Business Context and Reporting Period
Company: Golar LNG Limited (Golar)
Filing Type: Form 6-K (Unaudited Interim Financial Report)
Reporting Period: Six months ended June 30, 2026
Business Overview: Golar is a leading provider of Floating Liquefied Natural Gas (FLNG) as a service. As of June 30, 2026, the company operated two FLNG vessels: FLNG Hilli (offshore Cameroon, contract expiring July 2026) and FLNG Gimi (offshore Mauritania/Senegal, 20-year lease with bp). The company is actively converting FLNG Esperanza and has initiated the construction of a fourth FLNG unit.
Key Financial Metrics
| Metric (in thousands, except per share) | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
|---|---|---|
| Total Operating Revenues | $268,033 | $138,175 |
| Net Income | $157,639 | $43,718 |
| Net Income Attributable to Stockholders | $121,843 | $23,836 |
| Adjusted EBITDA | $232,941 | $90,191 |
| FLNG Segment Adjusted EBITDA | $250,710 | $111,910 |
| Cash and Cash Equivalents (including restricted) | $908,461 | $907,301 |
| Net Debt (Gross Debt less Cash) | ~$1.81 billion | ~$1.90 billion |
| Basic Earnings Per Share (EPS) | $1.20 | $0.23 |
| Diluted Earnings Per Share (EPS) | $1.09 | $0.23 |
Note: Gross Debt as of June 30, 2026, was $2.72 billion. Net Debt calculation is approximate based on reported cash balances.
Material Changes vs. Prior Period
- Revenue Growth: Total operating revenues increased 94% to $268.0 million, driven primarily by FLNG Gimi achieving a full six months of operations under its Lease and Operate Agreement (LOA) in 2026, compared to only partial operations in 2025. Sales-type lease revenue surged to $98.3 million from $8.2 million.
- Profitability: Net income increased 261% to $157.6 million. This was fueled by higher operating revenues, a $47.0 million realized gain on oil and gas derivatives (vs. $37.4 million in 2025), and the absence of a $29.9 million non-recurring gain recognized in 2025 related to the FLNG Gimi deemed sale.
- Interest Expense: Net interest expense increased to $46.5 million from $0 in the prior period. This reflects the issuance of $575 million in Convertible Bonds and $500 million in Senior Unsecured Notes in late 2025, and the cessation of borrowing cost capitalization for FLNG Gimi after its Commercial Operations Date (COD).
- Segment Performance: The FLNG segment Adjusted EBITDA grew 124% to $250.7 million. The Corporate and other segment remained loss-making at -$17.8 million Adjusted EBITDA, impacted by the termination of FSRU O&M contracts.
Guidance, Outlook, and Risks
Recent Developments and Outlook
- Financing: On August 3, 2026, Golar secured a new $600 million senior secured revolving credit facility (RCF) secured by FLNG Esperanza to fund growth projects.
- Expansion: On August 12, 2026, the company entered into an EPC contract for a fourth FLNG unit (3.5 MTPA) with an estimated cost of $2.45 billion, targeting delivery by end of 2029.
- Dividends: Declared a quarterly dividend of $0.25 per share for the period ended June 30, 2026.
- Strategic Review: Management is conducting a strategic review process to identify transactions or structural alternatives to enhance shareholder value.
Risks and Contingencies
- Liquidity: Management states that while current cash and the new RCF support operations for 12 months, additional capital raising (asset-level financing, debt upsizing, or equity) is required to meet long-term commitments. Failure to raise capital could force a pause on the FLNG Esperanza conversion or termination of the fourth FLNG EPC.
- Project Execution: Risks include delays or cost overruns in the FLNG Esperanza conversion and FLNG Hilli refurbishment, and the ability to secure a contract for the fourth FLNG.
- Counterparty Risk: Dependence on bp for FLNG Gimi and Southern Energy S.A. (SESA) for FLNG Esperanza and FLNG Hilli redeployment.
- Market Volatility: Exposure to fluctuations in Brent oil and TTF gas prices, foreign exchange rates, and interest rates.
Investor Verification Checklist
- Liquidity Runway: Verify the timeline and certainty of the "additional capital" required to fund the $2.45 billion fourth FLNG and FLNG Esperanza conversion beyond the 12-month forecast.
- FLNG Hilli Redeployment: Confirm the schedule and cost certainty for the FLNG Hilli refurbishment and its transition to the 20-year charter with SESA in Argentina starting 2027.
- Derivative Exposure: Review the remaining term and valuation of the embedded oil and gas derivatives on FLNG Hilli, which expire in July 2026, and the impact on future revenue stability.
- Debt Covenants: Assess compliance with financial covenants (tangible net worth, working capital) under the new $600 million RCF and existing bond indentures.
- Strategic Review Outcome: Monitor the progress of the strategic review for potential M&A, asset sales, or restructuring that could alter the capital structure.