June 4, 2018 - 9:31 AM EDT
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Golar LNG :FLNG Hilli Episeyo - Customer Acceptance

Golar LNG Limited confirms today that that FLNG Hilli Episeyo has been accepted under its Liquefaction Tolling Agreement with Perenco Cameroon SA and Societe Nationale Des Hydrocarbures and is now in full commercial operation.

 

The commissioning tests included the requirement to produce a set quantity of LNG in a period of 16 days of continuous production from minimum 2 trains at a level of 7500 m3 per day on average.

 

The commercial tolling rate commencing will immediately add approximately $164 million in EBITDA* of base tolling income per year plus an additional $45 million operating cash flow per year based on the oil price linked element of the contract (assuming that Brent remains at an average of $75/bbl).

 

As a consequence of the commencement of commercial operations Golar is now able to draw on the $960 million lease financing facility that will replace the existing loan.  It is estimated that a minimum of approximately $140 million in additional free cash will be released from this facility after meeting maximum remaining capital costs and net of minority interests. 

 

The drop down of 50% of the base tolling income to Golar LNG Partners L.P. is expected to be concluded shortly. The additional added contribution of approximately $82 million in effective EBITDA* and effective EBITDA  backlog of $650million, given the 8 year contract term, will significantly strengthening the MLP's financial position and supporting solid distribution going forward.

 

FLNG Hilli Episeyo is the world's first FLNG vessel that has been developed as a conversion project from an LNG carrier.  This conversion approach adds value through its accelerated time to first LNG production and cost competitive pricing.

 

The commencement of commercial operations of Hilli Episeyo took place in less than 4 years after speculative contracts were signed with Keppel Shipyard.  The project cost is expected to be approximately $70 million under budget. 

 

The Board wishes to thank all employees for an impressive job and a very well executed project.  The commencement of Hilli puts Golar in an unchallenged position as a reliable provider of low cost FLNG technology.

 

 

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

 

*EBITDA: earnings before interest, tax, depreciation and amortization; is a non GAAP measure and is defined as being equivalent to revenues less operating expenses for the purposes of this press release. Golar LNG Partners does not expect to initially consolidate Golar Hilli LLC or Hilli Corp and so will reflect its share of net income on its income statement as "equity in net earnings of affiliates."

 

Hamilton, Bermuda

04 June, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

 

Stuart Buchanan

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


Source: GlobeNewswire (June 4, 2018 - 9:31 AM EDT)

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