HAMILTON, Bermuda, March 3, 2003 (PRIMEZONE) -- Golar LNG (Nasdaq:GLNG):
-- Golar LNG reports fourth quarter and year to date EBITDA of
$23.7 million and $96.4 million, respectively.
-- Net income was $10.1 million for the quarter and $27.1
million for the year after the impact of a net gain/(loss) of
$0.9 million and $(9.9) million respectively, as a result of the
"mark to market" valuation of interest rate swaps.
-- The Company listed its common shares on the NASDAQ National
Market on December 12, 2002.
-- Continued strong demand for natural gas in all major
markets.
-- Peak winter demand in Korea produced short-term charter
rates in excess of $100,000 per day.
FOURTH QUARTER AND TWELVE MONTHS RESULTS
Golar LNG reports net income of $10.1 million for the three months ended December 31, 2002, compared with $9.1 million for the same period in 2001. Earnings per share for the quarter were $0.18. This is after a net (after minority interests) gain of $0.9 million as a result of the movement of the fair value of interest rate swaps. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter were $23.7 million compared with $19.8 million for the comparable period in 2001.
Net operating revenue for the quarter was $33.5 million, average daily time charter equivalents (TCE's) were $59,950 and there was no offhire during the quarter.
Total vessel operating expenses for the fourth quarter were $7.8 million. The increase against last quarter is mainly as a result of additional crew and insurance costs together with some one off repairs. Further to the announcement last quarter with regard to the Company's crewing strategy, the officers on two vessels have been changed during 2002 to officers from the Croatian management company with whom Golar has a crewing agreement. This has resulted in additional costs in the short term, because of some surplus manning during the implementation phase. However, the completion of the integration of the new officer contingent will lead to considerable savings in crew costs.
Administration costs of $1.9 million for the quarter include costs of $0.6 million which represent Golar's 10 per cent share of project development expenses incurred by the Baja LNG joint development and costs incurred in respect of the Company's listing on NASDAQ in December 2002.
Net interest expense for the quarter was $5.4 million, which reflects continued benefit from lower USD LIBOR rates that have reduced the cost of floating rate loans. The main component of other financial items of $1.0 million for the quarter was a gain of $1.4 million associated with the fair valuing of interest rate swaps. The charge is offset by the minority interest element of 40 per cent resulting in a net book gain for Golar of $0.9 million.
Net income for the twelve months to December 31, 2002 was $27.1 million (2001 $4.4 million) and EBITDA was $96.4 million (2001 EBITDA $79.6 million). The improvement in net income from the previous year is a reflection of increased hire rates for four of the Company's ships and a reduction in interest expenses. As noted above, net income is after the impact of the movement of the fair value of interest rate swaps. The total loss on interest rate swaps for the twelve months was $16.5 million and after minority interest share the impact on net income was $9.9 million (2001, $8.2m and $5.7m respectively).
The weighted average number of shares outstanding as of December 31, 2002 and for the quarter then ended was 56,012,000. In view of the current new-building investment program, the Company will not pay a dividend for 2002.
The full report is enclosed on the following link: http://reports.huginonline.com/893906/114318.pdf