Latest news with #MKIIFLNG
Yahoo
03-05-2025
- Business
- Yahoo
Why Golar LNG Limited (GLNG) Went Down On Friday
We recently published a list of . In this article, we are going to take a look at where Golar LNG Limited (NASDAQ:GLNG) stands against other Friday's worst performers. Wall Street's major indices ended the trading week on a strong note, clocking in robust gains as investors cheered better-than-expected non-farm payrolls last month while digesting more corporate earnings results. The tech-heavy Nasdaq led the rally among all major indices, finishing up 1.51 percent. The S&P 500 clocked in a 1.47-percent gain, while the Dow Jones grew by 1.39 percent. Despite the broader market optimism, 10 companies managed to register declines amid dismal earnings performance in the first quarter of the year. In this article, let us explore Friday's 10 worst performers and the reasons behind their decline. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. An aerial view of offshore rigs with oil storage tanks, reflecting the company's marine infrastructure. Golar LNG Limited (NASDAQ:GLNG) Golar LNG snapped an eight-day winning streak on Friday, dropping 6.84 percent to close at $39.64 each as investors resorted to profit-taking to take advantage of gains from the previous days' rally. In recent news, Golar LNG Limited (NASDAQ:GLNG) said that it expects to rake in some $13.7 billion from two long-term charter agreements, which include the 20-year deployment of its FLNG Hilli Episeyo vessel to serve Southern Energy SA off the coast of Argentina. In parallel, Golar LNG Limited (NASDAQ:GLNG) also signed another 20-year binding contract for its MKII FLNG vessel, which is currently under transformation at a shipyard in Yantai, China. According to the company, a notable provision allows it to earn approximately $100 million for each dollar increase above $8 per mmbtu, once both vessels become fully operational. Additionally, Southern Energy has the option to shorten its charter to 12 years for FLNG Hilli and 15 years for MKII FLNG, subject to a three-year notice and associated fees. Overall, GLNG ranks 10th on our list of Friday's worst performers. While we acknowledge the potential of GLNG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GLNG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
02-05-2025
- Business
- Yahoo
Golar entered into 20-year agreements for 5.95mtpa nameplate capacity in Argentina – one of the world's largest FLNG development projects.
Golar LNG Limited ('GLNG', 'Golar' or 'the Company') is pleased to announce the Final Investment Decision ('FID') and fulfilment of all conditions precedent for the 20-year re-deployment charter of the FLNG Hilli Episeyo ('FLNG Hilli' or 'Hilli'), first announced on July 5, 2024. The vessel will be chartered to Southern Energy S.A. ('SESA'), offshore Argentina. In addition, Golar and SESA have signed definitive agreements for a 20-year charter for the MKII FLNG, currently under conversion at CIMC Raffles shipyard in Yantai, China. The MKII FLNG charter remains subject to FID and the same regulatory approvals as granted to the FLNG Hilli project, expected within 2025. Key commercial terms for the respective 20-year charter agreements include: FLNG Hilli (nameplate capacity of 2.45 MTPA): Expected contract start-up in 2027, net charter hire to Golar of US$ 285 million per year, plus a commodity linked tariff component of 25% of Free on Board ('FOB') prices in excess of US$ 8/mmbtu. MKII FLNG (nameplate capacity of 3.5 MTPA): Expected contract start-up in 2028, net charter hire to Golar of US$ 400 million per year, plus a commodity linked tariff component of 25% of FOB prices in excess of US$ 8/mmbtu. The two FLNG agreements are expected to add US$ 13.7 billion in earnings backlog to Golar over 20 years, before adjustments (based on US-CPI) to the charter hire and before commodity linked tariff upside. For every US$ 1/mmbtu above the US$ 8/mmbtu, the total upside for Golar will be approximately US$ 100 million when both FLNGs are in operation. Subject to a 3-year notice and payment of a fee, SESA may reduce the term of the agreement to 12 years for the FLNG Hilli and to 15 years for the MKII FLNG. The commodity linked tariff component is upside oriented. Golar will make 25% of realized FOB prices above a threshold of US$ 8/mmbtu, with no cap to the upside for gas prices. Golar has also agreed to a mechanism where the charter hire can be partially reduced for FOB prices below US$ 7.5/mmbtu down to a floor of US$ 6/mmbtu. Under this mechanism, the maximum accumulated discount over the life of both contracts has a cap of US$ 210 million, and any outstanding discounted charter hire amounts will be repaid through an additional upside sharing if FOB prices return to levels above US$ 7.5/mmbtu. Golar is not exposed to further downside in the commodity linked FLNG charter mechanism. SESA is a company formed to enable LNG exports from Argentina. SESA is owned by a consortium of leading Argentinian gas producers including Pan American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%), as well as Golar (10%). The gas producers have committed to supply their pro-rata share of natural gas to the FLNGs under Gas Sales Agreements ('GSA') at a fixed price per mmbtu before adjustments (based on US-CPI). Golar's 10% shareholding in SESA provides additional commodity exposure. The project has received the full support of the National and Provincial Governments in Argentina that granted all necessary approvals including (i) the first ever unrestricted 30-year LNG export authorization in Argentina; (ii) qualification for the Incentive Regime for Large Investments ('RIGI'); and (iii) provincial approval by the province of Río Negro for the offshore and onshore Environmental Impact Assessments for FLNG Hilli. The FLNGs will be located in close proximity of each other, offshore in the Gulf of San Matias Gulf in the province of Rio Negro, Argentina. The vessels will monetize gas from the Vaca Muerta formation, the world's second largest shale gas resource, located onshore in the province of Neuquen, Argentina. FLNG Hilli will initially utilize spare volumes from the existing pipeline network. SESA intends to facilitate for a dedicated pipeline to be constructed from Vaca Muerta to the Gulf of San Matias to serve gas supply to the FLNGs. The project expects to benefit from significant operational efficiencies and synergies from two FLNGs in the same area. Golar's CEO, Karl Fredrik Staubo commented: 'Golar is excited to partner with the leading gas producers in Argentina in establishing the country as an LNG exporter. The vast resources of the Vaca Muerta formation will provide the LNG market with a reliable long-term source of attractive LNG supplies, and a significant contribution to Argentina. For Golar, the project adds robust earnings backlog, attractive commodity upside potential in the FLNG tariff and strong partner alignment through our shareholding in SESA.' About SESA: Southern Energy S.A. is a company founded in 2024 for the purpose of LNG exports of Argentinian natural gas. SESA's shareholders comprise Pan American Energy (30%), YPF (25%), Pampa Energia (20%), Harbour Energy (15%) and Golar LNG Ltd. (10%). SESA will be responsible for procuring natural gas from the domestic market, and facilitating the necessary infrastructure to bring the natural gas to the flange of the FLNGs in the Gulf of San Matias. SESA will also be responsible for the operations of the FLNGs with support from Golar, and for the marketing and sale of the LNG produced. About Golar LNG Ltd: Golar LNG Limited ('GLNG') is a NASDAQ listed maritime LNG infrastructure company. Through its 79-year history, the company has pioneered maritime LNG infrastructure including the world's first Floating LNG liquefaction terminal (FLNG) and Floating Storage and Regasification Unit (FSRU) projects based on the conversion of existing LNG carriers. Today Golar is a leading pure play FLNG company, and the only proven provider of FLNG as a service. FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as 'may,' 'could,' 'should,' 'would,' 'expect,' 'plan,' 'anticipate,' 'intend,' 'forecast,' 'believe,' 'estimate,' 'predict,' 'propose,' 'potential,' 'continue,' 'subject to' or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Golar LNG Limited undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable law. Hamilton, Bermuda2 May 2025 Investor Questions: +44 207 063 7900Karl Fredrik Staubo - CEOEduardo Maranhão - CFOStuart Buchanan - Head of Investor Relations This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading ActSign in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
Golar LNG exits from LNG shipping segment with sale of Golar Arctic
Bermuda-based liquefied natural gas (LNG) company Golar LNG has announced the sale of its LNG carrier, Golar Arctic, marking the company's departure from the LNG shipping business. The vessel is being sold for $24m, before transaction-associated expenses. Built in 2003, the vessel, flagged under the Marshall Islands, boasts a capacity of 140,000m³ and a gross tonnage of 94,934. It also features a steam propulsion system. The sale is expected to close with the LNG carrier ready for handover to the new owner within the first quarter of 2025 (Q1 2025). Golar CEO Karl Fredrik Staubo commented: 'The sale of the Golar Arctic marks the conclusion of Golar's planned exit from the LNG shipping segment, 50 years after taking delivery of our first LNG carrier in 1975. 'Over the last 50 years LNG shipping has been the foundation for Golar's pioneering maritime LNG infrastructure advances, including FSRUs [floating storage regasification units] and FLNGs [floating liquefied natural gas units]. Golar's transition into a focused FLNG infrastructure company is now complete. We look forward to expanding our market-leading FLNG position.' Last month, the company's LNG carrier Fuji LNG discharged its final cargo as an LNG carrier and has since arrived in China, where it is set to enter CIMC shipyard for conversion into a MK II FLNG vessel later this month. In September 2024, Golar LNG signed a $1.6bn engineering, procurement and construction contract with CIMC Raffles for the MK II FLNG. Once converted into an FLNG vessel, MK II FLNG will have a capacity of 3.5 million tonnes per annum. Last year, in July, Golar LNG signed agreements with Pan American Energy, including a 20-year deal for the deployment of an FLNG vessel, in Argentina. Set to commence LNG exports in 2027, this FLNG project is set to leverage Argentina's vast Vaca Muerta shale gas reserves in the Neuquina Basin. "Golar LNG exits from LNG shipping segment with sale of Golar Arctic" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
