Golar Lng Ltd 6-K, filed May 26, 2022
Golar Lng Ltd (GLNG)
About this 6-K
Golar Lng Ltd filed this 6-K on May 26, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2022
Commission File Number: 000-50113
Golar LNG Limited
(Translation of registrant's name into English)
2nd Floor S.E. Pearman Building 9 Par-la-Ville Road Hamilton HM 11 Bermuda
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ X ] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
On May 26, 2022, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
(c) Exhibit 99.1. Press release dated May 26, 2022
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Golar LNG Limited | ||
| (Registrant) | ||
| Date: May 26, 2022 | /s/ Karl Fredrik-Staubo | |
| Karl Fredrik-Staubo | ||
| Chief Executive Officer | ||
Exhibit 99.1
INTERIM RESULTS FOR THE PERIOD ENDED MARCH 31, 2022
| • | Golar LNG Limited ("Golar" or "the Company") reports Q1 2022 ("Q1") Net income of $345.2 million. |
| • | Adjusted EBITDA1 of $93.4 million for the quarter inclusive of FLNG Hilli, Golar Arctic and Golar Tundra but excluding the 8 TFDE vessels and management companies sold to Cool Company Ltd. ("CoolCo"). |
| • | Sold 6.2 million New Fortress Energy Inc. ("NFE") shares in Q2 2022 ("Q2") realizing net cash proceeds of $253 million. Golar now owns 12.4 million NFE shares following the sale. |
| • | Q1 Total Golar Cash and Listed Securities1 position increased by $0.4 billion to $1.3 billion. Golar's share of Contractual Debt1 decreased by $0.5 billion to $1.7 billion in Q1 and a further $0.5 billion in Q2 after sale of remaining carriers to CoolCo in April. |
| • | Agreed to sell the steam turbine carrier Golar Arctic as a converted FSRU to Italy's Snam for 269 million Euros ($288 million). |
| • | Strong progress made on opportunities for FSRU Golar Tundra and on pipeline of FLNG projects. |
Shipping spin-off: A key focus for Q1 was the spin-off of our 8 TFDE LNG carriers into CoolCo. CoolCo successfully concluded an upsized $275 million equity raise in January, listed on the Euronext Growth Oslo exchange in February, recruited a designated management team in March and closed its acquisition of 8 LNG carriers and The Cool Pool Limited from Golar during March and April. The sale of the management companies is contemplated to complete in Q2. In total the CoolCo transactions will reduce Golar’s contractual debt1 position by $821 million, release approximately $217 million in cash and cash equivalents to Golar, whilst maintaining a 31.25% shareholding in affiliate, CoolCo.
FLNG operations and commodity hedges: FLNG Hilli maintained its unbroken 4-year record of 100% uptime during the quarter and started to produce its incremental 0.2mtpa of production, increasing scheduled production volume from 1.2mtpa to 1.4mtpa. The incremental 0.2mtpa that has a tariff linked to Dutch Title Transfer Facility ("TTF") gas prices contributed $22.6 million of incremental proceeds net of commodity swaps to Golar during Q1. The Brent oil linked component of the tariff contributed $15.6 million, bringing Golar’s pro-rata share of gross proceeds from Hilli for the quarter to $64.0 million. Golar's share of the TTF linked gross proceeds is expected to be $19.0 million in Q2 (fully hedged), $19.0 million in Q3 2022 (fully hedged) and $20.0 million in Q4 2022 (open). Estimated Q4 2022 TTF linked gross proceeds are based on a TTF spot price of $26.90/mmbtu and can be expected to increase (or decrease) by $0.8 million for each $1.00/MMBtu change in the TTF forward price. Hilli's earnings could increase further from 2023 until the end of the contract if the customer exercises a one-time 0.4mtpa TTF-linked option that expires on July 31, 2022.
FLNG Gimi construction: Conversion of FLNG Gimi for its 20-year contract with BP scheduled to commence in Q4 2023 is 83% technically complete. Once delivered, Gimi is expected to unlock around $3.0 billion of earnings backlog1 to Golar, equivalent to $151 million in annual Adjusted EBITDA1. The commercial start-up of FLNG Gimi together with the commodity linked production from FLNG Hilli could result in Golar's share of annual Adjusted EBITDA1 generation from Hilli and Gimi exceeding $400.0 million within 3-years, a quadrupling of 2021 FLNG related earnings.
1. Refer to section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure.
FLNG business development: We are in detailed discussions with existing and prospective clients for new FLNG projects. Some of these projects would offer direct access to gas molecules or allow for a commodity linked earnings component, whilst others are on a tolling basis. Based on envisioned funding and ownership structures we expect that our Total Golar Cash and Listed Securities1 position could fund two FLNG growth projects.
FSRU: On May 18, 2022, Italian energy infrastructure company Snam and Golar signed a contract that will see Golar convert the last of its trading steam turbine LNG carriers, Golar Arctic, into a FSRU for delivery to Snam at a port in Sardinia, Italy. After conversion, acceptance and repayment of any vessel related debt, the FSRU will be sold to the Snam Group for 269 million Euros ($288 million). Initiation of activities including procurement of long lead items for the conversion is subject to Snam’s issuance of a Notice-to-Proceed. Once received, the process of conversion and sale is expected to take up to two years, with the vessel being required in a yard for around 9-months. Prior to entering the yard the Golar Arctic will continue to be traded by Golar as an LNG carrier. The estimated conversion cost is approximately $160 million due to the high specification of equipment required and inflationary market conditions.
Developments in Europe have created an urgent need for more floating LNG terminals. Golar has received multiple approaches from European governments and utility companies for its modern high-spec FSRU Golar Tundra.
Financial Summary
| (in thousands of $) | Q1 2022 | Q1 2021 | % Change | Q4 2021 | % Change |
| Net income attributable to Golar LNG Ltd | 345,182 | 25,364 | 1261% | 8,009 | 4210% |
| Total operating revenues | 79,688 | 77,456 | 3% | 72,414 | 10% |
| Adjusted EBITDA1 | 93,446 | 41,885 | 123% | 59,957 | 56% |
| Golar's share of contractual debt 1 | 1,743,747 | 2,170,987 | (20)% | 2,239,496 | (22)% |
Q1 highlights and recent events
Financial and corporate:
| • | Profitability: Net income attributable to Golar of $345.2 million for the quarter, including: |
| ◦ | A $344.0 million non-cash mark-to-market gain recognized on NFE shares based on a March 31, 2022 carrying value of $42.61 per share. |
| ◦ | A $168.1 million non-cash gain recognized on Hilli Brent oil and TTF natural gas linked derivative instruments. |
| ◦ | A discontinued operations net loss of $209.2 million inclusive of a loss on sale/impairment in respect of the 8 carriers sold to CoolCo. |
| ◦ | A $31.5 million gain on interest rate swaps. |
| • | Hedges: Entered into swap arrangements to hedge 100% of Golar's exposure to Q2 and Q3 2022 incremental Hilli TTF linked 2022 production at an average TTF price of $25.375/MMBtu. |
1. Refer to section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure.
| • |
CoolCo transaction: $184.0 million of cash and cash equivalents released to Golar and $340.1 million of Contractual debt1 removed from balance sheet following sale of first 4 vessels to CoolCo in Q1. Remaining 4 vessels sold in April and disposal of management companies contemplated to complete in Q2 expected to release approximately $33.0 million of cash and cash equivalents and derecognize a further $480.9 million of Contractual debt1. |
| • | Shares: Repurchased and then cancelled 368,496 Golar shares at a cost of $6.6 million. 108.0 million shares issued and outstanding as of March 31, 2022. |
| • | ESG: 2021 Environment, Social and Governance report published on May 16, 2022. |
| • | Invested in Oslo-based Aqualung Carbon Capture in May 2022, a technology company working on a promising carbon capture and separation membrane system that could be used on future FLNG units. |
Financing facilities:
| • | Convertible Bond: $317.3 million net outstanding balance of 2.75% $402.5 million Convertible Bonds redeemed on February 15, 2022. |
| • | Credit Facility: $131.0 million of new $200.0 million 3-year Corporate RCF drawn on February 4, 2022 and subsequently repaid on May 10, 2022. Facility remains available until 2024. |
| • | Bilateral Corporate Facility: Executed a new $250 million 7-year bilateral corporate facility on February 11, 2022. Currently undrawn and available until June 30, 2022. |
| • | Finance tax lease case: Settled long running tax dispute in respect of legacy UK finance lease transactions resulting in an approximate $66.0 million final cash settlement (including fees) payable by Golar in Q2. |
FLNG:
| • | Utilization: Industry leading operations maintained with 100% commercial uptime by FLNG Hilli. |
| • | FLNG Hilli producing additional TTF linked 2022 volumes. Customer drilling campaign to prove up additional reserves completed with well testing underway. |
| • | Construction: FLNG Gimi conversion project 83% technically complete. 19-million man-hours worked with strong safety record maintained. |
| • | Commercial: Continued progress on new FLNG projects with existing and new prospective counterparties. |
1. Refer to section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure.
Financial Review
Business Performance:
| 2022 | 2021 | 2021 | |
| Jan-Mar | Oct-Dec | Jan-Mar | |
| (in thousands of $) | Total | Total | Total |
| Net income | 410,014 | 45,811 | 63,104 |
| Income taxes | 375 | 1,110 | 182 |
| Net income before income taxes | 410,389 | 46,921 | 63,286 |
| Depreciation and amortization | 15,536 | 15,621 | 15,646 |
| Unrealized gain on oil and gas derivative instruments | (168,059) | (34,609) | (10,600) |
| Other non-operating (income)/losses | (350,185) | 50,010 | — |
| Interest income | (33) | (69) | (31) |
| Interest expense | 7,577 | 11,098 | 9,089 |
| Gains on derivative instruments | (31,536) | (7,285) | (23,351) |
| Other financial items, net | (527) | 1,204 | 203 |
| Losses/(income) from equity method investments | 1,056 | (1,641) | 682 |
| Net loss/(income) from discontinued operations | 209,228 | (21,293) | (13,039) |
| Adjusted EBITDA (1) | 93,446 | 59,957 | 41,885 |
| 2022 | 2021 | |||||||
| Jan-Mar | Oct-Dec | |||||||
| (in thousands) | Shipping | FLNG | Corporate and other | Total | Shipping | FLNG | Corporate and other | Total |
| Total operating revenues | 9,985 | 62,894 | 6,809 | 79,688 | 9,806 | 56,406 | 6,202 | 72,414 |
| Vessel operating expenses | (3,488) | (14,181) | (1,789) | (19,458) | 2,487 | (11,907) | (4,460) | (13,880) |
| Voyage, charterhire & commission (expenses)/income | (2,241) | (150) | (24) | (2,415) | (1,474) | (150) | 232 | (1,392) |
| Administrative expenses | (2) | (42) | (9,994) | (10,038) | (56) | (14) | (9,545) | (9,615) |
| Project development (expenses)/income | — | (1,540) | 638 | (902) | 143 | (1,055) | 407 | (505) |
| Realized gain on oil and gas derivative instrument (2) | — | 42,631 | — | 42,631 | — | 12,935 | — | 12,935 |
| Other operating income (3) | — | 3,940 | — | 3,940 | — | — | — | — |
| Adjusted EBITDA(1) | 4,254 | 93,552 | (4,360) | 93,446 | 10,906 | 56,215 | (7,164) | 59,957 |
(2) The line item “Realized and unrealized gain on oil and gas derivative instruments” in the Condensed Consolidated Statements of Operations relates to income from the Hilli Liquefaction Tolling Agreement (“LTA”) and the natural gas derivative which is split into: “Realized gain on oil and gas derivative instruments” and “Unrealized gain/(loss) on oil and gas derivative instruments”. The realized component comprised (i) Brent oil linked revenue of $17.5 million (December 31, 2021: $12.9 million), (ii) TTF-linked proceeds of $26.2 million and (iii) commodity swap expense of $1.1 million and represents the contracted amounts in relation to the Hilli LTA receivable in cash.
(3) Included in “Other operating income” is $3.6 million for excess production over the contracted tolling capacity of 1.4 million tons.
1. Refer to section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure.
| 2021 | ||||
| Jan-Mar | ||||
| (in thousands of $) | Shipping | FLNG | Corporate and other | Total |
| Total operating revenues | 14,495 | 54,397 | 8,564 | 77,456 |
| Vessel operating expenses | (4,077) | (12,300) | (2,499) | (18,876) |
| Voyage, charterhire & commission expenses | (6,341) | (150) | (16) | (6,507) |
| Administrative expenses | (34) | (143) | (8,362) | (8,539) |
| Project development expenses | — | — | (1,649) | (1,649) |
| Adjusted EBITDA | 4,043 | 41,804 | (3,962) | 41,885 |
Golar reports today Q1 net income attributable to Golar of $345.2 million. Golar also reports Adjusted EBITDA1 of $93.4 million inclusive of FLNG Hilli, Golar Arctic and Golar Tundra but excluding the 8 TFDE vessels and The Cool Pool Limited sold to CoolCo in March and April 2022, and the management companies, the sale of which is expected to complete in Q2. Q1 results associated with the 8 TFDE vessels and the Cool Pool Limited sold to CoolCo and the management companies still to be sold have been reclassified to Discontinued operations with Q1 2021 and Q4 2021 ("Q4") numbers adjusted on a retrospective basis for comparison in the discussion of material movements below.
Quarterly amortization of the day one gain recognized in respect of the incremental TTF linked production from FLNG Hilli contributed to the $7.3 million increase in Total operating revenues which increased from $72.4 million in Q4 to $79.7 million in Q1. Fees for the additional TTF linked production are accounted for within Realized and unrealized gains/losses on oil and gas derivative instruments. Revenue from shipping (Golar Arctic and Golar Tundra), net of voyage, charter hire and commission expenses was $7.7 million and decreased by $0.6 million from $8.3 million in Q4.
Vessel operating expenses increased, from $13.9 million in Q4 to $19.5 million in Q1, Q4 costs having been suppressed by a $5.4 million insurance recovery.
The Brent oil linked component of Hilli's fees generates additional annual operating cash flows of approximately $3.1 million for every dollar increase in Brent Crude prices between $60.00 per barrel and the contractual ceiling. Billing of this component is based on a three-month look-back at average Brent Crude prices. As a result of rising prices, a $17.5 million realized gain on the oil derivative instrument was recorded in Q1, up from the $12.9 million realized in Q4. Golar has an effective 89.1% interest in these earnings. A realized gain of $26.2 million was also recognized in respect of fees for the additional TTF linked production that commenced in Q1. Golar has an effective 86.3% interest in these earnings. Offsetting this was a $1.1 million realized loss (100% attributable to Golar) on the hedged component of the quarter's TTF linked earnings. Collectively a $42.6 million realized gain on oil and gas derivative instruments was recognized as a result.
The mark-to-market fair value of the Hilli Brent oil linked derivative asset increased by $169.6 million during the quarter, with a corresponding unrealized gain of the same amount recognized in the income statement. The fair value increase was driven by an upward movement in the expected future market price for Brent oil. Similarly, the mark-to-market fair value of the Hilli TTF natural gas derivative asset increased by $24.1 million during the quarter with a corresponding unrealized gain of the same amount recognized in the income statement, also driven by an upward movement in expected future TTF prices. Offsetting the unrealized TTF gain is a $25.7 million unrealized loss in respect of the hedged portion of Q2 and Q3 2022 TTF linked Hilli production. Collectively this therefore resulted in a $168.1 million Q1 unrealized gain on oil and gas derivative instruments.
1. Refer to section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure.
Of the $3.9 million Other operating income in Q1, $3.6 million was recognized in respect of LNG production over and above the quarter's pro-rata share of 1.4mt of full year 2022 contracted production.
An increase in the NFE share price between January 1 and March 31 resulted in the recognition of a Q1 unrealized mark-to-market gain of $344.0 million on Golar’s 18.6 million NFE shares in Other non-operating income. The fair value of these shares was $42.61 per share as of March 31, 2022. Together with $1.9 million of dividend income from NFE and a foreign exchange gain on the final tax settlement with the UK tax authorities relative to the foreign exchange rate used when recognizing the liability at December 31, 2021, this collectively contributed to $350.2 million of Other non-operating income during the quarter.
Balance Sheet and Liquidity:
As of March 31, 2022 Golar had $209.1 million of cash and cash equivalents and $135.9 million of restricted cash. Restricted cash includes $16.3 million relating to the Hilli lessor-owned VIE. Total Golar cash1 position therefore amounts to $328.6 million. As of March 31, 2022, $131.0 million had been drawn down against the Corporate RCF of $200 million, secured by our stake in NFE. On April 6, 2022 Golar sold 6.2 million NFE shares raising net proceeds of $253 million and on May 10, 2022 the $131.0 million Corporate RCF was repaid. The full $200 million undrawn Corporate RCF continues to be available for future drawdown and is now secured by Golar's remaining 12.4 million NFE shares. On February 11, 2022 Golar also entered into a $250.0 million bilateral corporate facility secured by the Company's equity stakes in FLNG Hilli and Gimi. Undrawn as of March 31, 2022 and to the current date, this facility remains available until June 30, 2022.
| Expected FLNG funding sources | USD Million |
| March 31, 2022 Total Golar Cash1 | 329 |
| April 2022: Net proceeds from sale of 6.2m NFE shares | 253 |
| April 2022: Final settlement of legacy UK tax dispute | (66) |
| May 2022: Repayment of outstanding balance of Corporate RCF | (131) |
| Q2 2022 Balance of proceeds expected from CoolCo spin-off | 33 |
| Undrawn balance of $200m Corporate RCF (up to) | 200 |
| Undrawn $250m Corporate bilateral facility currently available until 30 June, 2022 (up to) | 250 |
| Potential near-term funding sources | 868 |
| Listed Securities1: | |
| NFE, Avenir, and CoolCo shares(3) | 719 |
| Net of Corporate RCF secured by NFE investment | (200) |
| Forecast Total Golar Cash and Listed Securities1 (available for future FLNG investment) | 1,387 |
(3) Based on market value as of May 25, 2022 for NFE and CoolCo and book value of Avenir as of March 31, 2022.
Inclusive of $10.6 million of capitalized interest, $82.4 million was invested in FLNG Gimi during the quarter, increasing the total Gimi Asset under development balance as at March 31, 2022 to $960.3 million. Of this, $485.0 million had been drawn against the $700 million debt facility. Both the investment and debt drawn to date are reported on a 100% basis. Golar's share of remaining capital expenditure, net of the Company's share of remaining undrawn debt amounts to $213.0 million. Subsequent to the quarter end, a further $50.0 million has been drawn against the $700 million facility.
1. Refer to section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure.
Included within the $517.0 million current portion of long-term debt and short-term debt as at March 31, 2022 is $370.9 million in respect of the Hilli lessor-owned VIE subsidiary that Golar is required to consolidate. The Current assets held for sale and Current liabilities held of sale of $644.1 million and $383.7 million respectively in Q1 include the remaining four TFDE vessels and The Cool Pool Limited sold in April 2022 and the management companies yet to be sold to CoolCo but contemplated to complete in Q2. After sale of the remaining four TFDE vessels, The Cool Pool Limited and the management companies, Golar's Q2 equity method investments will increase by approximately $62.5 million.
Of Golar's $1.7 billion share of Contractual debt1 as of March 31, 2022, $0.5 billion relates to the 4 TFDE vessels sold in April 2022, leaving $1.2 billion. Net of Total Golar cash of $0.3 billion, Net Debt1 therefore falls to around $0.9 billion. If Listed Securities1 are taken into account, this figure reduces to $0.2 billion. Assuming current commodity prices prevail, Golar's share of 2022 Adjusted EBITDA1 remains on track to reach $200.0 million. This could increase further in 2023 if the customer exercises their option to increase Hilli production to up to 1.6mtpa, and should exceed $400.0 million after the first full year of Gimi operations, expected in 2024. Offering strong debt coverage, near-term earnings power and meaningful growth potential that can be financed, the simplified Golar is well positioned for new FLNG projects.
Corporate and Other Matters:
As at March 31, 2022, Golar had 108.0 million shares issued and outstanding post the repurchase and subsequent cancellation of 368,496 shares during the quarter. There were also 1.1 million outstanding stock options with an average price of $15.63 and 0.2 million unvested restricted stock units awarded. Of the initial $50.0 million approved share buyback scheme, $19.0 million remains available for further repurchases which will continue to be opportunistically pursued.
On May 11, 2022 Golar invested $2.4 million in Aqualung Carbon Capture, an Oslo-based technology company that has developed and achieved proof of concept for a CO2 capture and separation membrane technology. Subject to the successful completion of a commercial pilot project with an industrial user, the technology could be used in future FLNG projects, enabling Golar to offer interested customers the opportunity to further reduce emissions from our already low carbon footprint FLNG solutions. Golar has a 4.6% interest and a board seat in this company.
Non-GAAP measures
In addition to disclosing financial results in accordance with U.S. generally accepted accounting principles (US GAAP), this earnings release and the associated investor presentation contains references to the non-GAAP financial measures which are included in the table below. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance.
These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP. Non-GAAP measures are not uniformly defined by all companies, and may not be comparable with similarly titled measures and disclosures used by other companies. The reconciliations from these results should be carefully evaluated.
1. Refer to section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure.
| Non-GAAP measure | Closest equivalent US GAAP measure | Adjustments to reconcile to primary financial statements prepared under US GAAP | Rationale for adjustments |
| Performance measures | |||
| Adjusted EBITDA | Net (loss)/income attributable to Golar LNG Limited |
+/- Net financial expense +/- Other non-operating income/expenses +/- Income taxes +/- Equity in net (losses)/ earnings of affiliates - Net income attributable to non-controlling interests +/- Unrealized loss/(gain) on oil and gas derivative instruments + Depreciation and amortization + Impairment of long-term assets +/- Net income/(loss) from discontinued operations
|
Increases the comparability of total business performance from period to period and against the performance of other companies by excluding the results of our equity investments, removing the impact of unrealized movements on embedded derivatives and removing the impact of depreciation, financing and tax items. |
| Last Twelve Months (“LTM”) Adjusted EBITDA | Net (loss)/income attributable to Golar LNG Limited | The sum of the most recent four quarters Adjusted EBITDA (defined above) |
Same as Adjusted EBITDA.
The 12 month trailing metric removes the impact of seasonality on our results.
|
| Liquidity measures | |||
| Contractual debt | Total debt (current and non-current), net of deferred finance charges |
'+ Debt within liabilities held for sale +VIE consolidation adjustments + Deferred finance charges + Deferred finance charges within liabilities held for sale
|
We consolidate a number of lessor VIEs for our sale and leaseback facilities. This means that on consolidation, our contractual debt is eliminated and replaced with the lessor VIEs’ debt.
Contractual debt represents our debt obligations under our various financing arrangements before consolidating the lessor VIEs.
The measure enables investors and users of our financial statements to assess our liquidity and the split of our debt (current and non-current) based on our underlying contractual obligations. Furthermore, it aids comparability with competitors.
|
| Total Golar Cash |
Golar cash based on GAAP measures:
+ Cash and cash equivalents
+ Restricted cash and short-term deposits (current and non-current)
|
-VIE restricted cash and short-term deposits (current and non-current) |
We consolidate a number of lessor VIEs for our sale and leaseback facilities. This means that on consolidation, we include restricted cash held by the lessor VIEs.
Total Golar Cash represents our cash and cash equivalents and restricted cash and short-term deposits (current and non-current) before consolidating the lessor VIEs.
Management believe that this measure enables investors and users of our financial statements to assess our liquidity and aids comparability with our competitors.
|
| Non-GAAP measure | Closest equivalent US GAAP measure | Adjustments to reconcile to primary financial statements prepared under US GAAP | Rationale for adjustments |
| Total Golar Cash and Listed Securities |
Golar cash based on GAAP measures:
+ Cash and cash equivalents
+ Restricted cash and short-term deposits (current and non-current)
+ Other current assets
+ Equity method investments
|
Cash and cash equivalents (current assets)
+ Restricted cash and short-term deposits (current assets), adjusted to remove the effects of VIE restricted cash balance cash balance
+ Other current assets, adjusted to remove the effects of other current assets apart from Listed equity securities
+ Restricted cash (non-current assets)
+ Equity method investments (non-current assets), adjusted to remove the effects of ECGS
|
We consider our investments in listed equity securities and our equity method investment in CoolCo to be available for us to liquidate at short notice and therefore we consider available for funding our capital intensive growth projects.
Management believes that this measure enables investors and users of our financial statements to assess our liquidity position to fund existing and future FLNG projects.
|
Reconciliations - Liquidity Measures
Contractual Debt
| (in thousands of $) | March 31, 2022 | December 31, 2021 | March 31, 2021 |
| Total debt (current and non-current) net of deferred finance charges | 1,641,631 | 1,778,978 | 1,605,435 |
| Total debt within liabilities held for sale net of deferred finance charges | 319,263 | 630,823 | 768,447 |
| VIE consolidation adjustments | 285,107 | 315,652 | 295,466 |
| Deferred finance charges | 29,170 | 30,529 | 25,466 |
| Deferred finance charges within liabilities held for sale | 8 | 1,595 | 2,202 |
| Total Contractual Debt | 2,275,179 | 2,757,577 | 2,697,016 |
| Less: Golar Partners', Keppel's and B&V's share of the Hilli contractual debt | (385,932) | (395,081) | (422,529) |
| Less: Keppel's share of the Gimi debt | (145,500) | (123,000) | (103,500) |
| Golar's share of Contractual Debt | 1,743,747 | 2,239,496 | 2,170,987 |
Please see Appendix A for a capital repayment profile for Golar’s contractual debt.
Reconciliations - Liquidity Measures
Total Golar Cash
| (in thousands of $) | March 31, 2022 | December 31, 2021 | March 31, 2021 |
| Cash and cash equivalents | 209,054 | 234,826 | 122,887 |
| Restricted cash and short-term deposits (current and non-current) | 135,870 | 106,074 | 118,721 |
| Less: VIE restricted cash | (16,313) | (16,523) | (26,642) |
| Total Golar Cash | 328,611 | 324,377 | 214,966 |
Non-US GAAP Measures Used in Forecasting
Earnings Backlog: Earnings backlog represents the share of contracted fee income for executed contracts less forecasted operating expenses for these contracts. In calculating forecasted operating expenditure, management has assumed that where there is an Operating Services Agreement the amount receivable under the services agreement will cover the associated operating costs, therefore revenue from operating services agreements is excluded.
Definitions
TFDE: Tri-fuel Diesel Electric engine
FSRU: Floating Storage Regasification Unit
FLNG: Floating Liquefaction Natural Gas
Forward Looking Statements
This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management’s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “may,” “could,” “would,” “predict,” “propose,” “continue,” or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:
| • | our inability and that of our counterparty to meet our respective obligations under the Lease and Operate Agreement entered into in connection with the BP Greater Tortue / Ahmeyim Project (“Gimi GTA Project”); |
| • | continuing uncertainty resulting from potential future claims from our counterparties of purported force majeure under contractual arrangements, including but not limited to our construction projects (including the Gimi GTA Project) and other contracts to which we are a party; |
| • | claims made or losses incurred in connection with our continuing obligations with regard to Hygo Energy Transition Ltd (“Hygo”) and Golar LNG Partners LP (“Golar Partners”); |
| • | the ability of Hygo, Golar Partners and New Fortress Energy Inc. (“NFE”) to meet their respective obligations to us, including indemnification obligations; |
| • | a decline or continuing volatility in the global financial markets, specifically with respect to our equity holding in NFE; |
| • | continuing volatility of commodity prices; |
| • | failure of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all; |
| • | changes to rules and regulations applicable to liquefied natural gas (“LNG”) carriers, floating storage and regasification units (“FSRUs”), floating liquefaction natural gas vessels (“FLNGs”) or other parts of the LNG supply chain; |
| • | changes in our ability to retrofit vessels as FSRUs or FLNGs and in our ability to obtain financing for such conversions on acceptable terms or at all; |
| • | changes in our ability to obtain additional financing on acceptable terms or at all; |
| • | the length and severity of outbreaks of pandemics, including the worldwide outbreak of the novel coronavirus (“COVID-19”) and its impact on demand for LNG and natural gas, the timing of completion of our conversion projects, the operations of our charterers, our global operations and our business in general; |
| • | failure of our contract counterparties to comply with their agreements with us or other key project stakeholders; |
| • | changes in LNG carrier, FSRU, or FLNG charter rates, vessel values or technological advancements; |
| • | our ability to close potential future sales of additional equity interests in our vessels, including the Hilli and Gimi or to monetize our remaining interest in NFE on a timely basis or at all; |
| • | our ability to contract the full utilization of the Hilli or other vessels; |
| • | changes in the supply of or demand for LNG or LNG carried by sea and for LNG carriers, FSRUs or FLNGs; |
| • | a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs; |
| • | increases in costs, including, among other things, wages, insurance, provisions, repairs and maintenance; |
| • | changes in the performance of the pool in which certain of our vessels operate; |
| • | changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs; |
| • | changes in the supply of or demand for natural gas generally or in particular regions; |
| • | changes in our relationships with our counterparties, including our major chartering parties; |
| • | changes in our relationship with our affiliates and the sustainability of any distributions they pay us; |
| • | changes in general domestic and international political conditions, particularly where we operate; |
| • | global economic trends, competition and geopolitical risks, including impacts from the ongoing conflict in Ukraine and the related sanctions and other measures, including the related impacts on the supply chain for our conversions; |
| • | changes in the availability of vessels to purchase and in the time it takes to build new vessels; |
| • | our inability to expand beyond the carriage of LNG and provision of FSRU and FLNGs, particularly through our innovative FLNG strategy; |
| • | actions taken by regulatory authorities that may prohibit the access of LNG carriers, FSRUs and FLNGs to various ports; and |
| • | other factors listed from time to time in registration statements, reports, or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F. |
As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.
May 26, 2022
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
Golar LNG Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| 2022 | 2021 | 2021 | |
| (in thousands of $) | Jan-Mar | Oct-Dec | Jan-Mar |
| Time and voyage charter revenues | 9,985 | 9,806 | 14,495 |
| Liquefaction services revenue | 62,894 | 56,406 | 54,397 |
| Vessel and other management fees | 6,809 | 6,202 | 8,564 |
| Total operating revenues | 79,688 | 72,414 | 77,456 |
| Vessel operating expenses | (19,458) | (13,880) | (18,876) |
| Voyage, charterhire and commission expenses | (2,415) | (1,392) | (6,507) |
| Administrative expenses | (10,038) | (9,615) | (8,539) |
| Project development expenses | (902) | (505) | (1,649) |
| Depreciation and amortization | (15,536) | (15,621) | (15,646) |
| Total operating expenses | (48,349) | (41,013) | (51,217) |
| Realized and unrealized gain on oil and gas derivative instruments (1) | 210,690 | 47,544 | 10,600 |
| Other operating income | 3,940 | — | — |
| Total other operating income | 214,630 | 47,544 | 10,600 |
| Operating income | 245,969 | 78,945 | 36,839 |
| Other non-operating income/(losses)(2) | 350,185 | (50,010) | — |
| Interest income | 33 | 69 | 31 |
| Interest expense | (7,577) | (11,098) | (9,089) |
| Gains on derivative instruments | 31,536 | 7,285 | 23,351 |
| Other financial items, net | 527 | (1,204) | (203) |
| Net financial income/(expense) | 24,519 | (4,948) | 14,090 |
| Income/(loss) before income taxes, net (losses)/income from equity method investments and non-controlling interests | 620,673 | 23,987 | 50,929 |
| Income taxes | (375) | (1,110) | (182) |
| Net (losses)/income from equity method investments | (1,056) | 1,641 | (682) |
| Net income from continuing operations | 619,242 | 24,518 | 50,065 |
| Net (loss)/income from discontinued operations (3) | (209,228) | 21,293 | 13,039 |
| Net income | 410,014 | 45,811 | 63,104 |
| Net income attributable to non-controlling interests - continuing operations | (56,347) | (28,628) | (28,864) |
| Net income attributable to non-controlling interests - discontinued operations (3) | (8,485) | (9,174) | (8,876) |
| Total net income attributable to non-controlling interests | (64,832) | (37,802) | (37,740) |
| Net income attributable to Golar LNG Limited | 345,182 | 8,009 | 25,364 |
(1) Realized and unrealized gain on oil and gas derivative instruments consists of (i) $193.8 million of unrealized gain on oil and gas derivatives (Q4 2021: $32.9 million); and (ii) $43.7 million of realized oil and gas derivatives net of withholding tax (Q4 2021: $12.9 million); and (iii) $26.8 million of realized and unrealized TTF swap losses (Q4 2021: $1.7 million unrealized gain).
(2) Other non-operating income includes unrealized mark to market gain from our investment in listed equity securities amounting to $344.0 million for the quarter ended March 31, 2022 (Q4 2021: unrealized loss of $51.6 million)
(3) On January 26, 2022, we and Cool Company Ltd “CoolCo”, at that time one of our former wholly owned subsidiaries, entered into a share purchase agreement (“the Vessel SPA”) under which CoolCo will acquire eight modern TFDE LNG carriers, The Cool Pool Limited and the management companies that are responsible for the technical and commercial operation of the LNG carriers (“the Disposal Group”), from us. Following a successful private placement and the receipt of consent from existing lenders, the Disposal Group met the criteria for presentation as held-for-sale and is also considered a discontinued operation. Consequently, we retrospectively adjusted the results of the Disposal Group and separately presented as “Net (loss)/income from discontinued operations” and “Net income attributable to non-controlling interests discontinued operations”. Net (loss)/income from discontinued operations includes (i) the loss on disposal of the 4 TFDE carriers sold to CoolCo in March 2022 amounting to $105.8 million; and (ii) $120.3 million of impairment charge on all of the TFDE vessels classified as held-for-sale during the quarter ended March 31, 2022.
Golar LNG Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| 2022 | 2021 | 2021 | |
| (in thousands of $) | Jan-Mar | Oct-Dec | Jan-Mar |
| Net income | 410,014 | 45,811 | 63,104 |
| Gain associated with pensions, net of tax | 44 | 4,968 | 56 |
| Share of affiliate's comprehensive losses from discontinued operations | — | — | (2,798) |
| Net other comprehensive income/(loss) | 44 | 4,968 | (2,742) |
| Comprehensive income | 410,058 | 50,779 | 60,362 |
| Comprehensive income attributable to: | |||
| Stockholders of Golar LNG Limited | 345,226 | 12,977 | 22,622 |
| Non-controlling interests - continuing operations | 56,347 | 28,628 | 28,864 |
| Non-controlling interests - discontinued operations | 8,485 | 9,174 | 8,876 |
| Comprehensive income | 410,058 | 50,779 | 60,362 |
Golar LNG Limited
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| 2022 | 2021 | |
| (in thousands of $) | Mar-31 | Dec-31 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 209,054 | 234,816 |
| Restricted cash and short-term deposits | 63,819 | 34,026 |
| Other current assets | 964,005 | 574,043 |
| Current assets held for sale (1) | 644,110 | 79,228 |
| Amounts due from related parties | 3,408 | 3,484 |
| Total current assets | 1,884,396 | 925,597 |
| Non-current assets | ||
| Restricted cash | 72,051 | 72,048 |
| Equity method investments | 113,709 | 52,215 |
| Asset under development | 960,253 | 877,838 |
| Vessels and equipment, net | 1,478,590 | 1,493,842 |
| Non-current assets held for sale (1) | — | 1,386,003 |
| Other non-current assets | 322,828 | 140,752 |
| Total assets | 4,831,827 | 4,948,295 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Current portion of long-term debt and short-term debt (1) | (516,982) | (713,081) |
| Current liabilities held for sale (2) | (383,727) | (415,790) |
| Amounts due to related parties | (2,389) | — |
| Other current liabilities | (177,408) | (178,352) |
| Total current liabilities | (1,080,506) | (1,307,223) |
| Non-current liabilities | ||
| Long-term debt | (1,124,649) | (1,065,897) |
| Non-current liabilities held for sale (2) | — | (305,075) |
| Other non-current liabilities | (86,038) | (92,183) |
| Total liabilities | (2,291,193) | (2,770,378) |
| Stockholders' equity | ||
| Stockholders' equity | (2,068,544) | (1,730,650) |
| Non-controlling interests | (472,090) | (447,267) |
| Total liabilities and stockholders' equity | (4,831,827) | (4,948,295) |
(1) On January 26, 2022, we entered into a Vessel SPA under which Cool Co will acquire eight modern TFDE LNG vessels, the Cool Pool Limited and the fleet’s commercial management companies (“the Disposal Group”), from us. Following successful equity raise and the receipt of consent from existing lenders, four of the eight TFDE vessels were sold to Cool Co during the period ended March 31, 2022. The remaining four TFDE vessels were subsequently disposed in April 2022 and the disposal of the commercial management companies is contemplated to be completed within Q2 2022. The assets and liabilities of the Disposal Group yet to be disposed at March 31, 2022 were classified as Held for sale and we have retrospectively adjusted the comparative period.
Golar LNG Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS
| 2022 | 2021 | 2021 | |
| (in thousands of $) | Jan-Mar | Oct-Dec | Jan-Mar |
| OPERATING ACTIVITIES | |||
| Net income | 410,014 | 45,811 | 63,104 |
| Add: Net loss/(income) from discontinued operations | 209,228 | (21,293) | (13,039) |
| Net income from continuing operations | 619,242 | 24,518 | 50,065 |
| Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||
| Depreciation and amortization | 15,536 | 15,621 | 15,646 |
| Amortization of deferred charges and debt guarantees, net | 395 | 683 | 325 |
| Net loss/(income) from equity method investments | 1,056 | (1,641) | 682 |
| Drydocking expenditure | — | — | (1,591) |
| Compensation cost related to employee stock awards | 755 | 320 | 615 |
| Net foreign exchange (gains)/losses | (420) | (282) | 691 |
| Change in fair value of investment in listed equity securities | (344,049) | 51,566 | — |
| Change in fair value of derivative instruments | (32,600) | (8,459) | (22,543) |
| Change in fair value of oil and gas derivative instruments | (177,527) | (37,057) | (12,995) |
| Change in assets and liabilities: | |||
| Trade accounts receivable | (9,155) | (1,512) | (1,190) |
| Inventories | (545) | 12 | 154 |
| Other current and non-current assets | (10,172) | (3,795) | 931 |
| Amounts due from/to related companies | 76 | (150) | (9,734) |
| Trade accounts payable | 1,224 | (1,425) | (1,336) |
| Accrued expenses | (137) | 9,679 | (9,051) |
| Other current and non-current liabilities | (5,762) | 3,531 | (1,385) |
| Net cash provided by continuing operating activities | 57,917 | 51,609 | 9,284 |
| Net (loss)/income from discontinued operations | (209,228) | 21,293 | 13,039 |
| Deconsolidation of lessor VIE | (22,200) | — | — |
| Depreciation and amortization | 5,719 | 10,843 | 10,860 |
| Amortization of deferred charges | 1,587 | 363 | 302 |
| Net income from equity method investments | — | — | 6,192 |
| Loss/(gain) on disposal and impairment of long-lived assets | 226,048 | (2) | — |
| Compensation cost related to employee stock awards | 164 | 178 | 252 |
| Net foreign exchange losses/(gains) | 339 | (66) | 96 |
| Change in assets and liabilities: | |||
| Trade accounts receivable | (2,197) | 361 | 949 |
| Inventories | — | 530 | 231 |
| Other current and non-current assets | 743 | 317 | (355) |
| Amounts due from related companies | 2,389 | — | — |
| Trade accounts payable | (4,524) | 2,570 | (218) |
| Accrued expenses | (3,326) | (3,564) | 300 |
| Other current and non-current liabilities | (13,889) | 363 | 5,171 |
| Net cash (used in)/provided by discontinued operating activities | (18,375) | 33,186 | 36,819 |
| INVESTING ACTIVITIES | |||
| Additions to vessels and equipment | — | — | (921) |
| Additions to asset under development | (79,829) | (30,176) | (41,748) |
| Additions to equity method investments | — | — | (6,250) |
| Proceeds from subscription of equity interest in Gimi MS Corporation | 1,800 | 8,531 | 2,669 |
| Dividends received from listed equity securities | 2,422 | 1,304 | — |
| Short-term loan advanced to related parties | — | (1,750) | — |
| 2022 | 2021 | 2021 | |
| (in thousands of $) | Jan-Mar | Oct-Dec | Jan-Mar |
| Net cash used in continuing investing activities | (75,607) | (22,091) | (46,250) |
| Dividends received | — | — | 460 |
| Additions to vessels and equipment | — | — | (4) |
| Net proceeds from disposals of equity method investments | — | (25) | — |
| Net proceeds from disposals of long-lived assets | 183,858 | — | — |
| Net cash provided by/(used in) discontinued investing activities | 183,858 | (25) | 456 |
| FINANCING ACTIVITIES | |||
| Proceeds from short-term and long-term debt | 206,000 | 457,019 | 46,513 |
| Repayments of short-term and long-term debt | (346,430) | (319,311) | (20,729) |
| Cash dividends paid | (11,332) | (8,699) | (7,827) |
| Financing costs paid | (4,229) | (11,701) | (2,163) |
| Purchase of treasury shares | (6,565) | — | — |
| Net cash (used in)/provided by continuing financing activities | (162,556) | 117,308 | 15,794 |
| Proceeds from short-term and long-term debt | — | 329 | 9,850 |
| Repayments of short-term and long-term debt | — | (29,694) | (17,581) |
| Financing costs paid | — | — | (350) |
| Net cash used in discontinued financing activities | — | (29,365) | (8,081) |
| Cash, cash equivalents and restricted cash within assets held for sale at the beginning of period | 77,892 | 68,168 | 57,944 |
| Cash, cash equivalents and restricted cash within assets held for sale at end of period | (59,105) | (77,902) | (57,286) |
| Net increase/(decrease) in cash within assets held for sale | 18,787 | (9,734) | 658 |
| Net increase in cash, cash equivalents, restricted cash and cash within assets held for sale | 4,024 | 140,888 | 8,680 |
| Cash, cash equivalents and restricted cash at beginning of period | 340,900 | 200,002 | 232,928 |
| Cash, cash equivalents and restricted cash at end of period | 344,924 | 340,890 | 241,608 |
Golar LNG Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| (in thousands of $) | Share Capital | Additional Paid-in Capital | Contributed Surplus (1) | Accumulated Other Comprehensive Loss | Accumulated Losses | Total before Non- Controlling Interests | Non-Controlling Interests | Total Equity |
| Balance at December 31, 2020 (audited) | 109,944 | 1,969,602 | 200,000 | (56,073) | (930,950) | 1,292,523 | 338,124 | 1,630,647 |
| Net income | — | — | — | — | 25,364 | 25,364 | 37,740 | 63,104 |
| Dividends | — | (11,827) | (11,827) | |||||
| Employee stock compensation | — | 1,003 | — | — | — | 1,003 | — | 1,003 |
| Forfeiture of employee stock compensation | — | (135) | — | — | — | (135) | — | (135) |
| Restricted stock units | 196 | (196) | — | — | — | — | — | — |
| Proceeds from subscription of equity interest in Gimi MS Corporation | — | — | — | — | — | — | 2,669 | 2,669 |
| Other comprehensive loss | — | — | — | (2,742) | — | (2,742) | — | (2,742) |
| Balance at March 31, 2021 | 110,140 | 1,970,274 | 200,000 | (58,815) | (905,586) | 1,316,013 | 366,706 | 1,682,719 |
| (in thousands of $) | Share Capital | Additional Paid-in Capital | Contributed Surplus (1) | Accumulated Other Comprehensive Loss | Accumulated Losses | Total before Non- Controlling Interests | Non-Controlling Interests | Total Equity |
| Balance at December 31, 2021 (audited) | 108,223 | 1,972,859 | 200,000 | (10,834) | (539,598) | 1,730,650 | 447,267 | 2,177,917 |
| Opening adjustment (2) | — | (39,861) | — | — | 38,175 | (1,686) | — | (1,686) |
| Adjusted Balance at January 01, 2022 | 108,223 | 1,932,998 | 200,000 | (10,834) | (501,423) | 1,728,964 | 447,267 | 2,176,231 |
| Net income | — | — | — | — | 345,182 | 345,182 | 64,832 | 410,014 |
| Dividends | — | — | — | — | — | — | (11,332) | (11,332) |
| Employee stock compensation | — | 1,028 | — | — | — | 1,028 | — | 1,028 |
| Forfeiture of employee stock compensation | — | (109) | — | — | — | (109) | — | (109) |
| Restricted stock units | 134 | (134) | — | — | — | — | — | — |
| Repurchase and cancellation of shares | (369) | — | — | — | (6,196) | (6,565) | (6,565) | |
| Proceeds from subscription of equity interest in Gimi MS Corporation | — | — | — | — | — | — | 1,800 | 1,800 |
| Deconsolidation of lessor VIEs | — | — | — | — | — | — | (30,477) | (30,477) |
| Other comprehensive loss | — | — | — | 44 | — | 44 | — | 44 |
| Balance at March 31, 2022 | 107,988 | 1,933,783 | 200,000 | (10,790) | (162,437) | 2,068,544 | 472,090 | 2,540,634 |
(1) Contributed Surplus is 'capital' that can be returned to shareholders without the need to reduce share capital, thereby giving us greater flexibility when it comes to declaring dividends.
(2) Opening adjustment refers to the impact to our 2017 Convertible bond following the adoption of ASU 2020-06 Debt with conversion and other options (Topic 470) and derivatives and hedging - contracts in entity's own equity from January 1, 2022.
Golar LNG Limited
APPENDIX A
The table below represents our actual contractual debt, including the capital lease obligations between us and the lessor VIEs which are eliminated on consolidation as at quarter end:
| (in thousands of $) | Total contractual debt as at March 31, 2022 | GLNG's share of contractual debt as at March 31, 2022 | Total scheduled capital repayments over the next 12 months | GLNG's share of scheduled capital repayments over the next 12 months | ||
| Non-VIE debt | ||||||
| Norwegian unsecured bond | 299,441 | 299,441 | — | — | ||
| Corporate RCF | 131,000 | 131,000 | (131,000) | (131,000) | ||
| Golar Arctic | 27,354 | 27,354 | (7,294) | (7,294) | ||
| Golar Tundra | 155,522 | 155,522 | (9,911) | (9,911) | ||
| Gimi | 485,000 | 70 % | 339,500 | — | 70 % | — |
| Capital lease obligations between Golar and the lessor VIE (1) | ||||||
| Golar Glacier | 122,268 | 122,268 | (122,268) | (122,268) | ||
| Golar Kelvin | 116,394 | 116,394 | (116,394) | (116,394) | ||
| Golar Ice | 118,613 | 118,613 | (118,613) | (118,613) | ||
| Golar Snow | 123,586 | 123,586 | (123,586) | (123,586) | ||
| Hilli Episeyo | 696,000 | 44.55 % | 310,068 | (66,000) | 44.55 % | (29,403) |
| Total Contractual Debt | 2,275,178 | 1,743,746 | (695,066) | (658,469) | ||
(1) Under US GAAP, we consolidate the lessor VIE's. Accordingly, the capital lease obligations between Golar and the lessor VIEs are eliminated.
The table below represents our anticipated contractual capital repayments for the next five years as at March 31, 2022, including the capital lease obligations between us and the lessor VIEs which is eliminated on consolidation:
| (in thousands of $) | 2022 | 2023 | 2024 | 2025 | 2026 |
| Non-VIE debt | |||||
| Norwegian unsecured bond | — | — | — | (300,000) | — |
| Corporate RCF | (131,000) | — | — | — | — |
| Golar Arctic | (5,471) | (21,883) | — | — | — |
| Golar Tundra | (7,433) | (9,911) | (9,911) | (9,911) | (118,357) |
| Gimi | — | — | (43,750) | (58,333) | (58,333) |
| Capital lease obligations between Golar and the lessor VIE | |||||
| Golar Glacier | (122,268) | — | — | — | — |
| Golar Kelvin | (116,394) | — | — | — | — |
| Golar Ice | (118,613) | — | — | — | — |
| Golar Snow | (123,586) | — | — | — | — |
| Hilli Episeyo | (49,500) | (66,000) | (66,000) | (66,000) | (66,000) |
| Total Contractual Capital Repayments | (674,265) | (97,794) | (119,661) | (434,244) | (242,690) |
Included within the restricted cash and short-term deposits and debt balances are amounts relating to lessor VIE entities that we are required to consolidate under US GAAP into our financial statements as variable interest entities. However, these excludes lessor VIEs’ balances which are classified as held for sale at balance sheet date. The table represents the impact of consolidating these continuing lessor VIEs into our balance sheet, with respect to the following line items:
| (in thousands of $) | March 31, 2022 | December 31, 2021 | March 31, 2021 |
| Restricted cash and short-term deposits | 16,313 | 16,523 | 26,462 |
| Current portion of long-term debt and short-term debt | (370,916) | (380,554) | (414,917) |
| Long-term debt | (201,197) | (216,313) | (262,380) |
| Total debt, net of deferred finance charges | (572,113) | (596,867) | (677,297) |
The consolidated results and net assets of the consolidated lessor VIE entity are based on management's best estimates.
As discussed above, we are required to consolidate amounts relating to lessor VIE entity into our financial statements. As such, the table above represents the lessor VIE entity balances and not our actual costs and balances.