Golar LNG posts loss below estimates

Oscar Spieler-led company sees better LNG shipping market and FSRU uptake.

Golar LNG reported an worse-thanb-expected operating loss for the third-quarter, but the company is seeing improvements in the LNG market.

Golar reported an operating loss of $28.3m for the third quarter, compared to a year earlier loss of $24.2m loss reported a year earlier. The company's adjusted loss per share of $0.55 was deeper than the the average consensus estimate call for a $0.40 loss per share, according to Wells Fargo Securities analyst Michael Webber.

The company reported total operating revenue of $22.3m. Golar said shipping rates and utilisation improved sequentially from the second quarter, with spot LNG shipping rates around $40,000 per day and the "re-appearance of round-trip economics."

Cargo supply boost

Cargo supply should also get a boost in the fourth quarter as Malaysia LNG and the Petronas FLNG projects start up, along with additional production from Gorgon LNG and the Sabine Pass LNG project.

Golar said up to 16 vessels in the global spot fleet have been chartered for periods between 6 and 18 months starting between September and February.

The company also mentioned progress on projects involving its floating storage and regasification units (FSRUs). The company noted a final investment decision on the Sergipe project in Brazil and the recent awarding of the Ivory Coast LNG project to a consortium including Golar.

TRENDING TODAY