Golar LNG Limited (NASDAQ: NASDAQ:GLNG), a leading player in the liquefied natural gas (LNG) shipping and floating liquefaction sectors, has made significant strides in its floating liquefaction natural gas vessel (FLNG (OL:FLNG)) projects, according to its latest SEC filing.
The company's FLNG segment, which includes the operational FLNG Hilli Episeyo and the FLNG Gimi currently undergoing commissioning offshore Mauritania and Senegal, reported total operating revenues of $168.6 million for the nine months ended September 30, 2024. This figure is slightly down from the $173 million reported in the same period of the previous year.
Golar's "Corporate and other" segment, which covers vessel management and administrative services, saw a decrease in total operating revenues to $17 million from $29.6 million year-over-year. The "Shipping" segment, which includes the transportation operations of LNG carriers, also experienced a decline in total operating revenues, from $16.2 million to $8.9 million.
The company's consolidated net income for the nine months ended September 30, 2024, was $65.8 million, a notable increase from the $28.2 million reported in the same period last year. This improvement is attributed to a combination of factors, including the operational performance of the FLNG Hilli and adjustments made in the company's derivative instruments related to oil and gas pricing.
Golar LNG's Adjusted EBITDA, a key performance indicator reflecting earnings before interest, taxes, depreciation, and amortization, stood at $181.3 million, compared to $241.5 million in the prior year. The decrease is primarily due to lower realized gains on FLNG Hilli’s oil and gas derivative instruments.
As for liquidity and capital resources, Golar LNG reported cash and cash equivalents, including short-term deposits, of $824.1 million as of September 30, 2024. The company believes that its existing cash, combined with cash flow from operations, will be sufficient to support its liquidity and capital requirements for at least the next twelve months.
In other recent news, New Fortress Energy (NASDAQ:NFE) has made significant financial moves, including amending its credit agreement and planning a substantial debenture issue in Brazil. The amendment, known as the Second Amendment, allows the company to pledge equity in certain subsidiaries to secure obligations under the agreement.
Concurrently, the company's indirect subsidiary, PortoCem Geração de Energia S.A., has initiated a process to issue debentures not exceeding R$4.5 billion, intended for reimbursing expenses, debt, and funding remaining construction costs for the PortoCem Power Plant in Brazil.
In its Q3 2024 earnings call, New Fortress Energy reported an adjusted EBITDA of $176 million, aligning with prior forecasts, and announced a modest reduction in Q4 guidance due to maintenance in FLNG operations. Despite this, the company sold its first full cargo to Europe and made significant progress on various projects across its operational regions. The company's adjusted EBITDA forecast for 2025 is $1.3 billion, with free cash flow available for debt reduction expected to exceed $1 billion.
InvestingPro Insights
To complement the financial overview of Golar LNG Limited (GLNG), let's consider some additional insights from InvestingPro. While GLNG's financial performance shows mixed results across its segments, it's worth noting that another player in the LNG sector, New Fortress Energy (NFE), presents some interesting data points.
According to InvestingPro data, New Fortress Energy has shown a revenue growth of 11.48% over the last twelve months as of Q3 2024, with total revenue reaching $2.42 billion. This growth aligns with the ongoing developments in the LNG industry, as highlighted in Golar LNG's report on its FLNG projects.
InvestingPro Tips suggest that NFE has been "profitable over the last twelve months," which resonates with the positive net income reported by Golar LNG. However, it's important to note that NFE is "quickly burning through cash," which could be a point of contrast with Golar LNG's reported strong liquidity position.
Another relevant InvestingPro Tip indicates that NFE has seen a "significant return over the last week," with a 9.37% price total return in the past week. This short-term market performance could reflect broader investor sentiment towards the LNG sector.
For investors interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for New Fortress Energy, providing a deeper understanding of the company's financial health and market position.
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