OSLO, Norway, Feb. 28, 2002 (PRIMEZONE) -- Golar LNG:
-- Golar LNG reports fourth quarter net income of $9.1 million
and full year net income of $4.4 million.
-- The fourth quarter has benefited from improved hire rates,
reduced interest cost as a result of lower LIBOR and a book gain
generated by the improvement in the "mark to market" value of
interest rate swaps. This has been offset by a write off of
expenses incurred in relation to planning of a public offering
and listing of Golar in the United States.
-- Golar LNG secures 100% financing of its new building due for
delivery in March 2003.
THREE MONTHS TO DECEMBER 2001 RESULTS
Golar LNG reports a net income of $9.1 million for the three months ended December 31, 2001, and earnings per share of $0.16. This is after a gain of $8.1 million as a result of the movement of the fair value of interest rate swaps. Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter were $19.8 million after a charge of $2.4 million in respect of expenses incurred in relation to plans for a public offering and listing of Golar LNG in the United States.
Net operating revenues were $31.8 million and have benefited from improved charter hire rates from British Gas and no offhire during the quarter. Total operating costs of $7.5 million were particularly high this quarter and are not expected to be indicative of costs in 2002. The main reason for the increase is higher crew costs as a result of additional pension charges and restructuring of the fleet crewing arrangements which are expected to be non-recurring charges. In addition we had higher repair and survey costs this quarter. In the middle of 2001, the Company started a process to prepare for a listing and a public offering in the United States. The public offering was indefinitely postponed in the fourth quarter of 2001 and associated costs of approximately $2.4 million are included in administrative expenses. The Company is however continuing with its plans for a listing in the U.S. and has filed a confidential registration statement with the U.S. Securities and Exchange Commission.
Net interest expense for the quarter was $6.6 million, a reduction on last quarter of $0.6 million as a result of lower USD LIBOR rates, which reduced the cost of floating rate loans. The main component of other financial items of $7.9 million was $8.1 million associated with the fair valuing of interest rate swaps. As was the case last quarter this is a very large quarterly movement in the valuation caused by the recovery in long-term interest rates but does not affect the cash flows of the Company.
The weighted average number of shares outstanding as of December 31, 2001 and for the quarter then ended was 56,012,000.
TWELVE MONTHS RESULTS
The financial information presented herein is unaudited. In order to prepare historical financial statements prior to May 31, 2001 the Company has had to "carve out" the LNG business results from the previous owner's (Osprey Maritime Limited) financial statements. The twelve months results to December 31, 2001 therefore consist of five months of 'carved out' results plus seven months results for the new legal entity. Reflected within the twelve months results is a prior period adjustment of $0.5 million relating to the 'carve out' period up to May 31, 2001.
The net income for the twelve months to December 31, 2001 of $4.4 million is after a charge of $6.3 million relating to the movement of the fair value of interest rate swaps, $2.4 million of expenses incurred on the planned U.S. public offering and $1.9m relating to restructuring expenses. The restructuring expenses consist of employment severance costs incurred in connection with the restructuring of Osprey's operations, which have been allocated to the Company as part of the 'carve out.' EBITDA for the twelve months at $79.6 million has been affected by the drydocking of three vessels during the period. The interest rate swap charge is included in and is one of the main components of other financial items, the balance relates to the amortization of deferred financing costs and financing arrangement and other fees largely in relation to the Company's loans prior to May 31, 2001.
For a complete copy of the report please download from the following link: http://reports.huginonline.com/850525/100354.pdf