UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR
15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2007
Commission File Number: 000-50113
Golar LNG Limited
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(Translation of registrant's name into English)
Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, HM 08, Bermuda
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(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ___
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)7: ___
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82-______________.
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 99.1 is a copy of the press release of Golar LNG Limited
(the "Company"), dated February 28, 2007.
Exhibit 99.1
[GRAPHIC OMITTED]
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PRELIMINARY FOURTH QUARTER AND FINANCIAL YEAR 2006 RESULTS
Highlights
o Golar reports highest ever quarterly revenues, operating income and net
income
o Golar announces a cash dividend of $0.50 per share
o Significant increase in spot vessel earnings as a result of improved rates
and utilization
o Limited net income impact from interest rate swap valuations
o Strong earnings of associates - Korea Line.
o Spot market outlook softening as the winter period draws to a close
o Cyprus project awarded licence to construct and operate Floating Power
Generation Plant (FPGP)
Results
Golar LNG reports its highest ever quarterly net income and operating income at
$33.1 million and $40.4 million respectively, for the fourth quarter of 2006,
which is increased from a net loss of $5.9 million and operating income of $23.9
million for the third quarter of 2006.
Revenues in the fourth quarter of 2006 ("the fourth quarter") are significantly
increased at $72.7 million up from $55.9 million in the third quarter of 2006
("the third quarter"). The increase is primarily as a result of strong spot
vessel earnings aided by much improved charter rates during the winter period
and high levels of utilization. The fourth quarter also benefited from the fact
that there were no scheduled drydockings whereas there were two during the third
quarter. Fourth quarter average daily time charter equivalent rates (TCE's) were
$65,250 per day compared to $52,000 per day during the third quarter.
Vessel operating expenses at $13.0 million for the fourth quarter were increased
from $11.2 million for the third quarter. Expenses were higher this quarter in a
number of areas including crew costs.
Net interest expense for the fourth quarter was $16.3 million, which was in line
with the $16.4 million expense for the third quarter.
Other financial items were a gain of $0.9 million for the fourth quarter as
compared to a loss of $14.1 million for the third quarter. This improvement is
primarily due to the fact that long-term interest rates were at relatively
similar levels as at the close of the third quarter and the fourth quarter.
Therefore the fourth quarter's results were not significantly impacted by the
mark-to-market revaluation of the Company's interest rate swaps, whereas the
third quarter results were because of a decline in long-term interest rates
during the third quarter.
Korea Line produced strong results during the fourth quarter, primarily as a
result of a buoyant drybulk market, which is the main reason for the increase in
net earnings of investees from $1.6 million for the third quarter to $10.6
million for the fourth quarter. The market value of Golar's investment in Korea
Line as at February 26, 2007 stood at $122 million. The book value of the
investment as at December 31, 2006 was $89 million. As well as Korea Line's
results, equity in net earnings of investees also includes Golar's share of the
results of OLT Offshore and LNG Limited, both small losses.
For the twelve months ended December 31, 2006 the Company reports significantly
improved operating revenues of $239.7 million, operating income of $115.1
million and net income of $72.5 million as compared to $171.0 million, $64.7
million and $34.5 million respectively for the twelve months ended December 31,
2005. Revenues for the twelve months ended December 31, 2006 have increased due
to the addition to the fleet of the Grandis and the Granosa. These new ships
have also contributed to increases in operating costs, depreciation and interest
costs. As well as the addition of vessels to the fleet the results for the
financial year 2006 have benefited from much improved TCE's for the Company's
spot vessels but have also been affected by increases in interest rates. There
were four quarter-point US dollar interest rate increases during 2006, which
impacted the Company's floating rate debt.
Based on the improved results of 2006 and the subsequent strengthening of the
balance sheet by recent events as discussed below, on February 28, 2007 the
Board declared a dividend of $0.50 per share. The record date for the dividend
is March 12, 2007, ex dividend date is March 8, 2007 and the dividend will be
paid on or about March 26, 2007.
Following the completion of the newbuilding program and based on improved market
conditions it is the intention of the Board to provide shareholders with a
regular dividend. The level of future dividends will be dependant upon actual
results achieved.
Corporate and Other Matters
In November the Golar Spirit was redelivered back to Golar at the conclusion of
a successful 20-year time charter to Pertamina. Golar Spirit has performed
reliably with virtually no unscheduled offhire during the 20 years of the
charter.
On December 8, 2006 the Golar Winter discharged in Korea the LNG cargo that
loaded and had been in storage on the vessel since June. This bought to a close
an innovative, ground breaking and successful trading/charter transaction with
Shell. The experience and learning gained from this deal will be of great
assistance in structuring deals of this nature in the future.
Following Golar LNG's acquisition in November 2006 of 20% of the shares in the
Livorno LNG regasification terminal (OLT Offshore LNG Toscana SpA) the project
has continued to progress. OLT Offshore is currently in the process of reviewing
a proposal for the EPCIC (Engineering, Procurement, Construction, Installation
and Commissioning) of the FSRU and export system. OLT Offshore is also in the
process of finalising the contracts for the onshore construction works for the
Regulation and Measurement facility which is due to start during the 1st quarter
of 2007.
The Company was disappointed to learn that PT Pertamina (Persero) has selected
Mitsubishi Corporation, in preference to the proposal put forward by LNG Ltd, to
join them in the development of a proposed 2 million tonnes per annum LNG plant
in Central Sulawesi. However, it is important to add that the position with
respect to the award of this project still appears not to be finally concluded
and there therefore remains some small possibility for LNG Limited.
The Cyprus Floating Power Generating Plant (FPGP) project has reached a
significant milestone with the regulatory authorities announcing in early
January that Golar Energy Ltd (a Cyprus based subsidiary company) will be
awarded a licence to construct and operate a 240 MW FPGP located some 4 miles
off the coast of Cyprus at Vassilikos. Still pending is the licence to import,
store and use the liquefied natural gas (LNG) required to fuel the FPGP. The
regulatory authorities have announced that Golar Energy's application is
complete and has now invited comments from interested parties.
Work continues on the FSRU conversion project. All major items have now been
ordered and work continues on the detailed engineering. Discussions are ongoing
with several interested parties for the future employment of the unit. In the
meantime the Golar Spirit, which is likely to be the vessel used for the
conversion, continues to be employed on the spot market until the vessel is
required in the shipyard for conversion. The current schedule is for entry to
the shipyard in August 2007 and delivery in January 2008.
During February 2007, the Company announced that it had signed an agreement to
sell its existing interest in new building DSME hull number 2244, for the gross
consideration of approximately $92.5 million, which represents an implicit
vessel price of $201 million. The Company views this transaction as an
opportunity to strengthen its balance sheet and realize a significant profit
whilst maintaining the Company's future business potential.
Market
The short-term market for LNG Carriers in the fourth quarter continued to
benefit from the high levels of "Floating Storage" of LNG with LNG shippers
seeking to take advantage of potential gains from trading both regional and
seasonal LNG price differentials. The large number of vessels tied up storing
cargoes reduced the number of vessels available in the spot market, which in
turn positively impacted spot time charter rates. Most if not all "floating
storage" LNG cargoes have now discharged and as a result spot charter rates for
LNG Carriers have softened moving into the first quarter. We also anticipate
additional uncommitted tonnage joining the LNG Carrier Fleet in 2007 as slippage
in the development and start up of LNG liquefaction projects continue.
There is approximately 13.7 mtpa of new production scheduled for commissioning
(either through new installations or upgradings) in 2007. Currently there are
216 existing LNG carriers above 70,000 m(3) with 146 on order.
Outlook
The Board has started an internal evaluation on how to optimize the value of the
Company's LNG logistic investments and projects. One of the options that will be
considered is to spin off these assets into a separate listed vehicle; in such a
case Golar would retain majority control. Final clarification in respect of this
evaluation should be expected by the end of the first half of 2007.
The finalization of the newbuilding program and the charter coverage of the
existing tonnage give a good basis for a reasonable dividend payment going
forward.
Results for the first quarter of 2007 are likely to be positively influenced by
strong development in the drybulk market and the impact this will have on the
Golar's share of Korea Line's results. The Board also expects that earnings in
the first quarter of 2007 from the Company's spot vessels and those under
charter to Shell may show improved utilization and earnings over the same period
last year but will likely be down on fourth quarter 2006. One of the Company's
vessels will be drydocked during the first quarter of 2007.
The Board continues to believe that there are promising opportunities within the
Company's project portfolio, which now fully cover the LNG mid-stream activities
- liquefaction, shipping, trading and regasification. Whether they are within a
separate vehicle as noted above or not these projects broaden the base of the
company whilst maintaining the focus on LNG and provide the opportunity to earn
returns in excess of current LNG shipping returns whilst also generating
opportunities to employ existing company assets.
The Board is optimistic about the future development of the Company and looks
forward to the maturing of the various business opportunities currently under
development.
Forward Looking Statements
This press release contains forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including examination of historical operating trends made by the
management of Golar LNG. Although Golar LNG believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies, which are difficult or impossible to predict
and are beyond its control, Golar LNG cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Included among the factors that, in the Company's view, could cause actual
results to differ materially from the forward looking statements contained in
this press release are the following: inability of the Company to obtain
financing for the new building vessels at all or on favourable terms; changes in
demand; a material decline or prolonged weakness in rates for LNG carriers;
political events affecting production in areas in which natural gas is produced
and demand for natural gas in areas to which our vessels deliver; changes in
demand for natural gas generally or in particular regions; changes in the
financial stability of our major customers; adoption of new rules and
regulations applicable to LNG carriers; actions taken by regulatory authorities
that may prohibit the access of LNG carriers to various ports; our inability to
achieve successful utilisation of our expanded fleet and inability to expand
beyond the carriage of LNG; increases in costs including: crew wages, insurance,
provisions, repairs and maintenance; changes in general domestic and
international political conditions; changes in applicable maintenance or
regulatory standards that could affect our anticipated dry-docking or
maintenance and repair costs; failure of shipyards to comply with delivery
schedules on a timely bases and other factors listed from time to time in
registration statements and reports that we have filed with or furnished to the
Securities and Exchange Commission, including our Registration Statement on Form
20-F and subsequent announcements and reports.
February 28, 2007
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Questions should be directed to:
Golar Management (UK) Ltd - +44 207 517 8600:
Gary Smith: Chief Executive Officer
Charlie Peile: Executive Vice President, Head of Commercial
Graham Robjohns: Chief Financial Officer
GOLAR LNG LIMITED FOURTH QUARTER 2006 REPORT (UNAUDITED)
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INCOME STATEMENT 2006 2005 2006 2005
(in thousands of $) Oct - Dec Oct - Dec Jan- Dec Jan - Dec
unaudited unaudited unaudited audited
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Operating revenues 72,736 45,151 239,697 171,042
Vessel operating expenses 12,969 8,745 44,490 37,215
Voyage expenses 701 1,181 9,582 4,594
Administrative expenses 3,564 4,267 13,657 13,563
Depreciation and amortisation 15,110 13,122 56,822 50,991
Total operating expenses 32,344 27,315 124,551 106,363
Operating income 40,392 17,836 115,146 64,679
Interest income 11,349 8,712 40,706 35,653
Interest expense (27,629) (20,935) (101,298) (82,479)
Other financial items 902 6,009 8,436 7,507
Income before equity in net earnings of 25,014 11,622 62,990 25,360
investees, taxes and minority interest
Minority interest (1,835) (2,559) (7,049) (8,505)
Taxes (610) (247) (1,257) (818)
Equity in net earnings of investees 10,567 1,781 17,811 18,492
Net income 33,136 10,597 72,495 34,529
Basic earnings per share ($) $0.51 $0.16 $1.11 $0.53
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BALANCE SHEET 2006 2005
(in thousands of $) Dec 31 Dec 31
unaudited audited
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ASSETS
Short term
Cash and cash equivalents 56,616 62,227
Restricted cash and short-term investments 52,287 49,448
Other current assets 22,651 17,898
Amounts due from related parties 778 17
Long term
Restricted cash 778,220 696,308
Equity in net assets of non-consolidated associates 102,678 65,950
Newbuildings 49,713 111,565
Vessels and equipment, net 1,465,825 1,209,044
Other long term assets 42,844 18,238
Total assets 2,571,612 2,230,695
LIABILITIES AND STOCKHOLDERS' EQUITY
Short term
Current portion of long-term debt 72,587 67,564
Current portion of capital lease obligations 5,269 2,466
Other current liabilities 50,248 53,077
Amounts due to related parties 253 886
Long term
Long term debt 803,771 758,183
Long term capital lease obligations 1,009,765 801,500
Other long term liabilities 84,816 84,878
Minority interest 32,436 27,587
Stockholders' equity 512,467 434,554
Total liabilities and stockholders' equity 2,571,612 2,230,695
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STATEMENT OF CASH FLOWS 2006 2005 2006 2005
(in thousands of $) Oct - Dec Oct - Dec Jan - Dec Jan - Dec
unaudited unaudited unaudited audited
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OPERATING ACTIVITIES
Net income 33,136 10,597 72,495 34,529
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortisation 15,110 13,122 56,822 50,991
Amortisation of deferred charges 433 338 1,645 3,035
Income attributable to minority interests 1,835 2,559 7,049 8,505
Undistributed net earnings of non-consolidated (10,567) (1,781) (16,631) (16,948)
investees
Drydocking expenditure (74) (135) (5,864) (9,373)
Stock-based compensation 706 - 2,790 -
Change in market value of equity, interest rate and (7,542) (3,491) (26,156) 4,605
currency derivatives
Interest element included in capital lease obligations 1,275 1,914 5,067 7,351
Unrealised foreign exchange loss / (gain) 6,217 (3,185) 17,644 (15,709)
Change in operating assets and liabilities 1,842 (922) 2,358 4,040
Net cash provided by operating activities 42,371 19,016 117,219 71,026
INVESTING ACTIVITIES
Additions to newbuildings (16,606) (2,317) (240,906) (140,028)
Additions to vessels and equipment (5,874) (1,884) (16,673) (5,700)
Long-term restricted cash 1,326 (3,140) 5,064 (56,953)
Purchase of unlisted investments (5,001) - (5,501) (3,000)
Purchase of marketable securities - - (10,386) -
Proceeds from disposal of marketable securities - - 2,248 -
Short-term restricted cash and investments 1,689 (5,745) (2,839) (7,495)
Net cash used in investing activities (24,466) (13,086) (268,993) (213,176)
FINANCING ACTIVITIES
Proceeds from long-term debt - - 120,000 420,000
Proceeds from long-term capital lease obligation - - 102,983 44,800
Repayments of long-term capital lease obligation (1,062) (515) (3,860) (3,004)
Repayments of long-term debt (23,352) (20,697) (69,390) (297,206)
Financing costs paid (4) (201) (1,370) (3,944)
Dividends paid to minority shareholders (2,200) - (2,200) (7,200)
Payments to repurchase equity - - - (667)
Net cash (used in) provided by financing activities (26,618) (21,413) 146,163 152,779
Net (decrease) / increase in cash and cash equivalents (8,713) (15,483) (5,611) 10,629
Cash and cash equivalents at beginning of period 65,329 77,710 62,227 51,598
Cash and cash equivalents at end of period 56,616 62,227 56,616 62,227
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Notes
1. The financial information included in this report has been derived from
information prepared by the Company in accordance with accounting
principles generally accepted in the United States of America.
The number of shares outstanding as of December 31, 2006 was 65,562,000
(September 30, 2006: 65,562,000). The weighted average number of shares
outstanding for the fourth quarter
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GOLAR LNG LIMITED
(registrant)
Dated: March 1 , 2007 By: /s/ Graham Robjohns
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Name: Graham Robjohns
Title: Chief Financial Officer
SK 03849 0004 752466