INTERIM RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2012

INTERIM RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2012 
LONDON -- (Marketwire) -- 11/28/12 --  


 
Highlights
 
  * Golar LNG ("Golar" or the "Company") reports operating income of $70.2
    million for the third quarter of 2012, an increase of 21% from the
    second quarter.
  * Golar reports consolidated net income of $44.7 million for the third
    quarter of 2012.
  * Golar LNG Partners L.P. ("Golar Partners") raises net proceeds of $223
    million from its first post-IPO equity issue and applies funds to the
    Nusantara Regas Satu purchase.
  * Vendor financing provided in respect of the Freeze sale is repaid after
    Golar Partners places a five year NOK 1,300 million unsecured bond.
  * Quarterly dividend increased by $0.025 to $0.425 per share, driven by
    improved cash flow and market fundamentals. Golar also resolves to
    distribute an accelerated dividend of $0.425 per share for the fourth
    quarter of 2012 in December 2012.
 
Subsequent events
 
  * Golar and LNG Partners LLC (Houston, Texas) sign option agreement for
    prospective long term charter of two of Golar's newbuild carriers to
    service Douglas Channel LNG project.
  * Golar signs agreement with Keppel for the development of the Company's
    first floating liquefied natural gas vessel ("FLNGV").
  * Golar Partners raises a further $181 million following a second
    follow-on equity issue.
  * Golar sells its interests in the companies that own and operate the LNG
    carrier Golar Grand(1) to Golar Partners for $265 million.

 
Financial Review 
Golar  LNG  Limited  reports  consolidated  net  income  of  $44.7 
million and
consolidated  operating  income  of  $70.2  million  for 
the three months ended
September  30, 2012 (the "third quarter").  
Revenues in the  third quarter were
$121.1 million as compared to
$107.0 million for the second quarter of 2012 (the
"second quarter"). 
(1)  Golar LNG Partners is a subsidiary  of the Company. Accordingly,
the effect
of  the dropdown of the  Golar Grand to Golar  LNG Partners
was financed through
the  $175  million  proceeds  from  the  Golar
Partners' equity offering and the assumption  of its $90  million
debt, will  be eliminated on consolidation other
than  the impact of
movement in non-controlling  interest for t
he purpose of the
consolidated financial statements. 
The  increase is primarily as a result of a full quarter's earnings
contribution
from  NR Satu and  Golar Viking whose  new charters
commenced  during the second
quarter  and this  is reflected  in an 
improved average Time Charter Equivalent
("TCE")  rate for the third 
quarter at $98,473 per  day compared to $97,118 for the second
quarter. 
As  expected, operating costs in  the third quarter at  $19.4 million
are higher
than  the second  quarter at  $17.8 million.  This is 
mainly due to the NR Satu
being operational throughout the quarter. 
Following  repayment of the long-term debt due  to related parties in
July and a small  drop in LIBOR,  net interest expense  for the third 
quarter fell to $7.8
million from $8.5 million in the second quarter. 
Other  financial  items  decreased  from  a  loss  of $4.4 million in
the second
quarter  to a third quarter loss of $3.2  million. This is
mainly due to reduced
negative  mark-to-market valuation movements in
respect of currency and interest
rate swaps. 
Tax  expense is higher this quarter at  $1.7 million compared to $0.4
million in the  second quarter.  This is  due to  tax provisions 
made in respect of the NR Satu, for which the Company is fully
reimbursed by the charterer. 
Financing 
Golar LNG Partners first follow-on equity offering 
Golar  Partners closed a public offering of 5,500,000 common units on
July 16 at a  price of $30.95 per common unit.   In addition, the
Underwriters exercised in full  their option to purchase a further
825,000 common units bringing the total
number  of units  sold to 
6,325,000.  Golar GP  LLC, the  Partnership's general
partner,
maintained its 2% general partner interest in the Partnership and
Golar
subscribed  to 969,305 common units in a private  placement at
a price of $30.95
per unit.  Golar Partners raised net proceeds of
approximately $223 million as a result of the offering.  Following
the private placement Golar's interest in the Partnership  (including
 the  general  partner  stake) was diluted from 65.4% to 57.5%. 
Nusantara Regas Satu(2) 
As  previously  announced  and  subsequent  to  the successful
acceptance by its Charterer  on July  13 the Company  completed its 
sale of  the FSRU, NR Satu to Golar  Partners on July  19, 2012 for
$385 million.  Golar Partners financed the acquisition  using  the 
proceeds  from  the  July 16 equity offering, cash from
operations
and making use of $155 million of vendor financing provided by
Golar.
The  vendor financing is  expected to be  refinanced shortly
when Golar Partners
enters into bank financing in respect of the NR
Satu. 
Settlement of Freeze Vendor Financing 
On  September  28 Golar  Partners  successfully  concluded  a five
year NOK1,300
million  bond issue in the Norwegian Bond  market that
was closed and settled in October  2012.  The aggregate  principal
amount  of the  bonds is equivalent to approximately $227 million and
has been swapped to USD with an all-in fixed rate
of  6.485%.  Golar
Partners applied $222 million of the net proceeds against the
equivalent  outstanding vendor  financing provided  by Golar  in
respect of the Golar  Freeze(2).  This  facility which  accrued
interest  at 6.75% in favour of Golar was extinguished on October 12. 
(2)Golar LNG Partners is a subsidiary of the Company. Accordingly,
the effect of the  dropdown of the NR Satu and the Golar Freeze to
Golar LNG Partners, will be eliminated on consolidation other than
the impact of movement in non- controlling
interest for the purpose
of the consolidated financial statements. 
Golar Partners second follow-on equity offering 
Golar  Partners closed  a further  public offering  of 4,300,000
common units on November  7, 2012 at  a  price  of  $30.50  per 
common unit.  Golar GP LLC, the Partnership's  general partner, 
maintained its  2% general partner interest and Golar  subscribed to
1,524,590 common units in a private placement at a price of $30.50 
per unit.  The net  proceeds to the Partnership  from this offering
were
approximately $181 million.  Following the closing, the Company
owns 11,821,149
common  units  and  15,949,831 subordinated  units 
representing  an approximate
52.1% interest  in the  Partnership. By 
virtue of  its ownership of the General
Partner  which  owns 
1,065,225 units,  the  Company's  total  interest  in the
Partnership
now stands at approximately 54.1%. 
Golar Grand(1) 
On  November 8, the  Company completed  its sale  of interests  in
the companies
which  own and operate  the LNG carrier  Golar Grand to 
Golar Partners for $265
million.  Golar Partners financed the
purchase by using $175 million of the $181
million proceeds from the
equity offering that closed on November 7.  As part of the  sale,
Golar  Partners also  assumed a  $90 million finance lease
obligation
(net of the associated cash deposit) in respect of the
vessel. 
As  a result of  the above transactions  and assuming Golar  Partners
repays the remaining  $155  million  vendor  loan  with  a  bank
facility, as at the end of November,  the Company  would have 
approximately $500  million in cash which it will  mainly use  for
funding  the remaining  equity portion  
of its newbuilding
program. 
Corporate and other matters 
Dividends 
The  Board has proposed that the cash dividend be increased by $0.025
to a total
of  $0.425 a quarter based  on another quarter of 
increased earnings and strong
fundamental outlook. The Board has
noted that a significant part of Golar's U.S.
shareholder base may be
subject to increased dividend taxation for 2013. In view
of this, the
Board has decided to accelerate the dividend payment for the
fourth
quarter  of 2012 such that the dividend can  be paid out
together with the third
quarter  dividend. This advanced dividend for
the  fourth of 2012 is also set at $0.425  per share. The  total
dividend payment  due will therefore  be $0.85 per share.  The record
date for the dividend will be December 7, ex-dividend date is
December 5 and the dividend will be paid on or about December 21. In
view of the acceleration of the fourth quarter 2012 dividend payment,
no additional dividend
payment  can be expected prior to the 
declaration of the first quarter dividend
in 2013. 
Chile FSRU 
As  previously announced, Golar was awarded the Gas Atacama
Mejillones Seaport's
FSRU  Project ("Gas  Atacama") on  July 5, 2012,
subject  to certain contractual
conditions  related  to  Gas  Atacama
 achieving  a threshold of new power sales
agreements  prior  to  31
December  2012. The  Company  is  expecting that these
thresholds 
are not  likely to  be met  within December  31 and the parties
will
discuss a possible extension of the deadline. 
British Columbia LNG project 
On  October 10, Golar entered into a 90 day Vessel Charter Option
Agreement with
LNG  Partners LLC (Houston, TX)  for the provision of 
two newbuild LNG carriers
under  long term contract to deliver LNG
production from the Douglas Channel LNG Project in British Columbia
(BC), Canada. 
The  Douglas Channel  Project, in  which LNG  Partners is  an equity
owner, is a proposed  liquefaction facility on the west  bank of the
Douglas Channel, within
the  district  of  Kitimat,  BC.   In 
addition  to  prospectively providing two vessels,  the  agreement 
confers  certain  preferential  rights  for Golar  to participate  in
 the  project  with  LNG  Partners  LLC by way of
infrastructure
investment or LNG offtake. 
Floating Liquefaction ("FLNG") 
On  October 31, Golar  entered into  an agreement  with Keppel 
Shipyard Limited
("Keppel")  to  develop  the  Company's  first 
floating  liquefied natural gas vessel.   The  agreement  is  based 
on  the  conversion of one of the Company's
existing  Moss  type 
vessels  and  includes  options  for  two  further
vessel
conversions.  Keppel has previously worked with Golar
converting comparable Moss
type vessels into FSRUs. 
The  Company is targeting projects with  pipeline quality gas and
unconventional
natural  gas reserves such as coal bed methane and
shale gas or lean gas sourced
from offshore fields, which thereby
limits the gas processing equipment needed. 
The  first unit  which will  be developed  through stages  according
to customer
requirements  will have a capacity  of up to two  million
tonnes per annum. This
strategy  is designed to put Golar in a
stronger position to utilise its own LNG carrier  fleet and to
provide gas for existing and potential FSRU customers. The FEED study
has commenced and conversion is expected to be underway by June 2013. 
De-listing from Oslo Bors 
The company completed its delisting from the Oslo Bors on August 30
as planned.
Golar  continues  to  maintain  a  VPS  register and
completed the Norwegian OTC registration  of Golar LNG  Limited on
August  31 so that Norwegian shareholders
can continue to hold and
trade their shares in Norway. 
Shares and options 
During  the quarter a total of 83,309 options were exercised. In
connection with
this,  the  Company  issued  83,309 new  shares.  The 
total number of remaining
options  is  676,720. As  at  September 
30, 2012 the  total  number  of shares
outstanding in Golar excluding
options is 80,407,061. 
Shipping 
Although  an optimistic  sentiment within  the shipping  market
continues in the longer  term, a bearish cargo market prevailed in the
third quarter with falling
prices  and weak demand in the Far  East. 
Chartering activity remained thin and lacked  direction  and 
consequently,  short-term  charter  rates experienced a correction
from rates seen earlier in the year. 
Looking  to the fourth  quarter, weak Far  East demand may  result in
additional
vessels  being released into the market,  however, with
limited available modern
undedicated  vessels a resumption in
interest from buyers could very easily pull
rates upward again. 
The  worldwide LNG fleet currently stands at 365 vessels including
FSRUs, with a further  87 on order  including FSRU's/FPSO's.   Seventy
nine  vessels have been
ordered   since   January   1, 2011,
including  22 vessels  ordered  in 2012.
Approximately  59% of the
order book is  already committed.  Delivery of most of this  order 
book  is  not  scheduled  to  commence  until Q3 2013 at which
time
increased  exports,  fleet  renewals,  new  sales  contracts 
and active trading
interests provide solid support for attractive
long term charter rates. 
The chartering market is beginning to differentiate between shipping
technologies by creating a tiered pricing environment where TFDE
vessels will
command a premium against all other types of tonnage.  As
such, market references are moving away from steam turbine units and
towards the ultra- modern
highly efficient 160-162,000m3 TFDE ship. 
The efficiencies of ultra-modern TFDE, as compared to steam turbine
propulsion systems, generate a recognized
operational savings of
anywhere between US$20-40,000/day given the cost of various
considerations (bunkers and LNG; the greater the price the greater
the
savings 
LNG Market 
Despite  tightening  supply  from  minor  production issues reported
at Snohvit,
Qatargas  and Yemen LNG, downward pressure  on pricing was
experienced primarily
due to high inventory levels that persisted East
of Suez. This reduced arbitrage
trade opportunities and negatively
impacted the spot market. 
Spot  cargo prices fell from  around $15.00 per mmbtu  in July to the
low $12.00
per  mmbtu levels by the  end of the quarter.   There are
however signs that the price  decline  has  reached  bottom  with 
spot price indicators increasing for winter cargoes. 
Towards  the end of the quarter European  spot prices declined in the
absence of re-export/diversion  opportunities, ample  pipeline gas 
and low demand. Trading
opportunities  diminished as NBP and Far East
price spreads fell below $3.00 per mmbtu  for prompt deliveries.
During this period Europe's re-exports declined by more than 50% from
the second quarter. 
New  LNG supply  will soon  be coming  to the  market with  the
commissioning of Angola  LNG in the  Atlantic Basin. Despite  delays
at the  West African project
during  the third quarter, exports are
expected to start early in the New Year.
This represents a set-back
of about ten months from the original target date for the country's
first LNG project. 
In the Far East, ConocoPhillips and Origin Energy announced the
sanctioning of a second  train at its Australia Pacific LNG  project. 
The project is planning to bring the first train on la
te in 2015 with
the second train following in 2016.
Both  trains  will  be  sized  at
 4.5 million tonnes.  Additionally, during the quarter Chevron made
positive statements about proceeding with a fourth train at its 
Gorgon LNG project in Barrow Island, Western Australia. There are
currently
three trains at Gorgon under construction totalling 15.6
million tonnes. 
In  addition to Angola, given imminent  start-up of the project,
supply projects
under  construction in both the Atlantic and Pacific
Basin have reached close to 100 million  tonnes, with construction
officially beginning at Cheniere's Sabine
Pass LNG export facility. 
FSRUs 
Golar  is  currently  working  on  multiple  FSRU  opportunities  and
 has been
shortlisted  for five projects.  FSRUs  have become an
acceptable regasification
solution  for most  new LNG  importers and 
Golar's speculative FSRU orders have
positioned  the Company to meet 
demand for projects with  short lead times. The Company  notes  that 
there  appears  to  be  an  increased  emphasis placed on operators, 
such  as  Golar,  who  can  demonstrate  prior success in fast-track
project execution and operational experience. 
The  Middle East continues  to be extremely  active as countries
address rapidly
developing  gas  shortages  with  more  than  five
projects currently in various
phases of development. South Asia and
South America are also areas with multiple
development opportunities.
All of these regions are, almost exclusively, focused
on  floating
regasification  solutions and  the Board  feels that  the
favorable
economics  of FSRUs will allow Golar to  continue to expand
its franchise in the future. 
Outlook 
The  Company has in  the last nine  months raised approximately  $0.9
billion in cash  through drop down sales to Golar Partners and
financing efforts (inclusive
of  the refinancing of the remaining
Golar Partners vendor loan). The target has been to fully finance the
existing new building program and continue to grow the dividend 
without raising additional equity or realising any of its $825
million
investment in Golar Partners. The Board is pleased with the
progress made. 
The  remaining capital expenditure of the  thirteen ship new building
program is approximately  $2.3 billion. The Company has received
several proposals from its core  banks which support the Company's
view  that, through a combination of its existing cash position,
positive cash flow and the proposed financing it is able
to reach
this target. Any additional dropdowns or long term charters for the
new buildings will further improve this situation. 
The  negative development in  the spot charter  market in the  third
quarter has shown  that the present shipping market and  market
balance are sensitive to any set  back  in  production  volumes.  The
 Board expects that this situation will
gradually improve in the
coming three to four years, as large new LNG production
volumes  will
come to  the market. A  significant part of  these volumes have at
present not secured shipping capacity. 
The  Board is  excited about  the progress  made and  the prospects
for the FSRU
business  as well as the FLNG  business. However
significant work is outstanding
in order to convert this progress
into additional earnings. 
Due to the successful growth in the dividend in Golar Partners, Golar
LNG is now in  a position where  its wholly owned  subsidiaries Golar
GP  LLC and Golar LNG Energy  Limited,  are  expected  to  start  to 
receiving incentive distribution
payments  from the Partnership.
Following the drop  down of the Golar Grand this
amounts to $2.5
million on an annual basis. 
The  results for Q4 will be negatively influenced by the planned dry-docking for the  Golar Spirit as well as reduced revenue for Golar
Maria trading in the spot
market.  For the remaining  vessels
earnings are  likely to be  in line with the third quarter. 
Further growth in earnings will come when the first new building is
delivered in August next year. 
The  Board remains confident  in the way  the Company is  positioned
to meet the high growth in LNG consumption expected in the years to
come. 
Forward Looking Statements 
This  press release  contains forward  looking statements.  These
statements are based  upon various assumptions, many of which  are
based, in turn, upon further
assumptions,  including examination of 
historical operating trends  made by the management  of  Golar. 
Although  Golar  believes  that  these  assumptions were
reasonable 
when made, because assumptions are inherently subject to
significant
uncertainties  and contingencies, which  are difficult or
 impossible to predict
and are beyond its control, Golar LNG cannot
give assurance that it will achieve
or accomplish these expectations,
beliefs or intentions. 
Included  among  the  factors  that,  in  the Company's view, could
cause actual
results  to differ materially  from the forward  looking
statements contained in this  press  release  are  the  following: 
inability  of  the Company to obtain
financing for the new building
vessels at all or on favourable terms; changes in demand;  a material
 decline or  prolonged weakness  in rates  for LNG
carriers;
political  events affecting production in areas in which
natural gas is produced
and  demand for natural  gas in areas  to
which our  vessels deliver; changes in demand  for  natural  gas 
generally  or  in  particular regions; changes in the financial  
stability  of  our  major  customers;  adoption  of  new  rules
and
regulations  applicable to LNG carriers and  FSRU's; actions
taken by regulatory
authorities  that may prohibit the  access of LNG
carriers  or FSRU's to various
ports; our inability to achieve
successful utilisation of our expanded fleet and inability  to expand
beyond  the carriage of  LNG; increases in costs including:
crew 
wages, insurance, provisions, repairs  and maintenance; changes in
general
domestic  and  international  political  conditions;  the
current turmoil in the global  financial  markets  and  deterioration
 thereof;  changes  in applicable
maintenance  or  regulatory 
standards  that  could  affect our anticipated dry-docking or
maintenance and repair costs; our ability to timely complete our
FSRU
conversions;  failure of shipyards to comply with delivery
schedules on a timely
basis  and other factors listed from time to
time in registration statements and reports  that we  have filed 
with or  furnished to  the Securities and Exchange
Commission,  
including   our   Annual   Report  on  Form  20-F  and
subsequent
announcements  and  reports.  Nothing  contained  in  this
 press  release shall
constitute an offer of any securities for sale. 


 
November 28, 2012
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda.

 
This information is subject of the disclosure requirements acc. to
Section 5- 12 vphl (Norwegian Securities Trading Act) 
Golar LNG Limited 3rd Quarter 2012 Results:
http://hugin.
info/133076/R/1661111/538068.pdf 
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Source: Golar LNG via Thomson Reuters ONE 
[HUG#1661111] 
Questions should be directed to:
Golar Management Limited
+44 207 063 7900
Doug Arnell
Chief Executive Officer
Brian Tienzo
Chief Financial Officer