Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production on the FLNG Hilli:
March-December 2023, securing approximately $76 million of Distributable adj. EBITDA:
100% of TTF linked production unwound at $21.80/MMBtu leading to a net gain of $28.2/MMBtu, equivalent to Distributable Adjusted EBITDA of $76 million to be received in ten equal monthly installments through the period March-December 2023.
Full year 2024, securing approximately $49 million of Distributable adj. EBITDA:
50% of TTF linked production unwound at $20.55/MMBtu leading to a net gain of $30.65/MMBtu, equivalent to Distributable Adjusted EBITDA of $49 million to be received in twelve equal monthly installments through 2024.
Golar’s only remaining TTF hedges are January and February 2023, with an estimated Distributable Adjusted EBITDA of approximately $25 million, which includes Golar’s share of TTF invoices for the same period (approximately $12.5m generated from the hedged price and physical production each). The total secured value from the TTF hedges entered into in Q3 2022 amounts to approximately $140 million, or approximately $1.3 in cash flow per share.
Golar maintains exposure to its TTF linked tariff for the FLNG Hilli, where 2023 earnings sensitivity is $2.7 million for every $1/MMBtu change in TTF, $3.2 million for every $1/MMBtu change in TTF for 2024-2025 and $1.7 million for every $1/MMBtu change in TTF from Jan-July 2026. At the current forward curve, this is equivalent to $47 million of Distributable Adjusted EBITDA for 2023 and $56 million for 2024.
Golar’s share of Hilli Distributable Adjusted EBITDA is expected to be approximately:
2023: $282m
This includes locked in TTF curves of $101 million, TTF linked earnings of $47 million based on 2023 TTF forward price of $20.8/MMBtu, and current Brent linked earnings of $67 million based on 2023 forward price at $84/bbl and base tariff of $67 million.
2024: $225m
This includes locked in TTF curves of $49 million, TTF linked earnings of $56 million based on 2024 TTF forward price of $20.9/MMBtu, and current Brent linked earnings of $53 million based on 2024 forward price at $79/bbl and base tariff of $67 million.
Golar’s share of expected annual debt service for Hilli’s contractual debt is approximately $50 million (debt amortization of approximately $29 million and interest of approximately $21 million).