Nasdaq-listed GLNG says it expects the subsidiary, Golar Production, to be up and running within the next one to two months.
“Creating a separate company will provide the necessary focus to fully capitalize on the opportunity through the development of Golar`s floating production technical concepts, building and financing the vessels, recruiting top qualified personnel and promoting the development of new LNG production projects worldwide,” it told investors Monday.
Initially, GLNG says it will maintain 66% ownership in the new FLNG subsidiary, which will take control of three existing Moss vessels that have been identified as possible candidates for conversion into floating production units.
The development followed a period in which the company reported consolidated net income of $22.8m as fourth-quarter revenues fell to $111.8m from $121.1m year-on-year.
It blamed the dip on the scheduled drydocking of the Golar Spirit, which commenced in December, and nearly two-months of commercial waiting time for the 145,700-cbm Golar Maria (built 2006).
Earnings before interest, taxes, depreciation and amortisation (Ebitda) amounted to $76.9m while earnings per share weighed in at $0.28, which was well below analysts’ $0.43 consensus estimate, according to Erik Nikolai Stavseth of Arctic Securities.
GLNG also announced plans to lift its fourth-quarter dividend to a minimum payout of $0.445 per share before warning investors that the FSRU Golar Winter will be off hire for approximately six weeks during the first quarter of 2013.
Going forward, it said the market should expect “some volatility in charter rates” but is pleased with the progress made toward funding the 13 vessels in its newbuilding programme, which will likely be financed without having to raise additional equity.
“The board is optimistic about its position in the FSRU space with two prompt vessels set against active development of new projects,” the company continued. “The vast majority of the opportunities should result in longer term contract terms leading to attractive opportunities for Golar Partners dropdowns.”
