Golar LNG Ltd. (NASDAQ:GLNG) Q2 2020 Earnings Conference Call - Final Transcript

Aug 13, 2020 • 10:00 am ET


Golar LNG Ltd. (NASDAQ:GLNG) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, welcome to today's Golar LNG Limited Second Quarter 2020 Results Presentation. [Operator Instructions]

I now hand you over to your first speaker, Iain Ross.

Iain Ross

Thank you, operator. Good morning. Good afternoon, everyone. Welcome to the Golar LNG Q2 2020 results presentation. My name is Iain Ross, and I'm the CEO of Golar LNG. Today I'm joined on the line by CFO, Callum Mitchell-Thomson; Stuart Buchanan, Head of Investor Relations. We're also pleased to have Eduardo Maranhao, CFO of Golar Power on the line to participate in today's call.

I'd like to draw your attention to the forward-looking statement on Slide 1. And if we turn to Slide 4, let me give you some highlights before Callum takes us through the numbers in more detail. Today we report an adjusted EBITDA of $67 million on revenue of $102 million for the quarter, which is driven by a further solid FLNG performance and better seasonal results in shipping. And again, we commend the effort of our whole team in keeping the business running remotely. And to our officers and ratings onboard who've couped with longer work cycles than normal and dealing with all sorts of restrictions and constraints in doing their jobs. And I am pleased to report further improvements in our ability to crew change with most of our people now having being changed at.

In shipping, our time charter earnings of $45,000 per day for Q2 represents an 88% rise over the same period last year. We continue to derisk our shipping portfolio and ended the quarter with the shipping revenue backlog of $105 million. Our FLNG operations maintained 100% commercial uptime through the quarter, with a further 6% reduction in operating costs compared to the first quarter and stable EBITDA generation. And in downstream, Golar Power received full capacity payments on Sergipe and Nanook with Golar's share of that equating to $19 million of revenue less operating costs. The small-scale rollout was boosted by the signing of a partnership with Galileo and the MoUs signing with Norsk Hydro for the provision of LNG and re-gas capacity into the Alunorte alumina refinery in Brazil will reduce the refinery's CO2 output by some 600,000 tons per year. That's the equivalent of the carbon capture of around 10 million tree seedlings planted and grown for 10 years, it's a great ESG story.

More details on these segments later. Let me now hand over to Callum to take you through the numbers.

Callum Mitchell-Thomson

Thank you, Iain. Good morning, everybody. If you turn to Page 5, second quarter 2020 financial results are shown in more detail here. Iain mentioned the $103 million of operating revenue, you can see that in the blue column. That is a 14% beat on the consensus at $90 million for the quarter and is achieved with the stability of the $55 million of FLNG, as Ian mentioned, given Hilli's stability, that is a very stable and a well performing asset. And then secondly,