Golar LNG :FLNG Hilli Episeyo - Customer Acceptance
June 04 2018 - 8:31AM
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)
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