Golar LNG Ltd.

Golar LNG Limited Interim results for the period ended June 30, 2025

Highlights and subsequent events

* Golar LNG Limited ("Golar" or "the Company") reports Q2 2025 net income

attributable to Golar of $16 million, Adjusted EBITDA(1) of $49 million and

Total Golar Cash(1) of $891 million.

* Added $13.7 billion in Adjusted EBITDA backlog(1), with further upside in

contracted FLNG tariff CPI escalation and significant commodity upside:

* Concluded 20-year charter of FLNG Hilli ("Hilli") in Argentina with Southern

Energy S.A. ("SESA"), with Adjusted EBITDA backlog(1) of $5.7 billion.

* Signed definitive agreements and reached Final Investment Decision ("FID")

for a 20-year charter for the MKII FLNG, also with SESA, with Adjusted

EBITDA backlog(1) of $8 billion. Remaining regulatory approvals and

customary conditions precedent expected within 2025.

* Commodity upside to Golar of approximately $100 million per year for every

US dollar of offtake above $8/MMBtu.

* FLNG Gimi ("Gimi") reached Commercial Operations Date ("COD").

* Closed offering of $575 million of convertible senior notes due 2030 ("the

Notes") and repurchased 2.5 million common shares.

* Appointed new board members, Benoît de la Fouchardiere, Mi Hong Yoon and

Stephen J. Schaefer.

* Declared dividend of $0.25 per share for the quarter.

* Progressing contemplated next FLNG unit on the back of strong development of

commercial pipeline.

FLNG Hilli: Continued market leading uptime during the quarter, 137 cargoes

offloaded to date since contract start up in 2018 in Cameroon. Upon completion

of the current charter in July 2026, Hilli is scheduled to enter a yard in the

third quarter of 2026 for upgrades and life extension work before arriving in

Argentina for its 20-year charter for SESA during Q2 2027. Yard selection for

the redeployment related upgrade and modification works is expected within Q3

2025. The scope for the yard stay includes repair, life extension modifications,

winterization of the vessel and installation of a new soft-yoke mooring system.

The key commercial terms for the 20-year charter agreement include net charter

hire to Golar of $285 million per year, a total of $5.7 billion over the 20-year

term. In addition Hilli will make a commodity linked FLNG tariff component of

25% of FOB prices in excess of $8/MMBtu. This will add approximately $30 million

of potential upside to Golar for every US dollar the achieved FOB price is above

the reference price of $8/MMBtu. Hilli will be moored in the San Matías Gulf in

Argentina.

Having concluded the 20-year charter agreement in Argentina, we will seek to

optimize the asset level debt on Hilli.

FLNG Gimi: In June 2025, Gimi successfully achieved COD, marking the

commencement of the 20-year lease term with BP under the Lease and Operate

Agreement. Gimi is now in the process of offloading its 8th cargo. The vessel is

operating well and has transitioned into its contractual post COD appraisal

period during which equipment will be tuned to optimize performance as

operations and interfaces with customer infrastructure normalize. Golar owns

70% of Gimi, and Golar's share of the net earnings backlog for the contract

duration is expected to be approximately $3 billion.

Stakeholder approvals for the $1.2 billion sale and leaseback facility have

taken longer than expected. This allows for potential alternative financing

optimization for debt refinancing of Gimi including a bank facility or secured

bonds.

MKII FLNG 3.5 MTPA conversion: Conversion work on the $2.2 billion MKII FLNG is

proceeding to schedule. As of June 30, 2025, Golar has spent $0.8 billion on

this project, all of which is currently equity funded. The MKII FLNG is expected

to be delivered in Q4 2027.

On August 6, 2025, SESA reached FID for the charter of Golar's 3.5 MTPA MKII

FLNG, as contemplated under the terms of the definitive agreements executed by

SESA and Golar in May 2025. The MKII charter remains subject to regulatory

conditions precedent and satisfaction of other customary closing conditions,

expected within 2025.

The key commercial terms for the 20-year charter agreement include net charter

hire to Golar of $400 million per year, equal to $8 billion over the charter

period. In addition the MKII FLNG charter includes a commodity linked tariff

component of 25% of FOB prices in excess of $8/MMBtu. This will add

approximately $40 million of potential upside to Golar for every US dollar the

achieved FOB price is above the reference price of $8/MMBtu. The MKII FLNG,

currently under conversion in China, will sail to Argentina following her

redelivery, with contract start-up expected during 2028. The MKII FLNG will be

moored in the San Matías Gulf near the Hilli. Combined, the two units have a

nameplate capacity of 5.95MTPA, and the project expects to benefit from

significant operational efficiencies and synergies from two FLNGs in the same

area.

Southern Energy: SESA is a company formed to enable LNG exports from Argentina.

SESA is owned by a consortium of leading Argentinian gas producers including Pan

American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%),

as well as Golar (10%).

Golar's 10% ownership of SESA provides additional commodity exposure. With both

FLNG's operational, the 10% equity stake equates to approximately $28 million in

annual commodity exposure to Golar for every US dollar/MMBtu change in achieved

FOB prices above or below SESA's cash break even.

With the combination of the fixed charter hire, operating expenses pass through,

commodity exposure for FOB prices above $8/MMBtu and Golar's 10% shareholding in

SESA, Golar has secured an attractive contracted cash flow with highly

attractive risk-reward in commodity linked earnings. For every US dollar FOB

price above $8/MMBtu, Golar's total commodity upside is approximately $100

million, versus approximately $28 million in downside for every US dollar/MMBtu

that realized FOB prices are below SESA's cash break even.

Business development: With the existing fleet committed to 20-year charters, we

have increased focus on securing attractive FLNG growth units. We are working

with three prospective shipyards for different FLNG designs (MKI, MKII and MKIII

with liquefaction capacities ranging from 2.0 to 5.4 MTPA) to obtain updated EPC

price and delivery schedules. In order to secure attractive delivery we plan to

enter into slot reservations for long lead equipment within Q3 2025.

We see increasing industry recognition of the benefits of FLNG solutions versus

land-based liquefaction terminals, driven by the proven track record of the

fleet on the water, lower capex, shorter construction time and increased

flexibility. This in turn drives prospective charter interest in our FLNG

solutions. Golar is the only proven provider of FLNG as a service. Based on the

increasing demand for FLNG to monetize stranded, associated and flared or re-

injected gas reserves, we plan to order our next FLNG before locking in a

charter to drive competitive tension and terms for our next FLNG project. This

is the same approach successfully executed for the FLNG Hilli and for the MKII

FLNG. Based on yard availability we are confident that a contemplated 4(th)

Golar FLNG will be the only open and available FLNG capacity within this decade.

We expect to decide on vessel design for our fourth FLNG once final EPC prices

and delivery schedules are obtained. We are in parallel working on the

commercial pipeline to match commercial opportunities to the contemplated fleet

addition. We also expect that a 5(th) unit could follow shortly after a 4(th)

unit has been ordered and chartered.

Our fully delivered net debt to Adjusted EBITDA(1) stands at around 3x, and we

expect to fund planned FLNG fleet growth with proceeds from debt associated with

the conclusion of long-term charters for our existing fleet.

Corporate/Other: In June we raised $575 million of convertible bonds. As part of

the convertible bond process we bought back 2.5 million shares for $103 million,

at a share price of $41.09 per share. The Notes were priced at 2.75% fixed

coupon with a 40% premium. Inclusive of the buyback the Notes are net dilutive

to our share count prior to the Notes offering if our share price exceeds $76.71

at maturity in December 2030, before adjusting for any dividends paid in the

period.

Operating revenues and costs under corporate and other items are comprised of

two legacy FSRU operate and maintain agreements in respect of Italis LNG and LNG

Croatia, both of which are expected to end in Q4 2025.

Shares and dividends: 102.3 million shares are issued and outstanding as of June

30, 2025, inclusive of the 2.5 million shares repurchased and cancelled in

connection with the June 2025 convertible senior notes offering. Golar's Board

of Directors approved a total Q2 2025 dividend of $0.25 per share to be paid on

or around September 2, 2025. The record date will be August 26, 2025.

Financial Summary

On COD the FLNG Gimi asset under development was de-recognized, and a sales-type

lease receivable was recognized in the balance sheet. The accounting for a

sales-type lease is different to Golar's other commercial agreements, which have

typically been accounted for as operating leases. In order to compare the

performance of the FLNG Gimi with our wider business, management has determined

that it will measure the performance of the FLNG Gimi sales-type lease based on

Adjusted EBITDA(1, )modified by sales-type lease receivable in excess of

interest income. This approach allows Golar to review the economic results of

FLNG Gimi in a format consistent with FLNG Hilli.

+--------------------+---------+---------+--------+---------+---------+--------+

|(in thousands of $) | Q2 2025 | Q2 2024 |% Change|YTD 2025 |YTD 2024 |% Change|

+--------------------+---------+---------+--------+---------+---------+--------+

|Net income | 30,779 | 35,230 | (13)% | 43,718 | 101,725 | (57)% |

| | | | | | | |

|Golar LNG Ltd | 15,639 | 25,907 | (40)% | 23,836 | 81,127 | (71)% |

| | | | | | | |

|revenues | 75,673 | 64,689 | 17% | 138,175 | 129,648 | 7% |

| | | | | | | |

|Adjusted EBITDA (1) | 49,255 | 58,716 | (16)% | 90,191 | 122,303 | (26)% |

| | | | | | | |

|Contractual Debt (1)|2,048,873|1,197,626| 71% |2,048,873|1,197,626| 71% |

+--------------------+---------+---------+--------+---------+---------+--------+

Financial Review

Business Performance:

+-------------------------+----------------------------------+-----------------+

| | 2025 | 2024 |

+-------------------------+-----------------+----------------+-----------------+

+-------------------------+-----------------+----------------+-----------------+

|Net income | 30,779| 12,939| 35,230|

| | | | |

|Income taxes | 439| 179| 140|

+-------------------------+-----------------+----------------+-----------------+

|taxes | 31,218| 13,118| 35,370|

| | | | |

|amortization | 12,206| 12,638| 13,780|

| | | | |

|instruments | 34,816| 25,001| 16,050|

| | | | |

|income, net | (29,981)| -| -|

| | | | |

|Interest income | (5,823)| (8,699)| (8,556)|

| | | | |

|instruments, net | 3,843| 6,795| (107)|

| | | | |

|net | 973| 2,292| 54|

| | | | |

|equity method investments| (78)| (10,209)| 2,125|

| | | | |

|interest income | 2,081| -| -|

+-------------------------+-----------------+----------------+-----------------+

|Adjusted EBITDA (1) | 49,255| 40,936| 58,716|

+-------------------------+-----------------+----------------+-----------------+

+--------------+-------------------------------------------------------------------------------------------

| | 2025

| +------------------------------------------------------------------------------------------+

| | Apr-Jun |

| +------------------+------------------+--------------+------------------+------------------+

+--------------+------------------+------------------+--------------+------------------+------------------+

|revenue | 56,512| -| 56,512| -| 56,512|

| | | | | | |

|lease revenue | 8,219| -| 8,219| -| 8,219|

| | | | | | |

|revenues | 4,381| 6,561| 10,942| -| 10,942|

| | | | | | |

|expenses | (26,472)| (5,795)| (32,267)| -| (32,267)|

| | | | | | |

|expenses | (60)| (6,412)| (6,472)| -| (6,472)|

| | | | | | |

|expenses | (4,162)| (1,607)| (5,769)| -| (5,769)|

| | | | | | |

|((2)) | 16,234| -| 16,234| -| 16,234|

| | | | | | |

|operating loss| -| (225)| (225)| -| (225)|

| | | | | | |

|income | 2,081| -| 2,081| (2,081)| -|

+--------------+------------------+------------------+--------------+------------------+------------------+

|EBITDA (1) | 56,733| (7,478)| 49,255| (2,081)| 47,174|

+--------------+------------------+------------------+--------------+------------------+------------------+

+--------------+---------------------------------------------------------------+

| | 2025 |

| +---------------------------------------------------------------+

| | Jan-Mar |

| +---------------------+---------------------+-------------------+

+--------------+---------------------+---------------------+-------------------+

|revenue | 55,688| -| 55,688|

| | | | |

|revenues | -| 5,938| 5,938|

| | | | |

|revenues | -| 876| 876|

| | | | |

|expenses | (18,785)| (9,685)| (28,470)|

| | | | |

|expenses | (588)| (8,999)| (9,587)|

| | | | |

|expenses | (2,351)| (968)| (3,319)|

| | | | |

|((2)) | 21,213| -| 21,213|

| | | | |

|operating loss| -| (1,403)| (1,403)|

+--------------+---------------------+---------------------+-------------------+

|EBITDA (1) | 55,177| (14,241)| 40,936|

+--------------+---------------------+---------------------+-------------------+

+---------------+--------------------------------------------------------------+

| | 2024 |

| +--------------------------------------------------------------+

| | Apr-Jun |

| +----------------------+----------------------+----------------+

+---------------+----------------------+----------------------+----------------+

|revenue | 56,120| -| 56,120|

| | | | |

|revenues | -| 5,444| 5,444|

| | | | |

|revenues | -| 3,125| 3,125|

| | | | |

|expenses | (22,765)| (10,220)| (32,985)|

| | | | |

|(expenses) | 34| (5,886)| (5,852)|

| | | | |

|expenses | (1,300)| (2,226)| (3,526)|

| | | | |

|((2)) | 36,390| -| 36,390|

+---------------+----------------------+----------------------+----------------+

|(1) | 68,479| (9,763)| 58,716|

+---------------+----------------------+----------------------+----------------+

(2) The line item "Realized and unrealized (loss)/gain on oil and gas derivative

instruments" in the Unaudited Consolidated Statements of Operations relates to

income from the Hilli Liquefaction Tolling Agreement ("LTA") and the natural gas

derivative which is split into: "Realized gain on oil and gas derivative

instruments" and "Unrealized (loss)/gain on oil and gas derivative instruments".

Golar reports today Q2 2025 net income of $31 million, before non-controlling

interests, inclusive of $9 million of non-cash items(1), comprised of:

* TTF and Brent oil unrealized mark-to-market ("MTM") losses of $35 million;

* A $4 million MTM loss on interest rate swaps; and,

* A $30 million day one gain on recognition of the FLNG Gimi sales type lease.

The Brent oil linked component of FLNG Hilli's fees generates additional annual

cash of approximately $3.1 million for every dollar increase in Brent Crude

prices between $60 per barrel and the contractual ceiling. Billing of this

component is based on a three-month look-back at average Brent Crude prices.

During Q2 2025, we recognized a total of $16 million of realized gains on FLNG

Hilli's oil and gas derivative instruments, comprised of a:

* $9 million realized gain on the Brent oil linked derivative instrument; and

* $7 million realized gain in respect of fees for the TTF linked production.

We also recognized $35 million of non-cash losses in relation to FLNG Hilli's

oil and gas derivative assets, with corresponding changes in the fair value in

its constituent parts recognized on our unaudited consolidated statement of

operations as follows:

* $27 million loss on the Brent oil linked derivative asset; and

* $8 million loss on the TTF linked natural gas derivative asset.

Balance Sheet and Liquidity:

During June 2025 Golar closed the offering of $575 million of 2.75% Convertible

Senior Notes due 2030. The Notes are senior, unsecured obligations of the

Company, bear interest at a rate of 2.75% per annum, mature on December

15, 2030, and are convertible into the Company's common shares, cash, or a

combination of shares and cash, at the Company's election. The conversion rate

was equivalent to an initial conversion price of approximately $57.53 per common

share, representing an initial conversion premium of approximately 40% over the

closing price of the Company's common shares at the time of issuance. Of the net

proceeds, $103 million was used to repurchase 2.5 million of the Company's

common shares on June 30, 2025.

As of June 30, 2025, Total Golar Cash(1) was $891 million, comprised of $783

million of cash and cash equivalents and $108 million of restricted cash.

Golar's share of Contractual Debt(1) as of June 30, 2025 is $2,049 million.

Deducting Total Golar Cash(1) of $891 million from Golar's share of Contractual

Debt(1) leaves a net debt position of $1,158 million.

Assets under development amounts to $0.9 billion, all of which relates to the MK

II FLNG Fuji conversion project. Upon COD in June 2025, the FLNG Gimi asset

under development was de-recognized, with a sales type lease receivable

recognized on the balance sheet in its place.

Non-GAAP measures

In addition to disclosing financial results in accordance with U.S. generally

accepted accounting principles (US GAAP), this earnings release and the

associated investor presentation contains references to the non-GAAP financial

measures which are included in the table below. We believe these non-GAAP

financial measures provide investors with useful supplemental information about

the financial performance of our business, enable comparison of financial

results between periods where certain items may vary independent of business

performance, and allow for greater transparency with respect to key metrics used

by management in operating our business and measuring our performance.

This report also contains certain forward-looking non-GAAP measures for which we

are unable to provide a reconciliation to the most comparable GAAP financial

measures because certain information needed to reconcile those non-GAAP measures

to the most comparable GAAP financial measures is dependent on future events

some of which are outside of our control, such as oil and gas prices and

exchange rates, as such items may be significant. Non-GAAP measures in respect

of future events which cannot be reconciled to the most comparable GAAP

financial measure are calculated in a manner which is consistent with the

accounting policies applied to Golar's unaudited consolidated condensed

financial statements.

These non-GAAP financial measures should not be considered a substitute for, or

superior to, financial measures and financial results calculated in accordance

with GAAP. Non-GAAP measures are not uniformly defined by all companies and may

not be comparable with similarly titled measures and disclosures used by other

companies. The reconciliations as at June 30, 2025 and for the six months ended

June 30, 2025, from these results should be carefully evaluated.

+------------------+------------------+---------------------+------------------+

+------------------+------------------+---------------------+------------------+

|Performance measures |

+------------------+------------------+---------------------+------------------+

| | |+/- Net |unrealized |

+------------------+------------------+---------------------+------------------+

| | |+/- Net | |

+------------------+------------------+---------------------+------------------+

|Liquidity measures |

+------------------+------------------+---------------------+------------------+

| | | | |

| | | | |

+------------------+------------------+---------------------+------------------+

+------------------+------------------+---------------------+------------------+

| | | | |

| | | | |

+------------------+------------------+---------------------+------------------+

(1) Please refer to reconciliation below for Golar's share of contractual debt

Adjusted EBITDA backlog (also referred to as "earnings backlog"): This is a non-

GAAP financial measure and represents the share of contracted fee income for

executed contracts or agreements subject to conditions precedent, less

forecasted operating expenses for these contracts/agreements. Adjusted EBITDA

backlog should not be considered as an alternative to net income / (loss) or any

other measure of our financial performance calculated in accordance with U.S.

GAAP.

Non-cash items: Non-cash items comprised of impairment of long-lived assets,

release of prior year contract underutilization liability, MTM movements on our

TTF and Brent oil linked derivatives, listed equity securities and interest rate

swaps ("IRS") which relate to the unrealized component of the gains/(losses) on

oil and gas derivative instruments, unrealized MTM (losses)/gains on investment

in listed equity securities, gains or losses on derivative instruments net and

gains or losses on recognition of sales type lease in our unaudited consolidated

statement of operations.

FLNG tariff, net: This is a non-U.S. GAAP financial measure that represents the

total cash inflow and economic performance generated by our FLNGs during a given

period. It is calculated by taking the total amount invoiced for FLNG services,

including liquefaction services revenue, sales-type lease revenue, vessel

management fees and other revenue and realized gains on oil and gas derivative

instruments, adjusted for the amortization of deferred commissioning period

revenue, Day 1 gains (deferred revenues) and deferred contractual payments

received prior to COD under the LOA that is allocated to the non-lease component

("deferred pre-COD O&M service revenue"), the unwinding of liquidated damages,

the accretion of unguaranteed residual value and the accruals and other timing

related items including tax receipt, underutilization, overproduction revenue

and demurrage cost. FLNG tariff, net is intended to enhance the comparability of

our FLNG performance across periods and with other operational FLNGs in the

industry. FLNG tariff, net should not be considered as an alternative to total

operating revenue of the FLNG segment or any other performance measure of our

financial performance calculated in accordance with U.S. GAAP.

To read the rest of the press release, please download the attached .pdf document.

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Golar LNG Limited Interim results for the period ended June 30, 2025

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