Golar LNG Limited Interim results for the period ended June 30, 2026
Second Quarter financial summary
Recent highlights
CEO Comment
“We are pleased to announce the ordering of Golar’s 4 th FLNG. We believe this order, combining the world’s earliest available FLNG delivery and Golar’s operational track record, is well positioned to provide prospective clients with an attractive gas monetization solution, whilst driving value for Golar. This order strengthens Golar’s position as the market leading owner of FLNGs, increasing our controlled liquefaction capacity by 41% to above 12 MTPA, with potential to increase our earnings potential by ~50% if chartered at similar terms to its sister vessel the FLNG Esperanza.
Operationally we are very pleased to have completed Hilli’s initial contract with a market leading 100% uptime throughout the 8-year contract. We would like to thank our project partners SNH and Perenco for the solid cooperation and we are motivated to hopefully work together again on gas monetization projects in Cameroon in the future. We are also very pleased with the operational performance of the FLNG Gimi, producing 15% above contracted capacity during warmer ambient temperatures in summer months in Mauritania and Senegal. We look forward to getting to start-up of operations in Argentina once FLNG Hilli has conducted modification works in Singapore and FLNG Esperanza has completed her conversion. Both projects remain on time and on budget.”
Summary and review of financial results
Business Performance (3)
(2) The line item “Realized and unrealized gain/(loss) on oil and gas derivative instruments” in the Unaudited Consolidated Statements of Operations relates to income from the FLNG 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 2026 net income of $56 million, before non-controlling interests, inclusive of $29 million of non-cash items 1. Adjusted EBITDA 1 at $127 million for Q2 2026 was $21 million higher than Q1 2026. Higher realized gains on oil and gas derivative instruments, partially offset by lower overproduction-related earnings and reimbursements in relation to FLNG Gimi and reduced management fees net of related operating costs for the Italis LNG account for most of the increase.
The $29 million of Q2 2026 non-cash items 1 is comprised of:
During Q2 2026, we recognized a total of $37 million of realized gains on FLNG Hilli's oil and gas derivative instruments, comprised of a:
A total of $38 million of unrealized non-cash items 1 in relation to FLNG Hilli’s oil and gas derivative assets, with corresponding changes in fair value in its constituent parts have been recognized on our unaudited Q2 2026 consolidated statement of operations as follows:
Corporate/Other
Operating revenues and costs under corporate and other items in Q2 2026 are attributable to the Italis LNG FSRU O&M agreement that concluded on April 15, 2026.
Balance sheet and liquidity
Total Golar Cash 1 as of June 30, 2026, was $0.9 billion. Golar’s share of Contractual Debt 1 as of June 30, 2026, is $2.7 billion. After deducting Total Golar Cash 1 from Golar’s share of Contractual Debt 1, the net debt position as of Q2 2026 amounted to $1.8 billion.
Asset under development of $1.4 billion relates to the FLNG Esperanza conversion project that will serve a 20-year contract in Argentina. This has been fully equity funded to date. In August 2026, we closed a new $600 million RCF, secured by FLNG Esperanza, with a syndicate of banks. The RCF has a tenor of 18 months from October 1, 2026. Interest will be incurred on drawn amounts under the RCF at 3-month SOFR plus a margin of 3.00% p.a. We continue to progress negotiations on a long term senior secured debt facility with expected closing within 2027. Equity released from the RCF and any subsequent long-term asset level financing is intended to be directed towards FLNG growth projects.
Recent key financial transactions and updates
On August 12, 2026, Golar signed an EPC agreement with CIMC Raffles for a second 3.5 MTPA MKII FLNG. The total budget for this FLNG is estimated at $2.45 billion inclusive of previously ordered compressors and gas turbines, the conversion vessel, yard supervision, spares, crew training, contingencies, initial bunker supply, voyage related costs to deliver the FLNG to its operational site and commissioning. The EPC contract also includes an option for an incremental MKII FLNG.
Golar has also entered into a LOI with Seatrium securing incremental FLNG yard capacity for a MKI or MKII FLNG.
To secure attractive delivery dates for potential incremental FLNG orders Golar has secured long lead equipment reservation slots and is advancing discussions for incremental LNGC conversion candidates.
Liquefaction projects overview
In aggregate, across FLNG Hilli and FLNG Gimi, we have 5.1 MTPA of liquefaction capacity on the water, 3.5 MTPA currently under conversion and a recently executed EPC contract for a further 3.5 MTPA. At over 12 MTPA in total, this makes Golar the world’s largest owner of FLNG capacity.
FLNG Hilli
Maintained leading operational track record, offloading her 156 th and final Cameroonian cargo on July 27, 2026. Immediately thereafter cold boxes were warmed up, liquefaction trains were shut down, gas was purged from the inlet riser, tow lines were connected, umbilicals and mooring chains were disconnected and remaining equipment was secured. On August 4, 2026, and assisted by two tugs, the vessel departed Cameroonian waters for Seatrium's Singapore shipyard where upgrades and life extension work will be carried out.
Of the $350 million budget for upgrade costs, positioning, operating costs, fuel and insurance during the period between August 2026 and the expected Commercial Operations Date (“COD”) for her 20-year contract in Argentina commencing H2 2027, $71 million has been spent as of June 30, 2026.
Key commercial terms for FLNG Hilli’s 20-year agreement with SESA in Argentina include Adjusted EBITDA 1 to Golar of $285 million per year, with an additional commodity linked FLNG tariff component of 25% of Free on Board (“FOB”) prices in excess of $8/MMBtu. This will add approximately $30 million of potential annual upside to Golar for every US dollar the achieved FOB price is above the reference LNG price of $8/MMBtu. The FLNG tariff will also be inflation adjusted at 30% of US CPI from year six (inclusive).
There is significant potential for liquidity to be released through debt refinancing alternatives for FLNG Hilli on the back of our current sale and leaseback contractual debt 1 of $493 million against an Adjusted EBITDA backlog 1 of $5.7 billion. We are advancing refinancing alternatives to free up liquidity and enhance equity returns for our FLNG Hilli ownership, including a potential upsizing of the current sale and leaseback facility.
FLNG Gimi
FLNG Gimi has offloaded 41 cargoes and production remains ahead of schedule. Reflecting this, the Q2 2026 invoiced day rate was 15% above the contractual day rate. During the quarter the FLNG also completed its first full year of commercial operations. Production exceeded the contractual annual target and retainage improved further to market leading liquefaction levels, providing more LNG output for our clients. Liquefaction performance is sensitive to ambient conditions and will likely be lower in the summer months comprising Q3, before improving as the weather cools into winter. We expect FLNG Gimi to produce above her contracted volumes on an annual average basis.
Golar owns 70% of FLNG Gimi, and the Company’s expected share of the net earnings backlog 1, excluding any over-production-related earnings, for the remaining 19-year contract duration is expected to be approximately $2.9 billion.
The Company continues to develop value enhancing initiatives for the GTA project to further improve the project’s unit economics.
Of the $1.2 billion Gimi debt facility, $1.16 billion is outstanding as of June 30, 2026.
FLNG Esperanza
Conversion work on the 3.5 MTPA FLNG Esperanza at CIMC Raffles yard remains on schedule and on budget. Over 15 million work hours have been performed and the midsection that will house the liquefaction units is now complete. Ahead of topside equipment installation, this 85-metre by 62-metre structure will be inserted between the existing bow and stern sections of the Moss-type vessel which has been sliced in half. Upon completion in Q4 2027, the FLNG will then sail to Argentina with contract start-up scheduled for H2 2028. Including capitalized interest, Golar has invested $1.4 billion to date, all equity funded.
The contract for FLNG Esperanza with SESA is expected to deliver $8 billion of Adjusted EBITDA backlog 1 over 20 years, equivalent to $400 million in annual Adjusted EBITDA 1 to Golar, before commodity exposure and inflationary adjustments. The commodity linked tariff component will add approximately $40 million of potential annual upside to Golar for every US dollar the achieved FOB price is above the reference LNG price of $8/MMBtu. Current spot LNG prices are more than twice this threshold. FLNG Esperanza will be deployed in the Gulf of San Matías, offshore Argentina, where it will operate in proximity to FLNG Hilli. Similar to FLNG Hilli, the FLNG tariff will be inflation adjusted at 30% of US CPI from year six (inclusive).
Southern Energy S.A.
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%), Harbour Energy (15%) and Golar (10%).
Golar’s 10% ownership of SESA provides additional commodity exposure. Once both FLNG Hilli and Esperanza are operational in Argentina, the 10% equity stake equates to additional commodity exposure to Golar for every US dollar/MMBtu change in achieved FOB prices above or below SESA’s cash break even. Combined with the commodity exposure in the FLNG contracts, Golar’s total commodity exposure for the two Argentinian FLNG contracts and through our ownership in SESA is up to $100 million for every $1 the FOB price is above $8/MMBtu, with a downside of approximately $28 million for every $1 the FOB price is below SESA’s cash break even.
Building on the executed 8-year agreement with Securing Energy for Europe (“SEFE”) to sell 2 million tonnes of LNG per annum, a bidding process to sell further LNG volumes has been initiated. Proposals received by SESA indicate strong offtaker interest.
San Matías Pipeline S.A. (“SMP”), the project company responsible for the construction and operation of the ~500km dedicated gas pipeline to facilitate year-round operations of both FLNG Hilli and FLNG Esperanza in Argentina has made good progress. During the quarter, EPC's for both the pipeline and the compressor plant were awarded. Qualification for the Incentive Regime for Large Investments (“RIGI”) was secured and approval of an Environmental Impact Assessment from the Neuquén and Rio Negro provinces is now in hand. Pipeline financing discussions are at an advanced stage and expected to close in Q3 2026. Golar has a 10% interest in SMP.
FLNG Four: 3.5 MTPA MKII conversion
In July 2026, ahead of the recently signed EPC contract with CIMC Raffles, and included in the $2.45 billion total budget, Golar utilized previously agreed reservation slots for key long lead items including refrigerant gas compressors and gas turbines. Securing these items allows for yard delivery of the FLNG by year end 2029, making it the earliest available FLNG capacity globally. A donor vessel for the conversion project has been secured.
FLNG business development
Development of long-term charter interest for our FLNG growth pipeline is advancing, with detailed negotiations with prospective clients. Geopolitical disruption to key LNG suppliers drives focus on time to market, energy security and geographical diversification of LNG supply. With our 4 th FLNG confirmed for 2029 delivery we now offer the world’s earliest available FLNG capacity. Further options for incremental FLNG units at both CIMC Raffles and Seatrium enables scalability and continued commercial development with multiple interested charterparties that seek proven operations, efficient time to market and the flexibility FLNG deployment offers. We continue to target long-term charters for monetization of attractive gas reserves. Ongoing discussions have economics in line with our latest announced charter contracts, with adjustments catering for geographical and project characteristics. Increasing adoption of FLNGs globally has increased the geographical opportunity set.
Investor conference call and webcast
We will host a conference call to discuss our financial and operating results for the second quarter 2026 on Thursday, August 13, 2026, at 8 a.m. Eastern time / 7 a.m. Central time / 1 p.m. London time / 2 p.m. Oslo time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.golarlng.com. Following the call, a recording will be made available on our website.
About Golar LNG
Golar LNG Limited (NASDAQ: GLNG) is a LNG infrastructure company. Through its 80-year history, the company has pioneered maritime LNG infrastructure including the world’s first Floating LNG liquefaction terminal (FLNG) and Floating Storage and Regasification Unit (FSRU) projects based on the conversion of existing LNG carriers. Today Golar is a focused FLNG company, and the only proven provider of FLNG as a service. Golar owns the world’s largest fleet of FLNG units by annual liquefaction capacity, with a market leading operational track record.
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, 2026 and for the six months ended June 30, 2026, from these results should be carefully evaluated.
(1) Please refer to reconciliation below for Golar’s share of contractual debt
Adjusted EBITDA backlog: This is a non-GAAP financial measure and represents the share of contracted fee income for executed contracts 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, mark-to-market (“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 on derivative instruments, net, gain/(loss) on debt extinguishment and gains/(losses) on disposals of investments.
Sales-type lease receivable in excess of interest income: Sales-type lease receivable in excess of interest income represents the lease receivable principal amortization component of the total amounts invoiced under the FLNG Gimi sales-type lease which commenced in June 2025. We included the total invoiced amounts comprising both interest income and principal repayment in our FLNG Adjusted EBITDA to reflect the total cash earnings and economic performance of the FLNG Gimi. This amount is eliminated from the unaudited consolidated statement of operations in accordance with U.S. GAAP.
Abbreviations used:
FLNG: Floating Liquefaction Natural Gas vessel
FSRU: Floating Storage and Regasification Unit
MMBtu: Million British Thermal Units
MTPA: Million Tons Per Annum
Reconciliations - Liquidity Measures
Total Golar Cash
Contractual Debt
Please see Appendix A for the repayment profile for Golar’s Contractual Debt.
Adjusted interest expense
(1) This represents the difference between the VIE debt and our contractual debt
Forward Looking Statements
This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as “if,” “subject to,” “believe,” “assuming,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “could,” “would,” “predict,” “propose,” “continue,” or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Other important factors that could cause actual results to differ materially from those in the forward-looking statements include but are not limited to:
As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.
Responsibility Statement
We confirm that, to the best of our knowledge, the unaudited consolidated financial statements for the six months ended June 30, 2026, which have been prepared in accordance with accounting principles generally accepted in the United States give a true and fair view of Golar’s unaudited consolidated assets, liabilities, financial position and results of operations. To the best of our knowledge, the report for the six months ended June 30, 2026, includes a fair review of important events that have occurred during the period and their impact on the unaudited consolidated financial statements, the principal risks and uncertainties and major related party transactions.
August 13, 2026
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Tor Olav Trøim (Chairman of the Board)
Benoît de la Fouchardiere (Director)
Carl Steen (Director)
Dan Rabun (Director)
Lori Wheeler Naess (Director)
Mi Hong Yoon (Director)
Niels Stolt-Nielsen (Director)
Stephen J. Schaefer (Director)
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act