GLNG

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 8:00 a.m. ET Chief Executive Officer - Karl Fredrik Staubo Chief Financial Officer - Eduardo Maranhao Operator: Good day, and thank you for standing by. Welcome to the Golar LNG Limited Second Quarter 2026 Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Karl Fredrik Staubo, CEO. Karl Staubo: Thank you, operator. Good morning, and welcome to Golar LNG's Q2 2026 Earnings Results Presentation. My name is Karl Fredrik Staubo, I'm the CEO of Golar, and I'm accompanied today by our CFO, Eduardo Maranhao, to present this quarter's results. Before we get into the presentation, please note the forward-looking statements on Slide 2. Starting on Slide 3, we start with an exciting announcement. Overnight, we signed our fourth FLNG unit, which is another Mark II FLNG to be constructed at CIMC Raffles Shipyard in China. That's the same shipyard already constructing our existing Mark II FLNG on order. The fourth FLNG order will deliver within 2029 and be the earliest available FLNG capacity globally. The order has been placed on the back of strong interest from prospective charters as well as Golar's stated policy of adding additional FLNG capacity once the existing fleet has secured long-term charter commitments. Across Hilli, Gimi and the Mark II under construction, now named the FLNG Esperanza, Golar has a total EBITDA backlog of $17 billion before commodity upside and before a charter on the fourth FLNG unit. During the quarter, Hilli completed her 8-year contract for Perenco offshore Cameroon with 100% economic uptime for the life of the contract. Gimi overproduced 15% versus contractual volume and the FLNG Esperanza remains on time and on budget. As part of the firm order for our fourth FLNG, we have also secured an option for an incremental Mark II FLNG with CIMC Raffles, i.e., an option unit, and today, we also announced a letter of intent with Seatrium Shipyard in Singapore for further incremental growth units utilizing our Mark I or Mark II design. We will provide further color on our growth ambitions later in the presentation. Our liquidity stands at approximately $1.5 billion, inclusive of the $600 million revolving credit facility secured during Q2. Turning to Slide 4, we highlight our long-term charter contracts with Hilli, Gimi and Esperanza contracted through 2045 and with a total EBITDA backlog of $17 billion before commodity upside and inflationary adjustments. With our fourth FLNG order, we see potential to meaningfully increase our earnings capacity, and we'll now elaborate on that on Slide 5. Today's announced order marks a 41% increase in Golar controlled liquefaction capacity, increasing our total fleet capacity from 8.6 million tonnes to more than 12 million tonnes on a fully delivered basis. Assuming that we can achieve contractual terms in line with those achieved for Esperanza last year, we see potential for a 50% increase in our earnings capacity. Our fourth unit is also expected to bring diversification of our earnings backlog, both with regards to charter counterparts as well as geographical exposure. Today's announced order will also be the world's earliest available liquefaction capacity, at least 1 to 2 years ahead of any alternatives. And this again will drive charter interest in the unit. The incremental options, both on CIMC and through the LOI with Seatrium create a replicable model and a capacity to meet some of the demand we see for FLNG deployments. On Slide 6, we lay out the overview of the FLNG industry by owner. With our fourth order, we now regained the position as the market-leading owner of FLNG capacity with number of units at par with ENI, but higher in terms of controlled liquefaction capacity. We expect to see another 1 to 3 FLNG orders from the existing owners on this page within the next 6 to 12 months further building on our thesis that the FLNG market will see similar development to that of the FPSO industry, which started in 1985 and now has grown to more than 250 units globally. Golar maintains the position as the only proven provider of FLNG as a service. Turning to Slide 7. We have laid out the same overview of the FLNG units globally, but here divided by the shipyard of construction. As you can clearly see from the slide, Samsung is the market leader for delivery of FLNGs. Wison shipyard in China has also built 3 newbuilds and continue to actively market newbuild FLNGs, while Hanwha Ocean delivered 1 unit in 2016 and don't have near-term capacity to add additional units. 2 shipyards on the far right, both Seatrium and CIMC have only ever built units for Golar and only done conversions. The way we see the market today, we do not expect other players actively pursuing conversion candidates. Hence, they are focused on Samsung or Wison. Based on conversations with both shipyards, we believe Samsung is at the very earliest able to deliver incremental capacity sometime in 2031. We do expect Wison to be in prime position to win 2 large FLNG units in the relatively near future, and then they will also be spoken for, for well into the 2030s. Hence, the way we see the market right now, we believe the only incremental capacity that can be added with relatively near-term delivery is Golar conversions at Seatrium and CIMC. In addition to yard capacity, we see significant pressure on critical long lead equipment. Equipment like turbines, dual fuel engine, steam generators and cold boxes see significant competition from other industries, including AI data centers, shipbuilding and the aircraft industry. Hence, further pressure on these long leads further drives lead times for incremental orders. Therefore, we believe today's announcements, both of a firm order #4 and option for another unit at CIMC as well as an LOI with Seatrium secures Golar with a growth trajectory to capture market opportunities ahead of competition. We will remain with our policy of only having one open vessel at the time. So as soon as we lock in the contract for #4, we're then likely to proceed at #5, but we have no ambition to overextend. Again, this is furthermore in line with our announced strategy and also strategic review that we are looking at alternatives to accelerate our FLNG growth, and this speaks to that statement. Turning to Slide 8 and an overview of the LNG industry and what's going on in the market as we see it. The industry is set to grow around 40% between 2026 and 2031. As stated on our Q1 call, the 2 largest exporters in the world, U.S. and Qatar, are at the same time expected to increase their market share from 40% to 53% of global supply. Hence, as much as we see a growing market, we see very significant increase in supply concentration. Turning to the middle graph, geopolitical events make such concentration with increasing uncertainty for offtakers. The world's second largest exporter of LNG, Qatar, was directly hit in military action during Middle East events and the Ras Laffan liquefaction plant has estimates that they will be out by around 17 million tonnes out of a total capacity of 88 million for at least 3 to 5 years. We, therefore, see a need for the global LNG market to further diversify its supply. This is where we think FLNG will play a vital role. And on the graph on the far right, you can see the location of FLNG projects globally. 6 of today's exporters would not have been exporters if it weren't for FLNG technology. Where Golar operates, we represent the only export facility. That's true for Mauritania, Senegal, it will be true for Argentina, and it was true for Cameroon before we left the country. Significant proven gas reserves remain stranded, which creates further opportunities for FLNG-led LNG supply diversification. Turning to Q2 and recent highlights and developments. As stated during the quarter, Gimi delivered 15% above its contractual day rate with a 41st cargo delivered. Hilli ended its 8-year contract in Cameroon with 100% economic uptime since contract startup and 156 cargoes delivered over the 8 years. The unit is now in transit to Singapore for modifications ahead of its 20-year contract in Argentina. SESA officially named the Mark II under construction, the FLNG Esperanza. We secured a $600 million revolving credit facility. We signed the fourth FLNG order and through the EPC for #4 and the LOI with Seatrium, we made a pathway to increase the fleet to over 7 units. Turning to Slide 11 with a focus on Hilli. On July 26, Golar delivered its final cargo under our contract with Perenco Offshore Cameroon. We're extremely proud to see the unit have 100% economic uptime since start-up. We're further pleased to see that the redeployment progress as planned. We exited the country and are in transit according to schedule. Once the modification work has completed, we will sail to Argentina, where we will start a contract in the second half of next year, where we will generate $285 million of annual EBITDA before further commodity upside. On Slide 12, we would like to extend our gratitude and thankfulness to our partners, SNH and Perenco for solid cooperation over 8 years in Cameroon. In addition to LNG export, the project has created meaningful value to the local economy and people. Golar's operations employed more than 100 Cameroonians or more than 40% local content on board the unit. In addition to significant scholarship and training courses, we have spent $80 million in local procurement and generated more than $1.5 billion in cash earnings to Cameroonian state interests. We've also voluntarily invested in critical infrastructure in country such as water holes, streetlights, school renovations, new sports centers, et cetera. We're motivated to work together again on potential gas monetization in Cameroon and hope to be back in the near future. Turning to Slide 13 and the Gimi. Gimi continues to produce above contractual levels. During the quarter, we produced 15% above the contracted capacity. That's despite the fact that we are coming into summer months and liquefaction plants are sensitive to both ambient and water temperature. Hence, we're extremely pleased with this performance. We do expect to see continued impact of high temperatures during Q3 before we see improved performance when we enter the winter months. Over the year, we do expect the unit to produce meaningfully above the contractual capacity. Turning to FLNG 3, the Esperanza project remains on schedule and on budget. We're now 74% complete on the conversion progress with more than 15 million manhours completed without lost time incidents. The unit remains on track for sail away by year-end 2027 and to start operations in Argentina in the second half of '28. Today, we've spent around $1.3 billion in cash equity into the conversion project out of a total budget of $2.2 billion. On Slide 15, we're also progressing the required infrastructure in Argentina. SESA, our contract counterpart in which Golar is a 10% shareholder, are now progressing critical infrastructure, including pipeline connections required for the start-up, warehouse for operations support, supply both feeder vessels and crew vessels, and we're also marketing the LNG offtake. The first 2 million tonnes of the total 6 has been sold to securing energy for Europe. And we have now seen multiple offtakers bidding for the next 4 million tonnes, and we expect more offtake to conclude before year-end. Turning to Slide 16. We have now confirmed our final investment decision for our fourth FLNG unit. The unit will be similar to the Esperanza currently under construction. The total CapEx budget has increased on the back of inflationary pressure for -- in particular, for long-lead equipment globally. And we have a CapEx budget now of around $2.45 billion versus around $2.2 billion for the Esperanza. Even with this approximate 10% increase in cost, we see this as highly competitive, both compared to an FLNG newbuild and certainly in relation to the cost inflation observed on other offshore and shipping assets globally in the course of the last 2 years, which have grown meaningfully more than 10%. We expect significant synergies to be realized from building a repeat design and from having 2 units with overlapping construction at the same shipyard. We have secured a donor vessel for the conversion. And we are now in advanced discussions for long-term employment for the unit. We do not expect to add additional units until we have clear visibility on the long-term charter for the unit now ordered. However, once we do, we turn to Slide 17, and we have a very clear path as to how we may grow beyond unit #4. Firstly, we -- the order we placed overnight includes an option for a third Mark II FLNG at CIMC Raffles in Yantai, China. As earlier stated, we've also signed an LOI with Seatrium. Seatrium is the shipyard that constructed both the Hilli and Gimi and also the shipyard that will conduct the Hilli modification work this year and next year. That LOI reserves slot reservations for either a Mark I or a Mark II design FLNG. In addition to the shipyard capacity, we have secured options for incremental long lead equipment. We have identified and are working to secure additional donor vessels, and we're certainly advancing charter discussions for long-term employment with multiple counterparts. With the agreement signed today, Golar is laying out the groundwork for accelerated FLNG growth in the years to come. I'll now hand the call over to Eduardo to take us through group results. Eduardo Maranhao: Thank you, Karl, and good morning, everyone. Moving to Slide 19. Q2 was another strong quarter for Golar with continued operational performance across our FLNG fleet and a meaningful increase in EBITDA. Total operating revenue was $130 million in the quarter, with FLNG Gimi continuing to perform above contractual levels, delivering earnings approximately 15% above contracted base rate during Q2. We also completed the final legacy O&M contract relating to the FSRU Italis LNG, further completing our transition into a pure-play FLNG infrastructure company. EBITDA increased approximately 20% quarter-on-quarter to $127 million compared to $106 million in Q1, primarily driven by higher commodity-linked earnings from Hilli. Hilli generated $37 million of commodity-linked earnings during the quarter compared to $10 million in Q1, demonstrating once again the meaningful commodity upside embedded within our contracted earnings base. Net income was $56 million in the quarter, bringing year-to-date net income to $158 million. And consistent with our capital allocation framework, we have declared another quarterly dividend of $0.25 per share in Q2. Now moving to Slide 20. Our balance sheet continues to provide substantial flexibility to fund the next phase of FLNG growth. At quarter end, total cash stood at approximately $900 million and net interest-bearing debt was approximately $1.8 billion. In July, we further strengthened our liquidity position by closing a new $600 million revolving credit facility, which currently remains undrawn. Including the RCF, we have approximately $1.5 billion of available liquidity. At the same time, we have now equity funded approximately $1.3 billion of the FLNG Esperanza conversion, leaving significant embedded financing capacity across our asset base. As illustrated on the right, optimizing the financing of Hilli and locking long-term financing for Esperanza could release approximately $2.3 billion of incremental liquidity. Discussions on both transactions are advancing. Together with our existing liquidity, operating cash flows and potential proceeds from asset level financing, that will provide substantial capacity to fund FLNG #4, while preserving balance sheet flexibility for further growth, as explained by Karl. The timing in terms of FLNG #4 asset level financing will ultimately be aligned with its long-term charter and our broader FLNG growth opportunities. Now moving to Slide 21. I would like now to spend a moment on this slide here to talk about the commodity-linked component of our earnings, which has become increasingly relevant given the strengthening LNG price environment. Hilli provides a useful demonstration of the value of this structure. Over its 8-year contract in Cameroon, Hilli generated over $650 million of commodity-linked earnings before all the hedging proceeds, which we achieved during that period. Our contracts in Argentina also give us meaningful upside participation. Under the Hilli and Esperanza charters, Golar receives a commodity-linked fee equivalent to 25% of FOB prices above $8 per million BTU, while our 10% ownership in SESA provides additional commodity exposure. As we previously highlighted, every $1 per million BTU above $8 can generate up to approximately $100 million of incremental annual earnings to Golar. Importantly, LNG offtake indices and forward prices have strengthened materially since early this year. Based on current and forward pricing, we estimate that this movement could increase the value of our commodity exposure by up to $500 million per year during the first 3 years of SESA operations. While forward market liquidity naturally reduces further out in the curve, the important point here is that this upside sits on top of our long-term contracted earnings base. If we now turn to Slide 22. Now this slide brings the 2 key components of our model, a highly visible contracted earnings base and a significant commodity-linked upside. With Gimi, Hilli and Esperanza fully operational, we expect an annual run rate EBITDA of approximately $800 million by 2028 before commodity upside and inflation adjustments. If FLNG #4 is contracted on terms broadly comparable to Esperanza, annual EBITDA has the potential to increase by approximately 50% to more than $1.2 billion by 2030. And importantly, that remains the base contracted earnings. On top of that, our Hilli, Esperanza and SESA exposure provides meaningful participation in LNG prices. At $8 per million BTU, as you see on the graph, we would expect annual EBITDA of more than $1.2 billion. At $10, this increases to $1.4 billion, while at $15, which is the current forward prices for next year, that would imply approximately $1.9 billion in EBITDA to Golar. And to illustrate the embedded upside potential, if we apply the LNG pricing that we saw in 2022, we would see potential annual EBITDA approaching $4 billion. The key takeaway is that we have a highly visible contracted earnings base capable of exceeding $1.2 billion annually with our FLNG #4, together with substantial additional upside if LNG markets remain strong. Now turning to Slide 23. One of the key attractions of FLNG is that it provides buyers with geographically diversified LNG supply while offering very compelling economics to reserve owners. The illustration on the left shows the economics for a 3.5 MTPA Mark II FLNG based on current forward LNG prices. Including upstream feedstock gas, the cost of liquefaction, shipping and regas, we estimate an all-in delivered LNG cost of under $8 per million BTU. If you compare that to a 1-year forward LNG price of approximately $15 per million BTU, this leaves a very significant margin for the charter. At approximately 90% utilization, a 3.5 MTPA FLNG would deliver around 50 cargoes per year. On these assumptions, that translates into approximately $1.3 billion of annual operating margin for the charter or around $25 million per cargo. Importantly, these economics come together with the strategic benefits of FLNG, shorter time to market, access to geographically diversified gas resources and reduce the dependence on a limited number of large onshore LNG supply locations. This combination of attractive economics and supply diversification provides a compelling proposition for prospective FLNG charters. So in summary, Q2 was another strong quarter for us. We continue to deliver operationally. Our contracted earnings base provides significant long-term visibility, commodity exposure offers substantial upside and our balance sheet provides the capacity to fund the next phase of FLNG growth. With attractive economics supporting demand for additional units, we believe we are extremely well positioned for the opportunities ahead. So with that, I'll hand the call back to you, Karl. Karl Staubo: Thank you, Eduardo. Turning to Slide 25 to summarize. Golar is the leading global FLNG player controlling a fleet of 12.1 million tonnes per annum. Through our operations to date, we've delivered 100% economic uptime and delivered 197 LNG cargoes. Our backlog stands at $17 billion before commodity upside and inflationary adjustments and with further upside in a potential charter for our fourth FLNG unit announced today. Assuming we can fix that unit in line with our last fixture last year, we have a potential to grow our annual earnings by 50% or to north of $1.2 billion by 2030 before commodity upside and inflationary adjustments. We see that FLNG is an increasingly relevant source of global energy security and supply diversification. We are strategically positioned for growth. And with the announcements today, both with CIMC and Seatrium, we're well positioned to capture the market opportunity significantly ahead of any incremental competition from alternative suppliers. We maintain a disciplined capital allocation focused on shareholder returns, and we still have capacity under our share buyback program. We continue our quarterly dividend with significant capacity for further growth as the fleet deliver to their long-term contracts. With that, I'd like to hand the call over to the operator for any questions. Operator: [Operator Instructions] And the question comes from the line of John Mackay from Goldman Sachs. John Mackay: Congrats on the fourth vessel announcement. I wanted to pick up on a couple of things you've been talking about. Maybe can you just walk us through the path to commercializing that vessel and signing a customer. And you talked about maybe framing up the economics on the last vessel, but maybe broadly talk about target return profiles in this context. Karl Staubo: John, if you follow the sequencing of both our previous speculative orders and our announcements year-to-date, we have been focused on evolving the charter opportunities to narrow down the design. We were contemplating either Mark I or Mark II. But with the visibility we now have, we see the best value proposition to be a Mark II order, which is why we ordered that one. We expect then to further narrow down the charter opportunities and to secure a long-term charter for the unit where we maintain sort of a 20-year duration plus/minus. And we remain with our guidance in the 5 to 6x CapEx to EBITDA sort of range. John Mackay: And just to clarify, that -- how should we think about kind of the remaining time line and milestones for us to watch? For signing the customer? Karl Staubo: There are no standard process for fixing an FLNG because the only ones who've ever done them as a service is Golar, and they've all been quite different, to be honest. But the typical first step is a signing of either a term sheet or a framework agreement that sets out the key commercials. Sometimes it's binding, sometimes it's not, but it is certainly a milestone, if that's achieved. From there on, we will then evolve the term sheet or framework agreement into a full contract. And then the third step is typically then to lift all CPs thereafter, which are typically regulatory, both in terms of export license and the environmental license required. And in certain countries, which are not yet LNG exporters, you also need clarification on the tax regime. So 3, call it, key steps, signing of term sheet, signing of definitive contracts and lastly, lifting of CPs. John Mackay: And second question for me, Karl, you mentioned the potential for 7 vessels. I understand there's a couple of moving pieces here and the time line, like you said, can move around. But maybe in a, let's say, a blue sky scenario, how would we think about kind of pace of deployments and being able to get to that fleet of 7. Karl Staubo: So first off, it's on the yard capacity side. We have ordered unit #4 today. We have an option to do unit. We will not commit to that being CIMC or Seatrium in that order. But for simplicity, unit #5 then with a fixed option at CIMC and Unit #6 and 7 at Seatrium, but it may not be that exact sequence. The fifth could be Seatrium and the sixth could be CIMC, if you understand. That's what we've already locked in today with the contract signed at CIMC and the LOI with Seatrium. In terms of sequencing, we remain with our very clearly stated policy that we are not going to have more than one open FLNG at the time. Hence, we're not considering ordering unit #5 until we have clear visibility for a long-term contract on the fourth unit. Once that is locked in, we will then proceed with the fifth, and we'll continue to replicate that model as we grow. Once we secure long-term contracts, we will then attach asset level financing to the then derisked FLNG and recycle that capital into the consequent unit. Operator: And the question comes from the line of Alexander Bidwell from Webber Research & Advisory. Alexander Bidwell: So with the LOI with Seatrium covering either a Mark I or Mark II and then you've got the option for a third Mark II at CIMC. Can you talk us through how you're thinking about shipyard selection for your next unit? Is there -- are there any differences between going with one or the other? Karl Staubo: So we have spent -- we've obviously built 2 units with Seatrium in the past, both of them being Mark I. And we are in process of building a Mark II with CIMC. Given that, that unit is now 74% progress, we feel comfortable ordering the second unit there. So when it comes to the next unit and the yard selection, we are clearly comfortable with both shipyards. So it will come down to price, payment terms and delivery. And to the extent that is relevant, there may be a charter preference for one yard over the other. But in general, it has to do with the price payment terms and delivery. That's the key decision maker. And then if it's Mark I, it's very likely to be Seatrium anyway. Alexander Bidwell: And then just for a quick follow-up. Can you talk us through the, I guess, the delta in budget between the FLNG Esperanza and the second Mark II conversion? I think it's $2.2 billion versus $2.45 billion. Karl Staubo: Yes. So as we said, that's around a 10% increase. That's mainly driven by very significant cost inflation on long lead equipment and also impacted by steel prices and currency fluctuations. But if you look at some of the long leads typically have 40% to 60% cost inflation. So the fact that the overall unit is, call it, only up with 10%, obviously, it's still meaningful, but we think that is a testimony to the very significant work that we've done over the course of this year, both with regards to long lead items and negotiating with the shipyards. I would also like to highlight that when we say that this is the price, that's the all-in price. meaning it includes the EPC with the shipyard. It includes crew training, bunkering and transport from yard site to contract sites and also the mooring system that we anticipate using. So it's delivered cost to site. Operator: And the question comes from the line of Sherif Elmaghrabi from BTIG. Sherif Elmaghrabi: First, very simply, what drove the decision to order a Mark II? Is that indicative of where conversations with charters have progressed? Because a quarter ago, you guys talked about pretty big range in terms of looking back in capacity. Karl Staubo: You broke up a bit at the end there, but I think we got the question. So the primary reason for going with that unit is that's where we see the strongest charter engagement for relatively near-term employment of the unit. It's also where we see the most attractive CapEx per tonne and OpEx per MMBtu. I think both the economics to the client and the charter interest and the gas reserves in question at the moment, it's the most actively demanded unit we have, and therefore, we felt comfortable doing that also on the back of the solid performance by the shipyard in constructing the Esperanza, which is now 74% complete. Sherif Elmaghrabi: And then for the 2 to 3 options that you hold, can you tell us -- and I apologize if I missed this, but can you tell us when do these additional options expire and kind of the lead time for those units for when they would hit the water would be helpful. Karl Staubo: We don't want to go into details as to exactly when they expire because commercially, that's a little bit sensitive, and we think we can drive better value with holding that for ourselves for now. In terms of delivery, you're talking around 38 to 40 months, subject to which shipyard and what the time. Operator: And the question comes from the line of Chris Robertson from Deutsche Bank. Christopher Robertson: Just looking at the next opportunities here, Argentina was unique in the sense that had 2 FLNG units in one country. Are there any commercial opportunities here as you've FID-ed the fourth one that a fifth vessel could go to the same local and kind of a 2-for-1 deal? Or are the commercial opportunities you're looking at more geographically dispersed? Karl Staubo: Both. There are places where you can do both, and there are people that only want one. But I think to give you an example, Argentina took 2. But Argentina, if you look at the project with YPF, ENI and XOG, they're also talking about adding 2 units there, both of them 6 million tonnes. So that's another 12. So obviously, there's meaningful capacity to significantly boost Argentina. You have other countries like Mozambique, which are now taking 2 units from ENI. And there are several other countries like that where there's room to put multiple units. So the answer is, yes, we can definitely look at multiple deployments in certain geographies. But for us, it tends to be just to start with one and then build on that. But with the option package we now have, we can talk to both. Christopher Robertson: And just as a follow-up. So now that FID has been announced on the fourth unit and a clear pathway here for additional units, can you contextualize this around the strategic review that's still ongoing? And when do you expect that process to be concluded? And any updates there? Karl Staubo: As we stated in the announcement on the strategic review, the rationale for the strategic review was twofold. One, Board and management believes there's a value discrepancy between public market pricing and potential other parties valuation of the existing business. And the second and at least equally important rationale was to accelerate FLNG growth on the back of the market development that we see. I think today's announcements very clearly point out what we want to achieve in terms of FLNG market acceleration. When it comes to the strategic review, you are right that, that is ongoing. And as we've stated in the strategic review press release, we will not give any comments on the review itself, neither the outcome nor the timing until we have material information to share or the Board has decided to call it off. So we expect that to revert to the market with that in due course. But in the interim, we're not giving any specific comments to it. Christopher Robertson: Got it. If I could ask one follow-up question. Just to reiterate the guidance, the current guidance around Hilli and it going to the yard, is it the same time line, same budget, CapEx budget for the refurb and redeployment? Karl Staubo: I'm not sure if I understood it. So the refurb budget is around $350 million from the day we depart Cameroon until the day we arrive in Argentina and well into commission in Argentina. Operator: And the question comes from the line of Jostein Aschjem from Clarksons. Jostein Aschjem: So I was just wondering about the schedule for the CapEx of the new FLNG unit. Do you aim to take delivery of the unit by 2029? And then how should we think about kind of the sequence and timing of the CapEx related to that unit? Karl Staubo: Sorry, the CapEx on #4? Jostein Aschjem: Yes. Karl Staubo: So the CapEx on #4 is meaningfully improved from the Esperanza. So that's been part of negotiating the yard contract. And to be fair, it is quite offsetting on the 10% cost increase that we have meaningfully lower capital outlays, in particular, in the first 2 years of the construction period, which is the same period of time until the Esperanza is fully operational. So the CapEx curve have been negotiated substantially lower than that of the Esperanza, but it's still a pay-as-you-go payment terms and not sort of a shipyard fixed installment type of -- or for traditional commercial ships. Jostein Aschjem: If I may, a follow-up on the optional units that you have secured or the options that you have, will you start ordering long lead items for those? And how far will you be kind of willing to commit to, for example, long lead items on those units for the next couple of years? Karl Staubo: So the way it works is when we place the firm orders for unit #4, as part of that firm order, we then negotiated packages for a potential unit #5 for the majority of them at absolutely no incremental cost and some of them at a very, very low incremental cost in total for all of them, less than $1 million. That obviously has a time constraint. In many cases, that time constraint can be extended. But if you do go and extend the time constraint, you're likely to then get a later delivery slot because there's very significant pressure on these long lead items. But we're pleased to have obtained the options that we have obtained at very limited to no cost incremental to that of the order itself. Operator: [Operator Instructions] And the question comes from the line of Sunil Sibal from Seaport Global. Sunil Sibal: So I think you touched upon your potential counterparties for the fourth vessel. I was curious how do you think about geographical as well as credit preferences for the fourth counterparty? Is there something specific we should be looking for as far as especially the credit quality of your fourth counterparty is concerned? Karl Staubo: It's a good question and to answer it is slightly different. Every time we have these calls, we get all of the same questions from investment banks and investors. But this is an open call. So potential charters, shipyards, equipment suppliers and many other people are listening to this call. So we weigh our words carefully. We are in advanced charter discussions in several different geographies. Some of them are to NOCs, some of them are to independents and some of them are to IOCs. Subject to the credit quality of the counterpart, they are likely to demand slightly different contract structures, but that also then comes with at least different perceived risk, although I believe we have been very successful at structuring around such risks in the past. At the end of the day, an FLNG is paid by the client who buys the offtake gas. And the good thing with LNG is that there are no bad credit buyers. There are typically countries, very big industrial groups or the world's largest traders that are offtakers there. So subject to where you operate, the contractual protections are the most important, but we do recognize that financeability increases, if we charter to sort of IOCs. But then again, as we've previously explained, they are less likely to share commodity upside and so forth. So at the end of the day, for us, it's a trade-off. What we look to are economic returns and, of course, equity returns. And then leverage plays a part of that. But at the end of the day, we believe that the market position with the lowest CapEx per tonne in the industry, the best operational performance and the earliest delivery in a world with increasing geopolitical pressure for supply certainty puts us in a very unique position to drive value to Golar and its stakeholders. Sunil Sibal: And then one clarification. I know with your previous projections for the 3 vessel case, I think you're ultimately looking at the 3 to 3.5x kind of a leverage once all the 3 units are up and running. Now that you're looking at the fourth one, should we be thinking about ultimate desired leverage in the same range? Or do you think you could be a little bit more even aggressive in that range now that you're kind of diversifying the fleet and all that? Karl Staubo: What we've proven to -- you are right that on a net debt-to-EBITDA ratio, that's where we are at the moment. As Eduardo explained, there's significant capacity to free up a few billion dollars of liquidity if we relever the Hilli and add asset level financing on the Esperanza. We've proven in the past with the financing of Gimi in November, December last year that subject to contract counterpart and contract structure, we have done asset level financing at 5.5x. We don't want to overextend the balance sheet because we want capacity to continue to add attractive growth projects. But as we lock in more EBITDA backlog, we expect the ratio to not meaningfully change. Operator: Dear speakers, there are no further questions for today. I would now like to hand the conference over to the management team for any closing remarks. Karl Staubo: Thank you all for dialing in today. We are very excited with today's announcement and developments, and we look forward to speak to you again on the future development of the company as we continue to grow within the FLNG space. We wish you all a great day and hope to speak soon. Thank you. Operator: This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day. Before you buy stock in Golar Lng, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Golar Lng wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Golar (GLNG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Golar LNG (GLNG) is back in focus after reporting Q2 2026 results alongside first-half numbers and confirming an Engineering, Procurement and Construction deal for a fourth FLNG vessel that expands future liquefaction capacity. See our latest analysis for Golar LNG. The recent earnings release and new FLNG order appear to have kept interest in Golar LNG strong, with the share price at US$52.49 and a year-to-date share price return of 38.31%, alongside a five-year total shareholder return of 466.94%. However, the 90-day share price return is down 7.98%, which suggests that shorter-term momentum has cooled after a long run. If you are weighing Golar LNG against other opportunities in energy infrastructure, this is a good moment to see what else stands out in the market through 91 nuclear energy infrastructure stocks After a big multi year run, fresh Q2 strength and a fourth FLNG order leave Golar LNG looking either early in a new chapter or close to fully priced. The valuation section is where that tension shows up. The most followed valuation narrative puts Golar LNG's fair value at $60.28, above the last close at $52.49, which frames the stock as modestly undervalued in that model. Read the complete narrative. Want to see what sits behind that valuation gap for Golar LNG? The narrative leans on strong revenue growth, richer margins and a future earnings multiple that assumes sustained cash generation. Curious which specific long term forecasts need to hold up to support that fair value. Result: Fair Value of $60.28 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the bullish case for Golar LNG still relies heavily on continued LNG demand and successful FLNG contract execution. As a result, overcapacity or project setbacks could quickly challenge it. Find out about the key risks to this Golar LNG narrative. While the main narrative points to Golar LNG trading below fair value, the current P/E of 32.7x tells a different story. It is much higher than both the US Oil and Gas industry at 12.6x and the peer average at 16.9x, even though still below a fair ratio of 41.5x. That mix of rich headline multiples and a higher fair ratio raises a simple question for investors: is this more mispricing or just paying up for growth risk? See what the numbers say about this price — find out in our valuation breakdown. Given the mixed signals around Golar LNG's valuation and growth expectations, this is a good time to review the underlying numbers yourself and decide how comfortable you are with both the upside and the risks. To help with that, take a closer look at the company's 3 key rewards and 2 important warning signs. If you are serious about building a stronger portfolio, now is the time to broaden your watchlist with focused stock ideas from the Simply Wall St screener. Spot potential underpriced compounders early by scanning 50 high quality undervalued stocks that pair stronger fundamentals with room for re rating. Strengthen your income stream by assessing 10 dividend fortresses that combine higher yields with an emphasis on resilience. Prioritize capital preservation by reviewing 83 resilient stocks with low risk scores that rank well on balance sheet strength and risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GLNG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Golar LNG Limited (GLNG) reported impressive second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year. Quarterly earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 30 cents and increased year over year. Revenues of $130.5 million outpaced the Zacks Consensus Estimate of $125 million and improved 72% year over year. Golar LNG Limited price-consensus-eps-surprise-chart | Golar LNG Limited Quote Adjusted EBITDA of $127.36 million improved 159% year over year. GLNG exited the second quarter of 2026 with cash and cash equivalents of $870.47 million compared with $1.01 billion at the end of the prior quarter. GLNG’s share of contractual debt at the end of the reported quarter increased 31% to $2.68 billion. GLNG’s board of directors approved a second-quarter 2026 dividend of 25 cents per share. The dividend will be paid on Sept. 2, 2026, to shareholders of record at the close of business on Aug. 24. As of June 30, 2026, GLNG had 102.1 million shares issued and outstanding. Currently, GLNG sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Eni S.p.A.E reported second-quarter 2026 adjusted earnings of $1.76 per American Depository Receipt, missing the Zacks Consensus Estimate of $1.90 by 7.4%. The bottom line increased 122.8% from the year-ago quarter’s 79 cents. Quarterly revenues of $26.35 billion rose 21.5% year over year and surpassed the consensus estimate of $24 billion by 9.8%. Higher commodity realizations, production growth and stronger segment profitability supported revenues. Chevron CorporationCVX reported second-quarter 2026 adjusted earnings of $6.06 per share, which beat the Zacks Consensus Estimate of $5.80 by 4.5%. The outperformance was driven by higher commodity prices, increased upstream production following the Hess acquisition, stronger refined-product margins and higher sales volumes. The company generated revenues of $70.06 billion. The metric beat the Zacks Consensus Estimate of $57.53 billion and increased 56.3% year over year.  The increase was primarily driven by a 51.4% year-over-year increase in sales and other operating revenues, along with a 296.5% rise in income from equity affiliates. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Golar LNG Limited (GLNG) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Eni SpA (E) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Operating Revenue: $130 million in Q2 2026. EBITDA: $127 million in Q2, up approximately 20% quarter-over-quarter from $106 million in Q1. Net Income: $56 million in Q2; year-to-date net income of $158 million. Dividend: Declared quarterly dividend of $0.25 per share. Cash Position: Total cash of approximately $900 million at quarter end. Net Interest-Bearing Debt: Approximately $1.8 billion. Liquidity: Approximately $1.5 billion, including a new undrawn $600 million revolving credit facility. Hilli Commodity-Linked Earnings: $37 million in Q2, compared to $10 million in Q1. Gimi Performance: Produced 15% above contracted capacity during the quarter. FLNG Esperanza (Mark II) CapEx: Total budget of $2.2 billion; approximately $1.3 billion in cash equity spent to date; 74% complete on conversion progress. FLNG #4 CapEx: Budget of approximately $2.45 billion. EBITDA Backlog: $17 billion before commodity upside and inflationary adjustments. Annual Run-Rate EBITDA (2028): Expected approximately $800 million with Gimi, Hilli, and Esperanza fully operational, before commodity upside. Potential Annual EBITDA (2030): Expected to exceed $1.2 billion with FLNG #4 contracted, before commodity upside. Warning! GuruFocus has detected 9 Warning Signs with GLNG. Is GLNG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Golar LNG Ltd (NASDAQ:GLNG) signed its fourth FLNG unit, a Mark II design, which will be the earliest available FLNG capacity globally, delivering by 2029. The company's total EBITDA backlog stands at $17 billion before commodity upside, providing strong long-term revenue visibility. Gimi overproduced 15% versus contractual volume, demonstrating operational excellence and upside potential. Hilli completed its eight-year contract with 100% economic uptime, showcasing reliability and strong operational performance. The company secured a $600 million revolving credit facility, boosting liquidity to approximately $1.5 billion to fund growth. The CapEx budget for the fourth FLNG unit increased by approximately 10% to $2.45 billion due to inflationary pressures on long-lead equipment. The company faces significant pressure on critical long-lead equipment, which could impact delivery timelines and costs. Geopolitical events, such as the military action affecting Qatar's Ras Laffan plant, introduce uncertainty in the LNG market. The strategic review process remains ongoing with no clear timeline for conclusion, creating uncertainty for investors. The company's growth is dependent on securing long-term charters for new units, which may face delays or unfavorable terms. Q: Can you walk us through the path to commercializing the fourth FLNG vessel and signing a customer, including target return profiles?A: Karl Staubo, CEO, explained that Golar has narrowed the design to a Mark II FLNG based on strong charter interest and the best value proposition. The company expects to secure a long-term charter of 20 years plus or minus, maintaining its guidance of 5 to 6 times CapEx to EBITDA. The process typically involves signing a term sheet or framework agreement, evolving it into definitive contracts, and then lifting conditions precedent such as regulatory and tax approvals. Q: In a blue-sky scenario, how would we think about the pace of deployments to reach a fleet of seven vessels?A: Karl Staubo, CEO, stated that Golar has secured yard capacity for units #5 (option at CIMC) and #6 and #7 (LOI with Seatrium). The company maintains a strict policy of having only one open FLNG at a time, so it will not order unit #5 until a long-term contract for unit #4 is secured. Once contracts are locked in, Golar will attach asset-level financing to derisked FLNGs and recycle capital into subsequent units. Q: With the LOI with Seatrium covering either a Mark I or Mark II, how are you thinking about shipyard selection for the next unit?A: Karl Staubo, CEO, noted that Golar is comfortable with both shipyards, having built two Mark I units with Seatrium and currently building a Mark II with CIMC. The decision will come down to price, payment terms, and delivery, with potential charter preferences also playing a role. If it's a Mark I, it's very likely to be Seatrium. Q: Can you talk us through the delta in budget between the FLNG Esperanza ($2.2 billion) and the second Mark II conversion ($2.45 billion)?A: Karl Staubo, CEO, explained that the ~10% increase is mainly driven by significant cost inflation on long-lead equipment (40% to 60% inflation on some items), steel prices, and currency fluctuations. The all-in price includes EPC, crew training, bunkering, transport to the contract site, and the mooring system. Despite the increase, Golar sees this as highly competitive compared to other offshore and shipping assets. Q: What drove the decision to order a Mark II, and is that indicative of where charter conversations have progressed?A: Karl Staubo, CEO, stated that the primary reason is the strongest charter engagement for relatively near-term employment, the most attractive CapEx per tonne and OpEx per MMBtu, and the most actively demanded unit. The decision also reflects confidence in CIMC's performance, given the Esperanza is 74% complete. Q: When do the additional options expire, and what is the lead time for those units?A: Karl Staubo, CEO, declined to disclose exact expiration dates for commercial sensitivity but noted that delivery would be around 38 to 40 months, subject to shipyard and design. The options for long-lead equipment were secured at no or very low incremental cost (less than $1 million total), with time constraints that can be extended, though extensions may result in later delivery slots. Q: Are there commercial opportunities for a fifth vessel to go to the same locale as Argentina, or are opportunities more geographically dispersed?A: Karl Staubo, CEO, said both are possible. Argentina took two units, and projects like YPF, ENI, and XRG are discussing adding two more 6 million tonne units. Other countries like Mozambique are also taking two units from ENI. Golar can look at multiple deployments in certain geographies, but it's easiest to start with one and build on that. Q: How should we think about the sequence and timing of CapEx for the new FLNG unit with delivery by 2029?A: Karl Staubo, CEO, noted that the CapEx curve for unit #4 is meaningfully improved from the Esperanza, with significantly lower capital outlays in the first two years of construction. Payment terms are pay-as-you-go, not fixed installments, and were negotiated substantially lower than the Esperanza's schedule. Q: How do you think about geographical and credit preferences for the fourth counterparty?A: Karl Staubo, CEO, said Golar is in advanced charter discussions with NOCs, independents, and IOCs across several geographies. Contract structures vary by credit quality, with IOCs offering better financeability but less commodity upside. Golar focuses on economic returns and equity returns, leveraging its low CapEx per ton, operational performance, and earliest delivery to drive value. Q: With the fourth vessel, should we think about ultimate desired leverage in the same 3 to 3.5x range?A: Karl Staubo, CEO, confirmed that Golar's net debt-to-EBITDA ratio is currently in that range. The company has significant capacity to free up liquidity by re-levering Hilli and adding asset-level financing on the Esperanza, potentially releasing ~$2.3 billion. Golar has proven asset-level financing at 5.5 times (Gimi) and expects the ratio to not meaningfully change as more EBITDA backlog is locked in, maintaining balance sheet flexibility for growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Golar LNG (GLNG) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +126.67%. A quarter ago, it was expected that this operator of carriers for natural gas shipping would post earnings of $0.31 per share when it actually produced earnings of $0.49, delivering a surprise of +58.06%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Golar LNG, which belongs to the Zacks Oil and Gas - Integrated - International industry, posted revenues of $130.48 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.36%. This compares to year-ago revenues of $75.67 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Golar LNG shares have added about 37.3% since the beginning of the year versus the S&P 500's gain of 13.2%. While Golar LNG has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Golar LNG was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $67.63 million in revenues for the coming quarter and $1.05 on $397.83 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - International is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Daqo New Energy (DQ), another stock in the broader Zacks Oils-Energy sector, has yet to report results for the quarter ended June 2026. This solar panel parts maker is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +75.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Daqo New Energy's revenues are expected to be $59.2 million, down 21.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Golar LNG Limited (GLNG) : Free Stock Analysis Report DAQO New Energy Corp. (DQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Golar LNG Limited? Here are five stocks we like better. Second-quarter results improved: Revenue reached $130 million and EBITDA rose 20% sequentially to $127 million, driven largely by higher commodity-linked earnings from Hilli. Golar reported $56 million in net income and declared a $0.25-per-share dividend. Golar ordered a fourth FLNG unit at CIMC Raffles, with delivery expected in 2029 and estimated capital spending of $2.45 billion. The unit would increase Golar-controlled liquefaction capacity by 41%, though the company is still in advanced charter discussions and has not secured a contract. Argentina growth plans remain on track: Hilli is being redeployed under a 20-year Argentine contract beginning in 2027, while Esperanza was 74% complete and remains scheduled to begin operations in the second half of 2028. Management expects the fleet to generate about $800 million in annual run-rate EBITDA by 2028, excluding commodity upside. 3 LNG Stocks to Watch as Iran War Continues Golar LNG (NASDAQ:GLNG) reported higher second-quarter earnings as its floating liquefied natural gas fleet continued to perform above contracted levels, while the company announced a firm order for a fourth FLNG conversion unit expected to be available in 2029. Chief Executive Officer Karl Fredrik Staubo said the company signed an order for another Mark II FLNG unit at CIMC Raffles in China, the same shipyard constructing the FLNG Esperanza. The fourth unit is expected to deliver in 2029 and, according to Golar, will represent the earliest available global FLNG capacity. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Are These Liquid Natural Gas Stocks Ready For An Upside Bounce? The order follows interest from prospective charterers and is consistent with Golar's policy of adding capacity after securing long-term commitments for its existing fleet, Staubo said. While the company has not yet announced a charter for the new unit, management said it is in advanced discussions with potential customers across several regions. Chief Financial Officer Eduardo Maranhão said total operating revenue was $130 million in the second quarter. EBITDA increased about 20% sequentially to $127 million, from $106 million in the first quarter, primarily due to higher commodity-linked earnings from the Hilli FLNG. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Hilli generated $37 million in commodity-linked earnings during the quarter, compared with $10 million in the prior quarter. Net income was $56 million, bringing year-to-date net income to $158 million. Golar declared a quarterly dividend of $0.25 per share. At quarter-end, the company had approximately $900 million in cash and about $1.8 billion of net interest-bearing debt. In July, Golar closed a $600 million revolving credit facility that remained undrawn, bringing available liquidity to approximately $1.5 billion. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Maranhão said Golar has funded about $1.3 billion of equity toward the Esperanza conversion project. He added that potential financing of Hilli and Esperanza could release approximately $2.3 billion of additional liquidity, with discussions on those financings advancing. Golar said the Gimi FLNG produced 15% above its contracted capacity during the second quarter. Staubo said the unit's performance occurred despite the higher temperatures of the summer period, which can affect liquefaction plants. Management expects high temperatures to continue affecting performance in the third quarter, but said Gimi is still expected to produce meaningfully above its contractual capacity for the year. The Hilli completed its eight-year contract with Perenco Offshore Cameroon, delivering 100% economic uptime over the life of the contract and 156 cargoes. Its final cargo under the Cameroon contract was delivered July 26. Hilli is now traveling to Singapore for modifications before beginning a 20-year contract in Argentina during the second half of 2027. Golar expects Hilli to generate annual EBITDA of $285 million before additional commodity-related upside once it begins operations in Argentina. Staubo said the refurbishment and redeployment budget is approximately $350 million from its departure from Cameroon through commissioning in Argentina. Meanwhile, the FLNG Esperanza conversion was 74% complete, with more than 15 million man-hours worked without lost-time incidents. The project remains on schedule and on budget, with sail-away targeted by the end of 2027 and operations in Argentina expected to begin in the second half of 2028. Golar said the total six-million-tonne LNG marketing program associated with Argentina is progressing. The first two million tonnes have been sold to Securing Energy for Europe, while multiple offtakers are bidding for the remaining four million tonnes, with additional agreements expected before year-end. The fourth FLNG unit will increase Golar-controlled liquefaction capacity by 41%, from 8.6 million tonnes to more than 12 million tonnes on a fully delivered basis. The company said its existing Hilli, Gimi and Esperanza contracts provide an EBITDA backlog of $17 billion through 2045, before commodity upside and inflation adjustments. The fourth unit has a capital expenditure budget of approximately $2.45 billion, compared with approximately $2.2 billion for Esperanza. Staubo said the roughly 10% increase reflects inflation in long-lead equipment, steel prices and currency fluctuations. He said the budget represents an all-in delivered cost, including shipyard EPC work, crew training, bunkering, transportation to the contract site and anticipated mooring systems. Management said it expects synergies from repeating the Mark II design and constructing overlapping units at the same yard. Golar has secured a donor vessel for the fourth conversion and has also obtained an option for an additional Mark II FLNG at CIMC Raffles. In addition, Golar signed a letter of intent with Seatrium in Singapore for shipyard slots that could support Mark I or Mark II FLNG conversions. Management said these arrangements could establish a pathway to a fleet of more than seven units, although the company will maintain its policy of having no more than one uncontracted FLNG unit at a time. Staubo said Golar will not order a fifth unit until it has clear visibility on a long-term charter for the fourth. He described the typical commercial process as progressing from a term sheet or framework agreement to a definitive contract, followed by satisfaction of conditions precedent such as regulatory approvals, export licenses, environmental permits and, in some cases, tax-regime clarification. Maranhão said Golar expects annual run-rate EBITDA of approximately $800 million by 2028 once Gimi, Hilli and Esperanza are operating, excluding commodity upside and inflation adjustments. If the fourth FLNG secures terms broadly comparable to Esperanza, annual EBITDA could rise by about 50% to more than $1.2 billion by 2030, he said. Under the Hilli and Esperanza charters in Argentina, Golar receives a commodity-linked fee equal to 25% of free-on-board LNG prices above $8 per MMBtu. Golar also owns a 10% interest in Southern Energy S.A., or SESA, providing further commodity exposure. Maranhão said each $1 per MMBtu above $8 could generate up to approximately $100 million of incremental annual earnings for Golar. Based on current and forward pricing, the company estimates that commodity exposure could add up to $500 million annually during the first three years of SESA operations. Management said it continues to conduct its previously announced strategic review but will not provide details on its potential outcome or timing unless there is material information to disclose or the board ends the process. Golar LNG Ltd. is a leading owner and operator of liquefied natural gas (LNG) carriers and floating infrastructure. The company specializes in the transportation of LNG on long-term and spot charters for major energy firms around the world. In addition to shipping, Golar LNG has broadened its services to include project development and the conversion of existing carriers into Floating Liquefied Natural Gas (FLNG) and Floating Storage and Regasification Unit (FSRU) vessels. Since pioneering the first purpose-built FLNG conversion project, Golar LNG has been at the forefront of offshore gas monetization. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Golar LNG Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Secured a firm order for a fourth FLNG unit (Mark II design) with CIMC Raffles, increasing controlled liquefaction capacity by 41% to over 12 million tonnes. Performance attribution for the quarter was driven by Hilli's 100% economic uptime over its 8-year Cameroon contract and Gimi overproducing 15% against contractual volumes. Strategic positioning focuses on being the only 'FLNG as a service' provider, capturing demand for supply diversification following geopolitical disruptions in major export hubs like Qatar. Management attributes the decision to proceed with a Mark II design to strong charter engagement and superior economics regarding CapEx per tonne and OpEx per MMBtu. The company is leveraging its proven operational track record to transition into a pure-play FLNG infrastructure firm, having exited legacy O&M contracts. Market dynamics show significant supply concentration in the US and Qatar, creating a strategic opening for FLNG to unlock stranded gas reserves in emerging regions. Projected annual run-rate EBITDA is expected to reach approximately $800 million by 2028, potentially rising to over $1.2 billion by 2030 if the fourth unit is contracted on terms similar to Esperanza. The fourth FLNG unit is scheduled for delivery within 2029, representing the earliest available liquefaction capacity globally, which management expects will drive high charter interest. Guidance assumes a 5 to 6x CapEx to EBITDA return profile for new units, with a policy of maintaining only one 'open' or uncontracted vessel at any given time. Future growth is supported by an option for a third Mark II at CIMC and a Letter of Intent with Seatrium for additional units, creating a pathway to a fleet of over 7 units. Commodity-linked earnings provide significant upside; every $1 per million BTU above $8 in LNG prices can generate approximately $100 million in incremental annual EBITDA. The total CapEx budget for the fourth FLNG unit is approximately $2.45 billion, a 10% increase over Esperanza due to global inflationary pressure on long-lead equipment. Hilli is currently in transit to Singapore for a $350 million modification program ahead of its 20-year contract in Argentina starting in the second half of 2027. Management highlighted significant competition for critical equipment like turbines and cold boxes from AI data centers and the aircraft industry, which is extending lead times. An ongoing strategic review is exploring alternatives to accelerate growth and address the perceived value discrepancy between public market pricing and asset valuation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects to follow a three-step process: signing a term sheet, definitive contracts, and then lifting regulatory and tax-related conditions precedent. Target returns remain in the 5 to 6x CapEx to EBITDA range, with a focus on 20-year contract durations. Selection for future units will depend on price, payment terms, delivery slots, and potential charterer preferences. Management expressed comfort with both yards, noting Seatrium's history with Mark I designs and CIMC's current progress on the Mark II Esperanza. The review is twofold: addressing value discrepancies and accelerating growth to meet market demand. Management declined to provide specific updates on the review's timing or outcome until material information is available. Discussions are advanced across various geographies involving National Oil Companies (NOCs), independents, and International Oil Companies (IOCs). While IOCs offer higher financeability, they are less likely to share commodity upside, requiring a strategic trade-off for Golar.

A month has gone by since the last earnings report for Golar LNG (GLNG). Shares have lost about 5.2% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Golar LNG due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Golar LNG reported impressive first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year. Quarterly earnings of 49 cents per share surpassed the Zacks Consensus Estimate of 31 cents and increased year over year. Revenues of $137.55 million outpaced the Zacks Consensus Estimate of $125.3 million and improved 120% year over year. Adjusted EBITDA of $105.57 million improved 158% year over year. GLNG exited the first quarter of 2026 with cash and cash equivalents of $1.01 billion compared with $1.15 billion at the end of the prior quarter. GLNG’s share of contractual debt at the end of the reported quarter increased 81% to $2.70 billion. GLNG’s board of directors approved a first-quarter 2026 dividend of 25 cents per share. The dividend will be paid on June 10, 2026, to shareholders of record at the close of business on June 1. As of Mar 31, 2026, GLNG had 101.8 million shares issued and outstanding. In the past month, investors have witnessed a flat trend in estimates revision. The consensus estimate has shifted -6.35% due to these changes. Currently, Golar LNG has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Golar LNG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Golar LNG belongs to the Zacks Oil and Gas - Integrated - International industry. Another stock from the same industry, Ecopetrol (EC), has gained 19.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026. Ecopetrol reported revenues of $7.73 billion in the last reported quarter, representing a year-over-year change of +3.1%. EPS of $0.38 for the same period compares with $0.36 a year ago. Ecopetrol is expected to post earnings of $1.31 per share for the current quarter, representing a year-over-year change of +523.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +61.7%. Ecopetrol has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Golar LNG Limited (GLNG) : Free Stock Analysis Report Ecopetrol S.A. (EC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investors were disappointed with Golar LNG Limited's (NASDAQ:GLNG) earnings, despite the strong profit numbers. Our analysis uncovered some concerning factors that we believe the market might be paying attention to. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For anyone who wants to understand Golar LNG's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from US$20m worth of unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. If Golar LNG doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. We'd posit that Golar LNG's statutory earnings aren't a clean read on ongoing productivity, due to the large unusual item. Because of this, we think that it may be that Golar LNG's statutory profits are better than its underlying earnings power. But the happy news is that, while acknowledging we have to look beyond the statutory numbers, those numbers are still improving, with EPS growing at a very high rate over the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Be aware that Golar LNG is showing 2 warning signs in our investment analysis and 1 of those is concerning... This note has only looked at a single factor that sheds light on the nature of Golar LNG's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.