singapore until the vessel is scheduled for redelivery from the yard in May.  Commissioning and production are scheduled to start by the end of September.  Perenco are on track with their scope of works in Cameroon and SNH are firmly committed to their stake in the project.  The Government is also supportive of opportunities to draw upon neighbouring stranded gas reserves to increase utilisation of the FLNG Hilli, recently renamed Hilli Episeyo. On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a joint venture to commercialise Ophir's 2.6Tcf Fortuna gas reserves, offshore Equatorial Guinea. The joint venture, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own both Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years. A signed term-sheet with a syndicate of Far Eastern banks has been received and documentation is now progressing.  Good progress toward securing the requisite governmental approvals has also been made. As previously communicated, FID is expected to be taken within the first half of 2017 and the Gandria is now positioning to Keppel shipyard where refurbishment work will be initiated. Including upstream and midstream development CAPEX, the project is expected to cost $2.0 billion to develop. Of this, approximately $1.5 billion will be used to convert the FLNG Gandria and $0.5 billion will cover upstream work necessary to bring gas from ground to vessel. After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. With respect to its $332 million share, Golar can expect to receive credit for the LNG carrier Gandria and associated down payments already made to Keppel.  Any credit receivable with respect to the Company's intellectual property contribution and guarantees provided will likely be reflected in a greater than 51% share of OneLNG's 66.2% stake in the joint venture accruing to Golar. The national gas company of Equatorial Guinea, Sonagas, has also expressed interest in taking a stake in the midstream FLNG Gandria. Although this would not change the ownership structure of the joint venture, it would reduce its stake in the FLNG Gandria.  Investment by Sonagas would further improve stakeholder alignment and reduce the above equity contributions required from OneLNG and Ophir. OneLNG is working actively on 4-5 additional projects, each involving 1 or more FLNG unit. The structures of these opportunities range from fully integrated projects where OneLNG will also be reserve holders to projects where FLNG units are rented on a tariff basis to major gas companies. Golar's unrestricted cash position as at December 31, 2016 was $224.2 million. Subsequent to February's convertible bond issue, the cash position is approximately $543 million today. Of the outstanding $250 million March maturing convertible bond, $30 million was purchased prior to year-end. The $220 million balance will be serviced by the undrawn $150 million margin loan and proceeds raised from other financing activities. As at December 31, 2016, $678 million has been spent on the Hilli Episeyo conversion ($732 million including capitalised interest) and $250 million has been drawn against the $960 million CSSCL facility. A further $34.5 million of restricted cash associated with the Perenco Letter of Credit was released to liquidity in 4Q reducing the restricted cash tied up in this facility to $232 million as at December 31. On February 17 the Company closed a new $402.5 million senior unsecured 5-year 2.75% convertible bond.  The conversion rate for the bonds will initially equal 26.5308 common shares per $1,000 principle amount of the bonds. This is equivalent to an initial conversion price of $37.69 per common share or a 35% premium on the February 13 closing share price of $27.92.  The conversion price is subject to adjustment for dividends paid.  To mitigate the dilution risk of conversion to common equity, the Company also entered into capped call transactions costing approximately $31.2 million. The capped call transactions cover approximately 10,678,647 common shares, have an initial strike price of $37.69 and an initial cap price of $48.86. The cap price of $48.86, which is a proxy for the revised conversion price, represents a 75% premium to the February 13 closing price.  Including the $31.2 million cost of the capped call the all-in cost of the bond is approximately 4.3%. Bond proceeds net of fees and the cost of the capped call amount to $360.2 million. Proceeds from the convertible bond will be used to fund the Company's initial equity participation in the Fortuna FLNG project, to meet its commitments to Golar Power and for general corporate purposes. Concluding the new convertible bond affords Golar the flexibility to manage timing differences between investment commitments and the release of other identified sources of funding without being exposed to the risk of delays, unsupportive market conditions or working capital shortfalls. The Company anticipates that significant cash will be released during the first year following start-up of Hilli Episeyo.  Major components of this include $160 million equity released from the final loan draw-down, $87 million released from the letter or credit in favour of Perenco and $170 million in expected EBITDA* from operations. As at December 31 there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $42.03 per share. There are also 3.8 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter. The Company now has access to the capital it needs to support its legacy shipping business, deliver FLNG Hilli Episeyo, meet its share of Golar Power's equity contribution to the Sergipe project and take a Final Investment Decision on the Fortuna FLNG project without further recourse to equity markets. Having recovered its 'equity currency', the Partnership successfully completed in February an underwritten public offering raising gross proceeds of approximately $119.4 million. Golar Partners now has the capital it needs to contemplate the acquisition of a share of the FLNG Hilli Episeyo.  A further $107 million will be available to Golar Partners should the FSRU Tundra be put back at the end of May. This share in Hilli Episeyo could therefore be increased.  Golar and the Partnership are continuing their discussions with regard to the Hilli deal structure and valuation and expect to make a decision later this year. The results of the shipping business are expected to show some improvement in Q1 2017 relative to Q4 2016. Any major improvement in shipping rates should not however be expected before 2H 2017 when a further 24 million tons of new LNG are expected to reach the market. Although the immediate priority of Golar is firmly on delivering and commissioning the FLNG Hilli Episeyo on time and on budget, the Board is pleased that the Company is now on track to become a fully integrated clean energy well to grid company in 2020. This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management's current expectations, estimates and projections about its operations.  All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements.  Words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue," or the negative of these terms and similar expressions are intended to identify such forward-looking statements.  These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.  You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU and  floating LNG vessel market trends, including charter rates, ship values and technological advancements; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels; changes in Golar's ability to retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels' useful lives; changes in the ability of Golar to obtain additional financing; changes in Golar's relationships with major chartering parties; changes in Golar's ability to sell vessels to Golar LNG Partners LP; Golar's ability to integrate and realize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels; changes in domestic and international political conditions, particularly where Golar operates; accounting adjustments relating to Golar's ownership in Golar Power; accounting adjustments relating to the accounting treatment of general partner units Golar holds in Golar LNG Partners LP; as well as other factors discussed in Golar's most recent Form 20-F filed with the Securities and Exchange Commission. In particular, there is no guarantee that any expectations set forth in "Golar Power - Status of affiliate's valuation exercise" and "IDR Reset" will have the impact on our balance sheet or income statement described therein. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements. As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law. Questions should be directed to:


News Article | February 28, 2017
Site: globenewswire.com

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP. Golar reports today a 4Q 2016 operating loss of $32.7 million as compared to a 3Q loss of $28.3 million.  As stated in the 3Q report, the observed improvements in shipping rates and activity levels during the final weeks of 4Q will not translate into improved net revenues until 1Q 2017.  Utilisation and voyage expenses during 4Q remained relatively stable at 39% and $12.6 million respectively (versus 37% and $11.7 million in 3Q). Included in voyage, charter-hire and commission expenses is $4.9 million in respect of the cost of chartering the Golar Grand from Golar Partners. Vessel operating expenses decreased a further $0.7 million to $11.4 million in 4Q following settlement of a 2014 insurance claim in respect of the Golar Viking. Administration costs on the other hand reflected a $5.1 million increase over 3Q to $14.9 million in 4Q.  Increases in non-cash share option charges following the awards made in November 2016 and project costs due to increased project development activity make up the majority of the movement from 3Q.  Depreciation and amortisation at $16.8 million is in line with 3Q. Relative to 3Q the above resulted in a $4.6 million increase in EBITDA* losses from a loss of $11.3 million in 3Q to a loss of $15.9 million in 4Q and a $4.4 million increase in operating losses from a loss of $28.3 million in 3Q to a loss of $32.7 million in 4Q. In 4Q the Company generated a net loss of $13.7 million. Notable contributors to this are summarised as follows: The reported financial results contained herein for the fourth quarter of 2016 are preliminary in particular in relation to two outstanding items as explained further below In October 2016, the Company's affiliate, Golar Power elected to buy out the project developer's, Genpower, 50% equity interest in the entity which holds the investment in the Sergipe project company. Accordingly, Golar Power has accounted for this step acquisition as a business combination. The initial accounting requires a valuation exercise to be performed in order to reflect all identifiable assets and liabilities acquired at fair value. This valuation exercise is in progress and is expected to be finalized by the time the Company's Form 20-F is filed. Adjustments arising from this valuation, which are expected to result in a gain, will impact the following line items in the financial statements, "investments in affiliate" and "Equity in net earnings in affiliates" in the Company's balance sheet and income statement, respectively. There will be no impact on the Company's reported net cashflows. The Company's preliminary fourth quarter results presented herein exclude all fair value adjustments arising from this transaction and the valuation exercise. In October 2016, the Company received 3.7 million common units and 0.1 million general partner units (inclusive of 0.8 million earn-out units) in exchange for enabling Golar Partners to reset its IDRs. The accounting for this transaction is complex.  As a result the Company is still in the process of completing its assessment as to the appropriate accounting treatment under US GAAP for this transaction.  With regard to the Company's preliminary fourth quarter results, no gain or loss has been recognized in the Company's statement of income in respect of this transaction and the Company has presented all interests exchanged in Golar Partners on a historical carrying value basis. The alternative accounting treatment would be to recognize this transaction on a fair value basis. Accordingly, the potential impact, once the final accounting has been determined may be quantitatively material to the Company's income statement and balance sheet. However, this would not impact the Company's reported net cash flows. Any adjustment to reflect the final conclusion will be made in the financial statements included when the form 20-F is filed. LNG chartering activity was light for the first half of the quarter.  Into December fixing activity increased as stronger Asian demand coincided with supply outages at Gorgon T1 and Brunei.  Asian LNG prices quickly responded rising steeply toward $10mmbtu. This widened the export spread for US cargoes, many of which were redirected from their more proximate markets of South America, Europe, the Middle East and India toward the Far East.  The resultant increase in ton miles combined with thin tonnage availability resulted in a step-up in rates for available Atlantic based vessels. The increase in ton miles was also sufficient to negate the negative impact of supply outages in the Pacific basin where rates also responded to firming expectations. Into January, a cold snap in Europe saw European LNG prices ramp up to equalise with Eastern indices.  Inter-basin arbitrage opportunities closed and spot LNG prices in both basins subsequently declined in lock-step as Gorgon production resumed and European temperatures rose.  Vessel rate expectations have since eased back. Seasonal fluctuations and supply outages aside, new production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass now in ramp-up mode. Gorgon T3 and Sabine Pass T3 & 4 together with Wheatstone are all on track for start-up this year. Consensus estimates indicate that approximately 35 million tons of new LNG will reach the market in 2017, more than twice the new production delivered in 2016. It is however important to note that a material portion (approximately 24 million tons) of the new 2017 production is due to commence in the second half of the year and that this will not therefore influence the shipping balance until the end of the year.  All in, approximately 125 million tonnes of new production equivalent to 47% of current LNG production is expected to deliver between now and 1Q 2021. Although the market remains long, prompt available shipping is approximately half what it was in January 2016.  Increased activity in the market for short to medium term charter arrangements from the major operators has been noted. The existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 100% availability during scheduled 4Q operations. On December 23, Golar Partners received notice of Petrobras' intention to terminate the FSRU Golar Spirit charter in June 2017, 14 months ahead of schedule.  Current rainfall is supporting reliable hydro power in Brazil which in turn has facilitated Petrobras' inclusion of its nearest expiring FSRU contract in its cost savings program.  The Partnership will receive a termination fee approximately equivalent to 62% of EBITDA* which would have otherwise been earned between June 2017 and August 2018.  Golar Spirit is now being actively marketed for new opportunities with particular focus on smaller scale developments. The FSRU Golar Tundra remains at anchor off the coast of Ghana. Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their gas sales agreement in October and have commenced some works but the major construction works of a connecting pipeline, jetty and breakwater are yet to be completed.  Until this infrastructure is in place the FSRU cannot commence operations. While Golar remains in dialogue with WAGL regarding an alteration of the existing charter agreement, including a later start-up and an extension of the charter period, we are actively protecting our legal right with regard to collection of  amounts due under the charter.  In order to mitigate the consequences of non-payment, Golar has requested and awaits WAGLs permission to trade the ship in the short term market. Golar Partners right to put the vessel back to Golar expires in late May.  In view of the current situation, if a mutually agreeable alternative arrangement cannot be found there is a risk that the vessel will be put back.   This being the case, the Company will assume legal ownership of the vessel and repay approximately $107 million to the Partnership. On October 17, CELSE, a project company 50% owned by Golar Power and 50% by Ebrasil, reached a FID on its 25 year Brazilian FSRU-to-power project.  CELSE subsequently entered into two agreements: 1) A lump-sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5GW combined cycle power station, and 2) A flexible Sale and Purchase Agreement with Ocean LNG Limited, an affiliate of Qatar Petroleum and ExxonMobil to provide the power station with LNG. All-in capital expenditure for the power station and supporting infrastructure is expected to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion.  Additional returns can be earned if the power station is called upon to dispatch. Good development progress is now being made and the project remains on track to distribute power to its 26 committed off takers from January 2020. Site groundworks and offshore engineering together with procurement, licencing, logistic and permitting activities necessary to bring the 90+ large modules to site and import the new build FSRU Nanook are all underway. When called upon to dispatch, the FSRU Nanook will be approximately 35% utilised. Remaining capacity can be used for an expansion of the Sergipe power complex.  This is actively being developed to be offered into future energy auctions. Structures for commercialising the remaining FSRU capacity via its integration into the Brazilian grid are also being independently pursued by Golar Power and CELSE.  Any returns generated from this will be additional to the FSRUs 25-year $39 million annual EBITDA*, all of which accrues to Golar Power. Long-lead items for Golar Power's first FSRU conversion were ordered in January. This enables Golar Power to commit to provide an FSRU for a project start-up as early as May 2018.  Several commercial leads with the potential to crystallise into time charters by mid-2017 are in the pipeline. LNG prices remain competitive on a burn parity basis even after seasonal uplifts. The scale of new production soon to arrive can be expected to place a de-facto lid on LNG prices until new markets have been opened up to absorb the uncontracted length.  Inexpensive LNG can therefore be expected to remain very supportive of the FSRU business for at least the next 2-3-years.  Golar Power is actively pursuing several specific integrated LNG to power opportunities globally. The FLNG Hilli conversion is proceeding to plan and remains under budget. During recent months approximately 4,500 contractors have been working on the vessel. Testing and pre-commissioning has commenced and will continue in Singapore until the vessel is scheduled for redelivery from the yard in May.  Commissioning and production are scheduled to start by the end of September.  Perenco are on track with their scope of works in Cameroon and SNH are firmly committed to their stake in the project.  The Government is also supportive of opportunities to draw upon neighbouring stranded gas reserves to increase utilisation of the FLNG Hilli, recently renamed Hilli Episeyo. On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a joint venture to commercialise Ophir's 2.6Tcf Fortuna gas reserves, offshore Equatorial Guinea. The joint venture, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own both Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years. A signed term-sheet with a syndicate of Far Eastern banks has been received and documentation is now progressing.  Good progress toward securing the requisite governmental approvals has also been made. As previously communicated, FID is expected to be taken within the first half of 2017 and the Gandria is now positioning to Keppel shipyard where refurbishment work will be initiated. Including upstream and midstream development CAPEX, the project is expected to cost $2.0 billion to develop. Of this, approximately $1.5 billion will be used to convert the FLNG Gandria and $0.5 billion will cover upstream work necessary to bring gas from ground to vessel. After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. With respect to its $332 million share, Golar can expect to receive credit for the LNG carrier Gandria and associated down payments already made to Keppel.  Any credit receivable with respect to the Company's intellectual property contribution and guarantees provided will likely be reflected in a greater than 51% share of OneLNG's 66.2% stake in the joint venture accruing to Golar. The national gas company of Equatorial Guinea, Sonagas, has also expressed interest in taking a stake in the midstream FLNG Gandria. Although this would not change the ownership structure of the joint venture, it would reduce its stake in the FLNG Gandria.  Investment by Sonagas would further improve stakeholder alignment and reduce the above equity contributions required from OneLNG and Ophir. OneLNG is working actively on 4-5 additional projects, each involving 1 or more FLNG unit. The structures of these opportunities range from fully integrated projects where OneLNG will also be reserve holders to projects where FLNG units are rented on a tariff basis to major gas companies. Golar's unrestricted cash position as at December 31, 2016 was $224.2 million. Subsequent to February's convertible bond issue, the cash position is approximately $543 million today. Of the outstanding $250 million March maturing convertible bond, $30 million was purchased prior to year-end. The $220 million balance will be serviced by the undrawn $150 million margin loan and proceeds raised from other financing activities. As at December 31, 2016, $678 million has been spent on the Hilli Episeyo conversion ($732 million including capitalised interest) and $250 million has been drawn against the $960 million CSSCL facility. A further $34.5 million of restricted cash associated with the Perenco Letter of Credit was released to liquidity in 4Q reducing the restricted cash tied up in this facility to $232 million as at December 31. On February 17 the Company closed a new $402.5 million senior unsecured 5-year 2.75% convertible bond.  The conversion rate for the bonds will initially equal 26.5308 common shares per $1,000 principle amount of the bonds. This is equivalent to an initial conversion price of $37.69 per common share or a 35% premium on the February 13 closing share price of $27.92.  The conversion price is subject to adjustment for dividends paid.  To mitigate the dilution risk of conversion to common equity, the Company also entered into capped call transactions costing approximately $31.2 million. The capped call transactions cover approximately 10,678,647 common shares, have an initial strike price of $37.69 and an initial cap price of $48.86. The cap price of $48.86, which is a proxy for the revised conversion price, represents a 75% premium to the February 13 closing price.  Including the $31.2 million cost of the capped call the all-in cost of the bond is approximately 4.3%. Bond proceeds net of fees and the cost of the capped call amount to $360.2 million. Proceeds from the convertible bond will be used to fund the Company's initial equity participation in the Fortuna FLNG project, to meet its commitments to Golar Power and for general corporate purposes. Concluding the new convertible bond affords Golar the flexibility to manage timing differences between investment commitments and the release of other identified sources of funding without being exposed to the risk of delays, unsupportive market conditions or working capital shortfalls. The Company anticipates that significant cash will be released during the first year following start-up of Hilli Episeyo.  Major components of this include $160 million equity released from the final loan draw-down, $87 million released from the letter or credit in favour of Perenco and $170 million in expected EBITDA* from operations. As at December 31 there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $42.03 per share. There are also 3.8 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter. The Company now has access to the capital it needs to support its legacy shipping business, deliver FLNG Hilli Episeyo, meet its share of Golar Power's equity contribution to the Sergipe project and take a Final Investment Decision on the Fortuna FLNG project without further recourse to equity markets. Having recovered its 'equity currency', the Partnership successfully completed in February an underwritten public offering raising gross proceeds of approximately $119.4 million. Golar Partners now has the capital it needs to contemplate the acquisition of a share of the FLNG Hilli Episeyo.  A further $107 million will be available to Golar Partners should the FSRU Tundra be put back at the end of May. This share in Hilli Episeyo could therefore be increased.  Golar and the Partnership are continuing their discussions with regard to the Hilli deal structure and valuation and expect to make a decision later this year. The results of the shipping business are expected to show some improvement in Q1 2017 relative to Q4 2016. Any major improvement in shipping rates should not however be expected before 2H 2017 when a further 24 million tons of new LNG are expected to reach the market. Although the immediate priority of Golar is firmly on delivering and commissioning the FLNG Hilli Episeyo on time and on budget, the Board is pleased that the Company is now on track to become a fully integrated clean energy well to grid company in 2020. This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management's current expectations, estimates and projections about its operations.  All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements.  Words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue," or the negative of these terms and similar expressions are intended to identify such forward-looking statements.  These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.  You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU and  floating LNG vessel market trends, including charter rates, ship values and technological advancements; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels; changes in Golar's ability to retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels' useful lives; changes in the ability of Golar to obtain additional financing; changes in Golar's relationships with major chartering parties; changes in Golar's ability to sell vessels to Golar LNG Partners LP; Golar's ability to integrate and realize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels; changes in domestic and international political conditions, particularly where Golar operates; accounting adjustments relating to Golar's ownership in Golar Power; accounting adjustments relating to the accounting treatment of general partner units Golar holds in Golar LNG Partners LP; as well as other factors discussed in Golar's most recent Form 20-F filed with the Securities and Exchange Commission. In particular, there is no guarantee that any expectations set forth in "Golar Power - Status of affiliate's valuation exercise" and "IDR Reset" will have the impact on our balance sheet or income statement described therein. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements. As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law. Questions should be directed to:


News Article | November 30, 2016
Site: globenewswire.com

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP. The Golar Power transaction closed on July 6. Effective from this date, the results of the LNG carriers, Golar Penguin and Golar Celsius, together with the Company's interest in the 2017 delivering FSRU new-build Nanook and the Company's investment in the Sergipe power project have been deconsolidated. The Company will use equity accounting for Golar Power from July 6 and results of this business unit are included within Equity in net earnings of affiliates in the Statement of Income discussed below. Golar reported today a 3Q operating loss of $28.3 million as compared to a loss of $37.2 million in 2Q 2016. Both shipping rates and utilisation improved during the quarter with utilisation increasing from 31% in 2Q to 37% in 3Q and rates for TFDE tonnage approaching and in cases exceeding $40k/day. Total operating revenues increased from $18.4 million in 2Q to $22.3 million in 3Q. Voyage, charter-hire and commission expenses including those from the Cool Pool collaboration recorded a slight decrease from $12.2 million in 2Q to $11.7 million this quarter reflecting the small increase in utilisation. As in prior quarters, included in voyage, net charter-hire and commission expenses is $5.8 million in respect of the cost of chartering the Golar Grand. Vessel operating expenses decreased $2.0 million to $12.1 million. Deconsolidation of post July 6 costs in respect of the Celsius and Penguin accounts for most of the reduction however lower insurance costs across the fleet also contributed positively in 3Q. Administration costs at $9.8 million were in line with 2Q.  Depreciation and amortisation decreased $2.7 million to $17.0 million in 3Q, again due to deconsolidation of Golar Penguin and Celsius. Relative to 2Q the above resulted in a $6.2 million decrease in EBITDA* losses from a loss of $17.5 million in 2Q to a loss of $11.3 million in 3Q and an $8.9 million decrease in Operating losses from a loss of $37.2 million in 2Q to a loss of $28.3 million in 3Q. In 3Q the Company generated a net loss of $23.9 million. Notable contributors to this are summarised as follows: The third quarter began in much the same way as the first half of the year with excess tonnage weighing heavily on rates. This was followed by increased activity in August that resulted in a step up in rates and utilisation, particularly for owners with open tonnage in the Atlantic basin where spot rates in excess of $40k/day were achieved. Both chartering activity and rates have since eased but levels remain well above the lows reached in the first half of 2016. The Pacific market continued to be typified by higher liquidity with an abundance of available shipping as well as spot demand from projects, utilities and traders. Spot charters have typically been for short durations, maintaining liquidity but limiting significant rate increases. Atlantic activity on the other hand has been more sporadic with thin tonnage availability and limited demand occasionally interrupted by sudden waves of requirements that clear out this available tonnage and result in improved rates. New production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass set to start during 4Q. Looking to 2017, significant additional production is expected from Gorgon and Sabine Pass together with new production from Whetstone. The FLNG Hilli is also set to start producing. All in, approximately 135 million tonnes of new production equivalent to 52% of current LNG production is expected to deliver between now and 1Q 2021. During recent months a number of market participants have chosen to take shipping coverage for 2017. Up to 16 vessels in the global spot fleet have been fixed for periods of 6-18 months starting between September and February. Golar believes that this tightens the outlook for structural availability into 2017. As new LNG arrives and prompt availability of shipping tonnage declines, charterer interest in period contracts is expected to grow bringing the shipping business ever closer to its inflection point. Discipline among ship owners continues to be maintained with only 6 LNG carriers (approximately 1% of the global fleet) ordered this year to date. Golar's existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 99.3% availability during scheduled 3Q operations. The FSRU Golar Tundra remains at anchor off the coast of Ghana. On October 19, Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their 10-year gas sales agreement with the government of Ghana. Golar has commenced legal proceedings in order to collect amounts due under the charter. The Company does however maintain dialogue with WAGL to find a mutually agreeable way forward that bridges the original and later start date required and on November 29 the Company received its first payment from WAGL for amounts outstanding under the charter.  The Company has not recognised any revenue from the WAGL charter in its 3Q Income Statement. On October 17, Golar Power reached a FID on its first integrated FSRU-to-power project.  Together with  joint venture partners Ebrasil, Golar Power have formed a project company, CELSE, which has entered into a lump-sum turn-key EPC agreement with General Electric who will build, maintain and operate a 1.5GW combined cycle power station in Sergipe, Brazil. The power station will provide power to 26 committed off-takers for 25 years commencing January 2020. All-in capital expenditure for the power station and supporting infrastructure is estimated to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion. Additional returns can be earned if the power station is called upon to dispatch and CELSE has entered into a flexible long-term LNG Sale and Purchase Agreement with an affiliate of Qatar Petroleum and ExxonMobil to support this. In connection with FID, Golar Power has also elected to buy out project developer Genpower. This will increase its ownership in the Sergipe Project from 25% to 50%. Golar Power had previously committed to finance Genpower's equity contribution to the project so acquisition of this stake should not increase Golar Power's equity contribution beyond the previously anticipated $165 million, a small portion of which has already been invested. Golar Power has nominated its 2017 delivering FSRU newbuild, Nanook, to service the Sergipe project and has entered into a 25-year agreement to charter the FSRU to CELSE. This agreement affords the flexibility to switch to an FSRU conversion candidate ahead of start-up to accommodate other Golar Power business opportunities as required. Annual EBITDA* generated by the FSRU is projected to be $39.0 million (100% for the account of Golar Power) starting January 1, 2020. When called upon to dispatch, the Sergipe power station will utilise approximately 35% of the FSRUs regas capacity. Golar Power will therefore look to augment this $39 million EBITDA* by seeking out other proximate users or integrate a project into the Brazilian gas grid. Other FSRU projects are currently being actively pursued. These require a range of solutions from large new-build FSRUs to small, modern and new-build carrier conversions. Golar has recently agreed to participate in a Total led consortium developing an integrated FSRU-to-power project in the Ivory Coast. Although LNG prices have increased in recent months, they remain extremely competitive on a burn parity basis and by historical standards. The Company believes that this together with an expectation that LNG prices will remain low is driving demand growth that is supporting FSRU opportunities. China and India continue to report high double digit demand growth with an estimated 40-50 mtpa of incremental demand being filled by these two markets alone. Other emerging markets are currently expected to fill a further 30-40mtpa of incremental demand, much of it via FSRUs. The FLNG Hilli conversion project continues apace and remains on schedule, within budget and on track to deliver within its stipulated delivery window. Virtually all heavy equipment is on-board and over 4,000 contractors are now working on the vessel on a daily basis. The mooring system is on schedule and limited testing of systems has started.  The Company is encouraged by two recent developments in the FLNG business, namely: There are significant other stranded gas reserves in the area neighbouring the Kribi field in Cameroon as well as additional reserves within the field itself. Golar is currently having discussions with the Government and Perenco and is soliciting interest from independent third parties with the target of increasing utilisation of the FLNG Hilli. The Company remains cautiously optimistic that further utilisation will be achieved after start-up. On July 25 Golar and Schlumberger formalised their co-operation by announcing the creation of OneLNG, a joint venture 51% owned by Golar and 49% by Schlumberger that will combine the respective strengths of each shareholder to offer gas resource holders a faster and lower cost LNG development solution.  OneLNG will have first right of refusal for all gas-to-LNG projects that draw upon services provided by Schlumberger and FLNG expertise provided by Golar. The joint venture also contemplates an equitable contribution mechanism that takes account of Golar's FLNG intellectual property.  Any credit that Golar receives for this intellectual property will be agreed on a case-by-case basis. Jeff Goodrich, formerly Chief Operating Officer at Perenco has been appointed CEO of OneLNG and key resources from both Golar and Schlumberger have been seconded to the venture which now operates out of a shared London office. On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a Joint Operating Company ("JOC") to develop Ophir's 2.6Tcf Fortuna gas reserves, in Block R, offshore Equatorial Guinea. The JOC, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years. The shareholders agreement and a Final Investment Decision are contingent on 3 key milestones - namely, agreement of final terms and execution of documentation for project debt financing, approval by the shareholders of Ophir Energy plc, and, approval by the government of Equatorial Guinea. OneLNG is responsible for concluding the project debt financing and Ophir is responsible for securing requisite government and shareholder approvals. As well as aligning interests, the JOC structure allows the project to offer both its FLNG unit and its stake in the gas field as security to lenders. This additional security together with shareholder support is expected to facilitate the drawdown of up to $1.2 billion of debt from FID to commencement of operations. Including both upstream and midstream development the project is expected to cost $2.0 billion to develop and is currently expected to generate an annual EBITDA* of $560 million assuming a $6.0mmbtu free on-board gas price. After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. Golar has a range of funding options available to meet its share of this OneLNG equity in the 2017-2020 period. Credit can be expected for both the intellectual property and the LNG carrier Gandria contributed by Golar. The Company is also looking to agree payment profiles with key contractors Keppel and Black & Veatch to help accommodate the gap between release of up to $160 million of post operational equity from the Hilli and milestone payments required for the Gandria conversion.  Other potential sources of funding during this three-year period include cash generated from the operation of FLNG Hilli, potential proceeds from a sale of a tranche of the FLNG Hilli to Golar Partners for which discussions have commenced, leveraging of further Common units in Golar Partners and the 2018 release of approximately $110 million of cash tied up in the FLNG Hilli cash-collateralised letter of credit. Delay of the Fortuna FID to 1H 2017 also reduces the gap between equity requirements for the project and equity released from the FLNG Hilli. In addition to the Fortuna Project, OneLNG is reviewing a comprehensive list of other projects that suit its offering.  Whilst there remains a West African bias to the current shortlist, OneLNG is also working on several projects in other parts of the world.  The Company believes that there is additional demand for its FLNG solutions and is encouraged by the way OneLNG has been received by the market. Golar's total cash position as at September 30 was $137.9 million. As at September 30, 2016, $600 million has been spent on the FLNG Hilli conversion ($695 million including the vessel and capitalised interest) and $200 million had been drawn against the $960 million CSSCL FLNG Hilli facility. As the project remains well within its $1.2 billion budget, all remaining conversion and site specific costs for the FLNG Hilli are expected to be satisfied by this facility.  After a bank syndication exercise and a reduction in mark-to-market swaps a further $13.9 million of the $280 million cash backed Letter of Credit ("LC") to Perenco was released to 3Q liquidity. As at September 30, restricted cash tied up in this LC stood at $266.1 million. A further $34.8 million of this LC restricted cash has been released to liquidity so far in 4Q. In addition to the above the following have been concluded: After the recent offering there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $41.10 per share. There are also 3.9 million outstanding stock options in issue with current strike prices ranging from $1.48 to $57.00 per share. The dividend will remain unchanged at $0.05 per share for the quarter. A total of around 300 spot fixtures are expected to be concluded in 2016, a significant step up from around 190 voyages in 2015. New LNG supply trains are delivering on an almost quarterly basis, gradually eroding the overcapacity in the shipping market. There are clear signs of tightening in the spot market and this improvement is encouraging charterer interest in longer term contracts. Based on fixture activity thus far, 4Q shipping results are expected to be approximately in line with 3Q. The current market strengthening is already pushing 1Q 2017 utilisation toward 3Q 2016 levels. Shareholders can therefore expect a positive improvement in1Q revenues. Both Golar Power and OneLNG, have, within 6-months of their formation, identified and taken substantial steps to advance their first project opportunities. FID has been taken on the Sergipe project. Key service companies have been engaged for Golar Power's first 25-year integrated FSRU-to-power project. The main ground-work permit was received on November 28 and ground preparations are now underway. Similarly, OneLNG has signed a shareholder agreement with Ophir that makes both the financing and development of this world class gas resource manifestly more digestible. Both of these projects are long-term (20-25 years), show good profitability and are expected to add material EBITDA* backlog to the Golar group, assuming successful execution of the two projects. Golar's share in the currently expected EBITDA* backlog will be in excess of $6.0 billion over the life of the projects based on current forward prices.  This creates a solid long-term foundation for the Company. From a financing perspective, Golar is pleased to have delivered a solution to the March maturing convertible bond and to have strengthened the Company's liquidity position. Attention is now focused on concluding the financing of the FLNG Gandria which is progressing well. Based on Golar's experience with the first converted FSRU, successful execution of the Hilli project is likely to increase interest in the Company's FLNG solutions. FLNG Hilli continues to progress on budget and is scheduled to commence operations in Cameroon in ten months. A key objective of the Company will be to monetise the equity investment in, and the cashflow generated by, FLNG Hilli, in the best possible way and use this to create profitable growth going forward. Formation of OneLNG and Golar Power, recruitment of personnel and the deals already concluded have strengthened the Company's ability to execute large projects.  When combined with the positive trend we now see in the shipping market, the Company's strategic and financial position today is considered to be considerably better relative to the same time last year. This press release contains certain forward-looking statements that reflect management's current expectations, estimates and projections.  Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  Words such as  "anticipate," "believe," "estimate," "expect, " "forecast," "intend," "may," "pending," "plan," "predict," "project," "potential," "should" and similar expressions identify forward-looking statements.  These statements are not guarantees of future performance and are based upon assumptions and estimates that are inherently subject to significant known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control and are difficult to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Among the important factors that could cause actual outcomes and results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU or FLNG market trends, including charter rates, vessel values and technological advancements; changes in the Company's ability to retrofit vessels as FSRUs or FLNGs and in the Company's ability to obtain financing for such conversions or its joint ventures on acceptable terms or at all; changes in the supply of or demand for LNG carriers, FSRUs or FLNGs; a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs; changes in the performance of the pool in which certain of the Company's vessels operate and the performance of the Company's joint ventures; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs; changes in the supply of or demand for LNG or LNG carried by sea; changes in the supply of or demand for natural gas generally or in particular regions; the failure of the Company's contract counterparties, including its joint venture co-owners, to comply with their agreements with the Company; changes in the Company's relationships with its counterparties, including its major chartering parties; changes in the availability of vessels to purchase and in the time it takes to construct new vessels;  failure of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all; the Company's ability to integrate and realize the benefits of acquisitions; changes in the Company's ability to sell vessels to Golar Partners or Golar Power Limited; changes in the Company's relationship with Golar Partners, Golar Power Limited OneLNG S.A.; the Company's inability to achieve successful utilization of its expanded fleet or inability to expand beyond the carriage of LNG and provision of FSRUs, particularly through its innovative FLNG strategy and its joint ventures; changes in the Company's ability to obtain additional financing on acceptable terms or at all; as well as other factors discussed in the Company's most recent Form 20-F filed with the Securities and Exchange Commission.  Unpredictable or unknown factors also could have material adverse effects on forward-looking statements. As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law. Questions should be directed to:


News Article | February 28, 2017
Site: globenewswire.com

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP. Golar reports today a 4Q 2016 operating loss of $32.7 million as compared to a 3Q loss of $28.3 million.  As stated in the 3Q report, the observed improvements in shipping rates and activity levels during the final weeks of 4Q will not translate into improved net revenues until 1Q 2017.  Utilisation and voyage expenses during 4Q remained relatively stable at 39% and $12.6 million respectively (versus 37% and $11.7 million in 3Q). Included in voyage, charter-hire and commission expenses is $4.9 million in respect of the cost of chartering the Golar Grand from Golar Partners. Vessel operating expenses decreased a further $0.7 million to $11.4 million in 4Q following settlement of a 2014 insurance claim in respect of the Golar Viking. Administration costs on the other hand reflected a $5.1 million increase over 3Q to $14.9 million in 4Q.  Increases in non-cash share option charges following the awards made in November 2016 and project costs due to increased project development activity make up the majority of the movement from 3Q.  Depreciation and amortisation at $16.8 million is in line with 3Q. Relative to 3Q the above resulted in a $4.6 million increase in EBITDA* losses from a loss of $11.3 million in 3Q to a loss of $15.9 million in 4Q and a $4.4 million increase in operating losses from a loss of $28.3 million in 3Q to a loss of $32.7 million in 4Q. In 4Q the Company generated a net loss of $13.7 million. Notable contributors to this are summarised as follows: The reported financial results contained herein for the fourth quarter of 2016 are preliminary in particular in relation to two outstanding items as explained further below In October 2016, the Company's affiliate, Golar Power elected to buy out the project developer's, Genpower, 50% equity interest in the entity which holds the investment in the Sergipe project company. Accordingly, Golar Power has accounted for this step acquisition as a business combination. The initial accounting requires a valuation exercise to be performed in order to reflect all identifiable assets and liabilities acquired at fair value. This valuation exercise is in progress and is expected to be finalized by the time the Company's Form 20-F is filed. Adjustments arising from this valuation, which are expected to result in a gain, will impact the following line items in the financial statements, "investments in affiliate" and "Equity in net earnings in affiliates" in the Company's balance sheet and income statement, respectively. There will be no impact on the Company's reported net cashflows. The Company's preliminary fourth quarter results presented herein exclude all fair value adjustments arising from this transaction and the valuation exercise. In October 2016, the Company received 3.7 million common units and 0.1 million general partner units (inclusive of 0.8 million earn-out units) in exchange for enabling Golar Partners to reset its IDRs. The accounting for this transaction is complex.  As a result the Company is still in the process of completing its assessment as to the appropriate accounting treatment under US GAAP for this transaction.  With regard to the Company's preliminary fourth quarter results, no gain or loss has been recognized in the Company's statement of income in respect of this transaction and the Company has presented all interests exchanged in Golar Partners on a historical carrying value basis. The alternative accounting treatment would be to recognize this transaction on a fair value basis. Accordingly, the potential impact, once the final accounting has been determined may be quantitatively material to the Company's income statement and balance sheet. However, this would not impact the Company's reported net cash flows. Any adjustment to reflect the final conclusion will be made in the financial statements included when the form 20-F is filed. LNG chartering activity was light for the first half of the quarter.  Into December fixing activity increased as stronger Asian demand coincided with supply outages at Gorgon T1 and Brunei.  Asian LNG prices quickly responded rising steeply toward $10mmbtu. This widened the export spread for US cargoes, many of which were redirected from their more proximate markets of South America, Europe, the Middle East and India toward the Far East.  The resultant increase in ton miles combined with thin tonnage availability resulted in a step-up in rates for available Atlantic based vessels. The increase in ton miles was also sufficient to negate the negative impact of supply outages in the Pacific basin where rates also responded to firming expectations. Into January, a cold snap in Europe saw European LNG prices ramp up to equalise with Eastern indices.  Inter-basin arbitrage opportunities closed and spot LNG prices in both basins subsequently declined in lock-step as Gorgon production resumed and European temperatures rose.  Vessel rate expectations have since eased back. Seasonal fluctuations and supply outages aside, new production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass now in ramp-up mode. Gorgon T3 and Sabine Pass T3 & 4 together with Wheatstone are all on track for start-up this year. Consensus estimates indicate that approximately 35 million tons of new LNG will reach the market in 2017, more than twice the new production delivered in 2016. It is however important to note that a material portion (approximately 24 million tons) of the new 2017 production is due to commence in the second half of the year and that this will not therefore influence the shipping balance until the end of the year.  All in, approximately 125 million tonnes of new production equivalent to 47% of current LNG production is expected to deliver between now and 1Q 2021. Although the market remains long, prompt available shipping is approximately half what it was in January 2016.  Increased activity in the market for short to medium term charter arrangements from the major operators has been noted. The existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 100% availability during scheduled 4Q operations. On December 23, Golar Partners received notice of Petrobras' intention to terminate the FSRU Golar Spirit charter in June 2017, 14 months ahead of schedule.  Current rainfall is supporting reliable hydro power in Brazil which in turn has facilitated Petrobras' inclusion of its nearest expiring FSRU contract in its cost savings program.  The Partnership will receive a termination fee approximately equivalent to 62% of EBITDA* which would have otherwise been earned between June 2017 and August 2018.  Golar Spirit is now being actively marketed for new opportunities with particular focus on smaller scale developments. The FSRU Golar Tundra remains at anchor off the coast of Ghana. Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their gas sales agreement in October and have commenced some works but the major construction works of a connecting pipeline, jetty and breakwater are yet to be completed.  Until this infrastructure is in place the FSRU cannot commence operations. While Golar remains in dialogue with WAGL regarding an alteration of the existing charter agreement, including a later start-up and an extension of the charter period, we are actively protecting our legal right with regard to collection of  amounts due under the charter.  In order to mitigate the consequences of non-payment, Golar has requested and awaits WAGLs permission to trade the ship in the short term market. Golar Partners right to put the vessel back to Golar expires in late May.  In view of the current situation, if a mutually agreeable alternative arrangement cannot be found there is a risk that the vessel will be put back.   This being the case, the Company will assume legal ownership of the vessel and repay approximately $107 million to the Partnership. On October 17, CELSE, a project company 50% owned by Golar Power and 50% by Ebrasil, reached a FID on its 25 year Brazilian FSRU-to-power project.  CELSE subsequently entered into two agreements: 1) A lump-sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5GW combined cycle power station, and 2) A flexible Sale and Purchase Agreement with Ocean LNG Limited, an affiliate of Qatar Petroleum and ExxonMobil to provide the power station with LNG. All-in capital expenditure for the power station and supporting infrastructure is expected to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion.  Additional returns can be earned if the power station is called upon to dispatch. Good development progress is now being made and the project remains on track to distribute power to its 26 committed off takers from January 2020. Site groundworks and offshore engineering together with procurement, licencing, logistic and permitting activities necessary to bring the 90+ large modules to site and import the new build FSRU Nanook are all underway. When called upon to dispatch, the FSRU Nanook will be approximately 35% utilised. Remaining capacity can be used for an expansion of the Sergipe power complex.  This is actively being developed to be offered into future energy auctions. Structures for commercialising the remaining FSRU capacity via its integration into the Brazilian grid are also being independently pursued by Golar Power and CELSE.  Any returns generated from this will be additional to the FSRUs 25-year $39 million annual EBITDA*, all of which accrues to Golar Power. Long-lead items for Golar Power's first FSRU conversion were ordered in January. This enables Golar Power to commit to provide an FSRU for a project start-up as early as May 2018.  Several commercial leads with the potential to crystallise into time charters by mid-2017 are in the pipeline. LNG prices remain competitive on a burn parity basis even after seasonal uplifts. The scale of new production soon to arrive can be expected to place a de-facto lid on LNG prices until new markets have been opened up to absorb the uncontracted length.  Inexpensive LNG can therefore be expected to remain very supportive of the FSRU business for at least the next 2-3-years.  Golar Power is actively pursuing several specific integrated LNG to power opportunities globally. The FLNG Hilli conversion is proceeding to plan and remains under budget. During recent months approximately 4,500 contractors have been working on the vessel. Testing and pre-commissioning has commenced and will continue in Singapore until the vessel is scheduled for redelivery from the yard in May.  Commissioning and production are scheduled to start by the end of September.  Perenco are on track with their scope of works in Cameroon and SNH are firmly committed to their stake in the project.  The Government is also supportive of opportunities to draw upon neighbouring stranded gas reserves to increase utilisation of the FLNG Hilli, recently renamed Hilli Episeyo. On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a joint venture to commercialise Ophir's 2.6Tcf Fortuna gas reserves, offshore Equatorial Guinea. The joint venture, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own both Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years. A signed term-sheet with a syndicate of Far Eastern banks has been received and documentation is now progressing.  Good progress toward securing the requisite governmental approvals has also been made. As previously communicated, FID is expected to be taken within the first half of 2017 and the Gandria is now positioning to Keppel shipyard where refurbishment work will be initiated. Including upstream and midstream development CAPEX, the project is expected to cost $2.0 billion to develop. Of this, approximately $1.5 billion will be used to convert the FLNG Gandria and $0.5 billion will cover upstream work necessary to bring gas from ground to vessel. After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. With respect to its $332 million share, Golar can expect to receive credit for the LNG carrier Gandria and associated down payments already made to Keppel.  Any credit receivable with respect to the Company's intellectual property contribution and guarantees provided will likely be reflected in a greater than 51% share of OneLNG's 66.2% stake in the joint venture accruing to Golar. The national gas company of Equatorial Guinea, Sonagas, has also expressed interest in taking a stake in the midstream FLNG Gandria. Although this would not change the ownership structure of the joint venture, it would reduce its stake in the FLNG Gandria.  Investment by Sonagas would further improve stakeholder alignment and reduce the above equity contributions required from OneLNG and Ophir. OneLNG is working actively on 4-5 additional projects, each involving 1 or more FLNG unit. The structures of these opportunities range from fully integrated projects where OneLNG will also be reserve holders to projects where FLNG units are rented on a tariff basis to major gas companies. Golar's unrestricted cash position as at December 31, 2016 was $224.2 million. Subsequent to February's convertible bond issue, the cash position is approximately $543 million today. Of the outstanding $250 million March maturing convertible bond, $30 million was purchased prior to year-end. The $220 million balance will be serviced by the undrawn $150 million margin loan and proceeds raised from other financing activities. As at December 31, 2016, $678 million has been spent on the Hilli Episeyo conversion ($732 million including capitalised interest) and $250 million has been drawn against the $960 million CSSCL facility. A further $34.5 million of restricted cash associated with the Perenco Letter of Credit was released to liquidity in 4Q reducing the restricted cash tied up in this facility to $232 million as at December 31. On February 17 the Company closed a new $402.5 million senior unsecured 5-year 2.75% convertible bond.  The conversion rate for the bonds will initially equal 26.5308 common shares per $1,000 principle amount of the bonds. This is equivalent to an initial conversion price of $37.69 per common share or a 35% premium on the February 13 closing share price of $27.92.  The conversion price is subject to adjustment for dividends paid.  To mitigate the dilution risk of conversion to common equity, the Company also entered into capped call transactions costing approximately $31.2 million. The capped call transactions cover approximately 10,678,647 common shares, have an initial strike price of $37.69 and an initial cap price of $48.86. The cap price of $48.86, which is a proxy for the revised conversion price, represents a 75% premium to the February 13 closing price.  Including the $31.2 million cost of the capped call the all-in cost of the bond is approximately 4.3%. Bond proceeds net of fees and the cost of the capped call amount to $360.2 million. Proceeds from the convertible bond will be used to fund the Company's initial equity participation in the Fortuna FLNG project, to meet its commitments to Golar Power and for general corporate purposes. Concluding the new convertible bond affords Golar the flexibility to manage timing differences between investment commitments and the release of other identified sources of funding without being exposed to the risk of delays, unsupportive market conditions or working capital shortfalls. The Company anticipates that significant cash will be released during the first year following start-up of Hilli Episeyo.  Major components of this include $160 million equity released from the final loan draw-down, $87 million released from the letter or credit in favour of Perenco and $170 million in expected EBITDA* from operations. As at December 31 there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $42.03 per share. There are also 3.8 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter. The Company now has access to the capital it needs to support its legacy shipping business, deliver FLNG Hilli Episeyo, meet its share of Golar Power's equity contribution to the Sergipe project and take a Final Investment Decision on the Fortuna FLNG project without further recourse to equity markets. Having recovered its 'equity currency', the Partnership successfully completed in February an underwritten public offering raising gross proceeds of approximately $119.4 million. Golar Partners now has the capital it needs to contemplate the acquisition of a share of the FLNG Hilli Episeyo.  A further $107 million will be available to Golar Partners should the FSRU Tundra be put back at the end of May. This share in Hilli Episeyo could therefore be increased.  Golar and the Partnership are continuing their discussions with regard to the Hilli deal structure and valuation and expect to make a decision later this year. The results of the shipping business are expected to show some improvement in Q1 2017 relative to Q4 2016. Any major improvement in shipping rates should not however be expected before 2H 2017 when a further 24 million tons of new LNG are expected to reach the market. Although the immediate priority of Golar is firmly on delivering and commissioning the FLNG Hilli Episeyo on time and on budget, the Board is pleased that the Company is now on track to become a fully integrated clean energy well to grid company in 2020. This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management's current expectations, estimates and projections about its operations.  All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements.  Words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue," or the negative of these terms and similar expressions are intended to identify such forward-looking statements.  These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.  You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU and  floating LNG vessel market trends, including charter rates, ship values and technological advancements; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels; changes in Golar's ability to retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels' useful lives; changes in the ability of Golar to obtain additional financing; changes in Golar's relationships with major chartering parties; changes in Golar's ability to sell vessels to Golar LNG Partners LP; Golar's ability to integrate and realize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels; changes in domestic and international political conditions, particularly where Golar operates; accounting adjustments relating to Golar's ownership in Golar Power; accounting adjustments relating to the accounting treatment of general partner units Golar holds in Golar LNG Partners LP; as well as other factors discussed in Golar's most recent Form 20-F filed with the Securities and Exchange Commission. In particular, there is no guarantee that any expectations set forth in "Golar Power - Status of affiliate's valuation exercise" and "IDR Reset" will have the impact on our balance sheet or income statement described therein. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements. As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law. Questions should be directed to:


News Article | November 4, 2016
Site: www.newsmaker.com.au

Liquefied petroleum gas (LPG) is a combustible mix of hydrocarbon gases. LPG is directed as fuel in heating appliances, vehicles, aerosol propellant, refrigerant and cooking equipment, etc. LPG is also referred as propane or butane. LPG offers several benefits such as low cost, low carbon emission and other operational benefits. LPG can be employed as a feedstock in petrochemical and refinery complexes and usually used as substitute to naphtha. PG demand is primarily driven by government initiatives to increase consumption of LPG as cooking fuel and auto fuel. Growing adoption of auto gas especially in Asia Pacific region is estimated to augment demand for LPG demand over the forecast period. However, the volatility of crude oil prices is major factor that will hamper market growth. Furthermore, Panama Canal expansion and shale gas production in the Asia-Pacific and Latin American regions will open new doors for LPG market. Know more before buying this report @ http://www.syndicatemarketresearch.com/market-analysis/liquefied-petroleum-gas-lpg-market.html#inquiry-for-buying The LPG market has been segmented based on source such as refinery, associated gas and non-associated gas. It is also segmented on the basis of end-user such as residential/commercial, petrochemical and refinery, industrial, transportation and others. The study provides forecast and estimates for each source segment and end-user in terms of revenue and volume during the forecast period. Value chain analysis and Porter’s Five Forces Model have been provided for a comprehensive view of the market. The study encompasses a market attractiveness analysis, wherein application segments are benchmarked based on their market size, growth rate and general attractiveness. The regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America and Middle East and Africa with its further bifurcation into major countries including U.S., Canada, Germany, France, UK, China, Japan, India and Brazil. This segmentation includes demand for LPG based on individual applications in all the regions and countries. The global market for LPG is fragmented within some key companies including Aygez, Bayegan, China Gas, Dolphin Energy, ETG companies, Huntsman Petrochemical, Indian Oil Corporation Ltd., Oman Oil Company, Petredec Ltd., Phillips 66, Qatargas, Qatar fuel, Qatar Petroleum, Shell, Tasweeq and Vitol. The global LPG market is segmented as follows:


News Article | December 14, 2016
Site: www.prnewswire.co.uk

Growing demand from power generation sector, increasing use of domestic natural gas for enhanced oil recovery and favorable prices of LNG to drive UAE LNG market According to TechSci Research report "UAE LNG Market Demand & Supply Analysis, By Region, By Application, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025", UAE market for LNG is projected to grow at a CAGR 7.6% during 2016-2025, due to decline in supply of domestic natural gas, implementation of government policies supporting adoption of LNG based power generation and shift towards use of cleaner energy. In 2015, LNG was mostly consumed for power generation in natural gas based power plants, and large metal and petrochemical industries. Increasing urbanization and growing industrialization are expected to positively influence UAE LNG market during 2016-2025. Browse 9 market data Tables and 14 Figures spread through 41 Pages and an in-depth TOC on Abu Dhabi and Dubai dominated UAE LNG market in 2015, on the back of increasing use LNG for addressing primary and standby power needs. These regions are also one of the highest per capita electricity consumers in the world. In 2015, the country's electricity consumption increased to 114.47 TWh, from 107.00 TWh in 2014. Qatar Petroleum, Dolphin Energy, Excelerate Energy and Uniper SE are the major suppliers of LNG in the UAE. In 2016, Abu Dhabi Gas Industries (GASCO), a joint venture between ADNOC, Shell and Total chartered the Floating Storage Regasification Unit (FSRU) and the terminal started importing LNG from Excelerate Energy, a US based company. Customers can also request for 10% free customization on this report. "Low domestic production and rising demand for natural gas from key end user segments has widened demand-supply gap for LNG in the UAE. In 2013, UAE imported 0.41 MMT of LNG and registered a capacity utilization rate of only 13.67%. LNG supply market in the country is anticipated to increase due to its cost competitiveness against locally produced natural gas, capacity additions through installation of floating storage regasification unit and implementation of favorable government policies. Moreover, easy availability of LNG from Qatar, Australia, Canada, Iran, etc., and growing need for environment-friendly fuels are expected to aid growth in the UAE market for LNG during the forecast period", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm. "UAE LNG Market Demand & Supply Analysis, By Region, By Application, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025" has evaluated the LNG market across seven Emirates of the UAE and provides statistics and information on market structure, industry behaviour and trends. The report includes market projections and potential demand forecasting. The report intends to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyses emerging trends along with essential drivers, challenges, and opportunities available in LNG market in the UAE. Global LNG Market Demand & Supply Analysis, By Region (Asia-Pacific, Europe, Middle East & Africa, South America and North America), By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025 Global Small Scale LNG Market By Application (Industrial, Transportation, Utilities, Others), By Mode of Supply (Truck, Rail Tanks, Trans-shipment), By Region Opportunities & Forecast, 2021 Global Natural Gas Compressors Market By Technology (Positive Displacement Compressor Vs. Dynamic Compressor), By Application (Upstream, Midstream and Downstream), By Region, Competition Forecast and Opportunities, 2011 - 2021 TechSci Research is a leading global market research firm publishing premium market research reports. Serving 700 global clients with more than 600 premium market research studies, TechSci Research is serving clients across 11 different industrial verticals. TechSci Research specializes in research based consulting assignments in high growth and emerging markets, leading technologies and niche applications. Our workforce of more than 100 fulltime Analysts and Consultants employing innovative research solutions and tracking global and country specific high growth markets helps TechSci clients to lead rather than follow market trends. Connect with us on Twitter - https://twitter.com/TechSciResearch Connect with us on LinkedIn - https://www.linkedin.com/company/techsci-research


News Article | December 22, 2016
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--International Seaways, Inc. (NYSE:INSW) (the “Company” or “INSW”) announced today that the joint venture with Euronav NV (NYSE: EURN & Euronext: EURN) has received a letter of award in relation to a contract for five years for the service of the FSO Africa and FSO Asia in direct continuation of the current contractual service. The letter of award was received from North Oil Company, the future operator of the Al Shaheen oil field, whose shareholders are Qatar Petroleum Oil & Gas Limited and Total E&P Golfe Limited. This award is subject to successful negotiation and documentation of the services contracts. The intent is that the new contracts for these custom-made floating storage and offloading (FSO) service vessels, each having a capacity of three million barrels, that have been serving the Al Shaheen field without interruption since 2010, will have a duration of five years starting at the expiry of the existing contracts with Maersk Oil Qatar. The existing contracts will remain in force until their expiry in the third quarter of 2017. If negotiations and documentation are successfully concluded, the new contracts are expected over their full duration to generate revenues for the joint venture in excess of $360 million, excluding reimbursement for agreed operating expenses, which will be dealt with on an open book basis. The signing of definitive services contracts remains subject to the resolution of substantive business terms and conditions, and no assurance can be given that such resolution will be achieved. International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 55 vessels, including one ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and 20 MR tankers. Through joint ventures, it has ownership interests in four liquefied natural gas carriers and two floating storage and offloading service vessels. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at www.intlseas.com. This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of each of the Companies. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to each of the Company’s plans to issue dividends, its prospects, including statements regarding trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on each of the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Registration Statement on Form 10 and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.


News Article | December 12, 2016
Site: www.ogj.com

Qatar Petroleum (QP) plans to integrate Qatargas and RasGas Co. Ltd., forming a combined company will retain the name Qatargas and operate all of Qatar’s LNG ventures.


News Article | February 28, 2017
Site: www.marketwired.com

TORONTO, ONTARIO--(Marketwired - Feb. 28, 2017) - Augusta Industries Inc. (the "Corporation") (TSX VENTURE:AAO) is pleased to announce that its wholly owned subsidiary, Marcon International Inc. ("Marcon"), has been awarded contracts with various departments of the United States government for the supply of instrumentation and equipment. The aggregate value of the agreement entered into was $283,563.90 in the month of February. The current pipeline of orders, including these new contracts, is $651,813.50 as of February 28, 2017. "The Corporation is pleased that it continues to enter into new agreements with various entities of the United States government," stated Allen Lone, President of the Corporation. "The Corporation's sales strategy has resulted in increased sales and continued growth." Through its wholly owned subsidiaries, Marcon and Fox-Tek Canada Inc. ("Fox-Tek"), the Corporation provides a variety of services and products to a number of clients. Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co. Fox-Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to teupda or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


News Article | September 12, 2016
Site: news.yahoo.com

LONDON/DOHA (Reuters) - Qatar Petroleum is interested in the Mozambique gas business of Italian energy group Eni and could opt to join Exxon Mobil in buying a multibillion-dollar stake, sources familiar with the matter said. State-controlled Eni is looking to reduce a 50 percent stake in its giant Mozambique gas acreage as part of plans to sell 5 billion euros of assets over the next two years. Last month sources told Reuters Exxon had reached a deal that could give it an operating stake in the onshore liquefied natural gas (LNG) export plant, while leaving Eni in control of the Area 4 gas fields feeding it. Qatar Petroleum is in talks with Exxon and Eni on some kind of involvement in Mozambique which could involve a joint investment with the U.S. major, one senior QP source said, adding the deal was not a classic joint venture structure. A second Doha-based source, who declined to be named as not authorized to speak publicly, said Qatar Petroleum had been looking at Eni's Area 4 field as well as adjoining acreage of Anadarko Petroleum Corp but added the focus was on Eni. "The expectation is that Qatar Petroleum and Exxon will go in on this together," the source said, adding a Qatar Petroleum delegation planned to visit Mozambique before the year end. The sources cautioned no decision had as yet been taken by the Qatari company. Qatar Petroleum did not respond to requests for comment and Exxon and Eni declined to comment. Saad al-Kaabi, Qatar Petroleum CEO, recently confirmed the group was looking at assets in Africa. Located in Mozambique's Rovuma Basin, Eni's Area 4 is one of the biggest discoveries of recent times, holding about 85 trillion cubic feet of gas. Eni CEO Claudio Descalzi, who has spoken of selling a stake of up to 25 percent, said earlier this month a detailed agreement had been reached with a partner. In 2013 Eni sold 20 percent of Area 4 to China's CNPC for $4.2 billion but since then oil and gas prices have dropped by more than half. A banker with knowledge of the matter said a 25 percent stake in the field could be worth in the region of 2 billion euros. Exxon and QP are already close business partners in Qatar, where Exxon's technical know-how helped the tiny Gulf state to develop its gas resources and become the world's biggest as well as lowest-cost LNG producer. Since then, both companies have jointly moved to exploit international LNG growth opportunities, including plans to build the Golden Pass liquefaction plant in the United States and bidding for exploration acreage in Cyprus. A moratorium on new Qatari gas production since 2005 has hobbled domestic expansion opportunities at a time of intense competition for global LNG market share as new producers such as Australia challenge Qatar's dominance. "The (Mozambique) gas will go east and so having Qatar on board with all its experience makes a lot of sense," a banker with knowledge of the matter said.

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