Highlights and subsequent events
- Golar LNG Limited (“Golar” or “the Company”) reports Q2 2025 net income attributable to Golar of $16 million, Adjusted EBITDA1 of $49 million and Total Golar Cash1 of $891 million.
- Added $13.7 billion in Adjusted EBITDA backlog1, with further upside in contracted FLNG tariff CPI escalation and significant commodity upside:
- Concluded 20-year charter of FLNG Hilli (“Hilli“) in Argentina with Southern Energy S.A. (“SESA”), with Adjusted EBITDA backlog1 of $5.7 billion.
- Signed definitive agreements and reached Final Investment Decision (“FID”) for a 20-year charter for the MKII FLNG, also with SESA, with Adjusted EBITDA backlog1 of $8 billion. Remaining regulatory approvals and customary conditions precedent expected within 2025.
- Commodity upside to Golar of approximately $100 million per year for every US dollar of offtake above $8/MMBtu.
- FLNG Gimi (“Gimi“) reached Commercial Operations Date (“COD”).
- Closed offering of $575 million of convertible senior notes due 2030 (“the Notes”) and repurchased 2.5 million common shares.
- Appointed new board members, Benoît de la Fouchardiere, Mi Hong Yoon and Stephen J. Schaefer.
- Declared dividend of $0.25 per share for the quarter.
- Progressing contemplated next FLNG unit on the back of strong development of commercial pipeline.
FLNG Hilli: Continued market leading uptime during the quarter, 137 cargoes offloaded to date since contract start up in 2018 in Cameroon. Upon completion of the current charter in July 2026, Hilli is scheduled to enter a yard in the third quarter of 2026 for upgrades and life extension work before arriving in Argentina for its 20-year charter for SESA during Q2 2027. Yard selection for the redeployment related upgrade and modification works is expected within Q3 2025. The scope for the yard stay includes repair, life extension modifications, winterization of the vessel and installation of a new soft-yoke mooring system.
The key commercial terms for the 20-year charter agreement include net charter hire to Golar of $285 million per year, a total of $5.7 billion over the 20-year term. In addition Hilli will make a commodity linked FLNG tariff component of 25% of FOB prices in excess of $8/MMBtu. This will add approximately $30 million of potential upside to Golar for every US dollar the achieved FOB price is above the reference price of $8/MMBtu. Hilli will be moored in the San Matías Gulf in Argentina.
Having concluded the 20-year charter agreement in Argentina, we will seek to optimize the asset level debt on Hilli.
FLNG Gimi: In June 2025, Gimi successfully achieved COD, marking the commencement of the 20-year lease term with BP under the Lease and Operate Agreement. Gimi is now in the process of offloading its 8th cargo. The vessel is operating well and has transitioned into its contractual post COD appraisal period during which equipment will be tuned to optimize performance as operations and interfaces with customer infrastructure normalize. Golar owns 70% of Gimi, and Golar’s share of the net earnings backlog for the contract duration is expected to be approximately $3 billion.
Stakeholder approvals for the $1.2 billion sale and leaseback facility have taken longer than expected. This allows for potential alternative financing optimization for debt refinancing of Gimi including a bank facility or secured bonds.
MKII FLNG 3.5 MTPA conversion: Conversion work on the $2.2 billion MKII FLNG is proceeding to schedule. As of June 30, 2025, Golar has spent $0.8 billion on this project, all of which is currently equity funded. The MKII FLNG is expected to be delivered in Q4 2027.
On August 6, 2025, SESA reached FID for the charter of Golar’s 3.5 MTPA MKII FLNG, as contemplated under the terms of the definitive agreements executed by SESA and Golar in May 2025. The MKII charter remains subject to regulatory conditions precedent and satisfaction of other customary closing conditions, expected within 2025.
The key commercial terms for the 20-year charter agreement include net charter hire to Golar of $400 million per year, equal to $8 billion over the charter period. In addition the MKII FLNG charter includes a commodity linked tariff component of 25% of FOB prices in excess of $8/MMBtu. This will add approximately $40 million of potential upside to Golar for every US dollar the achieved FOB price is above the reference price of $8/MMBtu. The MKII FLNG, currently under conversion in China, will sail to Argentina following her redelivery, with contract start-up expected during 2028. The MKII FLNG will be moored in the San Matías Gulf near the Hilli. Combined, the two units have a nameplate capacity of 5.95MTPA, and the project expects to benefit from significant operational efficiencies and synergies from two FLNGs in the same area.
Southern Energy: 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%).
Golar’s 10% ownership of SESA provides additional commodity exposure. With both FLNG’s operational, the 10% equity stake equates to approximately $28 million in annual commodity exposure to Golar for every US dollar/MMBtu change in achieved FOB prices above or below SESA’s cash break even.
With the combination of the fixed charter hire, operating expenses pass through, commodity exposure for FOB prices above $8/MMBtu and Golar’s 10% shareholding in SESA, Golar has secured an attractive contracted cash flow with highly attractive risk-reward in commodity linked earnings. For every US dollar FOB price above $8/MMBtu, Golar’s total commodity upside is approximately $100 million, versus approximately $28 million in downside for every US dollar/MMBtu that realized FOB prices are below SESA’s cash break even.
Business development: With the existing fleet committed to 20-year charters, we have increased focus on securing attractive FLNG growth units. We are working with three prospective shipyards for different FLNG designs (MKI, MKII and MKIII with liquefaction capacities ranging from 2.0 to 5.4 MTPA) to obtain updated EPC price and delivery schedules. In order to secure attractive delivery we plan to enter into slot reservations for long lead equipment within Q3 2025.
We see increasing industry recognition of the benefits of FLNG solutions versus land-based liquefaction terminals, driven by the proven track record of the fleet on the water, lower capex, shorter construction time and increased flexibility. This in turn drives prospective charter interest in our FLNG solutions. Golar is the only proven provider of FLNG as a service. Based on the increasing demand for FLNG to monetize stranded, associated and flared or re-injected gas reserves, we plan to order our next FLNG before locking in a charter to drive competitive tension and terms for our next FLNG project. This is the same approach successfully executed for the FLNG Hilli and for the MKII FLNG. Based on yard availability we are confident that a contemplated 4th Golar FLNG will be the only open and available FLNG capacity within this decade.
We expect to decide on vessel design for our fourth FLNG once final EPC prices and delivery schedules are obtained. We are in parallel working on the commercial pipeline to match commercial opportunities to the contemplated fleet addition. We also expect that a 5th unit could follow shortly after a 4th unit has been ordered and chartered.
Our fully delivered net debt to Adjusted EBITDA1 stands at around 3x, and we expect to fund planned FLNG fleet growth with proceeds from debt associated with the conclusion of long-term charters for our existing fleet.
Corporate/Other: In June we raised $575 million of convertible bonds. As part of the convertible bond process we bought back 2.5 million shares for $103 million, at a share price of $41.09 per share. The Notes were priced at 2.75% fixed coupon with a 40% premium. Inclusive of the buyback the Notes are net dilutive to our share count prior to the Notes offering if our share price exceeds $76.71 at maturity in December 2030, before adjusting for any dividends paid in the period.
Operating revenues and costs under corporate and other items are comprised of two legacy FSRU operate and maintain agreements in respect of Italis LNG and LNG Croatia, both of which are expected to end in Q4 2025.
Shares and dividends: 102.3 million shares are issued and outstanding as of June 30, 2025, inclusive of the 2.5 million shares repurchased and cancelled in connection with the June 2025 convertible senior notes offering. Golar’s Board of Directors approved a total Q2 2025 dividend of $0.25 per share to be paid on or around September 2, 2025. The record date will be August 26, 2025.
Financial Summary
On COD the FLNG Gimi asset under development was de-recognized, and a sales-type lease receivable was recognized in the balance sheet. The accounting for a sales-type lease is different to Golar’s other commercial agreements, which have typically been accounted for as operating leases. In order to compare the performance of the FLNG Gimi with our wider business, management has determined that it will measure the performance of the FLNG Gimi sales-type lease based on Adjusted EBITDA1, modified by sales-type lease receivable in excess of interest income. This approach allows Golar to review the economic results of FLNG Gimi in a format consistent with FLNG Hilli.
| (in thousands of $) | Q2 2025 | Q2 2024 | % Change | YTD 2025 | YTD 2024 | % Change |
| Net income | 30,779 | 35,230 | (13)% | 43,718 | 101,725 | (57)% |
| Net income attributable to Golar LNG Ltd | 15,639 | 25,907 | (40)% | 23,836 | 81,127 | (71)% |
| Total operating revenues | 75,673 | 64,689 | 17% | 138,175 | 129,648 | 7% |
| Adjusted EBITDA 1 | 49,255 | 58,716 | (16)% | 90,191 | 122,303 | (26)% |
| Golar’s share of Contractual Debt 1 | 2,048,873 | 1,197,626 | 71% | 2,048,873 | 1,197,626 | 71% |
Financial Review
Business Performance:
| 2025 | 2024 | ||
| (in thousands of $) | Apr-Jun | Jan – Mar | Apr-Jun |
| Net income | 30,779 | 12,939 | 35,230 |
| Income taxes | 439 | 179 | 140 |
| Net income before income taxes | 31,218 | 13,118 | 35,370 |
| Depreciation and amortization | 12,206 | 12,638 | 13,780 |
| Unrealized loss on oil and gas derivative instruments | 34,816 | 25,001 | 16,050 |
| Other non-operating income, net | (29,981) | — | — |
| Interest income | (5,823) | (8,699) | (8,556) |
| Loss/(gain) on derivative instruments, net | 3,843 | 6,795 | (107) |
| Other financial items, net | 973 | 2,292 | 54 |
| Net (income)/loss from equity method investments | (78) | (10,209) | 2,125 |
| Sales-type lease receivable in excess of interest income | 2,081 | ||