UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May, 2007
Golar LNG Limited
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(Translation of registrant's name into English)
Commission File Number: 000-50113
Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, HM 08, Bermuda
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F _____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper by
Regulations S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper by
Regulations S-T Rule 101(b)(1):
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
Item 1. INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 99.1 is a copy of the press release of Golar LNG Limited
(the "Company"), dated May 23, 2007.
Exhibit 99.1
GOLAR LNG
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INTERIM REPORT: JANUARY - MARCH 2007
Highlights:
o Golar reports highest ever quarterly net income, $53.3 million and earnings
per share, $0.81
o Sale of newbuilding DSME Hull 2244 - $41 million profit
o Solid earnings contribution from associates - Korea Line
o Strong earnings from two spot vessels offset by lower utilization of others
o Golar announces a cash dividend of $0.50 per share and 1.24 million share
buy back in connection with the Company's equity swap
o Award of 2 LNG Floating Storage and Regas units by Petrobras
o Partial sale of Korea Line shares
Results
Golar LNG reports its highest ever quarterly net income at $53.3 million for the
three months ended March 31, 2007 (the "first quarter"), as compared to $36.6
million(1) for the three months ended December 31, 2006 (the "fourth quarter").
These results include the gain on the sale of newbuilding DSME Hull 2244 of
$41.1 million. Operating income was also increased at $58.6 million for the
first quarter as compared to $40.4 million for the fourth quarter.
Revenues have been negatively impacted by a generally weaker spot market for
trading LNG ships during the first quarter. Two of Golar's six vessels exposed
to the spot market were fixed throughout the period at good rates, but this was
offset by two of the other vessels suffering extended periods of idle time.
Revenue was also affected by offhire time for the Golar Freeze, which completed
its scheduled drydocking during the quarter. Average time charter equivalent
rates (TCE's) for the fleet were $48,416 per day during the first quarter as
compared to $65,250 per day during the fourth quarter and $55,116 during the
first quarter of 2006.
As announced in February 2007 and discussed further below, newbuilding DSME Hull
2244 was sold to Maran Gas during the first quarter. Golar's gain from the sale
is approximately $41.1 million.
Vessel operating expenses were $13.5 million for the first quarter as compared
to $13.0 million for the fourth quarter of 2006 and administrative expenses were
$3.8 million for the quarter as compared to $3.6m for the fourth quarter of
2006.
Net interest expense for the first quarter was $15.2 million, which compares to
$16.3 million for the fourth quarter of 2006. The decrease is due to slightly
lower levels of debt and marginally lower average interest rates during the
first quarter.
-----------------------------------
(1) The comparative financial information for the three months ended 31
December, 2006 (adjusted unaudited) reflects adjustments from the Company's
previously reported results for that period, which relate to the Company's
equity in net earnings of Korea Line Corporation. The adjustments increase
the reported net income for the three months ended 31 December, 2006
(adjusted unaudited) by $3.5 million, or on an earnings per share basis by
$0.05. Other financials items were a charge of $2.0 million for the first
quarter as compared to a gain of $0.9 million in the fourth quarter. This
is due to a book loss on interest rate swap valuations during the first
quarter as compared to a small gain last quarter partly offset by a gain on
the valuation of Golar's equity swap.
The Company's share of Korea Line Corporation's ("Korea Line") net income for
the first quarter is $14.8 million as compared to the net income in the fourth
quarter of 2006 of $14.0(1) million in respect of Golar's 21% shareholding.
Korea Line's results continue to benefit from a strong drybulk market. As a
result of the sale of 1.1 million Korea Line shares in April 2007, discussed
further below, the Company will not equity account for Korea Line's results in
the future.
Earnings per share for the first quarter were $0.81 as compared with $0.56 for
the fourth quarter of 2006.
As a result of the sale of newbuilding hull 2244 and the Korea Line shares and
taking into account the trading outlook and strong liquidity situation, on May
23, 2007 the Board declared a dividend of $0.50 per share. The record date for
the dividend is June 5, 2007, ex dividend date is June 1, 2007 and the dividend
will be paid on or about June 19, 2007.
The Board has decided to terminate its equity swap and buy back 1.24 million
shares acquired by Bank of Nova Scotia in connection with the swap. The cost of
the shares acquired by Bank of Nova Scotia is approximately $15.3 million, which
is equivalent to $12.3 per share. The gain to Golar if the swap had been
terminated on May 23, 2007 would therefore be approximately $6.9 million. The
cumulative gain booked as at March 31, 2007 was $1.4 million and therefore the
gain that would be recorded in the Company's books during the second quarter of
2007, based on the Company's share price on May 23, 2007, would be $5.5 million.
The actual termination date is expected to take place within the next 10 days.
Corporate and Other Matters
The sale of the ship building contract for newbuilding DSME Hull 2244 to Maran
Gas was, as previously announced, completed by the end of March. The sale was
for a gross consideration of $92.5 million representing an implicit vessel price
of $201 million and resulting in a net gain to Golar of $41.1 million. After a
short hand over period, the Golar site team employed at the shipyard was
redeployed, thus drawing to a close a very successful seven ship newbuilding
programme.
During April, Golar was awarded by Petrobras contracts to employ Golar Winter
and Golar Spirit as the world's first floating storage and regasification
vessels. The contract award was the outcome of a competitive tender process.
Both time charters are for a period of 10 years with an option to extend for up
to a further 5 years. Employment of Golar Spirit is expected to commence during
Q2 2008, Golar Winter is expected to commence Q2 2009. Both ships will need to
undergo modifications before going on hire in Brazil. The estimated contract
value of the 10-year charters totals approximately $860 million. Golar's ability
to win this tender was greatly enhanced by the ability to meet the required
early delivery. The time spent developing this technology and the confidence to
commit to the Golar Spirit conversion without identified firm employment has
proved to be a winning strategy. It is also worth noting that the award of these
contracts has generated increased interest from others considering similar
requirements.
The Livorno project continues to make steady progress toward the final
investment decision (FID). On May 21, the project JV company awarded to Saipem a
limited notice to proceed (LNTP). This contract award marks significant
achievement in what has been at times a difficult and lengthy process. The LNTP
will allow the EPC contractor to commence work on the conversion of the vessel
without further delay whilst other associated contracts are finalised. During
the quarter, OLT Offshore LNG Toscana SpA, the operating company behind the
regasification terminal, acquired land and commenced works related to the
onshore construction of the Regulation and Measurement facility. The project is
now targeting full FID in the third quarter of 2007.
The Cyprus Floating Power Generating Plant (FPGP) project license award took
place formally during the quarter. Still pending is the license to import, store
and use the liquefied natural gas (LNG) required to fuel the FPGP. The
regulatory authorities have announced that Golar's application is complete and
is currently under review.
Golar is also progressing several other FSRU projects, most of which could
utilize the Company's older vessels currently on charter to BG and which are
likely to be redelivered by BG at the end of each charter's initial term during
the period from 2008 to 2011, which fits well with the project portfolio.
During April 2007, the Company sold a total of 1.1 million Korea Line shares for
net proceeds of $77.9 million, which represents a book profit of approximately
$22m based upon the book value of the investment as at 31 March 2007. As a
result of this sale the Company's shareholding in KLC has decreased to 9.64%.
The market value of this remaining share holding as at May 23, 2007 was
approximately $93 million.
Market
Following a strong fourth quarter 2006 where ship owners benefited from ships
being employed as floating LNG storage, more than 12 ships were released back
onto the market in the Far East at about the same time. Those ships that were
able to discharge early in the period (including Golar Winter and Golar Frost)
were able to secure attractive forward employment. Those ships that discharged
later in the period (including one Golar vessel) met a more difficult market.
Toward the end of the first quarter and into the second quarter most ships have
again found employment, however rates have fallen. This position has not been
helped by the anticipated additions to the fleet, these additions will continue
throughout 2007. It is still too early to say if the need for floating storage
which developed during 2006 will repeat itself in the second half of 2007,
however several charterers are positioning themselves to take advantage of
possible movements in gas price should they eventuate.
The development in the charter market in the coming months will though be
strongly influenced by inter-regional gas price differentials as well as the
seasonality of gas prices.
There is approximately 13.7 mtpa of new production scheduled for commissioning
(either through new installations or upgradings) in 2007. Currently there are
230 existing LNG carriers above 76,000 m(3) with 135 on order.
Outlook
The Board continues to believe in the value and potential of the Company's
project portfolio, which fully covers LNG mid-stream activity - liquefaction,
shipping, trading and regasification. The recent award of the Petrobras
contracts provides a significant boost in confidence in the Company's ability to
successfully develop these projects and provides a clear demonstration of their
potential value. The previously announced study on how to optimize the value of
the Company's LNG logistic investments and projects has continued over the
quarter. In this respect the Board expects that a strategic decision on the
future structure of Golar will be made during the next quarter.
The Board anticipates that earnings in the second quarter of 2007 from the
Company's spot vessels will show improved utilization over the first quarter
2007. One of the Company's vessels will be drydocked during the second quarter
of 2007. As noted above the Company will not equity account for Korea Line's
results in the second quarter but will recognize a gain on the sale of the
shares already sold.
The Board is increasingly optimistic about the future development of the Company
and looks forward to the maturing of the various business opportunities
currently under development.
Forward Looking Statements
This press release contains forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including examination of historical operating trends made by the
management of Golar LNG. Although Golar LNG believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies, which are difficult or impossible to predict
and are beyond its control, Golar LNG cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Included among the factors that, in the Company's view, could cause actual
results to differ materially from the forward looking statements contained in
this press release are the following: inability of the Company to obtain
financing for the new building vessels at all or on favourable terms; changes in
demand; a material decline or prolonged weakness in rates for LNG carriers;
political events affecting production in areas in which natural gas is produced
and demand for natural gas in areas to which our vessels deliver; changes in
demand for natural gas generally or in particular regions; changes in the
financial stability of our major customers; adoption of new rules and
regulations applicable to LNG carriers; actions taken by regulatory authorities
that may prohibit the access of LNG carriers to various ports; our inability to
achieve successful utilisation of our expanded fleet and inability to expand
beyond the carriage of LNG; increases in costs including: crew wages, insurance,
provisions, repairs and maintenance; changes in general domestic and
international political conditions; changes in applicable maintenance or
regulatory standards that could affect our anticipated dry-docking or
maintenance and repair costs; failure of shipyards to comply with delivery
schedules on a timely bases and other factors listed from time to time in
registration statements and reports that we have filed with or furnished to the
Securities and Exchange Commission, including our Registration Statement on Form
20-F and subsequent announcements and reports.
May 23, 2007
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Questions should be directed to:
Golar Management (UK) Ltd - +44 207 517 8600:
Gary Smith: Chief Executive Officer
Charlie Peile: Executive Vice President, Head of Commercial
Graham Robjohns: Chief Financial Officer
GOLAR LNG LIMITED FIRST QUARTER 2007 REPORT (UNAUDITED)
INCOME STATEMENT 2007 2006 2006
(in thousands of $) Jan - Mar Jan - Mar Jan - Dec
unaudited unaudited adjusted unaudited
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Operating revenues 53,734 57,340 239,697
Gain on sale of newbuilding 41,088 - -
Vessel operating expenses 13,469 10,391 44,490
Voyage expenses 3,858 2,774 9,582
Administrative expenses 3,821 2,314 13,657
Depreciation and amortisation 15,114 13,321 56,822
Total operating expenses 36,262 28,800 124,551
Operating income 58,560 28,540 115,146
Interest income 11,719 9,113 40,706
Interest expense (26,920) (22,945) (101,298)
Other financial items (1,994) 9,918 8,436
Income before taxes and minority interest 41,365 24,626 62,990
Minority interest (1,760) (2,050) (7,049)
Taxes (31) (191) (1,257)
Loss on deemed part-disposal of associates (1,023) - -
Equity in net earnings of investee 14,758 5,560 21,269
Net income 53,309 27,945 75,953
Basic earnings per share ($) $0.81 $0.43 $1.16
BALANCE SHEET 2007 2006 2006
(in thousands of $) Mar 31 Mar 31 Dec 31
unaudited unaudited adjusted unaudited
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ASSETS
Short term
Cash and cash equivalents 102,420 86,858 56,616
Restricted cash and short-term investments 65,668 45,183 52,287
Other current assets 19,391 31,799 22,651
Amounts due from related parties 602 64 778
Long term
Restricted cash 776,135 702,963 778,220
Equity in net assets of non-consolidated associate 120,750 71,935 106,136
Newbuildings 65,282 49,713
Vessels and equipment, net 1,456,517 1,346,183 1,465,825
Other long term assets 43,451 14,653 42,844
Total assets 2,584,934 2,364,920 2,575,070
LIABILITIES AND STOCKHOLDERS' EQUITY
Short term
Current portion of long-term debt 72,030 67,627 72,587
Current portion of capital lease obligations 5,371 4,740 5,269
Other current liabilities 48,981 55,001 50,248
Amounts due to related parties 164 695 253
Long term
Long term debt 791,324 746,092 803,771
Long term capital lease obligations 1,011,145 914,408 1,009,765
Other long term liabilities 84,253 84,200 84,816
Minority interest 34,196 29,637 32,436
Stockholders' equity 537,470 462,520 515,925
Total liabilities and stockholders' equity 2,584,934 2,364,920 2,575,070
STATEMENT OF CASH FLOWS 2007 2006 2006
(in thousands of $) Jan - Mar Jan- Mar Jan - Dec
unaudited unaudited adjusted unaudited
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OPERATING ACTIVITIES
Net income 53,309 27,945 75,953
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortisation 15,109 13,321 56,822
Gain on disposal of newbuildings (41,088) - -
Amortisation of deferred charges 451 358 1,645
Income attributable to minority interests 1,760 2,050 7,049
Undistributed net earnings of non-consolidated investee (13,745) (5,560) (20,089)
Drydocking expenditure (6,217) (301) (5,864)
Stock-based compensation 617 320 2,790
Change in market value of equity, interest rate and
currency derivatives 1,130 (12,267) (26,156)
Interest element included in capital lease obligations 947 1,964 5,067
Unrealised foreign exchange loss / (gain) 172 1,758 17,644
Change in operating assets and liabilities 1,048 5,624 2,358
Net cash provided by operating activities 13,493 35,212 117,219
INVESTING ACTIVITIES
Additions to newbuildings (1,103) (104,522) (240,906)
Additions to vessels and equipment (2,420) (331) (16,673)
Disposal of newbuildings 92,618 - -
Long-term restricted cash 3,567 22 5,064
Purchase of unlisted investments - (500) (5,501)
Purchase of marketable securities - - (10,386)
Proceeds from disposal of marketable securities - - 2.248
Short-term restricted cash and investments (13,381) 4,265 (2,839)
Net cash provided by/(used in) investing activities 79,281 (101,066) (268,993)
FINANCING ACTIVITIES
Proceeds from long-term debt - - 120,000
Proceeds from long-term capital lease obligation - 102,983 102,983
Repayments of long-term capital lease obligation (1,118) (458) (3,860)
Repayments of long-term debt (13,004) (12,028) (69,390)
Financing costs paid - (12) (1,370)
Cash dividends paid (32,848)
Dividends paid to minority shareholders - - (2,200)
Net cash (used in)/provided by financing activities (46,970) 90,485 146,163
Net increase in cash and cash equivalents 45,804 24,631 (5,611)
Cash and cash equivalents at beginning of period 56,616 62,227 62,227
Cash and cash equivalents at end of period 102,420 86,858 56,616
Notes
1. The financial information included in this interim report has been derived
from information prepared by the Company in accordance with accounting
principles generally accepted in the United States of America.
2. The number of shares outstanding as of March 31, 2007 was 65,562,000
(December 31, 2006: 65,562,000). The weighted average number of shares
outstanding for 2007 was 65,562,000.
GOLAR LNG LIMITED
(Registrant)
By /s/ Graham Robjohns
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Graham Robjohns
Chief Financial Officer
Dated: May 23, 2007
SK 03849 0004 777589