☐ |
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|
OR |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended | December 31, 2020 |
OR |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to |
OR |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Date of event requiring this shell company report |
Commission file number | 000-50113 |
Golar LNG Limited | ||
(Exact name of Registrant as specified in its charter) | ||
|
||
(Translation of Registrant's name into English) | ||
Bermuda | ||
(Jurisdiction of incorporation or organization) | ||
2nd Floor, S.E. Pearman Building,
9 Par-la-Ville Road, Hamilton
HM 11, Bermuda
|
||
(Address of principal executive offices) |
Karl Fredrik Staubo
2nd Floor, S.E. Pearman Building,
9 Par-la-Ville Road, Hamilton
HM 11, Bermuda
Telephone: +1(441 ) 295-4705
|
Title of each class | Trading Symbol |
Name of each exchange
on which registered |
||||||
Common Shares, par value, $1.00 per share | GLNG | Nasdaq Global Select Market |
None | ||
(Title of class) |
None | ||
(Title of class) |
109,943,594 Common Shares, par value $1.00 per share
|
Yes | X | No |
Yes | No | X |
Yes | X | No |
Yes | X | No |
Large accelerated filer | X | Accelerated filer | Non-accelerated filer | Emerging growth company |
Yes | X | No |
U.S. GAAP |
X |
International Financial Reporting Standards as issued by the International Accounting
Standards Board |
|
Other |
|
Item 17 | Item 18 |
Yes | No | X |
Yes | No |
PART I | PAGE | |||||||
ITEM 1. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 4A. | ||||||||
ITEM 5. | ||||||||
ITEM 6. | ||||||||
ITEM 7. | ||||||||
ITEM 8. | ||||||||
ITEM 9. | ||||||||
ITEM 10. | ||||||||
ITEM 11. | ||||||||
ITEM 12. | ||||||||
PART II | ||||||||
ITEM 13. | ||||||||
ITEM 14. | ||||||||
ITEM 15. | ||||||||
ITEM 16A. | ||||||||
ITEM 16B. | ||||||||
ITEM 16C. | ||||||||
ITEM 16D. | ||||||||
ITEM 16E. | ||||||||
ITEM 16F. | ||||||||
ITEM 16G. | ||||||||
ITEM 16H. | ||||||||
PART III | ||||||||
ITEM 17. | ||||||||
ITEM 18. | ||||||||
ITEM 19. | ||||||||
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||
(in thousands of U.S. $, except number of shares, per common share data, fleet data and other financial data) | |||||||||||||||||
Statements of Operations Data: | |||||||||||||||||
Total operating revenues | 438,637 | 448,750 | 430,604 | 143,537 | 80,257 | ||||||||||||
Vessel operating expenses | (108,926) | (121,290) | (96,860) | (55,946) | (53,163) | ||||||||||||
Voyage, charterhire and commission expenses (including collaborative arrangement) | (12,634) | (38,841) | (105,826) | (61,292) | (47,563) | ||||||||||||
Total operating expenses | (273,685) | (372,423) | (369,607) | (244,094) | (221,364) | ||||||||||||
Net financial expense | (121,757) | (136,211) | (123,797) | (32,788) | (59,541) | ||||||||||||
Equity in net (losses)/earnings of affiliates | (176,527) | (45,799) | (157,636) | (25,448) | 47,878 | ||||||||||||
Net loss attributable to the stockholders of Golar LNG Limited | (273,557) | (211,956) | (231,428) | (179,703) | (186,531) | ||||||||||||
Segment Data: | |||||||||||||||||
Shipping Adjusted EBITDA (1)
|
122,860 | 114,322 | 154,995 | 2,461 | (34,598) | ||||||||||||
FLNG Adjusted EBITDA (1)
|
172,031 | 167,452 | 92,842 | (8,041) | (4,116) | ||||||||||||
Corporate and other Adjusted EBITDA (1)
|
(16,215) | (26,894) | (29,692) | (18,455) | (27,699) | ||||||||||||
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||
(in thousands of U.S. $, except number of shares, per common share data, fleet data and other financial data) | |||||||||||||||||
Loss per common share: | |||||||||||||||||
Basic and diluted (2)
|
(2.82) | (2.11) | (2.30) | (1.79) | (1.99) | ||||||||||||
Cash dividends declared and paid per common share | — | 0.45 | 0.28 | 0.20 | 0.60 | ||||||||||||
Balance Sheet Data: | |||||||||||||||||
Cash and cash equivalents | 127,691 | 222,123 | 217,835 | 214,862 | 224,190 | ||||||||||||
Restricted cash and short-term deposits (3)
|
100,361 | 111,545 | 332,033 | 222,265 | 183,693 | ||||||||||||
Non-current restricted cash (3)
|
62,820 | 76,744 | 154,393 | 175,550 | 232,335 | ||||||||||||
Investments in affiliates | 312,151 | 508,805 | 571,782 | 703,225 | 648,780 | ||||||||||||
Asset under development | 658,247 | 434,248 | 20,000 | 1,177,489 | 731,993 | ||||||||||||
Vessels and equipment, net | 2,983,073 | 3,160,549 | 3,271,379 | 2,077,059 | 2,153,831 | ||||||||||||
Total assets | 4,314,229 | 4,632,144 | 4,806,595 | 4,764,287 | 4,256,911 | ||||||||||||
Current portion of long-term debt and short-term debt | (982,845) | (1,241,108) | (730,257) | (1,384,933) | (451,454) | ||||||||||||
Long-term debt | (1,367,937) | (1,294,719) | (1,835,102) | (1,025,914) | (1,525,744) | ||||||||||||
Total equity | (1,292,523) | (1,750,826) | (1,825,791) | (1,796,304) | (1,909,826) | ||||||||||||
Common shares outstanding (in thousands)
|
109,944 | 101,303 | 101,303 | 101,119 | 101,081 | ||||||||||||
Cash Flow Data: | |||||||||||||||||
Net cash provided by/(used in) operating activities | 145,783 | 106,545 | 116,674 | (35,089) | (115,387) | ||||||||||||
Net cash (used in)/provided by investing activities | (103,028) | (264,394) | (202,492) | (419,895) | 3,852 | ||||||||||||
Net cash (used in)/provided by financing activities | (162,295) | (136,000) | 177,402 | 427,443 | 234,336 | ||||||||||||
Fleet Data: | |||||||||||||||||
Number of vessels at end of year | 13 | 14 | 14 | 14 | 14 | ||||||||||||
Total operating days of the fleet (4)
|
3,669 | 3,840 | 3,987 | 3,885 | 4,034 | ||||||||||||
Other Financial Data: | |||||||||||||||||
Average daily time charter equivalent earnings, or TCE (5) (to the closest $100)
|
$ | 48,900 | $ | 44,400 | $ | 43,700 | $ | 17,500 | $ | 10,100 | |||||||
Average daily vessel operating costs (6)
|
$ | 24,600 | $ | 25,562 | $ | 18,955 | $ | 11,374 | $ | 10,359 |
Year Ended December 31, 2017 | ||||||||||||||
(in thousands of $) | Shipping | FLNG | Corporate and other | Total | ||||||||||
Statement of Operations: | ||||||||||||||
Total operating revenues | 116,961 | — | 26,576 | 143,537 | ||||||||||
Vessel operating expenses
|
(52,537) | (3,523) | 114 | (55,946) | ||||||||||
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (61,171) | (121) | — | (61,292) | ||||||||||
Administrative expenses
|
(792) | (1,889) | (35,350) | (38,031) | ||||||||||
Project development expenses
|
— | (2,508) | (9,795) | (12,303) | ||||||||||
Adjusted EBITDA | 2,461 | (8,041) | (18,455) | (24,035) |
Year Ended December 31, 2016 | ||||||||||||||
(in thousands of $) | Shipping | FLNG | Corporate and other | Total | ||||||||||
Statement of Operations: | ||||||||||||||
Total operating revenues | 66,032 | — | 14,225 | 80,257 | ||||||||||
Vessel operating expenses
|
(52,831) | (464) | 131 | (53,164) | ||||||||||
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (47,560) | 3 | (5) | (47,562) | ||||||||||
Administrative expenses
|
(239) | (3,651) | (33,412) | (37,302) | ||||||||||
Project development expenses
|
— | (4) | (8,654) | (8,658) | ||||||||||
Other operating income/(losses) | — | — | 16 | 16 | ||||||||||
Adjusted EBITDA | (34,598) | (4,116) | (27,699) | (66,413) |
Non-GAAP measure | Closest equivalent US GAAP measure | Adjustments to reconcile to primary financial statements prepared under US GAAP | Rationale for adjustments | ||||||||
Performance measures | |||||||||||
Average daily TCE | Total operating revenues |
-Liquefaction services revenue
-Vessel and other management fees -Voyage and commission expenses The above total is then divided by calendar days less scheduled off-hire days, which is also otherwise known as total operating days of the fleet. |
Measure of the average daily net revenue performance of a vessel.
Standard shipping industry performance measure used primarily to compare period-to-period changes in the shipping fleet's net revenue performance despite changes in the mix of charter types (i.e. spot charters, time charters and bareboat charters) under which the vessel may be employed between the periods. Assists management in making decisions regarding the deployment and utilization of its shipping fleet and in evaluating financial performance. |
Years Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
(in thousands of U.S. $, except number of shares, per common share data, fleet and other financial data) | ||||||||||||||||||||||||||
Total operating revenues | 438,637 | 448,750 | 430,604 | 143,537 | 80,257 | |||||||||||||||||||||
Less: Liquefaction services revenue | (226,061) | (218,096) | (127,625) | — | — | |||||||||||||||||||||
Less: Vessel and other management fees | (20,695) | (21,888) | (24,209) | (26,576) | (14,225) | |||||||||||||||||||||
Net time and voyage charter revenues | 191,881 | 208,766 | 278,770 | 116,961 | 66,032 | |||||||||||||||||||||
Voyage and commission expenses (i)
|
(12,634) | (38,381) | (104,463) | (48,933) | (25,291) | |||||||||||||||||||||
179,247 | 170,385 | 174,307 | 68,028 | 40,741 | ||||||||||||||||||||||
Total operating days of the fleet | 3,669 | 3,840 | 3,987 | 3,885 | 4,034 | |||||||||||||||||||||
Average daily TCE (to the closest $100) | 48,900 | 44,400 | 43,700 | 17,500 | 10,100 |
Vessel Name |
Year of
Delivery |
Capacity Cubic Meters | Flag | Type | Charterer/ Pool Arrangement | Current Charter Expiration | ||||||||||||||||||||||||||||||||
Golar Arctic | 2003 | 140,000 | Marshall Islands | LNGC Membrane | A major European trading company | 2022 | ||||||||||||||||||||||||||||||||
Golar Bear (1)
|
2014 | 160,000 | Marshall Islands | LNGC Membrane | Cool Pool | 2021 - 2024 | ||||||||||||||||||||||||||||||||
Golar Crystal (1)
|
2014 | 160,000 | Marshall Islands | LNGC Membrane | Cool Pool | 2021 - 2024 | ||||||||||||||||||||||||||||||||
Golar Frost (1)
|
2014 | 160,000 | Marshall Islands | LNGC Membrane | Cool Pool | 2021 - 2024 | ||||||||||||||||||||||||||||||||
Golar Glacier (1)
|
2014 | 162,000 | Marshall Islands | LNGC Membrane | Cool Pool | 2021 - 2024 | ||||||||||||||||||||||||||||||||
Golar Ice (2)
|
2015 | 160,000 | Marshall Islands | LNGC Membrane | Spot Market | N/A | ||||||||||||||||||||||||||||||||
Golar Kelvin (1)
|
2015 | 162,000 | Marshall Islands | LNGC Membrane | Cool Pool | 2021 - 2024 | ||||||||||||||||||||||||||||||||
Golar Seal (1)(3)
|
2013 | 160,000 | Marshall Islands | LNGC Membrane | Cool Pool | 2021 - 2024 | ||||||||||||||||||||||||||||||||
Golar Snow (1)
|
2015 | 160,000 | Marshall Islands | LNGC Membrane | Cool Pool | 2021 - 2024 | ||||||||||||||||||||||||||||||||
Golar Tundra (1)
|
2015 | 170,000 | Marshall Islands | FSRU Membrane | Cool Pool | 2021 - 2024 |
Vessel Name |
Year of
Delivery |
Capacity | Flag | Type | Customer | Current Charter Expiration | Charter Extension Options | |||||||||||||||||||||||||||||||||||||
Hilli Episeyo (1)
|
2017 | 2.4 mtpa | Marshall Islands | FLNG Moss | Perenco/SNH | 2026 | N/A | |||||||||||||||||||||||||||||||||||||
Gimi (2)
|
Conversion in progress | 2.45 mtpa | Marshall Islands | FLNG Moss | BP | 2043 | N/A | |||||||||||||||||||||||||||||||||||||
Gandria (3)
|
Earmarked for conversion | 126.000 cubic meters | Marshall Islands | Moss | Not applicable | N/A | N/A |
GMLP | Hygo | |||||||
Ship Management Agreements
|
In connection with the closing of the GMLP Merger and Hygo Merger, Golar Partners and Hygo, respectively, entered into separate ship management agreements between the vessel-owning subsidiaries of Golar Partners and Hygo with Golar Management (the “Ship Management Agreements”), pursuant to which Golar Management will provide certain technical, crew, insurance and commercial management services for the related vessels in accordance with sound ship management practice (the “Management Services”) which commenced on April 15, 2021.
Except as otherwise provided in the GMLP and Hygo Omnibus Agreements, described below, the Ship Management Agreements will continue until terminated by either party by notice, in which event the relevant Ship Management Agreements will terminate upon the later of 12 months after April 15, 2021 or two months from the date on which such notice is received, unless terminated earlier due to a default by either party or as otherwise specified in the Ship Management Agreements.
Golar Management expects to receive aggregate annual management fees of up to $9.7 million from Golar Partners and Hygo for the Management Services, which assumes that all relevant vessels (i) are provided a full technical management service for an entire calendar year and (ii) are operational for a full calendar year and are not in lay-up. Such Management Services will be subject to annual review, and each of Golar Partners and Hygo will reimburse Golar Management for its out-of-pocket expenses properly incurred in connection with the Management Services. Golar Partners and Hygo will also pay for certain additional services at the various hourly rates set forth in the Ship Management Agreements. If Golar Partners and Hygo decide to layup any of the relevant vessels and such layup lasts for more than three months, the management fee related to such vessel will be reduced to half until one month before such vessel is again put into service.
Except as otherwise provided in the respective GMLP and Hygo Omnibus Agreement, Golar Management will be under no liability to Golar Partners and Hygo for any loss, damage, delay or expense of whatsoever nature howsoever arising in the course of its performance of the Management Services, unless same is proved to have resulted solely from the negligence, gross negligence or willful default of Golar Management or its employees, agents or sub-contractors, in which case (except where loss, damage, delay or expense has resulted from Golar Management’s personal act or omission committed with the intent to cause same or recklessly and with knowledge that such loss, damage, delay or expense would probably result) Golar Management’s liability for each incident or series of incidents giving rise to a claim or claims will not exceed a total of 10 times the annual management fee.
Except to the extent Golar Management may be liable as described above, Golar Partners and Hygo will indemnify and hold harmless Golar Management and its employees, agents and sub-contractors against all actions, proceedings, claims, demands or liabilities whatsoever or howsoever arising that may be brought against them or incurred or suffered by them arising out of or in connection with the performance of the relevant Ship Management Agreement, and against and in respect of all costs, loss, damages and expenses (including legal costs and expenses on a full indemnity basis) that Golar Management may suffer or incur, directly or indirectly, in the course of the performance of such Ship Management Agreement. No employee, agent, or sub-contractor of Golar Management will be under any liability to Golar Partners and Hygo for any loss, damage or delay arising or resulting directly or indirectly from any act, neglect or default while acting in the course of or in connection with his or her employment.
|
GMLP | Hygo | |||||||
Bermuda Services Agreements
|
In connection with the closing of the GMLP Merger and Hygo Merger, Golar Partners and Hygo, respectively, entered into separate services agreements (the “Bermuda Services Agreements”) with Golar Management (Bermuda) Limited, our wholly owned subsidiary (“Golar Bermuda”), pursuant to which Golar Bermuda will act as Golar Partners’ and Hygo's registered office in Bermuda and provide certain corporate secretarial, registrar and administration services to Golar Partners (the “Bermuda Services”). The Bermuda Services Agreements commenced on April 15, 2021. Either party may terminate the Bermuda Services Agreements upon 30 days’ prior written notice. Golar Partners and Hygo will pay Golar Bermuda an aggregate annual fee of $0.3 million for the Bermuda services and will reimburse Golar Bermuda for all incidental documented costs and expenses reasonably incurred by Golar Bermuda and its designees in connection with the provision of the Bermuda services.
Golar Partners and Hygo will indemnify and hold harmless Golar Bermuda and its employees and agents against all actions, proceedings, claims, demands or liabilities that may be brought against them due to the Bermuda Services Agreements and against and in respect of all costs and expenses (including legal costs and expenses on a full indemnity basis) they may suffer or incur due to defending or settling same. However, such indemnity will exclude any or all losses, actions, proceedings, claims, demands, costs, damages, expenses and liabilities whatsoever that may be caused by or due to the fraud, gross negligence or willful misconduct of Golar Bermuda or its employees or agents. Neither party nor any of its affiliates will be liable for indirect, incidental or consequential damages suffered by the other party, or for punitive damages, with respect to any term or the subject matter of the Bermuda Services Agreements.
|
|||||||
Transition Services Agreements |
In connection with the closing of the GMLP Merger and Hygo Merger, Golar Partners and Hygo, respectively, entered into separate transition services agreements (the “Transition Services Agreements”) with Golar Management, pursuant to which Golar Management provides certain administrative and consulting services to Golar Partners and Hygo (the “Transition Services”). The Transition Services Agreements commenced on April 15, 2021.
The Transition Services Agreements will terminate on the earliest to occur of (i) April 30, 2022, (ii) the date on which the Transition Services Agreements are duly terminated by either of the parties, (iii) the latest date any Transition Service is to be provided, or (iv) the date on which the provision of all Transition Services has been duly canceled. Golar Partners may terminate any Transition Service upon 30 days prior written notice. Furthermore, (i) either party may terminate the applicable Transition Services Agreement (a) at any time by the mutual written consent of the parties or (b) by written notice if the other party is in material breach of the Transition Services Agreement and fails to remedy the breach within 30 days of receipt of such notice, and (ii) Golar Management may immediately terminate the Transition Services Agreement with the respective parties if Golar Partners or Hygo failed to pay any sum due and payable to Golar Management for a period of at least 30 days, unless such amount is being disputed in good faith. Golar Partners and Hygo will pay Golar Management an aggregate annual fee of $4.0 million and will reimburse Golar Management for all reasonable and documented out-of-pocket expenses or remittances of funds paid to a third party in connection with the provision of the Transition Services.
Subject to certain limitations, Golar Partners and Hygo will defend, indemnify and hold harmless Golar Management and its successors, assigns, members, affiliates, employees, officers, participants, shareholders, directors and personal representatives from and against all losses, liabilities, claims, damages, costs, and expenses (including, without limitation, reasonable attorneys’ fees and expenses) that arise out of the Transition Services Agreements (including the provision of Transition Services to or receipt and use of Transition Services by Golar Partners and Hygo and its respective affiliates), except for losses to the extent arising from any violation of law or material breach of the Transition Services Agreements by Golar Management or the fraud, gross negligence, bad faith or willful misconduct of Golar Management. Subject to certain limitations, Golar Management will defend, indemnify and hold harmless Golar Partners and Hygo and their successors, assigns, members, affiliates, employees, officers, participants, shareholders, directors and personal representatives from and against all losses arising from the fraud, gross negligence, bad faith or willful misconduct of Golar Management.
|
GMLP | Hygo | |||||||
Tax Indemnities
|
In connection with the closing of the GMLP Merger, we agreed to indemnify NFE with respect to certain sale and leaseback transactions with lessor entities that are tax residents of or otherwise subject to tax in the United Kingdom (“Lessors”), pursuant to which we sold certain vessels to a Lessor, and the applicable Lessor leased back such vessels to us or its affiliates, including subsidiaries of Golar Partners (the “UK Tax Lease Transactions”).
We will (for an indefinite term) indemnify, defend and hold harmless GP Buyer, NFE, Merger Sub, and each of their respective affiliates (including, following the closing of the GMLP Merger, the general partner, Golar Partners and each of their subsidiaries), and each of their respective representatives, from and against any losses, damages, liabilities, costs (including without limitation, legal costs on a full indemnity basis), charges, fees, expenses, taxes, disbursements, actions, penalties, proceedings, claims and demands or other liabilities in any case of any nature whatsoever, to the extent based upon, arising out of, relating to or resulting from:
• any guarantee or indemnification obligation to any Lessor or any current, past, or future affiliate of any Lessor based upon, arising out of, relating to or resulting from any UK Tax Lease Transaction;
• any letter of credit provided to, or for the benefit of, any Lessor or any current, past, or future affiliate of any Lessor based upon, arising out of, relating to or resulting from any UK Tax Lease Transaction;
• any mortgage, lien, or other security interest granted in favor of any Lessor or any current, past, or future affiliate of any Lessor with respect to any vessel that is owned, leased, or operated by Golar Partners or its subsidiaries, based upon, arising out of, relating to or resulting from any UK Tax Lease Transaction (each a “Security Interest”);
• any audit, examination, contest, investigation, claim or other proceeding in respect of any taxes or tax returns (each a “Tax Action”) based upon, arising out of, relating to, or resulting from any UK Tax Lease Transaction; or
• any deficiency for any tax proposed, threatened, asserted, or assessed by any governmental authority based upon, arising out of, relating to or resulting from any UK Tax Lease Transaction.
From the closing of the GMLP Merger, we and NFE agreed to, and to cause our respective affiliates and representatives to, reasonably cooperate in connection with the preparation and filing of any tax return, the conduct of any tax action, or determining a liability for taxes or a right to a refund of taxes, with respect to our indemnification obligations.
In connection with the closing of the Hygo Merger, we and Stonepeak, severally agreed to indemnify (for an indefinite period) NFE Brazil, NFE, Merger Sub and each of their respective affiliates and representatives, from and against any and all losses, damages, liabilities, costs, charges, fees, expenses, taxes, disbursements, actions, penalties, proceedings, claims and demands or other liabilities related to certain taxes imposed by government authorities.
|
GMLP | Hygo | |||||||
Omnibus Agreements. |
Concurrently with the closing of the GMLP Merger, we, certain of our subsidiaries and affiliates, certain of Golar Partners’ subsidiaries and affiliates and NFE entered into an omnibus agreement (the “NFE GMLP Omnibus Agreement”), pursuant to which the parties set forth their understanding with respect to
(i) certain obligations of our, NFE and Golar LNG Energy Limited, a subsidiary of Golar (together with us, the “Charter Guarantors”), with respect to certain guarantee and counter-indemnity obligations of the Charter Guarantors and (ii) the management services to be provided to NFE and its subsidiaries by certain subsidiaries of Golar pursuant to certain management and management services agreements set forth in the NFE GMLP Omnibus Agreement (the “GMLP Management Agreements”). The GMLP Omnibus Agreement became effective on and from the Effective Time and will terminate at the latest to occur of such time that (a) no GP Parent Guarantee or GP LC Counter-indemnity remaining outstanding, (b) each of NFE and the Charter Guarantors having paid all amounts due pursuant to its guarantee and/or indemnification obligations in the GMLP Omnibus Agreement, (c) all Covered Agreements having been terminated and (d) all GMLP Management Agreements having been terminated. |
Concurrently with the closing of the Hygo Merger, we, certain of our subsidiaries and affiliates, certain of Golar Partners’ subsidiaries and affiliates and NFE entered into an omnibus agreement (the “Hygo Omnibus Agreement”), pursuant to which the parties set forth their understanding with respect to
(i) certain obligations of us and NFE with respect to certain guarantee obligations of Golar and (ii) the management services to be provided to NFE and its subsidiaries by certain subsidiaries of Golar pursuant to certain management and management services agreements set forth in the Hygo Omnibus Agreement (the “Hygo Management Agreements”). The Hygo Omnibus Agreement became effective on April 15, 2021 and will terminate at the latest to occur of such time that (a) no GLNG Guarantee remains outstanding, (b) each of NFE and the Hygo Charter Guarantors (as defined in Hygo Omnibus Agreement) have paid all amounts due pursuant to its guarantee and/or indemnification obligations in the Hygo Omnibus Agreement, (c) all Covered Agreements have been terminated, (d) all management agreements and management services agreements to which the Tier 1 Service Provider and Tier 2 Service Providers are a party have been terminated and (e) each agreement under which any Required Credit Support is required expires. |
||||||
Omnibus Agreements - Management Agreements |
All management agreements and management services agreements between certain of our subsidiaries and Golar Partners and Hygo (the “Owners”) and Golar Management were amended and restated on April 15, 2021, in the form of management agreement and Bermuda Services Agreement provided in the respective GMLP and Hygo Omnibus Agreements (such amended and restated management agreements together with the Bermuda Services Agreements (as defined above), the “Tier 1 Management Agreements”). Each of Golar Management and certain subsidiaries of Golar (the “Tier 2 Service Providers”) may, in accordance with the terms of the relevant Management Agreement, exercise its right to terminate such Management Agreement by giving 60 days’ notice to the relevant party, except to the extent that
(i) the vessel to which such Management Agreement relates continues to be the subject of a time charter party agreement, an FSRU lease agreement, a liquefaction tolling agreement or gas agreement (together the “Charter Contracts”) and (ii) where the termination of such Management Agreement would reasonably be expected to trigger a termination right relating to the change in the identity of the manager of the relevant vessel under its Charter Contract. The Owners may terminate any Tier 1 Management Agreement for its convenience by giving 60 days’ notice to Golar Management. Subject to the terms of the respective GMLP and Hygo Omnibus Agreement and the relevant Management Agreement, Golar Management and the Tier 2 Service Providers will continue to provide such services as are set out in the relevant Management Agreement and any other management agreements to which the Tier 2 Service Providers are a party, and the consultancy services under the Tier 1 Management Agreements will include such advisory or other additional services as may be reasonably requested by Golar Partners and Hygo to enable the Owners to comply with each Charter Contract and any related financing arrangement covenant relating to the provision of management services, change of control and ownership, in each case, as relate to the transactions contemplated by the respective GMLP and Hygo Merger Agreement and the respective GMLP and Hygo Omnibus Agreement. |
GMLP | Hygo | |||||||
Omnibus Agreement - Other Provisions |
Under the GMLP Omnibus Agreement, until the termination of the bareboat charters in respect of the Golar Eskimo, Golar agreed to indemnify NFE and each of its affiliates against all losses, liabilities, damages, costs and expenses of every kind and nature (including reasonable attorneys’ fees) arising in connection with the occurrence of a Golar Tundra Termination Event, as such term is defined in the Golar Eskimo bareboat charter and NFE agreed to indemnify us and each of our affiliates against all losses, liabilities, damages, costs and expenses of every kind and nature (including reasonable attorneys’ fees) arising in connection with the occurrence of a Golar Eskimo Termination Event, as such term is defined in the Golar Tundra bareboat charter.
In addition, under the GMLP Omnibus Agreement, we agreed to indemnify, defend and hold harmless NFE and each of its affiliates from and against all losses, liabilities, damages, costs and expenses of every kind and nature (including reasonable attorneys’ fees) arising in connection with any taxes that may be imposed on the bareboat charterer as a result of the unwind of the sale and leaseback transaction relating to the Methane Princess.
Pursuant to the GMLP Omnibus Agreement, we agreed that we shall (i) maintain (x) our several guarantee in respect of the Hilli Bareboat Charter (the “GLNG Hilli Bareboat Charter Guarantee”) in accordance with the terms of the Hilli Bareboat Charter and (y) the Guarantee dated November 29, 2016 in favor of Standard Chartered Bank (“SCB”) issued pursuant to the facility letter between SCB and Golar Hilli Corporation (the “GLNG SCB Guarantee”), and (ii) comply with all covenants and terms to which we are subject in the GLNG Hilli Bareboat Charter Guarantee and the GLNG SCB Guarantee. We will indemnify, defend and hold harmless NFE and each of its affiliates from and against all losses, liabilities, damages, costs and expenses of every kind and nature (including reasonable attorneys’ fees) arising in connection with our failure to comply with the foregoing.
In the GMLP Omnibus Agreement, NFE agreed that it will (i) (x) ensure that Golar Partners maintains its several guarantee in respect of the Hilli Bareboat Charter (the “GMLP Hilli Bareboat Charter Guarantee”) in accordance with the terms of the Hilli Bareboat Charter, (y) ensure that Golar Partners maintains the Guarantee dated November 28, 2018 in favor of SCB issued pursuant to the facility letter between SCB and Golar Hilli Corporation (the “GMLP SCB Guarantee”) and (z) issue an undertaking, in favor of Fortune Lianjiang Shipping S.A., to discharge the liabilities of Golar Partners under the Hilli Bareboat Charter, in the event that Golar Partners does not do so (the “Hilli Parent Undertaking”), (ii) comply with the Hilli Parent Undertaking and (iii) ensure that Golar Partners complies with all covenants and terms to which Golar Partners is subject in the GMLP Hilli Bareboat Charter Guarantee and the GMLP SCB Guarantee. NFE shall indemnify, defend and hold harmless Golar and each of its affiliates from and against all losses, liabilities, damages, costs and expenses of every kind and nature (including reasonable attorneys’ fees) arising in connection with its failure to comply with the foregoing.
|
None |
GMLP | Hygo | |||||||
Indemnity Agreement
|
None |
On April 15, 2021, in connection with the closing of the Hygo Merger, we entered into an indemnity agreement with Stonepeak and Hygo. Under the Indemnity Agreement, we and Stonepeak have agreed on a several (but not joint) basis (i) to indemnify Hygo in respect of its obligations under its guarantee of certain obligations related to CELSE (such indemnity not to exceed $3 million) and (ii) in connection therewith, to procure the delivery of a letter of credit with a face value of $1.5 million (the “Indemnitor Letter of Credit”).
|
||||||
Shareholders’ Agreement | None |
On April 15, 2021, in connection with the closing of the Hygo Merger, we entered into a Shareholders’ Agreement (the “Shareholders’ Agreement”) with Stonepeak and NFE setting forth certain transfer restrictions and registration rights with respect to the NFE common stock received by us and Stonepeak as consideration in the Hygo Merger.
Pursuant to the Shareholders’ Agreement, for a period of 90 days after the effective time of the Hygo Merger, we and Stonepeak agreed not to transfer or dispose of (or take other analogous actions as described in the Shareholders’ Agreement) any economic, voting or other rights in the shares of NFE’s common stock issued to us pursuant to the Hygo Merger Agreement other than certain permitted transfers. Under the Shareholders’ Agreement, NFE has agreed to register the resale by us and Stonepeak of shares of NFE common stock under the Securities Act of 1933, as amended. |
December 31, | ||||||||||||||
(in thousands of $, except average daily TCE) | 2020 | 2019 | Change | % Change | ||||||||||
Total operating revenues | 191,881 | 208,766 | (16,885) | (8) | % | |||||||||
Vessel operating expenses | (57,326) | (66,502) | 9,176 | 14 | % | |||||||||
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (12,634) | (38,053) | 25,419 | 67 | % | |||||||||
Administrative expenses | (2,211) | (2,220) | 9 | — | % | |||||||||
Project development expenses | (112) | (964) | 852 | 88 | % | |||||||||
Other operating income | 3,262 | 13,295 | (10,033) | (75) | % | |||||||||
Adjusted EBITDA | 122,860 | 114,322 | 8,538 | 7 | % | |||||||||
Other Financial Data: | ||||||||||||||
Average daily TCE (1) (to the closest $100)
|
48,900 | 44,400 | 4,500 | 10 | % | |||||||||
Calendar days less scheduled off-hire days | 3,669 | 3,840 | (171) | (4) | % |
December 31,
|
||||||||||||||
(in thousands of $) | 2020 | 2019 | Change | % Change | ||||||||||
Total operating revenues | 226,061 | 218,096 | 7,965 | 4 | % | |||||||||
Vessel operating expenses | (52,104) | (55,284) | 3,180 | (6) | % | |||||||||
Voyage expenses | — | (788) | 788 | (100) | % | |||||||||
Administrative expenses | (1,672) | (1,526) | (146) | 10 | % | |||||||||
Project development expenses | (2,793) | (3,173) | 380 | (12) | % | |||||||||
Realized gains on oil derivative instrument | 2,539 | 13,089 | (10,550) | (81) | % | |||||||||
Other operating losses | — | (2,962) | 2,962 | (100) | % | |||||||||
Adjusted EBITDA | 172,031 | 167,452 | 4,579 | 3 | % | |||||||||
December 31,
|
||||||||||||||
(in thousands of $) | 2020 | 2019 | Change | % Change | ||||||||||
Equity in net losses of affiliates | (39,158) | (23,234) | (15,924) | 69 | % |
December 31, | ||||||||||||||
(in thousands of $, except average daily TCE) | 2020 | 2019 | Change | % Change | ||||||||||
Total operating revenues | 20,695 | 21,888 | (1,193) | (5) | % | |||||||||
Vessel operating expenses | 504 | 496 | 8 | (2) | % | |||||||||
Administrative expenses | (31,428) | (48,425) | 16,997 | 35 | % | |||||||||
Project development expenses | (5,986) | (853) | (5,133) | (602) | % | |||||||||
Adjusted EBITDA | (16,215) | (26,894) | 10,679 | (40) | % | |||||||||
Equity in net losses of affiliates | (137,369) | (22,565) | (114,804) | 509 | % |
December 31,
|
||||||||||||||
(in thousands of $) | 2020 | 2019 | Change | % Change | ||||||||||
Share in net loss in Golar Partners | (949) | (20,050) | 19,101 | (95) | % | |||||||||
Impairment of investment in Golar Partners | (135,883) | — | (135,883) | 100 | % | |||||||||
Share of net losses in other affiliates | (537) | (2,515) | 1,978 | (79) | % | |||||||||
(137,369) | (22,565) | (114,804) | 509 | % |
December 31,
|
||||||||||||||
(in thousands of $) | 2020 | 2019 | Change | % Change | ||||||||||
Depreciation and amortization | (107,923) | (113,033) | 5,110 | 5 | % | |||||||||
Impairment of long-term assets | — | (42,098) | 42,098 | 100 | % | |||||||||
Unrealized loss on oil derivative | (45,100) | (39,090) | (6,010) | (15) | % | |||||||||
Gain on disposal of long lived asset | 5,682 | — | 5,682 | — | % | |||||||||
Interest income | 1,572 | 10,479 | (8,907) | (85) | % | |||||||||
Interest expense | (69,354) | (103,124) | 33,770 | 33 | % | |||||||||
Losses on derivative instruments | (52,423) | (38,044) | (14,379) | (38) | % | |||||||||
Other financial items, net | (1,552) | (5,522) | 3,970 | 72 | % | |||||||||
Net income attributable to non-controlling interests | (105,627) | (89,581) | (16,046) | (18) | % |
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
(in thousands of $) | Shipping | FLNG | Power | Corporate and other | Total | Shipping | FLNG | Power | Corporate and other | Total | ||||||||||||||||||||||
Total operating revenues | 208,766 | 218,096 | — | 21,888 | 448,750 | 278,770 | 127,625 | — | 24,209 | 430,604 | ||||||||||||||||||||||
Vessel operating expenses | (66,502) | (55,284) | — | 496 | (121,290) | (67,897) | (29,363) | — | 400 | (96,860) | ||||||||||||||||||||||
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (38,053) | (788) | — | — | (38,841) | (104,397) | (1,429) | — | — | (105,826) | ||||||||||||||||||||||
Administrative expenses | (2,220) | (1,526) | — | (48,425) | (52,171) | (2,221) | (140) | — | (49,181) | (51,542) | ||||||||||||||||||||||
Project development expenses | (964) | (3,173) | — | (853) | (4,990) | — | (16,570) | — | (5,120) | (21,690) | ||||||||||||||||||||||
Realized gains on oil derivative instrument | — | 13,089 | — | — | 13,089 | — | 26,737 | — | — | 26,737 | ||||||||||||||||||||||
Other operating income/(losses) | 13,295 | (2,962) | — | — | 10,333 | 50,740 | (14,018) | — | — | 36,722 | ||||||||||||||||||||||
Adjusted EBITDA | 114,322 | 167,452 | — | (26,894) | 254,880 | 154,995 | 92,842 | — | (29,692) | 218,145 | ||||||||||||||||||||||
Equity in net losses earnings of affiliates | — | — | (23,234) | (22,565) | (45,799) | — | (2,047) | (16,913) | (138,677) | (157,637) |
December 31, | ||||||||||||||
(in thousands of $, except average daily TCE) | 2019 | 2018 | Change | % Change | ||||||||||
Total operating revenues | 208,766 | 278,770 | (70,004) | (25) | % | |||||||||
Vessel operating expenses | (66,502) | (67,897) | 1,395 | (2) | % | |||||||||
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (38,053) | (104,397) | 66,344 | (64) | % | |||||||||
Administrative expenses | (2,220) | (2,221) | 1 | — | % | |||||||||
Project development expenses | (964) | — | (964) | (100) | % | |||||||||
Other operating gains | 13,295 | 50,740 | (37,445) | (74) | % | |||||||||
Adjusted EBITDA | 114,322 | 154,995 | (40,673) | (26) | % | |||||||||
Other Financial Data: | ||||||||||||||
Average daily TCE (1) (to the closest $100)
|
44,400 | 43,700 | 700 | 2 | % | |||||||||
Calendar days less scheduled off-hire days | 3,840 | 3,987 | (147) | (4) | % |
December 31,
|
||||||||||||||
(in thousands of $) | 2019 | 2018 | Change | % Change | ||||||||||
Total operating revenues | 218,096 | 127,625 | 90,471 | 71 | % | |||||||||
Vessel operating expenses | (55,284) | (29,363) | (25,921) | 88 | % | |||||||||
Voyage expenses | (788) | (1,429) | 641 | (45) | % | |||||||||
Administrative expenses | (1,526) | (140) | (1,386) | 990 | % | |||||||||
Project development expenses | (3,173) | (16,570) | 13,397 | (81) | % | |||||||||
Realized gains on oil derivative | 13,089 | 26,737 | (13,648) | (51) | % | |||||||||
Other operating losses | (2,962) | (14,018) | 11,056 | (79) | % | |||||||||
Adjusted EBITDA | 167,452 | 92,842 | 74,610 | 80 | % | |||||||||
Equity in net losses of affiliates | — | (2,047) | 2,047 | (100) | % |
December 31,
|
||||||||||||||
(in thousands of $) | 2019 | 2018 | Change | % Change | ||||||||||
Equity in net losses of affiliates | (23,234) | (16,913) | (6,321) | 37 | % |
December 31, | ||||||||||||||
(in thousands of $, except average daily TCE) | 2019 | 2018 | Change | % Change | ||||||||||
Total operating revenues | 21,888 | 24,209 | (2,321) | (10) | % | |||||||||
Vessel operating expenses | 496 | 400 | 96 | 24 | % | |||||||||
Administrative expenses | (48,425) | (49,181) | 756 | (2) | % | |||||||||
Project development expenses | (853) | (5,120) | 4,267 | (83) | % | |||||||||
Adjusted EBITDA | (26,894) | (29,692) | 2,798 | (9) | % | |||||||||
Equity in net losses of affiliates | (22,565) | (138,676) | 116,111 | (84) | % |
December 31,
|
||||||||||||||
(in thousands of $) | 2019 | 2018 | Change | % Change | ||||||||||
Share of net (losses)/earnings in Golar Partners | (20,050) | 7,001 | (27,051) | (386) | % | |||||||||
Impairment of investment in Golar Partners | — | (149,389) | 149,389 | 100 | % | |||||||||
Share of net (losses)/earnings in other affiliates | (2,515) | 3,711 | (6,226) | (168) | % | |||||||||
(22,565) | (138,677) | 116,112 | (84) | % |
December 31,
|
||||||||||||||
(in thousands of $) | 2019 | 2018 | Change | % Change | ||||||||||
Depreciation and amortization | (113,033) | (93,689) | (19,344) | 21 | % | |||||||||
Impairment of long-term assets | (42,098) | — | (42,098) | 100 | % | |||||||||
Unrealized loss on oil derivative | (39,090) | (9,970) | (29,120) | 292 | % | |||||||||
Interest income | 10,479 | 10,133 | 346 | 3 | % | |||||||||
Interest expense | (103,124) | (101,908) | (1,216) | 1 | % | |||||||||
Losses on derivative instruments | (38,044) | (30,541) | (7,503) | 25 | % | |||||||||
Other financial items, net | (5,522) | (1,481) | (4,041) | 273 | % | |||||||||
Net income attributable to non-controlling interests | (89,581) | (63,214) | (26,367) | 42 | % |
Year ended December 31, | |||||||||||||||||
(in millions of $) | 2020 | 2019 | 2018 | ||||||||||||||
Net cash provided by operating activities | 145.8 | 106.5 | 116.7 | ||||||||||||||
Net cash used in investing activities | (103.0) | (264.4) | (202.5) | ||||||||||||||
Net cash (used in)/provided by financing activities | (162.3) | (136.0) | 177.4 | ||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (119.5) | (293.9) | 91.6 | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 410.4 | 704.3 | 612.7 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of year | 290.9 | 410.4 | 704.3 |
(in millions of $) |
Total
Obligation |
Due in 2021 | Due in 2022 – 2023 | Due in 2024 – 2025 | Due Thereafter | ||||||||||||||||||||||||
Golar long-term and short-term debt (1)
|
885.9 | 118.2 | 420.2 | 140.8 | 206.7 | ||||||||||||||||||||||||
VIE long-term and short-term debt (1)
|
1,493.7 | 945.5 | 331.5 | 136.6 | 80.1 | ||||||||||||||||||||||||
Interest commitments on long-term debt and other interest rate swaps (2)
|
174.4 | 54.0 | 48.2 | 34.5 | 37.7 | ||||||||||||||||||||||||
Operating lease obligations (3)
|
15.6 | 4.8 | 5.0 | 3.3 | 2.5 | ||||||||||||||||||||||||
Purchase obligations: | |||||||||||||||||||||||||||||
Avenir (4)
|
8.6 | 8.6 | — | — | — | ||||||||||||||||||||||||
FLNG conversion (5)
|
860.8 | 295.0 | 515.1 | 50.7 | — | ||||||||||||||||||||||||
Other non-current liabilities (6)
|
— | — | — | — | — | ||||||||||||||||||||||||
Total | 3,439.0 | 1,426.1 | 1,320.0 | 365.9 | 327.0 |
Name | Age | Position | ||||||||||||
Tor Olav Trøim | 58 | Chairman of our Board of Directors and Director | ||||||||||||
Daniel Rabun | 66 | Director, Audit Committee member, Compensation Committee member and Nomination Committee member | ||||||||||||
Thorleif Egeli | 57 | Director | ||||||||||||
Carl Steen | 70 | Director, Audit Committee member, Compensation Committee member and Nomination Committee member | ||||||||||||
Niels Stolt-Nielsen | 56 | Director and Compensation Committee member | ||||||||||||
Lori Wheeler Naess | 50 | Director and Audit Committee Chairperson | ||||||||||||
Georgina Sousa | 70 | Director and Company Secretary | ||||||||||||
Name | Age | Position | ||||||||||||
Iain Ross | 59 | Chief Executive Officer – Golar Management | ||||||||||||
Karl Fredrik Staubo | 34 | Chief Financial Officer – Golar Management (with effect from November 28, 2020) | ||||||||||||
Øistein Dahl | 60 | Chief Operating Officer – Golar Management Norway | ||||||||||||
Olve Skjeggedal | 46 | Chief Technical Officer – Golar Management Norway |
Director or Officer
|
Beneficial Ownership in
Common Shares |
Interest in Options | Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||
Number of shares | % |
Total
number of options |
Exercise price |
Expiry date |
Number of RSUs | Vesting Date | |||||||||||||||||||||||||||||||||||
Tor Olav Trøim |
5,314,454(1)
|
4.83% | 5,310 | $20.73 | 2021 | — | — | ||||||||||||||||||||||||||||||||||
103,970 | $26.44 | 2022 | 5,563 | 2022 | |||||||||||||||||||||||||||||||||||||
11,840 | $26.90 | 2023 | 5,563 | 2023 | |||||||||||||||||||||||||||||||||||||
Daniel Rabun | * | * | 75,000 | $20.73 | 2021 | — | — | ||||||||||||||||||||||||||||||||||
11,905 | $26.44 | 2022 | 2,225 | 2022 | |||||||||||||||||||||||||||||||||||||
3,950 | $26.90 | 2023 | 2,225 | 2023 | |||||||||||||||||||||||||||||||||||||
Thorleif Egeli | * | * | — | N/A | N/A | 2,225 | 2022 | ||||||||||||||||||||||||||||||||||
2,225 | 2023 | ||||||||||||||||||||||||||||||||||||||||
Carl Steen | * | * | 5,310 | $20.73 | 2021 | — | — | ||||||||||||||||||||||||||||||||||
3,970 | $26.44 | 2022 | 2,225 | 2022 | |||||||||||||||||||||||||||||||||||||
3,950 | $26.90 | 2023 | 2,225 | 2023 | |||||||||||||||||||||||||||||||||||||
Niels Stolt-Nielsen |
2,741,470(2)
|
2.49% | 5,310 | $20.73 | 2021 | — | — | ||||||||||||||||||||||||||||||||||
3,970 | $26.44 | 2022 |
2,225(2)
|
2022 | |||||||||||||||||||||||||||||||||||||
3,950 | $26.90 | 2023 |
2,225(2)
|
2023 | |||||||||||||||||||||||||||||||||||||
Lori Wheeler Naess | * | * | 5,310 | $20.73 | 2021 | — | — | ||||||||||||||||||||||||||||||||||
3,970 | $26.44 | 2022 | 2,225 | 2022 | |||||||||||||||||||||||||||||||||||||
3,950 | $26.90 | 2023 | 2,225 | 2023 | |||||||||||||||||||||||||||||||||||||
Georgina Sousa | * | * | — | N/A | N/A | 4,037 | 2022 | ||||||||||||||||||||||||||||||||||
2,823 | 2023 | ||||||||||||||||||||||||||||||||||||||||
Iain Ross | — | — | 300,000 | $20.51 | 2022 | — | — | ||||||||||||||||||||||||||||||||||
26,422 | 2022 | ||||||||||||||||||||||||||||||||||||||||
26,421 | 2023 | ||||||||||||||||||||||||||||||||||||||||
118,898 | ** | ||||||||||||||||||||||||||||||||||||||||
Karl Fredrik Staubo
|
* | * | — | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||
Øistein Dahl | * | * | 50,000 | $22.58 | 2021 | — | — | ||||||||||||||||||||||||||||||||||
8,400 | $26.90 | 2023 | 5,237 | 2022 | |||||||||||||||||||||||||||||||||||||
3,507 | 2023 | ||||||||||||||||||||||||||||||||||||||||
10,520 | ** | ||||||||||||||||||||||||||||||||||||||||
Olve Skjeggedal | * | * | 14,100 | $22.58 | 2021 | — | — | ||||||||||||||||||||||||||||||||||
3,200 | $26.90 | 2023 | 6,098 | 2022 | |||||||||||||||||||||||||||||||||||||
5,098 | 2023 | ||||||||||||||||||||||||||||||||||||||||
8,261 | ** |
Common Shares(5)
|
|||||||||||
Owner | Number | Percent | |||||||||
Orbis Investment Management Ltd (1)
|
12,014,640 | 10.93 | % | ||||||||
Cobas Asset Management (2)
|
9,747,983 | 8.87 | % | ||||||||
Morgan Stanley (3)
|
6,938,936 | 6.31 | % | ||||||||
FMR LLC (4)
|
5,540,305 | 5.04 | % |
Fiscal year ended December 31, 2020
|
$ | 1,820,348 | |||
Fiscal year ended December 31, 2019
|
$ | 1,479,465 |
Fiscal year ended December 31, 2020
|
$ | 67,384 | |||
Fiscal year ended December 31, 2019
|
$ | 175,566 |
Fiscal year ended December 31, 2020
|
$ | 3,809 | |||
Fiscal year ended December 31, 2019
|
$ | 43,867 |
Fiscal year ended December 31, 2020
|
$ | 321,943 | |||
Fiscal year ended December 31, 2019
|
$ | 307,716 |
Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or program | Maximum number of shares that may be purchased under the plans or program | ||||||||||||||||||||
November 2019 | 1,500,000 | $ | 46.33 | 1,500,000 | 3,000,000 | ||||||||||||||||||
February 2020 | 1,500,000 | $ | 46.91 | 1,500,000 | 3,000,000 |
Number | Description of Exhibit | ||||
1.1** | |||||
1.2** | |||||
1.3** | |||||
1.4** |
|
||||
1.5** | |||||
1.6** | |||||
2.1** |
|
||||
2.2** | |||||
2.3* | |||||
4.1** |
|
||||
4.2** | |||||
4.3** |
4.4** | |||||
4.5** | |||||
4.6** | |||||
4.7** | |||||
4.8** | |||||
4.9** | |||||
4.10** | |||||
4.11**/+ | |||||
4.12** | |||||
4.13** | |||||
4.14* | |||||
4.15** | |||||
4.16**/+ | |||||
4.17**/++ |
Golar LNG Limited | |||||||||||
(Registrant) | |||||||||||
Date | April 22, 2021 | By | /s/ Karl Fredrik Staubo | ||||||||
Karl Fredrik Staubo | |||||||||||
Chief Financial Officer |
Page | |||||
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
F-2
|
||||
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018
|
F-8
|
||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018
|
F-9
|
||||
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2020 AND 2019
|
F-10
|
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018
|
F-11
|
||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018
|
F-13
|
||||
NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
F-14
|
Vessel impairment | ||||||||
Description of the matter
|
The Company’s vessel and equipment balance was $2,983 million as of December 31, 2020. As explained in Note 2 to the consolidated financial statements, management performs an annual impairment assessment at the year-end and whenever events or changes in circumstances indicate that the carrying value of a vessel might exceed its fair value in accordance with the guidance in ASC 360 – Property, Plant and Equipment (“ASC 360”). If indicators of impairment are identified, management analyses the future cash flows expected to be generated throughout the remaining useful life of vessels where indicators of impairment exist. These undiscounted cash flows are estimated using forecasted charter rates and other assumptions. In relation to forecasted charter rates, the Company applies the currently contracted charter rate for the periods in the forecasted cash flow where the vessel is on charter. For vessels with no contracted charters or when the vessels’ forecasted cash flow period falls beyond the contracted charter the forecasted charter rates are based on industry analysis and broker reports (‘charter rates post-contract expiry’).
Auditing the Company’s impairment assessment was complex due to the significant estimation uncertainty, subjectivity, and judgement in forecasting the undiscounted cash flows of the vessels and the degree of subjectivity involved in determining the fair value of the impaired vessel. Significant assumptions and judgements used in management’s analysis included the estimation of charter rates post-contract expiry and vessel utilization percentages. These significant assumptions are forward looking and subject to future economic and market conditions.
|
|||||||
How we addressed the matter in our audit
|
We obtained an understanding of the Company’s impairment process and evaluated the design and tested the operating effectiveness of the controls over the Company’s determination of key inputs to the impairment assessment, including determination of charter rates post-contract expiry and vessel utilization percentages.
We analysed management’s impairment assessment by comparing the methodology used to assess impairment of each vessel against the accounting guidance in ASC 360. We tested the reasonableness of the charter rates post-contract expiry and vessel utilization percentages by comparing them to forecasted market rates and historical information. We evaluated whether the gradual step up and step down of charter rates estimated by management is comparable to the liquefied natural gas (‘LNG’) curves published in the market. We also inspected market reports and analysed how the economic factors such as future demand and supply for LNG carriers and floating storage regasification units (‘FSRUs’) have been incorporated in the charter rates post-contract expiry and vessel utilization percentages. Further, we calculated the average charter post-contract expiry rate used across the remaining useful life of the vessels and compared it to the historical average across a similar period. We identified vessels which are not employed under active charters or are nearing the end of the charter and considered them to be highly sensitive to the charter rate. In relation to these vessels, we independently calculated the charter rate at which the undiscounted cash flows equalled the carrying value of the vessel (‘break-even charter rate’) and compared the rates against forecasted market rates. Further we calculated the minimum utilization percentages required for these vessels by analysing the break-even charter rates relative to the forecasted market rates, and assessed these percentages by comparing against historical utilization average and the LNG market outlook for a similar type of vessel. We also compared the assumptions and estimates made by management in their impairment assessment for the prior year against the actual results in 2020 to assess the precision of management’s forecasting process. |
UK Tax leases |
||||||||
Description of the matter
|
At December 31, 2020, as described in Note 26 to the consolidated financial statements, the Company has disclosed a contingent tax liability in the range of £nil to £121 million ($nil to $166.0 million) with respect to historical lease arrangements. Contingencies are evaluated based on the likelihood of the Company incurring a liability and whether a loss or range of losses is reasonably estimable in accordance with the guidance on ASC 450 - Contingencies. In relation to the UK tax leases, the likelihood and amount of a loss or range of losses are estimated with reference to the claims submitted from the relevant tax authorities, the legal basis for such claims and the status of discussions thereon with the authorities.
Auditing the Company’s contingent tax liability is complex and requires a high degree of judgement in assessing the likelihood of a liability arising as a result of the UK tax lease matter and the amount of any potential outflow. Further, auditing the contingent tax liability involved professionals with specialised skills to evaluate the relevant tax regulations in order to assess the likelihood of a liability arising.
|
|||||||
How we addressed the matter in our audit
|
We obtained an understanding over the Company’s assessment of the likelihood of a contingent liability arising in relation to these UK tax lease benefits, as well as the development of the estimate of a liability. We evaluated the design and tested the operating effectiveness of controls over management’s review of contingencies, including significant judgements made.
To understand developments in relation to the matter, we inquired of and obtained confirmations from internal and external legal counsel of the Company and read minutes of board meetings and management committee meetings. We involved our tax professionals with specialized skills and knowledge in relation to UK tax lease structures, who assisted us in evaluating management’s conclusion that these represent a contingent liability. Our procedures also included inspecting correspondence with Her Majesty’s Revenue and Customs (‘HMRC’) and external legal counsel as well as re-performing the calculation performed by management to estimate the contingent liability. We assessed the adequacy of the Company’s disclosures in relation to tax contingencies. |
|||||||
Impairment of investments in affiliates | ||||||||
Description of the matter |
The Company’s investments in affiliates balance was $312 million as of December 31, 2020 (2019 - $509 million). During the year, the Company recorded an impairment loss of $136 million related to its investment in Golar LNG Partners LP (‘Golar Partners’), within ‘Equity in net earnings of associates’ in the Consolidated Statement of Loss. As explained in Note 2 to the consolidated financial statements, management performs an impairment test annually and whenever there are events or changes in circumstances, to determine evidence of an ‘other-than-temporary’ loss in the value of an investment. Such evidence includes the investor’s inability to recover the carrying amount of the investment or inability of the affiliate to sustain an appropriate level of earnings. Where the loss in the value of the investment is determined to be other-than-temporary, an impairment loss is recognized in the period.
Auditing the Company’s impairment assessment was complex due to the degree of subjectivity and judgement in determining whether and at what point in time a loss in an investment is other than temporary. Significant judgements also include the ability of the affiliate to sustain a level of earnings that supports the carrying value of the investment. |
How we addressed the matter in our audit |
We obtained an understanding of the Company’s impairment process and evaluated the design and tested the operating effectiveness of the controls over the Company’s impairment assessment, including the judgements made in relation to loss in the value of an investment.
We assessed the appropriateness of management’s impairment assessment, by comparing those factors triggering an other-than-temporary impairment against the guidance in ASC 323 Investments – Equity Method and Joint Ventures. We compared the market price per unit of Golar Partners against the cost per unit of Golar’s investment in Golar Partners as recorded in the Company’s financial statements (‘breakeven price’) from January 1, 2020 to June 30, 2020, an interim impairment testing date, and also analysed the length of time the market price had been below the breakeven price. Further, we compared the movement in the price of Golar Partners’ units against its peers across the same period to assess whether the decrease in the market price was specific to the affiliate or was also attributable to trends in the wider energy market. We read analyst reports to compare the price targets on Golar Partners’ units with the market price per unit and the breakeven price. In addition, we analysed the impact on the market price per unit caused by the announcement made by Golar Partners on April 1, 2020 to reduce its distribution, by studying the movement of the market price relative to its peers subsequent to the distribution announcement.
At the interim impairment testing date, in order to understand the ability of the affiliate to sustain earnings, we tested the future contracted earnings within Golar Partners by comparison against the underlying agreements. We also assessed the expected utilization of vessels by comparing against the historical performance and the LNG market outlook. In addition, we analysed the liquidity forecast of Golar Partners and assessed the reliability of assumptions made in the forecast by comparing against historical performance, contractual agreements and LNG market outlook. Further, we held discussions with management to understand the level of dividends Golar Partners expects to distribute in the future.
Through our audit procedures performed during the year, we evaluated the appropriateness of the timing of management’s judgement that the other-than temporary impairment loss occurred at an interim date of June 30, 2020, by understanding the trigger events used by management and assessing the timing of those events. We also compared the market price against the breakeven price from July 1, 2020 to December 31, 2020 subsequent to the recognition of the impairment and considered other factors within the affiliate, to assess whether there was evidence of a further other-than-temporary loss in value of the investment which would trigger a further impairment. We evaluated the appropriateness of measuring the impairment using the market price of the units prevailing at the date the other-than-temporary impairment was recognised. We recalculated the impairment charge and compared with the amount recognized by management. In addition, we assessed the adequacy of the related disclosures in the Company’s financial statements.
|
/s/ Ernst & Young LLP | |||||
We have served as the Company’s auditor since 2014. | |||||
London, United Kingdom | |||||
April 22, 2021 |
/s/ Ernst & Young LLP | |||||
London, United Kingdom | |||||
April 22, 2021 |
(in thousands of $, except per share amounts)
|
Notes | 2020 | 2019 | 2018 | |||||||||||||||||||
Time and voyage charter revenues | 191,881 | 185,407 | 204,839 | ||||||||||||||||||||
Time charter revenues - collaborative arrangement | — | 23,359 | 73,931 | ||||||||||||||||||||
Liquefaction services revenue | 7 | 226,061 | 218,096 | 127,625 | |||||||||||||||||||
Vessel and other management fees | 20,695 | 21,888 | 24,209 | ||||||||||||||||||||
Total operating revenues | 6, 25 | 438,637 | 448,750 | 430,604 | |||||||||||||||||||
Vessel operating expenses | (108,926) | (121,290) | (96,860) | ||||||||||||||||||||
Voyage, charterhire and commission expenses | 25 | (12,634) | (19,908) | (22,625) | |||||||||||||||||||
Voyage, charterhire and commission expenses - collaborative arrangement | 25 | — | (18,933) | (83,201) | |||||||||||||||||||
Administrative expenses | (35,311) | (52,171) | (51,542) | ||||||||||||||||||||
Project development expenses | (8,891) | (4,990) | (21,690) | ||||||||||||||||||||
Depreciation and amortization | 16 | (107,923) | (113,033) | (93,689) | |||||||||||||||||||
Impairment of long-term assets | 14, 16 | — | (42,098) | — | |||||||||||||||||||
Total operating expenses | (273,685) | (372,423) | (369,607) | ||||||||||||||||||||
Other operating income | |||||||||||||||||||||||
Realized and unrealized (losses)/gains on oil derivative instrument | 2 | (42,561) | (26,001) | 16,767 | |||||||||||||||||||
Other operating income | 25, 26 | 3,262 | 10,333 | 36,722 | |||||||||||||||||||
Operating income/(loss) | 125,653 | 60,659 | 114,486 | ||||||||||||||||||||
Other non-operating income | |||||||||||||||||||||||
Gain on disposal of long lived asset | 15 | 5,682 | — | — | |||||||||||||||||||
Total other non-operating income | 5,682 | — | — | ||||||||||||||||||||
Financial income/(expense) | |||||||||||||||||||||||
Interest income | 25 | 1,572 | 10,479 | 10,133 | |||||||||||||||||||
Interest expense | 25 | (69,354) | (103,124) | (101,908) | |||||||||||||||||||
Losses on derivative instruments | 8 | (52,423) | (38,044) | (30,541) | |||||||||||||||||||
Other financial items, net | 8 | (1,552) | (5,522) | (1,481) | |||||||||||||||||||
Net financial expense | (121,757) | (136,211) | (123,797) | ||||||||||||||||||||
Income/(Loss) before taxes and equity in net losses of affiliates | 9,578 | (75,552) | (9,311) | ||||||||||||||||||||
Income taxes | 9 | (981) | (1,024) | (1,267) | |||||||||||||||||||
Equity in net losses of affiliates | 14 | (176,527) | (45,799) | (157,636) | |||||||||||||||||||
Net loss | (167,930) | (122,375) | (168,214) | ||||||||||||||||||||
Net income attributable to non-controlling interests | (105,627) | (89,581) | (63,214) | ||||||||||||||||||||
Net loss attributable to stockholders of Golar LNG Limited | (273,557) | (211,956) | (231,428) | ||||||||||||||||||||
Loss per share attributable to Golar LNG Ltd stockholders
Per common share amounts: |
|||||||||||||||||||||||
Basic and diluted loss per share | 10 | (2.82) | $ | (2.11) | $ | (2.30) | |||||||||||||||||
Cash dividends paid per share | $ | — | $ | 0.45 | $ | 0.28 |
Notes | 2020 | 2019 | 2018 | ||||||||||||||||||||
COMPREHENSIVE LOSS | |||||||||||||||||||||||
Net loss | (167,930) | (122,375) | (168,214) | ||||||||||||||||||||
Other comprehensive (loss)/income: | |||||||||||||||||||||||
(Loss)/gain associated with pensions | 22 | (3,527) | (3,058) | 3,581 | |||||||||||||||||||
Share of affiliates comprehensive loss (1)
|
14 | (17,680) | (3,296) | (24,324) | |||||||||||||||||||
(21,207) | (6,354) | (20,743) | |||||||||||||||||||||
Comprehensive loss | (189,137) | (128,729) | (188,957) | ||||||||||||||||||||
Comprehensive loss attributable to: | |||||||||||||||||||||||
Stockholders of Golar LNG Limited | (294,764) | (218,310) | (252,171) | ||||||||||||||||||||
Non-controlling interests | 105,627 | 89,581 | 63,214 | ||||||||||||||||||||
Comprehensive loss | (189,137) | (128,729) | (188,957) |
Notes | 2020 | 2019 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | 127,691 | 222,123 | |||||||||||||||
Restricted cash and short-term deposits | 12 | 100,361 | 111,545 | ||||||||||||||
Trade accounts receivable | 25 | 29,648 | 25,470 | ||||||||||||||
Amounts due from related parties | 7, 25 | 2,112 | 1,743 | ||||||||||||||
Inventories | 1,533 | 1,228 | |||||||||||||||
Other current assets | 13 | 8,682 | 9,280 | ||||||||||||||
Total current assets | 270,027 | 371,389 | |||||||||||||||
Non-current assets | |||||||||||||||||
Restricted cash | 12 | 62,820 | 76,744 | ||||||||||||||
Investments in affiliates | 14 | 312,151 | 508,805 | ||||||||||||||
Asset under development | 15 | 658,247 | 434,248 | ||||||||||||||
Vessels and equipment, net | 16 | 2,983,073 | 3,160,549 | ||||||||||||||
Other non-current assets | 17 | 27,911 | 80,409 | ||||||||||||||
Total assets | 4,314,229 | 4,632,144 | |||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Current portion of long-term debt and short-term debt | 18 | (982,845) | (1,241,108) | ||||||||||||||
Trade accounts payable | (10,579) | (13,930) | |||||||||||||||
Accrued expenses | 19 | (89,357) | (81,040) | ||||||||||||||
Other current liabilities | 20 | (85,419) | (96,081) | ||||||||||||||
Amounts due to related parties | 7, 25 | (12,006) | (11,790) | ||||||||||||||
Total current liabilities | (1,180,206) | (1,443,949) | |||||||||||||||
Non-current liabilities | |||||||||||||||||
Long-term debt | 18 | (1,367,937) | (1,294,719) | ||||||||||||||
Other non-current liabilities | 21 | (135,439) | (142,650) | ||||||||||||||
Total liabilities | (2,683,582) | (2,881,318) | |||||||||||||||
Commitments and contingencies
EQUITY |
26 | ||||||||||||||||
Share capital 109,943,594 common shares of $1.00 each issued and outstanding (2019: 101,302,404)
|
23 | (109,944) | (101,303) | ||||||||||||||
Treasury shares | 23 | — | 39,098 | ||||||||||||||
Additional paid-in capital | (1,969,602) | (1,876,067) | |||||||||||||||
Contributed surplus | (200,000) | (200,000) | |||||||||||||||
Accumulated other comprehensive loss | 56,073 | 34,866 | |||||||||||||||
Retained losses | 930,950 | 605,145 | |||||||||||||||
Total stockholders' equity | (1,292,523) | (1,498,261) | |||||||||||||||
Non-controlling interests | 5 | (338,124) | (252,565) | ||||||||||||||
Total equity | (1,630,647) | (1,750,826) | |||||||||||||||
Total liabilities and equity | (4,314,229) | (4,632,144) |
Notes | 2020 | 2019 | 2018 | ||||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net loss | (167,930) | (122,375) | (168,214) | ||||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 16 | 107,923 | 113,033 | 93,689 | |||||||||||||||||||
Gain on disposal of long lived asset | 15 | (5,682) | — | — | |||||||||||||||||||
Deconsolidation of lessor VIE | 5 | (4,809) | — | — | |||||||||||||||||||
Impairment of non-current assets (1)
|
— | 7,347 | — | ||||||||||||||||||||
Impairment of long-lived assets | 16 | — | 34,751 | — | |||||||||||||||||||
Amortization of deferred charges and debt guarantees | 3,890 | 6,527 | 7,734 | ||||||||||||||||||||
Equity in net losses of affiliates | 14 | 176,527 | 45,799 | 157,636 | |||||||||||||||||||
Dividends received | — | 7,609 | 15,837 | ||||||||||||||||||||
Drydocking expenditure | (10,622) | (24,881) | — | ||||||||||||||||||||
Compensation cost related to employee stock awards | 5,421 | 8,882 | 11,481 | ||||||||||||||||||||
Net foreign exchange losses | 3,221 | 1,241 | 1,997 | ||||||||||||||||||||
Change in fair value of derivative instruments | 8 | 46,208 | 44,395 | 38,610 | |||||||||||||||||||
Change in fair value of oil derivative instrument | 2 | 45,100 | 39,090 | 9,970 | |||||||||||||||||||
Change in assets and liabilities: | |||||||||||||||||||||||
Trade accounts receivable | (4,178) | 39,448 | (49,938) | ||||||||||||||||||||
Inventories | (305) | 5,778 | 402 | ||||||||||||||||||||
Other current and non-current assets | (15,822) | (5,868) | (13,532) | ||||||||||||||||||||
Amounts due to related companies | 11,632 | 2,354 | (16,540) | ||||||||||||||||||||
Trade accounts payable | 3,832 | (678) | (24,813) | ||||||||||||||||||||
Accrued expenses | 3,769 | (39,683) | 12,191 | ||||||||||||||||||||
Other current and non-current liabilities (2)
|
(52,392) | (56,224) | 40,164 | ||||||||||||||||||||
Net cash provided by operating activities | 145,783 | 106,545 | 116,674 | ||||||||||||||||||||
Investing activities | |||||||||||||||||||||||
Additions to vessels and equipment | (3,880) | (24,389) | (33,111) | ||||||||||||||||||||
Additions to asset under development | (298,304) | (376,276) | (116,715) | ||||||||||||||||||||
Additions to investments in affiliates | (12,640) | (20,994) | (95,503) | ||||||||||||||||||||
Dividends received | 10,584 | 29,207 | 33,185 | ||||||||||||||||||||
Short-term loan advanced to related parties | 25 | (45,000) | — | — | |||||||||||||||||||
Proceeds from repayment of short-term loan advanced to related parties | 25 | 45,000 | — | — | |||||||||||||||||||
Proceeds from disposals to Golar Partners, net of cash disposed | — | 9,652 | 9,652 | ||||||||||||||||||||
Proceeds from subscription of equity interest in Gimi MS Corporation | 5 | 11,081 | 115,246 | — | |||||||||||||||||||
Proceeds from disposal of long-lived assets | 15 | 190,131 | 3,160 | — | |||||||||||||||||||
Net cash used in investing activities | (103,028) | (264,394) | (202,492) | ||||||||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from short-term and long-term debt (including related parties) | 729,707 | 524,278 | 1,177,748 | ||||||||||||||||||||
Repayments of short-term and long-term debt (including related parties) | (934,534) | (552,195) | (994,874) | ||||||||||||||||||||
Net proceeds from the issuance of equity | 99,831 | — | — | ||||||||||||||||||||
Acquisition of non-controlling interests | — | — | 36,532 | ||||||||||||||||||||
Cash dividends paid | (26,072) | (65,004) | (42,873) |
Proceeds from exercise of share options | — | — | 2,686 | ||||||||||||||||||||
Financing costs paid | (14,577) | (24,464) | (1,817) | ||||||||||||||||||||
Purchase of treasury shares | 24 | (16,650) | (18,615) | — | |||||||||||||||||||
Net cash (used in)/provided by financing activities | (162,295) | (136,000) | 177,402 | ||||||||||||||||||||
Net (decrease)/increase in cash, cash equivalents and restricted cash
|
(119,540) | (293,849) | 91,584 | ||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 410,412 | 704,261 | 612,677 | ||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 290,872 | 410,412 | 704,261 | ||||||||||||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||||||||
Cash paid during the year for: | |||||||||||||||||||||||
Interest paid, net of capitalized interest | 56,267 | 148,072 | 29,832 | ||||||||||||||||||||
Income taxes paid | 1,181 | 663 | 1,469 |
(in thousands of $) | Notes | 2020 | 2019 | 2018 | 2017 | ||||||||||||
Cash and cash equivalents | 127,691 | 222,123 | 217,835 | 214,862 | |||||||||||||
Restricted cash and short-term deposits (current portion) | 12 | 100,361 | 111,545 | 332,033 | 222,265 | ||||||||||||
Restricted cash (non-current portion) | 12 | 62,820 | 76,744 | 154,393 | 175,550 | ||||||||||||
290,872 | 410,412 | 704,261 | 612,677 |
Notes | Share Capital | Treasury Shares | Additional Paid-in Capital | Contributed Surplus |
Accumulated Other Comprehensive (Loss)/Income(1)
|
Retained Earnings (Losses) | Non-controlling Interests |
Total
Equity |
|||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 101,119 | (20,483) | 1,538,191 | 200,000 | (7,769) | (95,742) | 80,988 | 1,796,304 | |||||||||||||||||||||||||||||||||||||||||||||
Net (loss)/income | — | — | — | — | — | (231,428) | 63,214 | (168,214) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (37,076) | (20,882) | (57,958) | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of share options | 184 | — | 2,502 | — | — | — | — | 2,686 | |||||||||||||||||||||||||||||||||||||||||||||
Employee stock compensation | — | — | 14,125 | — | — | (133) | — | 13,992 | |||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of employee stock compensation | — | — | (2,090) | — | — | — | — | (2,090) | |||||||||||||||||||||||||||||||||||||||||||||
Effect of consolidating Hilli Lessor VIE | 5 | — | — | — | — | — | — | 28,703 | 28,703 | ||||||||||||||||||||||||||||||||||||||||||||
Sale of equity interest in common units | 5 | — | — | 304,468 | — | — | — | (126,491) | 177,977 | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of debt to equity | — | — | — | — | — | — | 55,134 | 55,134 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (20,743) | — | — | (20,743) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
101,303 | (20,483) | 1,857,196 | 200,000 | (28,512) | (364,379) | 80,666 | 1,825,791 | |||||||||||||||||||||||||||||||||||||||||||||
Net (loss)/income | — | — | — | — | — | (211,956) | 89,581 | (122,375) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (28,810) | (22,939) | (51,749) | |||||||||||||||||||||||||||||||||||||||||||||
Employee stock compensation | — | — | 9,371 | — | — | — | — | 9,371 | |||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of employee stock compensation | — | — | (489) | — | — | — | — | (489) | |||||||||||||||||||||||||||||||||||||||||||||
Sale of equity interest and proceeds from subscription of equity interest in Gimi MS Corporation | 5 | — | — | 9,989 | — | — | — | 105,257 | 115,246 | ||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | 23, 24 | — | (18,615) | — | — | — | — | — | (18,615) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,354) | — | — | (6,354) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
101,303 | (39,098) | 1,876,067 | 200,000 | (34,866) | (605,145) | 252,565 | 1,750,826 | |||||||||||||||||||||||||||||||||||||||||||||
Net (loss)/income | — | — | — | — | — | (273,557) | 105,627 | (167,930) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | — | (26,340) | (26,340) | |||||||||||||||||||||||||||||||||||||||||||||
Employee stock compensation | — | — | 5,671 | — | — | — | — | 5,671 | |||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of employee stock compensation | — | — | (250) | — | — | — | — | (250) | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units | 73 | — | (73) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from subscription of equity interest in Gimi MS Corporation | 5 | — | — | — | — | — | — | 11,081 | 11,081 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of treasury shares | 23, 24 | (3,500) | 39,098 | — | — | — | (52,248) | — | (16,650) | ||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of shares | 23 | 12,068 | — | 88,187 | — | — | — | — | 100,255 | ||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of lessor VIE | 5 | — | — | — | — | — | — | (4,809) | (4,809) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (21,207) | — | — | (21,207) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020
|
109,944 | — | 1,969,602 | 200,000 | (56,073) | (930,950) | 338,124 | 1,630,647 |
1. | GENERAL |
2. |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
|
(in thousands of $) | Year Ended December 31, | ||||||||||
2020 | 2019 | 2018 | |||||||||
Realized gain on oil derivative instrument | 2,539 | 13,089 | 26,737 | ||||||||
Unrealized loss on oil derivative instrument | (45,100) | (39,090) | (9,970) | ||||||||
(42,561) | (26,001) | 16,767 |
Vessels (excluding converted FSRU and FLNG) | 40 years | ||||
Vessels - converted FSRU
|
20 years from conversion date
|
||||
Vessels - FLNG |
30 years from conversion date
|
||||
Drydocking expenditure | 5 years | ||||
Deferred drydocking expenditure - FLNG |
20 years
|
||||
Mooring equipment - FLNG |
8 years
|
||||
Office equipment and fittings |
3 to 6 years
|
3. | RECENTLY ISSUED ACCOUNTING STANDARDS |
Standard | Description | Date of Adoption | Effect on our Consolidated Financial Statements or Other Significant Matters | ||||||||
ASU 2018-14 Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.
|
Removes some disclosure requirements that are not expected to materially change Golar’s existing note. Introduces new disclosure requirements including an explanation of the reasons for significant gains and losses relating to changes in the projected benefit obligation. | January 1, 2021 | No material impact expected on disclosure requirements. | ||||||||
ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.
|
The amendment removes certain exceptions previously available and provides some additional calculation rules to help simplify the accounting for income taxes. | January 1, 2021 | No impacts are expected as a result of the adoption of this ASU. | ||||||||
ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting; and
ASU 2021-01 Reference Rate Reform (Topic 848): Scope.
|
The amendments provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The applicable expedients for us are in relation to modifications of contracts within the scope of Topic 310, Receivables, Topic 470, Debt, and Topic 842, Leases. This optional guidance may be applied prospectively from any date beginning March 12, 2020 and cannot be applied to modifications that occur after December 31, 2022. | Under evaluation | Under evaluation |
Standard | Description | Date of Adoption | Effect on our Consolidated Financial Statements or Other Significant Matters | ||||||||
ASU 2020-06 Debt – Debt with Equity and Other Options (Topic 470) and Contracts in Entity’s Own Equity (Topic 815).
|
The amendments simplify the issuer’s accounting for convertible instruments and its application of the equity classification guidance. The new guidance eliminates some of the existing models for assessing convertible instruments, which results in more instruments being recognized as a single unit of account on the balance sheet and expands disclosure requirements. The new guidance simplifies the assessment of contracts in an entity’s own equity and existing EPS guidance in ASC 260. This optional guidance is effective on a modified retrospective basis on January 1, 2022. | Under evaluation | Under evaluation |
4. | SUBSIDIARIES |
Name | Jurisdiction of Incorporation | Purpose | ||||||
Golar GP LLC – Limited Liability Company | Marshall Islands | Holding company | ||||||
Gimi Holding Company Limited (a) | Bermuda | Holding company | ||||||
Golar Shoreline LNG Limited | Bermuda | Holding company | ||||||
Golar Hilli LLC (b) | Marshall Islands | Holding company | ||||||
Golar LNG Energy Limited | Bermuda | Holding company | ||||||
Golar Hull M2022 Corporation | Marshall Islands |
Leases Golar Crystal*
|
||||||
Golar LNG NB10 Corporation | Marshall Islands |
Leases Golar Glacier*
|
||||||
Golar Hull M2048 Corporation | Marshall Islands |
Leases Golar Ice*
|
||||||
Golar LNG NB11 Corporation | Marshall Islands |
Leases Golar Kelvin*
|
||||||
Golar Hull M2021 Corporation | Marshall Islands |
Leases Golar Seal*
|
||||||
Golar Hull M2047 Corporation | Marshall Islands |
Leases Golar Snow*
|
||||||
Golar LNG NB13 Corporation | Marshall Islands |
Leases Golar Tundra*
|
||||||
Golar LNG 2216 Corporation | Marshall Islands |
Owns and operates Golar Arctic
|
||||||
Golar Hull M2027 Corporation | Marshall Islands |
Owns and operates Golar Bear
|
||||||
Golar LNG NB12 Corporation | Marshall Islands |
Owns and operates Golar Frost
|
||||||
Golar Gandria N.V. |
Curaçao
|
Owns and operates Golar Gandria
|
||||||
Gimi MS Corporation (c) | Marshall Islands |
Owns Gimi
|
||||||
Golar Hilli Corp. (b) | Marshall Islands |
Owns Hilli Episeyo ("Hilli")
|
||||||
Golar Management (Bermuda) Limited | Bermuda | Management company | ||||||
Golar Management Limited | United Kingdom | Management company | ||||||
Golar Management Norway AS | Norway | Vessel management company | ||||||
Golar Management Malaysia SDN. BHD. | Malaysia | Vessel management company | ||||||
Golar Management D.O.O | Croatia | Vessel management company |
5. | VARIABLE INTEREST ENTITIES ("VIEs") |
5.1 | Lessor VIEs |
Vessel | Effective from | Lessor | Sales value (in $ millions) | Lease duration | First repurchase option (in $ millions) | Date of first repurchase option | Net repurchase obligation at end of lease term (in $ millions) |
End of lease term
|
||||||||||||||||||
Golar Glacier | October 2014 | ICBCL | 204.0 | 10 years | 173.8 |
October 2019 (1)
|
116.7 | October 2024 | ||||||||||||||||||
Golar Kelvin | January 2015 | ICBCL | 204.0 | 10 years | 173.8 |
January 2020 (1)
|
116.7 | January 2025 | ||||||||||||||||||
Golar Snow | January 2015 | ICBCL | 204.0 | 10 years | 173.8 |
January 2020 (1)
|
116.7 | January 2025 | ||||||||||||||||||
Golar Ice | February 2015 | ICBCL | 204.0 | 10 years | 173.8 |
February 2020 (1)
|
116.7 | February 2025 | ||||||||||||||||||
Golar Tundra | November 2015 | CMBL | 254.6 | 10 years | 168.7 |
November 2018 (1)
|
51.3 | November 2025 | ||||||||||||||||||
Golar Seal | March 2016 | CCBFL | 203.0 | 10 years | 132.8 |
March 2018(1)
|
63.4 | March 2026 | ||||||||||||||||||
Golar Crystal | March 2017 | COSCO | 187.0 | 10 years | 97.3 |
March 2020 (1)
|
50.0 | March 2027 | ||||||||||||||||||
Hilli | June 2018 | CSSC | 1,200.0 | 10 years | 633.2 | June 2023 | 300.0 | June 2028 | ||||||||||||||||||
Golar Bear | June 2020 | AVIC | 160.0 | 7 years | 100.7 | June 2021 | 45.0 | June 2027 |
(in thousands of $) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026+ | ||||||||||||||
Golar Glacier | 17,100 | 17,100 | 17,100 | 12,884 | — | — | ||||||||||||||
Golar Kelvin | 17,100 | 17,100 | 17,100 | 15,695 | — | — | ||||||||||||||
Golar Snow | 17,100 | 17,100 | 17,100 | 15,695 | — | — | ||||||||||||||
Golar Ice | 17,100 | 17,100 | 17,100 | 17,147 | 1,452 | — | ||||||||||||||
Golar Tundra (1)(2)
|
80,203 | — | — | — | — | — | ||||||||||||||
Golar Seal (2)
|
— | 68,621 | — | — | — | — | ||||||||||||||
Golar Crystal (1)
|
9,903 | 9,932 | 9,951 | 9,979 | 9,982 | 12,499 | ||||||||||||||
Hilli (1)
|
102,874 | 99,645 | 96,416 | 93,265 | 89,958 | 190,590 | ||||||||||||||
Golar Bear (1)
|
13,923 | 13,490 | 13,058 | 12,635 | 12,193 | 14,081 |
(in thousands of $) | Golar Glacier | Golar Kelvin | Golar Snow | Golar Ice | Golar Tundra | Golar Seal | Golar Crystal | Hilli | Golar Bear | 2020 | 2019 | ||||||||||||||||||||||||
Assets | Total | Total | |||||||||||||||||||||||||||||||||
Restricted cash and short-term deposits (note 12) | 69 | 11 | 1,467 | 1,521 | — | 3,432 | 4,990 | 16,670 | 8,715 | 36,875 | 34,947 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||||||||
Current portion of long-term debt and short-term debt (1)
|
(110,625) | (128,563) | (111,108) | (83,857) | (10,215) | — | (8,220) | (413,394) | — | (865,982) | (963,005) | ||||||||||||||||||||||||
Long-term interest bearing debt - non-current portion (1)
|
— | — | — | — | (79,235) | (89,752) | (74,984) | (277,487) | (103,661) | (625,119) | (617,124) | ||||||||||||||||||||||||
(110,625) | (128,563) | (111,108) | (83,857) | (89,450) | (89,752) | (83,204) | (690,881) | (103,661) | (1,491,101) | (1,580,129) |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||
Statement of income | |||||||||||
Interest expense | 34,733 | 69,373 | 61,502 | ||||||||
Statement of cash flows | |||||||||||
Net debt repayments | (550,663) | (410,737) | (299,776) | ||||||||
Net debt receipts | 459,707 | 144,278 | 1,061,000 |
5.2 | Golar Hilli LLC |
(in thousands of $) | December 31, 2018 | |||||||
Net loss attributable to stockholders of Golar LNG Limited | (231,428) | |||||||
Transfer to the non-controlling interests: increase in Golar LNG Limited’s paid-in capital for sale of 1096 Hilli Common Units in July 2018
|
304,468 | |||||||
Changes from net loss attributable to stockholders of Golar LNG Limited and transfers to non-controlling interests | 73,040 |
Percentage ownership interest | |||||||||||
Common Units | Series A Special Units | Series B Special Units | |||||||||
Golar LNG Limited | 44.6 | % | 89.1 | % | 89.1 | % | |||||
Golar Partners | 50.0 | % | — | % | — | % | |||||
Keppel | 5.0 | % | 10.0 | % | 10.0 | % | |||||
B&V | 0.4 | % | 0.9 | % | 0.9 | % |
(in thousands of $) | 2020 | 2019 | ||||||
Balance sheet | ||||||||
Current assets | 65,629 | 64,507 | ||||||
Non-current assets | 1,203,805 | 1,300,065 | ||||||
Current liabilities | (447,701) | (496,029) | ||||||
Non-current liabilities | (345,058) | (418,578) |
(in thousands of $) | 2020 | 2019 | ||||||
Statement of income | ||||||||
Liquefaction services revenue | 226,061 | 218,096 | ||||||
Realized and unrealized losses on the oil derivative instrument | (42,561) | (26,001) | ||||||
Statement of cash flows | ||||||||
Net debt repayments | (322,304) | (243,513) | ||||||
Net debt receipts | 230,721 | 129,454 |
5.3 | Gimi MS Corporation |
(in thousands of $) | Notes | 2020 | 2019 | ||||||||
Balance sheet | |||||||||||
Current assets | 15,505 | 24,894 | |||||||||
Non-current assets | 15 | 658,247 | 434,248 | ||||||||
Current liabilities | (33,844) | (9,697) | |||||||||
Non-current liabilities | (277,932) | (107,902) |
(in thousands of $) | 2020 | 2019 | ||||||
Statement of cash flows | ||||||||
Additions to asset under development | 217,590 | 376,276 | ||||||
Financing costs paid | (11,302) | (20,938) | ||||||
Net debt receipts | 170,000 | 130,000 | ||||||
Proceeds from subscription of equity interest | 11,081 | 115,246 |
6. | SEGMENT INFORMATION |
Year Ended December 31, 2020
|
|||||||||||||||||
(in thousands of $) | Shipping | FLNG | Power |
Corporate and other (1)
|
Total | ||||||||||||
Statement of Operations: | |||||||||||||||||
Total operating revenues | 191,881 | 226,061 | — | 20,695 | 438,637 | ||||||||||||
Vessel operating expenses
|
(57,326) | (52,104) | — | 504 | (108,926) | ||||||||||||
Voyage, charterhire and commission expenses
|
(12,634) | — | — | — | (12,634) | ||||||||||||
Administrative expenses
|
(2,211) | (1,672) | — | (31,428) | (35,311) | ||||||||||||
Project development expenses
|
(112) | (2,793) | — | (5,986) | (8,891) | ||||||||||||
Realized gains on oil derivative instrument (note 2) | — | 2,539 | — | — | 2,539 | ||||||||||||
Other operating income | 3,262 | — | — | — | 3,262 | ||||||||||||
Adjusted EBITDA | 122,860 | 172,031 | — | (16,215) | 278,676 | ||||||||||||
Equity in net losses of affiliates | — | — | (39,158) | (137,369) | (176,527) |
Year Ended December 31, 2019
|
|||||||||||||||||
(in thousands of $) | Shipping | FLNG | Power |
Corporate and other (1)
|
Total | ||||||||||||
Statement of Operations: | |||||||||||||||||
Total operating revenues | 208,766 | 218,096 | — | 21,888 | 448,750 | ||||||||||||
Vessel operating expenses
|
(66,502) | (55,284) | — | 496 | (121,290) | ||||||||||||
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (38,053) | (788) | — | — | (38,841) | ||||||||||||
Administrative expenses
|
(2,220) | (1,526) | — | (48,425) | (52,171) | ||||||||||||
Project development expenses
|
(964) | (3,173) | — | (853) | (4,990) | ||||||||||||
Realized gains on oil derivative instrument (note 2) | — | 13,089 | — | — | 13,089 | ||||||||||||
Other operating income/(losses) | 13,295 | (2,962) | — | — | 10,333 | ||||||||||||
Adjusted EBITDA | 114,322 | 167,452 | — | (26,894) | 254,880 | ||||||||||||
Equity in net losses of affiliates | — | — | (23,234) | (22,565) | (45,799) |
Year Ended December 31, 2018
|
|||||||||||||||||
(in thousands of $) | Shipping | FLNG | Power |
Corporate and other (1)
|
Total | ||||||||||||
Statement of Operations: | |||||||||||||||||
Total operating revenues | 278,770 | 127,625 | — | 24,209 | 430,604 | ||||||||||||
Vessel operating expenses
|
(67,897) | (29,363) | — | 400 | (96,860) | ||||||||||||
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (104,397) | (1,429) | — | — | (105,826) | ||||||||||||
Administrative expenses
|
(2,221) | (140) | — | (49,181) | (51,542) | ||||||||||||
Project development expenses
|
— | (16,570) | — | (5,120) | (21,690) | ||||||||||||
Realized gains on oil derivative instrument (note 2) | — | 26,737 | — | — | 26,737 | ||||||||||||
Other operating income/(losses) | 50,740 | (14,018) | — | — | 36,722 | ||||||||||||
Adjusted EBITDA | 154,995 | 92,842 | — | (29,692) | 218,145 | ||||||||||||
Equity in net losses of affiliates | — | (2,047) | (16,913) | (138,676) | (157,636) |
Year Ended December 31, 2020
|
|||||||||||||||||
(in thousands of $) | Shipping | FLNG | Power |
Corporate and other (1)
|
Total | ||||||||||||
Balance sheet: | |||||||||||||||||
Total assets | 1,870,819 | 1,933,677 | 200,337 | 309,396 | 4,314,229 | ||||||||||||
Investment in affiliates | — | — | 200,337 | 111,814 | 312,151 | ||||||||||||
Capital expenditures | 101,380 | 223,999 | — | — | 325,379 |
Year Ended December 31, 2019
|
|||||||||||||||||
(in thousands of $) |
Shipping (1)
|
FLNG | Power | Corporate and other | Total | ||||||||||||
Balance sheet: | |||||||||||||||||
Total assets | 2,016,427 | 1,814,588 | 261,693 | 539,436 | 4,632,144 | ||||||||||||
Investment in affiliates | — | — | 261,693 | 247,112 | 508,805 | ||||||||||||
Capital expenditures | 35,984 | 383,200 | — | — | 419,184 |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
The Cool Pool (1)
|
— | — | % | 66,691 | 16 | % | 251,070 | 62 | % | ||||||||||||||||||||||||||
Perenco and SNH (2)
|
226,061 | 54 | % | 218,096 | 51 | % | 127,625 | 31 | % | ||||||||||||||||||||||||||
An international major trading house | 46,090 | 11 | % | 25,371 | 6 | % | — | — | % | ||||||||||||||||||||||||||
A European major trading house | 43,536 | 10 | % | 8,908 | 2 | % | — | — | % |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
Cameroon | |||||||||||||||||
Liquefaction services revenue | 226,061 | 218,096 | 127,625 | ||||||||||||||
Total assets | 1,264,085 | 1,333,779 | 1,535,389 |
7. | REVENUE |
(in thousands of $) |
Contract assets (1)
|
Contract liabilities (2)
|
||||||
Opening balance on January 1, 2020 | 18,656 | (27,076) | ||||||
Payments received for services billed in prior period | (17,776) | — | ||||||
Services provided and billed in current period | 233,161 | — | ||||||
Payments received for services billed in current period | (207,261) | — | ||||||
Deferred commissioning period revenue | — | 4,220 | ||||||
Closing balance on December 31, 2020 | 26,780 | (22,856) |
Year Ended
December 31, |
||||||||
(in thousands of $) | 2020 | 2019 | ||||||
Base tolling fee (1)
|
204,501 | 204,501 | ||||||
Amortization of deferred commissioning period revenue (2)
|
4,220 | 4,220 | ||||||
Amortization of Day 1 gain (3)
|
9,950 | 9,950 | ||||||
Overproduction revenue (4)
|
7,965 | — | ||||||
Other | (575) | (575) | ||||||
Total | 226,061 | 218,096 |
8. |
(LOSSES)/GAINS ON DERIVATIVE INSTRUMENTS AND OTHER FINANCIAL ITEMS, NET
|
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
Mark-to-market adjustment for interest rate swap derivatives (note 24) | (38,601) | (16,485) | 604 | ||||||||||||||
Interest (expense)/income on undesignated interest rate swaps (note 24) | (6,215) | 6,351 | 8,069 | ||||||||||||||
Mark-to-market adjustment for equity derivatives (note 24) | (5,051) | (30,478) | (30,663) | ||||||||||||||
Mark-to-market adjustment for foreign exchange swap derivatives | (2,556) | 2,568 | (1,151) | ||||||||||||||
Unrealized mark-to-market losses on Earn-Out Units (note 14) | — | — | (7,400) | ||||||||||||||
(52,423) | (38,044) | (30,541) |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
Foreign exchange loss on operations | (3,221) | (902) | (1,997) | ||||||||||||||
Financing arrangement fees and other costs | (2,138) | (5,735) | (244) | ||||||||||||||
Amortization of debt guarantee (note 25) | 4,111 | 1,242 | 861 | ||||||||||||||
Other | (304) | (127) | (101) | ||||||||||||||
(1,552) | (5,522) | (1,481) |
9. | INCOME TAXES |
Year ended December 31 | |||||||||||||||||
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
Current tax expense | 809 | 906 | 836 | ||||||||||||||
Deferred tax expense | 172 | 118 | 431 | ||||||||||||||
Total income tax expense | 981 | 1,024 | 1,267 |
Year ended December 31 | |||||||||||||||||
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
Effect of movement in deferred tax balances | 172 | 118 | 431 | ||||||||||||||
Effect of adjustments in respect of current tax in prior periods | 37 | 86 | (369) | ||||||||||||||
Effect of taxable income in various countries | 772 | 820 | 1,205 | ||||||||||||||
Total tax expense | 981 | 1,024 | 1,267 |
10. | LOSS PER SHARE |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
Net loss attributable to Golar LNG Ltd stockholders - basic and diluted | (273,557) | (211,956) | (231,428) |
(in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Basic and diluted loss per share: | |||||||||||||||||
Weighted average number of common shares outstanding | 96,983 | 100,659 | 100,684 |
2020 | 2019 | 2018 | |||||||||||||||
Loss per share are as follows: | |||||||||||||||||
Basic and diluted | $ | (2.82) | $ | (2.11) | $ | (2.30) |
11. | OPERATING LEASES |
Year ending December 31 | |||||
(in thousands of $) | |||||
2021 | 120,077 | ||||
2022 | 58,696 | ||||
2023 | 21,591 | ||||
2024 | 11,024 | ||||
Total minimum contractual future revenues | 211,388 |
(in thousands of $) | 2020 | 2019 | ||||||
Operating lease income(1)
|
186,706 | 123,292 | ||||||
Variable lease income (2)
|
5,175 | 18,783 | ||||||
Total operating lease income | 191,881 | 142,075 |
(in thousands of $) | 2020 | 2019 | ||||||
Operating lease cost (1)
|
8,951 | 5,603 | ||||||
Variable lease cost (2)
|
4,000 | 2,983 | ||||||
Total operating lease cost | 12,951 | 8,586 |
Year ending December 31 | |||||
(in thousands of $) | |||||
2021 | 4,821 | ||||
2022 | 2,967 | ||||
2023 | 2,042 | ||||
2024 | 1,581 | ||||
2025 and thereafter | 4,228 | ||||
Total minimum lease payments | 15,639 |
12. | RESTRICTED CASH AND SHORT-TERM DEPOSITS |
(in thousands of $) | 2020 | 2019 | |||||||||
Restricted cash in relation to the Hilli (1)
|
77,212 | 75,968 | |||||||||
Restricted cash and short-term deposits held by lessor VIEs (2)
|
36,875 | 34,947 | |||||||||
Restricted cash relating to sale of LNG Croatia (3)
|
36,747 | — | |||||||||
Restricted cash relating to interest rate swaps (4)
|
8,864 | — | |||||||||
Restricted cash relating to the $1.125 billion debt facility (5)
|
2,615 | 10,975 | |||||||||
Restricted cash relating to office lease | 868 | 826 | |||||||||
Restricted cash relating to the total return equity swap (6)
|
— | 55,573 | |||||||||
Collateral on the Margin Loan facility (7)
|
— | 10,000 | |||||||||
Total restricted cash and short-term deposits | 163,181 | 188,289 | |||||||||
Less: Amounts included in current restricted cash and short-term deposits | (100,361) | (111,545) | |||||||||
Long-term restricted cash | 62,820 | 76,744 |
13. | OTHER CURRENT ASSETS |
(in thousands of $) | 2020 | 2019 | |||||||||
Prepaid expenses | 2,391 | 4,031 | |||||||||
Other receivables | 6,291 | 5,249 | |||||||||
8,682 | 9,280 |
14. | INVESTMENTS IN AFFILIATES |
2020 | 2019 | ||||||||||
Golar Partners (1)
|
32.8 | % | 32.0 | % | |||||||
Egyptian Company for Gas Services S.A.E (“ECGS”)
|
50.0 | % | 50.0 | % | |||||||
Hygo | 50.0 | % | 50.0 | % | |||||||
Avenir LNG Limited (“Avenir”)
|
23.1 | % | 22.5 | % |
(in thousands of $) | 2020 | 2019 | |||||||||
Golar Partners | 67,429 | 214,296 | |||||||||
Hygo | 200,337 | 261,693 | |||||||||
Avenir | 39,984 | 28,101 | |||||||||
ECGS | 4,401 | 4,715 | |||||||||
Equity in net assets of affiliates | 312,151 | 508,805 |
(in thousands of $) | 2020 | 2019 | |||||||||
Balance as of January 1, | 508,805 | 571,782 | |||||||||
Additions | 5,419 | 7,348 | |||||||||
Capitalized interest | 2,718 | 15,996 | |||||||||
Dividends | (10,584) | (36,726) | |||||||||
Equity in net losses of affiliates | (40,644) | (45,799) | |||||||||
Impairment of investment in affiliate (1)
|
(135,883) | (500) | |||||||||
Share of other comprehensive income of affiliates | (17,680) | (3,296) | |||||||||
Balance as at December 31, | 312,151 | 508,805 |
(in thousands of $) | December 31, 2020 | |||||||||||||
ECGS | Golar Partners | Hygo | Avenir | |||||||||||
Balance Sheet | ||||||||||||||
Current assets | 26,589 | 146,821 | 109,596 | 18,275 | ||||||||||
Non-current assets | 88 | 1,880,840 | 917,976 | 151,940 | ||||||||||
Current liabilities | (15,925) | (832,277) | (97,245) | (18,950) | ||||||||||
Non-current liabilities | (931) | (570,063) | (453,278) | (26,744) | ||||||||||
Non-controlling interests | — | 82,112 | 13,557 | — | ||||||||||
(in thousands of $) | December 31, 2020 | |||||||||||||
ECGS | Golar Partners | Hygo | Avenir | |||||||||||
Statement of Operations | ||||||||||||||
Revenue | 31,441 | 284,734 | 47,295 | 2,340 | ||||||||||
Net (loss)/income | (486) | 18,077 | (61,859) | (6,006) |
(in thousands of $) | December 31, 2019 | |||||||||||||
ECGS | Golar Partners | Hygo | Avenir | |||||||||||
Balance Sheet | ||||||||||||||
Current assets | 27,719 | 133,299 | 126,406 | 26,198 | ||||||||||
Non-current assets | 95 | 1,972,313 | 1,028,386 | 71,742 | ||||||||||
Current liabilities | (16,024) | (309,154) | (232,200) | (3,641) | ||||||||||
Non-current liabilities | (1,203) | (1,143,764) | (338,351) | (4,830) | ||||||||||
Non-controlling interests | — | 83,231 | 7,090 | — | ||||||||||
Statement of Operations | ||||||||||||||
Revenue | 32,052 | 299,652 | 45,223 | 1,058 | ||||||||||
Net income/(loss) | 297 | 21,134 | (6,928) | (7,878) |
15. | ASSET UNDER DEVELOPMENT |
(in thousands of $) | 2020 | 2019 | ||||||
As of January 1 | 434,248 | 20,000 | ||||||
Additions | 283,927 | 372,849 | ||||||
Transfer from vessels and equipment, net (note 16) | 77,172 | — | ||||||
Transfer from other non-current assets (note 17) | 16,213 | 31,048 | ||||||
Interest costs capitalized | 34,296 | 10,351 | ||||||
Disposal of LNG Croatia
|
(187,609) | — | ||||||
As of December 31 | 658,247 | 434,248 |
(in thousands of $) | |||||
Period ending December 31, | |||||
2021 | 295,038 | ||||
2022 | 265,539 | ||||
2023 | 249,565 | ||||
2024 | 50,672 | ||||
860,814 |
(in thousands of $) | 2020 | ||||
Cash consideration received | 193,291 | ||||
Carrying value of converted FSRU, LNG Croatia
|
(187,609) | ||||
Gain on disposal | 5,682 |
16. | VESSELS AND EQUIPMENT, NET |
Year Ended December 31, 2020
|
|||||||||||||||||
(in thousands of $)
|
Vessels and equipment | Mooring equipment | Drydocking expenditure | Office equipment | Total | ||||||||||||
Cost | |||||||||||||||||
As of January 1 | 3,429,317 | 45,771 | 140,738 | 8,398 | 3,624,224 | ||||||||||||
Additions | 3,282 | — | 3,713 | 161 | 7,156 | ||||||||||||
Transfer to asset under development (1)
|
(127,620) | — | — | — | (127,620) | ||||||||||||
Write-offs (2)
|
(6,125) | — | (6,500) | (393) | (13,018) | ||||||||||||
As of December 31 | 3,298,854 | 45,771 | 137,951 | 8,166 | 3,490,742 | ||||||||||||
Depreciation, amortization and impairment | |||||||||||||||||
As of January 1 | (434,396) | (9,106) | (16,434) | (3,739) | (463,675) | ||||||||||||
Charge for the year (3)
|
(87,383) | (5,714) | (13,080) | (1,283) | (107,460) | ||||||||||||
Transfer to asset under development (1)
|
50,448 | — | — | 50,448 | |||||||||||||
Write-offs (2)
|
6,125 | — | 6,500 | 393 | 13,018 | ||||||||||||
As of December 31 | (465,206) | (14,820) | (23,014) | (4,629) | (507,669) | ||||||||||||
Net book value as at December 31, 2020 | 2,833,648 | 30,951 | 114,937 | 3,537 | 2,983,073 |
Year Ended December 31, 2019
|
|||||||||||||||||
(in thousands of $)
|
Vessels and equipment | Mooring equipment | Drydocking expenditure | Office equipment | Total | ||||||||||||
Cost | |||||||||||||||||
As of January 1 | 3,447,464 | 45,771 | 133,316 | 11,497 | 3,638,048 | ||||||||||||
Additions | 6,268 | — | 29,557 | 159 | 35,984 | ||||||||||||
Write-offs (2)
|
(24,415) | — | (22,135) | (3,258) | (49,808) | ||||||||||||
As of December 31 | 3,429,317 | 45,771 | 140,738 | 8,398 | 3,624,224 | ||||||||||||
Depreciation, amortization and impairment | |||||||||||||||||
As of January 1 | (331,477) | (3,392) | (26,039) | (5,761) | (366,669) | ||||||||||||
Charge for the year (3)
|
(93,084) | (5,714) | (12,530) | (1,236) | (112,564) | ||||||||||||
Impairment (4)
|
(34,250) | — | — | — | (34,250) | ||||||||||||
Write-offs (2)
|
24,415 | — | 22,135 | 3,258 | 49,808 | ||||||||||||
As of December 31 | (434,396) | (9,106) | (16,434) | (3,739) | (463,675) | ||||||||||||
Net book value as at December 31, 2019 | 2,994,921 | 36,665 | 124,304 | 4,659 | 3,160,549 |
Vessel |
2020 Market value (1)
|
2020 Carrying value
|
Deficit | ||||||||
Golar Arctic | 47.5 | 129.8 | (82.3) | ||||||||
Golar Bear | 160.0 | 178.4 | (18.4) | ||||||||
Golar Crystal | 159.0 | 173.2 | (14.2) | ||||||||
Golar Frost | 160.5 | 181.4 | (20.9) | ||||||||
Golar Glacier | 155.7 | 177.4 | (21.7) | ||||||||
Golar Ice | 159.5 | 184.6 | (25.1) | ||||||||
Golar Kelvin | 160.0 | 178.9 | (18.9) | ||||||||
Golar Seal | 156.3 | 168.2 | (11.9) | ||||||||
Golar Snow | 159.8 | 184.8 | (25.0) |
17. | OTHER NON-CURRENT ASSETS |
(in thousands of $) | 2020 | 2019 | |||||||||
Operating lease right-of-use-assets (1)
|
14,642 | 9,847 | |||||||||
Oil derivative instrument (note 24) | 540 | 45,640 | |||||||||
Foreign exchange swap (note 24) | — | 214 | |||||||||
Mark-to-market interest rate swaps valuation (note 24) | — | 8 | |||||||||
Other non-current assets (2)
|
12,729 | 24,700 | |||||||||
27,911 | 80,409 |
18. | DEBT |
(in thousands of $) | 2020 | 2019 | |||||||||
Total long-term and short-term debt | 2,350,782 | 2,535,827 | |||||||||
Less: current portion of long-term debt and short-term debt | (982,845) | (1,241,108) | |||||||||
Long-term debt | 1,367,937 | 1,294,719 |
Year ending December 31 | Golar debt |
VIE debt (1)
|
Total debt | ||||||||||||||
(in thousands of $) | |||||||||||||||||
2021 (2)
|
118,236 | 945,509 | 1,063,745 | ||||||||||||||
2022 | 401,976 | 158,456 | 560,432 | ||||||||||||||
2023 | 18,236 | 173,085 | 191,321 | ||||||||||||||
2024 | 73,672 | 68,279 | 141,951 | ||||||||||||||
2025 | 67,079 | 68,279 | 135,358 | ||||||||||||||
2026 and thereafter | 206,661 | 80,063 | 286,724 | ||||||||||||||
Total | 885,860 | 1,493,671 | 2,379,531 | ||||||||||||||
Deferred finance charges | (26,179) | (2,570) | (28,749) | ||||||||||||||
Total | 859,681 | 1,491,101 | 2,350,782 |
(in thousands of $) | 2020 | 2019 | Maturity date | ||||||||
Golar Arctic facility | 36,472 | 43,767 | 2024 | ||||||||
Golar Viking facility | — | 41,667 | 2020 | ||||||||
2017 Convertible bonds | 383,739 | 368,133 | 2022 | ||||||||
Term Facility | — | 150,000 | 2020 | ||||||||
Margin Loan | — | 100,000 | 2020 | ||||||||
Revolving Credit Facility | 100,000 | — | 2021 | ||||||||
Gimi Facility | 300,000 | 130,000 | 2030 | ||||||||
$1.125 billion facility: | |||||||||||
- Golar Bear facility | — | 75,425 | |||||||||
- Golar Frost facility | 65,649 | 76,590 |
2024/2026(1)
|
||||||||
Subtotal (excluding lessor VIE loans) | 885,860 | 985,582 | |||||||||
ICBCL VIE loans: | |||||||||||
- Golar Glacier facility | 110,625 | 127,579 | Repayable on demand | ||||||||
- Golar Snow facility | 111,108 | 128,112 | |||||||||
- Golar Kelvin facility | 128,562 | 147,025 | |||||||||
- Golar Ice facility | 83,857 | 100,799 | |||||||||
CMBL VIE loan: | |||||||||||
- Golar Tundra facility | 89,450 | 104,884 | 2021 | ||||||||
CCBFL VIE loan: | |||||||||||
- Golar Seal facility | 90,178 | 100,424 | 2022 | ||||||||
COSCO VIE loan: | |||||||||||
- Golar Crystal facility | 83,596 | 91,275 | 2027 | ||||||||
CSSC VIE loan: | |||||||||||
- Hilli facility
|
691,488 | 783,071 | Repayable on demand/2026 | ||||||||
AVIC VIE loan: | |||||||||||
Golar Bear facility | 104,807 | — |
2023 (2)
|
||||||||
Total debt (gross) | 2,379,531 | 2,568,751 | |||||||||
Deferred finance charges | (28,749) | (32,924) | |||||||||
Total debt | 2,350,782 | 2,535,827 |
In $, except conversion rate | |||||||||||
Distribution declared per share | Conversion rate | Conversion price | |||||||||
First quarter, 2019 | 0.150 | 26.993 | 37.05 |
Tranche | Proportion of facility | Term of loan from date of drawdown | Repayment terms | |||||||||||
K-Sure | 40% | 12 years |
Six-monthly installments
|
|||||||||||
KEXIM | 40% | 12 years |
Six-monthly installments
|
|||||||||||
Commercial | 20% | 5 years |
Six-monthly installments, unpaid balance to be refinanced after 5 years
|
Facility | Effective from | SPV | Loan counterparty | Loan facility at inception (in $ millions) | Loan facility at December 31, 2020 (in $ millions) | Loan duration/maturity | Interest | ||||||||||||||||
Golar Glacier | October 2014 | Hai Jiao 1401 Limited |
ICBCIL Finance Co.(1)
|
184.8 | 110.6 | Repayable on demand |
2.65% - 6.00%
|
||||||||||||||||
Golar Snow | January 2015 | Hai Jiao 1402 Limited |
ICBCIL Finance Co.(1)
|
182.6 | 111.1 | Repayable on demand |
2.65% - 6.00%
|
||||||||||||||||
Golar Kelvin | January 2015 | Hai Jiao 1405 Limited |
ICBCIL Finance Co.(1)
|
182.5 | 128.6 | Repayable on demand |
2.65% - 3.89%
|
||||||||||||||||
Golar Ice | February 2015 | Hai Jiao 1406 Limited |
ICBCIL Finance Co.(1)
|
172.0 | 83.9 | Repayable on demand |
2.65% - 3.89%
|
||||||||||||||||
Golar Tundra(2)
|
November 2015 | Sea 24 Leasing Co Ltd | CMBL | 205.1 | 89.5 | 2021 | LIBOR plus margin | ||||||||||||||||
Golar Seal(3)
|
March 2016 | Compass Shipping 1 Corporation Limited | CCBFL | 162.4 | 90.2 | 2022 | 3.5% | ||||||||||||||||
Golar Crystal | March 2017 | Oriental Fleet LNG 01 Limited | COSCO Shipping | 101.0 | 83.6 | 10 years | LIBOR plus margin | ||||||||||||||||
Hilli(4)
|
June 2018 | Fortune Lianjing Shipping S.A. | CSSC | 840.0 | 353.0 |
8 years non-recourse
|
LIBOR plus margin | ||||||||||||||||
120.0 | 338.5 | Repayable on demand | Nil | ||||||||||||||||||||
Golar Bear (5)
|
June 2020 | Cool Bear Shipping Limited | AVIC | 110.0 | 104.8 | 2023 | 4.0% |
19. | ACCRUED EXPENSES |
(in thousands of $) | 2020 | 2019 | |||||||||
Interest expense | (52,600) | (44,150) | |||||||||
Vessel operating and drydocking expenses | (23,334) | (24,457) | |||||||||
Administrative expenses | (13,078) | (11,713) | |||||||||
Current tax payable | (345) | (720) | |||||||||
(89,357) | (81,040) |
20. | OTHER CURRENT LIABILITIES |
(in thousands of $) | 2020 | 2019 | |||||||||
Mark-to-market interest rate swaps valuation (note 24) | (44,315) | (5,798) | |||||||||
Deferred operating cost and charterhire revenue | (12,330) | (20,719) | |||||||||
Day 1 gain deferred revenue - current portion (note 21) | (9,950) | (9,950) | |||||||||
Current portion of operating lease liability (note 11) | (5,005) | (3,582) | |||||||||
Mark-to-market foreign exchange swaps valuation (note 24) | (1,310) | — | |||||||||
Mark-to-market equity swaps valuation (note 24) | — | (50,407) | |||||||||
Other(1)
|
(12,509) | (5,625) | |||||||||
(85,419) | (96,081) |
21. | OTHER NON-CURRENT LIABILITIES |
(in thousands of $) | 2020 | 2019 | |||||||||
Day 1 gain deferred revenue (1)
|
(43,934) | (53,884) | |||||||||
Pension obligations (note 22) | (37,258) | (34,720) | |||||||||
Deferred commissioning period revenue (2)
|
(18,635) | (22,855) | |||||||||
Guarantees issued to Golar Partners and Hygo (note 25) | (19,545) | (16,417) | |||||||||
Non-current portion of operating lease liabilities (note 11) | (10,634) | (6,481) | |||||||||
Other (3)
|
(5,433) | (8,293) | |||||||||
(135,439) | (142,650) |
22. | PENSIONS |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
Service cost | 155 | 162 | 250 | ||||||||||||||
Interest cost | 1,271 | 1,740 | 1,687 | ||||||||||||||
Expected return on plan assets | (318) | (375) | (926) | ||||||||||||||
Recognized actuarial loss | 848 | 777 | 1,392 | ||||||||||||||
Net periodic benefit cost | 1,956 | 2,304 | 2,403 |
(in thousands of $) | 2020 | 2019 | |||||||||
Reconciliation of benefit obligation: | |||||||||||
Benefit obligation at January 1 | 49,943 | 46,093 | |||||||||
Service cost | 155 | 162 | |||||||||
Interest cost | 1,271 | 1,740 | |||||||||
Actuarial loss | 5,458 | 4,581 | |||||||||
Foreign currency exchange rate changes | 372 | 433 | |||||||||
Benefit payments | (3,077) | (3,066) | |||||||||
Benefit obligation at December 31 | 54,122 | 49,943 |
(in thousands of $) | 2020 | 2019 | |||||||||
Reconciliation of fair value of plan assets: | |||||||||||
Fair value of plan assets at January 1 | 15,223 | 13,121 | |||||||||
Actual return on plan assets | 1,355 | 1,216 | |||||||||
Employer contributions | 2,900 | 3,411 | |||||||||
Foreign currency exchange rate changes | 463 | 541 | |||||||||
Benefit payments | (3,077) | (3,066) | |||||||||
Fair value of plan assets at December 31 | 16,864 | 15,223 |
(in thousands of $) | 2020 | 2019 | |||||||||
Fair value of benefit obligation | (54,122) | (49,943) | |||||||||
Fair value of plan assets | 16,864 | 15,223 | |||||||||
Unfunded status (1)
|
(37,258) | (34,720) |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
(in thousands of $)
|
UK Scheme | Marine Scheme | Total | UK Scheme | Marine Scheme | Total | |||||||||||||||||||||||||||||
Fair value of benefit obligation | (12,727) | (41,395) | (54,122) | (11,479) | (38,464) | (49,943) | |||||||||||||||||||||||||||||
Fair value of plan assets | 15,822 | 1,042 | 16,864 | 14,323 | 900 | 15,223 | |||||||||||||||||||||||||||||
Funded (unfunded) status at end of year | 3,095 | (40,353) | (37,258) | 2,844 | (37,564) | (34,720) |
(in thousands of $) | 2020 | 2019 | |||||||||
Equity securities | 15,822 | 14,323 | |||||||||
Cash | 1,042 | 900 | |||||||||
16,864 | 15,223 |
Marine scheme | 2020 (%) | 2019 (%) | |||||||||||||||
Cash | 100 | 100 | |||||||||||||||
Total | 100 | 100 |
UK scheme | 2020 (%) | 2019 (%) | |||||||||||||||
Equity | 100 | 100 | |||||||||||||||
Total | 100 | 100 |
(in thousands of $) | UK scheme | Marine scheme | |||||||||
Employer contributions | — | 2,900 |
(in thousands of $) | UK scheme | Marine scheme | |||||||||
2021 | 590 | 2,700 | |||||||||
2022 | 370 | 2,600 | |||||||||
2023 | 380 | 2,500 | |||||||||
2024 | 420 | 2,400 | |||||||||
2025 | 660 | 2,300 | |||||||||
2026 - 2030 | 2,350 | 11,000 |
2020 | 2019 | ||||||||||
Discount rate | 1.68 | % | 2.61 | % | |||||||
Rate of compensation increase | 2.29 | % | 2.15 | % |
2020 | 2019 | ||||||||||
Discount rate | 1.69 | % | 2.63 | % | |||||||
Expected return on plan assets | 2.06 | % | 2.81 | % | |||||||
Rate of compensation increase | 2.31 | % | 2.20 | % |
23. | SHARE CAPITAL AND SHARE BASED COMPENSATION |
(in thousands of $, except per share data) | 2020 | 2019 | |||||||||
150,000,000 (2019: 150,000,000) common shares of $1.00 each
|
150,000 | 150,000 |
(in thousands of $, except per share data) | 2020 | 2019 | |||||||||
109,943,594 (2019: 101,302,404) outstanding issued common shares of $1.00 each
|
109,944 | 101,303 |
(number of shares) | 2020 | 2019 | |||||||||
As at January 1 | 101,302,404 | 101,302,404 | |||||||||
Repurchase and cancellation of treasury shares (1)
|
(3,500,000) | — | |||||||||
Issuance of shares (2)
|
12,067,789 | — | |||||||||
Vesting of RSUs | 73,401 | — | |||||||||
As at December 31 | 109,943,594 | 101,302,404 |
2018 | ||||||||
Risk free interest rate | 2.5 | % | ||||||
Expected volatility of common stock | 62.5 | % | ||||||
Expected dividend yield | 0.0 | % | ||||||
Expected term of options (in years) | 3.6 years |
(in thousands of $, except per share data) |
Shares
(in '000s) |
Weighted average exercise price |
Weighted average remaining contractual term
(years) |
||||||||||||||
Options outstanding at December 31, 2019 | 2,680 | $ | 30.23 | 1.9 | |||||||||||||
Forfeited during the year | (376) | $ | 26.69 | ||||||||||||||
Lapsed during the year | (463) | $ | 55.45 | ||||||||||||||
Options outstanding at December 31, 2020
|
1,841 | $ | 24.62 | 1.2 |
Options outstanding and exercisable at: | |||||||||||||||||
December 31, 2020 | 1,717 | $ | 24.46 | 1.2 | |||||||||||||
December 31, 2019 | 2,221 | $ | 30.74 | 1.7 | |||||||||||||
December 31, 2018 | 2,320 | $ | 39.02 | 2.0 |
Year ended December 31 | |||||||||||||||||
In $'000 | 2020 | 2019 | 2018 | ||||||||||||||
Intrinsic value of share options exercised | — | — | 2,621 | ||||||||||||||
Total fair value of share options fully vested in the year | 3,175 | 8,967 | 16,623 | ||||||||||||||
Compensation cost recognized in the consolidated statement of income | 2,274 | 7,148 | 11,748 | ||||||||||||||
Share options cost capitalized* | 110 | 608 | 421 |
(in thousands of $, except per share data) |
Shares
(in '000s) |
Weighted average grant date fair value per share |
Weighted average remaining contractual term
(years) |
||||||||||||||
Non-vested RSUs at December 31, 2019 | 223 | 20.61 | 2.40 | ||||||||||||||
Granted during the year | 667 | 7.51 | |||||||||||||||
Vested during the year | (73) | 20.61 | |||||||||||||||
Forfeited during the year | (69) | 7.87 | |||||||||||||||
Non-vested RSUs at December 31, 2020
|
748 | 10.02 | 2.00 |
2020 | ||||||||
Remaining performance period | 2.8 years | |||||||
Contractual term | 3.0 years | |||||||
Expected dividend yield | 0.0 | % | ||||||
Risk fee interest rate | 0.42 | % | ||||||
Golar volatility | 84 | % | ||||||
Share price at grant date | $ | 7.49 |
(in thousands of $, except per share data) |
Shares
(in '000s) |
Weighted average grant date fair value per share |
Weighted average remaining contractual term
(years) |
||||||||||||||
Granted during the year | 159 | 6.25 | |||||||||||||||
Non-vested performance based RSUs at December 31, 2020 | 159 | 6.25 | 2.21 |
Year ended December 31 | |||||||||||||||||
In $'000 | 2020 | 2019 | 2018 | ||||||||||||||
Compensation cost recognized in the consolidated statement of income | 2,739 | 1,124 | — | ||||||||||||||
RSU cost capitalized* | 295 | — | — |
24. | FINANCIAL INSTRUMENTS |
Instrument
(in thousands of $) |
Year end | Notional value | Maturity dates | Fixed interest rates | ||||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||||||||
Receiving floating, pay fixed | 2020 | 597,500 | 2021/2029 |
1.69% to 2.37%
|
||||||||||||||||||||||
Receiving floating, pay fixed | 2019 | 737,500 | 2020/2029 |
1.68% to 2.37%
|
2020 | 2020 | 2019 | 2019 | ||||||||||||||
(in thousands of $) | Fair value hierarchy | Carrying value | Fair value | Carrying value | Fair value | ||||||||||||
Non-derivatives: | |||||||||||||||||
Cash and cash equivalents | Level 1 | 127,691 | 127,691 | 222,123 | 222,123 | ||||||||||||
Restricted cash and short-term deposits | Level 1 | 163,181 | 163,181 | 188,289 | 188,289 | ||||||||||||
Current portion of long-term debt and short-term debt (1)
|
Level 2 | (984,510) | (984,510) | (1,244,599) | (1,244,599) | ||||||||||||
Long-term debt – convertible bonds (2)
|
Level 2 | (383,740) | (366,581) | (368,134) | (355,943) | ||||||||||||
Long-term debt (1)
|
Level 2 | (1,011,281) | (1,011,281) | (956,018) | (956,018) | ||||||||||||
Derivatives: | |||||||||||||||||
Oil derivative instrument | Level 2 | 540 | 540 | 45,640 | 45,640 | ||||||||||||
Interest rate swaps asset (2)
|
Level 2 | — | — | 84 | 84 | ||||||||||||
Interest rate swaps liability (2)
|
Level 2 | (44,315) | (44,315) | (5,798) | (5,798) | ||||||||||||
Foreign exchange swaps asset (2)
|
Level 2 | — | — | 1,246 | 1,246 | ||||||||||||
Foreign exchange swaps liability (2)
|
Level 2 | (1,310) | (1,310) | — | — | ||||||||||||
Total return equity swap liability (2) (3)
|
Level 2 | — | — | (50,407) | (50,407) | ||||||||||||
Balance sheet classification | 2020 | 2019 | ||||||||||||
(in thousands of $) | ||||||||||||||
Asset derivatives | ||||||||||||||
Oil derivative instrument | Other non-current assets | 540 | 45,640 | |||||||||||
Foreign exchange swaps | Other current and non-current assets | — | 1,246 | |||||||||||
Interest rate swaps | Other current and non-current assets | — | 84 | |||||||||||
Total asset derivatives | 540 | 46,970 | ||||||||||||
Liability derivatives | ||||||||||||||
Total return equity swap | Other current liabilities | — | (50,407) | |||||||||||
Interest rate swaps | Other current liabilities | (44,315) | (5,798) | |||||||||||
Foreign exchange swaps | Other current liabilities | (1,310) | — | |||||||||||
Total liability derivatives | (45,625) | (56,205) |
2020 | 2019 | |||||||||||||||||||
Gross amounts presented in the consolidated balance sheet | Gross amounts not offset in the consolidated balance sheet subject to netting agreements | Net amount | Gross amounts presented in the consolidated balance sheet | Gross amounts not offset in the consolidated balance sheet subject to netting agreements | Net amount | |||||||||||||||
(in thousands of $) | ||||||||||||||||||||
Total asset derivatives | — | — | — | 84 | (52) | 32 | ||||||||||||||
Total liability derivatives | 44,315 | — | 44,315 | 5,798 | (52) | 5,746 |
25. | RELATED PARTY TRANSACTIONS |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||
Management and administrative services revenue (i) | 7,941 | 9,645 | 9,809 | ||||||||
Ship management fees revenue (ii) | 5,263 | 4,460 | 5,200 | ||||||||
Interest income on short-term loan (iii) | (317) | (109) | — | ||||||||
Interest expense on deposits payable (iv) | — | — | (4,779) | ||||||||
Total | 12,887 | 13,996 | 10,230 |
(in thousands of $) | 2020 | 2019 | ||||||
Balances due (to)/from Golar Partners and its subsidiaries (iii) | (1,133) | (2,708) | ||||||
Methane Princess lease security deposit movements (v) | 349 | (2,253) | ||||||
Total | (784) | (4,961) |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||
Management and administrative services revenue | 5,281 | 5,904 | 6,167 | ||||||||
Ship management fees income | 1,780 | 1,210 | 1,400 | ||||||||
Debt guarantee compensation (i) | 3,826 | 693 | 861 | ||||||||
Other (ii) | — | (2) | (247) | ||||||||
Total | 10,887 | 7,805 | 8,181 | ||||||||
(in thousands of $) | 2020 | 2019 | |||||||||
Balances due to Hygo and affiliates (ii) | (11,222) | (6,829) | |||||||||
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||
Management and administrative services revenue | — | — | 1,399 | ||||||||
(in thousands of $) | 2020 | 2019 | ||||||
Balances due from OneLNG (i) | 64 | 707 |
(in thousands of $) | 2020 | 2019 | 2018 | ||||||||||||||
The Cool Pool (i) | — | 39,666 | 151,152 | ||||||||||||||
Magni Partners (ii) | (606) | (858) | (375) | ||||||||||||||
Borr Drilling (iii) | 384 | 542 | — | ||||||||||||||
2020 Bulkers (iv) | 45 | 265 | — | ||||||||||||||
Avenir LNG (v) | 980 | — | — | ||||||||||||||
Total | 803 | 39,615 | 150,777 |
(in thousands of $) | 2020 | 2019 | ||||||
Magni Partners (ii) | 81 | 88 | ||||||
Borr Drilling (iii) | 936 | 542 | ||||||
2020 Bulkers (iv) | 51 | 265 | ||||||
Avenir LNG (v) | 980 | — | ||||||
Total | 2,048 | 895 |
(in thousands of $) | 2019 | 2018 | |||||||||
Time and voyage charter revenues | 43,332 | 177,139 | |||||||||
Time charter revenues - collaborative arrangement | 23,359 | 73,931 | |||||||||
Voyage, charterhire expenses and commission expenses | (8,092) | (16,717) | |||||||||
Voyage, charterhire and commission expenses - collaborative arrangement | (18,933) | (83,201) | |||||||||
Net income from the Cool Pool | 39,666 | 151,152 |
26. | COMMITMENTS AND CONTINGENCIES |
(in thousands of $) | 2020 | 2019 | |||||||||
Book value of vessels secured against long-term loans(1)
|
2,959,535 | 3,135,891 |
27. | SUBSEQUENT EVENTS |
Delaware | Bermuda | |||||||
Dividends
|
||||||||
Under Delaware law, unless otherwise provided in a corporation's certificate of incorporation, directors may declare and pay dividends upon the shares of its capital stock either (i) out of its surplus or (ii) if the corporation does not have surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.
The excess, if any, at any given time, of the net assets of the corporation over the amount so determined to be capital is surplus. Net assets means the amount by which total assets exceed total liabilities. Dividends may be paid in cash, in property, or in shares of the corporation's capital stock. |
Under the Companies Act, a company may declare and pay a dividend, or make a distribution out of contributed surplus, provided there are reasonable grounds for believing that (a) the company is, and would after the payment be, able to pay its liabilities as they become due and (b) the realizable value of its assets would be greater than its liabilities. (Companies Act § 54). Mechanically this requires the Company to make certain filings from time to time with the Bermuda Registrar of Companies in order to keep track of the contributed surplus. | |||||||
Directors | ||||||||
Number of board members shall be fixed by, or in a manner provided by, the bylaws, unless the certificate of incorporation fixes the number of directors, in which case a change in the number shall be made only by amendment of the certificate of incorporation. | The number of directors is fixed by the bye-laws, and any changes to such number must be approved by the Board of Directors and/or the shareholders in accordance with the company's bye-laws. (Companies Act §91). | |||||||
Dissenter’s Rights of Appraisal | ||||||||
Appraisal rights shall be available for the shares of any class or series of stock of a corporation in a merger or consolidation, subject to limited exceptions, such as a merger or consolidation of corporations listed on a national securities exchange in which listed stock is the offered consideration. | A dissenting shareholder of a Bermuda exempted company is entitled to be paid the fair value of his or her shares in an amalgamation or merger. (Companies Act § 106(6)). | |||||||
Shareholder Derivative Actions | ||||||||
Shareholder meetings may be held at such times and places as designated in the certificate of incorporation or the bylaws, or if not so designated, as determined by the Board of Directors.
Special meetings of the shareholders may be called by the Board of Directors or by such person or persons as may be authorized by the certificate of incorporation or by the bylaws, or if not so designated, as determined by the Board of Directors. Written notice shall be given not less than 10 nor more than 60 days before the meeting. Whenever shareholders are required to take any action at a meeting, a written notice of the meeting shall be given which shall state the place, if any, date and hour of the meeting, and the means of remote communication, if any. Shareholder meetings may be held within or without the State of Delaware. Any action required to be taken by a meeting of shareholders may be taken without a meeting if a consent for such action is in writing and is signed by shareholders having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. |
Shareholder meetings may be called by the Board of Directors and must be called upon the request of shareholders holding not less than 10% of the paid-up capital of the company carrying the right to vote at a general meeting. (Companies Act §74(1)).
Special meetings may be convened by the Board of Directors whenever they see fit, and the meetings shall be called special general meetings. (Companies Act §71(1)). May be held in or outside of Bermuda. Notice: - Notice of all general meetings shall specify the place, the day and hour of the meeting. (Companies Act §71(2)). - Notice of special general meetings shall specify the place, the day, hour and general nature of the business to be considered at the meeting. (Companies Act §71(2)). - Notwithstanding any provision in the bye-laws of a company, at least five days’ notice shall be given of a company meeting. (Companies Act §75(1)). - The unintentional failure to give notice to any person does not invalidate the proceedings. (Companies Act §71(4)). |
|||||||
Generally, any action which may be done by resolution of a company in a general meeting may be done by resolution in writing. (Companies Act §77A).
Shareholders may act by written resolution to elect directors, but may not act by written resolution to remove directors. (Companies Act §77A(6)(b)). Except as otherwise provided in our bye-laws or the Companies Act, any action or resolution requiring the approval of the shareholders may be passed by a simple majority of votes cast (Companies Act §77(2)). Any person authorized to vote may authorize another person or persons to act for him by proxy. (Companies Act §77(3)). |
The bye-laws may specify the number to constitute a quorum for a general meeting of the Company. In the case of a company having only one member, one member present in person or by proxy constitutes the necessary quorum. (Companies Act § 106(4A)).
When a quorum is once present to constitute a meeting, the byelaws may provide for whether or not it is broken by the subsequent withdrawal of any shareholders. (Companies Act §13(2)(e)). The bye-laws may provide for cumulative voting in the election of directors. (Companies Act §77). |
DATED JANUARY 2021 |
"Amendment Fee" | means the amendment fee in an amount of [*****]. | ||||
"Claims" | means the force majeure claims (or other claims) made by any of the Borrower, the Lessee, the Builder or the B&V Consortium under the LOA or any of the EPC Contracts. | ||||
"Consent Letter" | means the consent letter dated on or about the date hereof in relation to this Agreement, executed by KOM (as the Keppel Payment Guarantor and the Keppel Performance Guarantor) and the Original Keppel Shareholder in favour of the Facility Agent and the Security Trustee. | ||||
"Effective Date" |
1.means the date on which the Facility Agent (acting on the instructions of all of the Lenders) notifies the Borrower in writing substantially in the form set out in Schedule 3 (Form of Effective Date Notice) that the Facility Agent has received the documents and evidence specified in Clause 5.1 (Documents and evidence), Clause 5.2 (General conditions precedent) and Schedule 2 (Conditions Precedent to Effective Date) in a form and substance satisfactory to it.
|
||||
"Facility Agreement" | means the Original Facility Agreement as amended by this Agreement. | ||||
"Parties" |
means the parties to this Agreement and "Party" means any of them.
|
||||
"Relevant Invoices" | means the invoices delivered by the Builder to the Borrower pursuant to article 31.5(a) of the Main Building Contract [*****]. |
Repayment Number | Principal (prior to repayment) ($) | Principal repayment ($) | Principal outstanding (following repayment) ($) | ||||||||
1 (First Repayment Date) | 700,000,000.00 | 14,583,333.33 | 685,416,666.67 | ||||||||
2 | 685,416,666.67 | 14,583,333.33 | 670,833,333.34 | ||||||||
3 | 670,833,333.34 | 14,583,333.33 | 656,250,000.01 | ||||||||
4 | 656,250,000.01 | 14,583,333.33 | 641,666,666.68 | ||||||||
5 | 641,666,666.68 | 14,583,333.33 | 627,083,333.35 | ||||||||
6 | 627,083,333.35 | 14,583,333.33 | 612,500,000.02 | ||||||||
7 | 612,500,000.02 | 14,583,333.33 | 597,916,666.69 | ||||||||
8 | 597,916,666.69 | 14,583,333.33 | 583,333,333.36 | ||||||||
9 | 583,333,333.36 | 14,583,333.33 | 568,750,000.03 | ||||||||
10 | 568,750,000.03 | 14,583,333.33 | 554,166,666.70 | ||||||||
11 | 554,166,666.70 | 14,583,333.33 | 539,583,333.37 | ||||||||
12 | 539,583,333.37 | 14,583,333.33 | 525,000,000.04 | ||||||||
13 | 525,000,000.04 | 14,583,333.33 | 510,416,666.71 | ||||||||
14 | 510,416,666.71 | 14,583,333.33 | 495,833,333.38 | ||||||||
15 | 495,833,333.38 | 14,583,333.33 | 481,250,000.05 | ||||||||
16 | 481,250,000.05 | 14,583,333.33 | 466,666,666.72 | ||||||||
17 | 466,666,666.72 | 14,583,333.34 | 452,083,333.38 | ||||||||
18 | 452,083,333.38 | 14,583,333.34 | 437,500,000.04 | ||||||||
19 | 437,500,000.04 | 14,583,333.34 | 422,916,666.70 | ||||||||
20 | 422,916,666.70 | 14,583,333.34 | 408,333,333.36 | ||||||||
21 | 408,333,333.36 | 14,583,333.34 | 393,750,000.02 | ||||||||
22 | 393,750,000.02 | 14,583,333.34 | 379,166,666.68 | ||||||||
23 | 379,166,666.68 | 14,583,333.34 | 364,583,333.34 | ||||||||
24 | 364,583,333.34 | 14,583,333.34 | 350,000,000.00 | ||||||||
25 (Final Repayment Date) | 350,000,000.00 | 350,000,000.00 | - |
Asset | Golar Counterparty / Owner | Tier 1 Service Provider | ||||||
Eskimo | Golar Eskimo Corporation | GML | ||||||
Freeze | Golar Freeze UK Ltd | GML | ||||||
Igloo | Golar Hull M2031 Corporation | GML | ||||||
Winter | Golar Winter UK Ltd | GML | ||||||
NR Satu | PT Golar Indonesia | GML | ||||||
Methane Princess | Golar 2215 UK Ltd | GML | ||||||
Grand | Golar Grand Corporation | GML | ||||||
Maria | Golar LNG 2234 LLC | GML | ||||||
Mazo | Faraway Maritime Shipping Company | GML | ||||||
Spirit | Golar Spirit Corporation | GML | ||||||
Corporate | Golar LNG Partners LP | Golar Management (Bermuda) Limited |
Counterparty | Service Provider | ||||
GML | Golar Management Norway AS | ||||
GML | Golar Management Malaysia SDN BHD | ||||
GML | Golar Management D.O.O. | ||||
Golar Hilli Corporation | Golar Cameroon SASU | ||||
Golar Golar Hilli Corporation | Golar Management Ltd |
Asset | Golar Counterparty / Owner | Tier 1 Service Provider | ||||||
Nanook
|
Golar FSRU8 Corporation (to be replaced by Golar Nanook UK Limited from the Effective Time in the discretion of the Parent) | GML | ||||||
Celsius | Golar Hull M2026 Corp. | GML | ||||||
Penguin | Golar Hull M2023 Corp. | GML | ||||||
Corporate | Hygo Energy Transition Ltd | Golar Management Bermuda |
Counterparty | Service Provider | ||||
GML | Golar Management Norway AS | ||||
GML | Golar Management Malaysia SDN BHD | ||||
GML | Golar Management D.O.O. | ||||
Name
|
Jurisdiction of Incorporation
|
||||
Golar GP LLC – Limited Liability Company | Marshall Islands | ||||
Gimi Holding Company Limited (a) | Bermuda | ||||
Golar Shoreline LNG Limited | Bermuda | ||||
Golar Hilli LLC (b) | Marshall Islands | ||||
Golar LNG Energy Limited | Bermuda | ||||
Golar Hull M2022 Corporation | Marshall Islands | ||||
Golar LNG NB10 Corporation | Marshall Islands | ||||
Golar Hull M2048 Corporation | Marshall Islands | ||||
Golar LNG NB11 Corporation | Marshall Islands | ||||
Golar Hull M2021 Corporation | Marshall Islands | ||||
Golar Hull M2047 Corporation | Marshall Islands | ||||
Golar LNG NB13 Corporation | Marshall Islands | ||||
Golar LNG 2216 Corporation | Marshall Islands | ||||
Golar Hull M2027 Corporation | Marshall Islands | ||||
Golar LNG NB12 Corporation | Marshall Islands | ||||
Golar Gandria N.V. | Curaçao | ||||
Gimi MS Corporation (c) | Marshall Islands | ||||
Golar Hilli Corp. (b) | Marshall Islands | ||||
Golar Management (Bermuda) Limited | Bermuda | ||||
Golar Management Limited | United Kingdom | ||||
Golar Management Norway AS | Norway | ||||
Golar Management Malaysia SDN. BHD. | Malaysia | ||||
Golar Management D.O.O | Croatia |
/s/ Iain Ross
|
|||||
Iain Ross | |||||
Principal Executive Officer |
/s/ Karl Fredrik Staubo
|
|||||
Karl Fredrik Staubo | |||||
Chief Financial Officer |
Execution Copy |
Revenue Pro-Rata Share of Underperformance CostsNet revenueTotal cash received excluding Incremental Perenco Revenues related to Series A Special Units and Revenues Less Expenses related to Series B Special Units (in all cases, before Underperformance Costs)600(100)500Incremental Perenco Revenues due to Series A Holders before Underperformance Costs300(50)250Revenue Less Expenses due to Series B Holders before Underperformance Costs300(50)250Total Cash Received Before Underperformance Costs1200Underperformance Costs(200)Total Cash Received After Underperformance Costs1000(200)1000 |
Revenue | Pro-Rata Share of Underperformance Costs | Net revenue | |||||||||
Total cash received excluding Incremental Perenco Revenues related to Series A Special Units and Revenues Less Expenses related to Series B Special Units (in all cases, before Underperformance Costs) | 600 | (100) | 500 | ||||||||
Incremental Perenco Revenues due to Series A Holders before Underperformance Costs | 300 | (50) | 250 | ||||||||
Revenue Less Expenses due to Series B Holders before Underperformance Costs | 300 | (50) | 250 | ||||||||
Total Cash Received Before Underperformance Costs | 1200 | ||||||||||
Underperformance Costs | (200) | ||||||||||
Total Cash Received After Underperformance Costs | 1000 | (200) | 1000 |