September 2, 2016 - 9:18 AM EDT
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Post Earnings Coverage as Golar Revenue Beats Expectation

LONDON, UK / ACCESSWIRE / September 2, 2016 / Active Wall St. announces its post-earnings coverage on Golar LNG Ltd. Earnings (NASDAQ: GLNG). The company reported its second quarter fiscal 2016 interim numbers on August 31st, 2016. The Hamilton, Bermuda headquartered company posted revenue increase as sentiment improved in the market. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on GLNG; touching on stocks like Schlumberger Ltd. (NYSE: SLB) and Golar LNG Partners L.P. (NASDAQ: GMLP). Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=GLNG

http://www.activewallst.com/registration-3/?symbol=SLB

Earnings Numbers

For the quarter ended on June 30, 2016, Golar LNG reported net loss of $99.5 million compared to net loss of $80.09 million in the year ago quarter. The operator of carriers for natural gas shipping posted revenue of $18.37 million in Q2 FY16, higher than revenue of $16.56 million in Q2 FY15, due to modest improvement in utilization, beating analysts' projection of $14.8 million in revenue.

LNG Carriers

Golar reported that utilization improved from 24% ($8,300 TCE) in Q1 FY16 to 31% ($8,800TCE) in Q2 FY16 and the company expects it to improve further in the current quarter. The Cool Pool concluded 22 voyages in Q2 FY16 compared to 8 voyages starting in Q1 FY16. Charter rates in the Atlantic have increased from low $30,000's in H1 to around $40k/day. Pacific rates have increased from mid $20,000's to mid $30,000's. The Company believes that sentiment is shifting and owners are cautiously confident in the market over the next 12-24 months.

OneLNG

On July 25, 2016, Golar and Schlumberger Ltd. (NYSE: SLB) established OneLNG, a joint venture 51% owned by Golar that will develop low cost gas reserves to LNG. OneLNG was established with $20 million of working capital ($10.2 million funded by Golar) and a commitment to contribute a further $250 million each upon approval of the first project.

Financials

Golar's total cash position as at June 30, 2-16 was $464.4 million. Of this $280.0 million and $85.9 million, respectively, are restricted cash relating to the FLNG Hilli Letter of Credit ("LC") and the Company's total return swap. Since the end of June, the Company's cash position has improved as a result of the closing of the Golar Power joint venture with Stonepeak, which produced a $103.0 million net cash addition to Golar. The company stated that Golar's 15.9 million subordinated units in Golar LNG Partners L.P. were converted to common units. The Company received $13.2 million in cash distributions in respect of its investment in Golar Partners.

Outlook

The company noted that the shipping business is showing signs of an anticipated recovery. With improving utilization, rates and the re-emergence of full round trip economics, the company anticipates reducing the cash burn associated with this business from Q3 FY16 forward. The Board is of the opinion that good progress has been made strategically and financially over the last year to better position the company for the future.

Stock Performance

At the end of the trading session on Thursday, September 01, 2016, Golar LNG's shares slipped 2.26%, to close the day at 20.36 on a total volume of 1.86 million shares. For the last month and previous three months, the company's share price gained 14.45% and 27.07%, respectively. Since the start of 2016, the stock has advanced 29.66%.

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SOURCE: Active Wall Street


Source: ACCESSWIRE Investor Awareness (September 2, 2016 - 9:18 AM EDT)

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