UNITED
STATES
SECURITIES
AND EXCHANGE
COMMISSION
Washington,
D.C.
20549
FORM
6-K
Report
of Foreign
Issuer
Pursuant
to Rule 13a-16 or 15d-16
of
the
Securities Exchange Act of
1934
|
For
the month of January
2008
|
||
|
Golar
LNG
Limited
|
||
|
(Translation
of registrant's name
into English)
|
||
|
Par-la-Ville
Place, 14
Par-la-Ville Road, Hamilton, HM 08, Bermuda
|
||
|
(Address
of principal executive
offices)
|
Indicate
by check mark whether the
registrant files or will file annual reports under cover Form 20-F or Form
40-F
Form
20-F
[X] Form 40-F [ ]
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-____________
Item
1. INFORMATION CONTAINED IN THIS
FORM 6-K REPORT
Attached
as Exhibit 99.1 is a copy of
the press release of Golar LNG Limited dated
November 16,
2007, announcing its financial results for the quarter ended September
2007.
Exhibit 99.1
 |
|
THIRD
QUARTER INTERIM
REPORT
July
- September
2007
Highlights
|
·
|
Golar
LNG reports operating income
of $18,9 million and a net loss of $8.8
million.
|
|
·
|
The
results include an $11.1
million non-cash unrealised loss on interest swap
valuations.
|
|
·
|
Improved
earnings outlook for Q4
from spot trading vessels
|
|
·
|
Golar
Spirit enters shipyard for
conversion to FSRU for Petrobras
contract
|
|
·
|
Agreement
reached to purchase
“Granatina”from
Shell providing platform for
future growth
|
|
·
|
Golar
is raising $77.5 million in
new equity to finance
growth.
|
Results
Golar
LNG Limited reports a net loss of
$8.8 million for the three months ended September 30, 2007 (the “third
quarter”),
as compared to a profit of $89.6
million for the three months ended June 30, 2007 (the “second
quarter”).
The large movement in results arises
because the Company booked a gain of $73.5 million in respect of the sale
of its
investment in Korea Line and also a gain on its equity swap and interest
rate
swap valuations of $15 million during the second quarter. By contrast, in
the
third quarter the Company has booked an unrealised loss of $11.1 million
on
interest rate swap valuations.
Operating
income for the third quarter
of $18.9 million was slightly up on the second quarter’s $18.8
million.
Operating
revenues were $54.3 million in
the third quarter as compared to $57.1 million for the second quarter as
a
result of lower spot vessel average daily time charter equivalents (TCE’s),
principally as a result of the Golar Spirit not earning during the quarter
as
she positioned and prepared for entering the yard for conversion. There were
15
days offhire time as a result of drydocking during the third quarter, there
are
no drydocks planned for the fourth quarter of 2007. Average TCE’s for the fleet
were $47,262 for the third quarter as compared to $50,936 for the second
quarter
of 2007.
Vessel
operating expenses were lower at
$12.5 million for the third quarter as compared to $13.4 million for the
second
quarter. Administrative expenses were $5.0 million, which is reduced from
the
second quarter’s expense of $5.2 million, but has again been affected by a share
option valuation charge of as a result of an improvement in the Company’s share
price.
Net
interest expense for the third quarter was $14.3 million, slightly down from
$14.5 million for the second quarter of 2007. Other financial items were
a loss
in the third quarter of $13.5 million as compared to the gain of $15.4 million
for the second quarter. This has resulted from unrealised interest rate swap
valuation losses of $11.8 million (before minority interest) as compared
to the
second quarter’s gain on the termination of an equity swap of $6.6 million
and interest
rate swap valuation gains of $8.4 million.
Earnings
per share for the third quarter
were ($0.14) as compared to $1.37 for the second quarter and are $2.06 for
the
nine months to September 30, 2007.
The
Board has declared four dividends in
2007 totalling $2.25 per share based on the results for 2006, the sale of
one
new building and the sale of the Korea Line investment. Taking into account
the
need to fund the contracted FSRU conversion projects and other identified
pending projects the Board has decided not to pay an additional dividend
at this
time although in doing so restates its intention to pay regular dividends
moving
forward dependent upon results.
Corporate
and Other Matters
Golar
has agreed to purchase the LNG
Carrier “Granatina”,
built by DSME in 2003 which has a
nominal capacity of 140,000 m3and
is a sister ship to Golar Winter and
Methane Princess. Golar expects to take delivery of the vessel in January
2008
and will charter the vessel back to Shell for a short period ending prior
to
December 31, 2008. During the charter back period the vessel will continue
to be
technically managed by STASCO. Golar see this addition to its fleet as an
attractive platform for the pursuit of further growth
opportunities.
Since
this vessel is a sister ship of
the Golar Winter, which is scheduled to be converted to a FSRU, the vessel
is
particularly well suited to FRSU projects.
In
order to finance the equity portion
of the purchase the Company is planning a directed equity offering of 3.2
million shares towards international institutional investors. The issue,
which
is fully underwritten by Hemen Holding Ltd, will result in proceeds of
approximately $77.5 million. After the registration of the share issue the
Company`s issued share capital will consist of 67,576,866 shares, each at
a par
value of USD 1.00. The managers of the directed issue are Carnegie ASA and
Fearnley Fonds.
Engineering
and development work
continues to progress on the Golar Spirit and Golar Winter FSRU conversion
projects. Golar Spirit entered Keppel shipyard in Singapore as planned in
early
October and physical work has now commenced on the vessel conversion. The
full
suite of agreements associated with the employment by Petrobras of Golar
Winter
and Golar Spirit as FSRU’s have now been finalised and
executed.
Golar
Winter has been chartered to Shell
for the period until October 2008 which will fully employ the vessel until
the
time Golar Winter is scheduled to enter the shipyard for conversion to a
FSRU.
Golar Frost is also now fully employed through until around year end. The
forward programme for the Golar vessels is expected to result in a healthy
increase in TCE earnings in the fourth quarter.
The
Livorno project has now reached a
critical stage as the project contemplates FID. Final EPC costs have now
been
submitted to the JV project team and the process of evaluation is drawing
to a
close. It is anticipated that an announcement will be made in the coming
weeks.
The
Cyprus Floating Power Generating
Plant (FPGP) is still waiting for the relevant authorities to issue the
necessary licenses to import, store and use the liquefied natural gas (LNG)
required to fuel the FPGP. The delay is largely attributable to the Cyprus
government’s overall LNG and energy strategy which is currently under debate at
Ministerial level. Golar remains positive towards this project and continues
to
participate in the relevant meetings to try and facilitate a speedy
resolution.
Golar
continues to field enquiries from
a growing pool of counterparties interested to progress FSRU projects. Detailed
assessment of identified conversion opportunities for both Golar Freeze and
Khannur are now well advanced. Additionally the Granatina, being a sister
ship
to Golar Winter, is well placed to secure FSRU employment
opportunities.
Market
The
increased demand for LNG in Japan
that resulted from the June outage of one of TEPCO’s nuclear power plants
tightened the market during the early part of the third quarter. However,
as
arrangements were finalised by Japanese buyers to cover this increased demand,
spot shipping market rates have moderated somewhat. Moving into the fourth
quarter, the Far East continues to be the market of choice for shippers of
LNG
and signs are starting to again appear of the spot shipping market tightening.
Korea has yet to appear, as it often does around this time of year, as a
buyer
seeking to supplement its term purchases of LNG with additional winter spot
cargoes. At the time of writing most modern and available LNG tonnage has
departed the Atlantic Basin heading East.
There
has been little evidence of winter
LNG storage plays as seen at about this time last year however some vessels
have
been observed slow steaming East with schedules that contemplate a later
delivery slot than what might have been considered more in keeping with the
capability of the vessel.
The
development in the charter market in
the coming months will be strongly influenced by the demand for long haul
winter
cargoesgoing east. At the
moment spot market TC rates are around $60k per day after reaching rates
of
around $75k per day in the first half of the quarter. Rates for medium term
(one-year plus) employment remain unchanged from last quarter at around $65k
per
day.
As
expected, Snohvit commenced operation
during the quarter with Nigeria LNG Train 6 still to come on line. Recent
reports suggest the large Qatar Gas 2 project will now commence operation
of the
first new large liquefaction train during the second half of 2008. Some existing
units, including the newly commissioned Equatorial Guinea and North West
Shelf
have experienced operational difficulties during the quarter which has had
a
negative impact on the demand for shipping.
Several
organisations have over the past
few months expressed an interest in developing floating LNG production
technologies, analogous to the introduction of FPSO’s for the production of
crude oil. It is hoped that the introduction of this new approach will unlock
and commercialise many smaller off shore stranded gas fields
Outlook
The
Board remains optimistic about the
contribution from the portfolio of existing and pending projects and is looking
to strengthen this segment of the Company’s activities. The Board also believes
that opportunities exist to grow the Company’s more conventional shipping
activities and remains alert to opportunities such as the recent agreement
reached to purchase Granatina.
The
previously announced study on how to
optimise the value of the Company’s LNG logistic investments and projects is now
at an advanced stage. As previously reported, the study considered the two
options of separation of traditional LNG shipping activities from project
development activities and the separation of long-term charters (regardless
of
asset type) from short-term LNG Carrier chartering and project development
activities. Whilst both restructuring options offered benefits and could
be
developed over time the Company has decided to pursue the separation of long
term charters from other business opportunities. Substantial progress has
been
made over the third quarter toward realizing the restructuring objective
with an
initial three to four vessels and the Company expects to be in a position
to
publicly announce details of the restructuring during the first quarter of
2008.
The
Board is optimistic that several of
the potential projects in the project portfolio will be realized during the
next
six months. Such realization is likely to lead to increased medium to long
term
value for Golars shareholders.
The
Board anticipates that earnings in
the fourth quarter of 2007 from the Company’s spot vessels will show good
improvement on the second and third quarters.
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 and FSRU’s; actions taken by
regulatory authorities that may prohibit the access of LNG carriers or FSRU’s to
various ports; our inability to achieve successful utilisation of our expanded
fleet and inability to expand beyond the carriage of LNG; our ability to
complete on our restructuring plans; 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; our ability to timely complete our FSRU
conversions; failure of shipyards to comply with delivery schedules on a
timely
basis 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.
Nothing
contained in this press release
shall constitute an offer of any securities for sale.
November
16, 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
Graham
Robjohns: Chief Financial
Officer
GOLAR
LNG LIMITED
SECOND QUARTER 2007 REPORT (UNAUDITED)
|
INCOME
STATEMENT
(in
thousands of
$)
|
2007
July
- Sept
unaudited
|
2006
July
–
Sept
unaudited
|
2007
Jan-
Sept unaudited
|
2006
Jan-
Sept unaudited
|
2006
Jan
–
Dec
audited
|
|||||||||||||||
|
Operating
revenues
|
54,265 | 55,938 | 165,127 | 166,960 | 239,697 | |||||||||||||||
|
Gain
on sale of new
building
|
- | - | 41,088 | - | - | |||||||||||||||
|
Vessel
operating
expenses
|
12,501 | 11,157 | 39,329 | 31,520 | 44,490 | |||||||||||||||
|
Voyage
expenses
|
2,797 | 2,189 | 9,516 | 8,881 | 9,582 | |||||||||||||||
|
Administrative
expenses
|
5,001 | 3,974 | 14,010 | 10,093 | 13,657 | |||||||||||||||
|
Depreciation
and
amortisation
|
15,116 | 14,723 | 44,845 | 41,713 | 56,822 | |||||||||||||||
|
Impairment
of long-lived
assets
|
- | 2,345 | - | - | ||||||||||||||||
|
Total
operating expenses
|
35,415 | 32,043 | 110,045 | 92,207 | 124,551 | |||||||||||||||
|
Operating
income
|
18,850 | 23,895 | 96,170 | 74,753 | 115,146 | |||||||||||||||
|
Interest
income
|
14,577 | 10,304 | 40,369 | 29,358 | 40,706 | |||||||||||||||
|
Interest
expense
|
(28,845 | ) | (26,708 | ) | (84,293 | ) | (73,669 | ) | (101,298 | ) | ||||||||||
|
Other
financial
items
|
(13,514 | ) | (14,116 | ) | (108 | ) | 7,534 | 8,436 | ||||||||||||
|
Income
before taxes and minority
interest
|
(8,932 | ) | (6,625 | ) | 52,138 | 37,976 | 62,990 | |||||||||||||
|
Minority
interest
|
(889 | ) | (663 | ) | (4,817 | ) | (5,214 | ) | (7,049 | ) | ||||||||||
|
Taxes
|
832 | (241 | ) | 419 | (647 | ) | (1,257 | ) | ||||||||||||
|
Equity
in net earnings of
investee
|
205 | 1,600 | 86,351 | 7,244 | 16,989 | |||||||||||||||
|
Net
(loss)/income
|
(8,784 | ) | (5,929 | ) | 134,091 | 39,359 | 71,673 | |||||||||||||
|
Basic
earnings per share
($)
|
$ | (0.14 | ) | $ | 0.09 | $ | 2.06 | $ | 0.60 | $ | 1.09 | |||||||||
|
BALANCE
SHEET
(in
thousands of
$)
|
2007
Sept
30 unaudited
|
2006
Sept
30 unaudited
|
2006
Dec
31
audited
|
|||||||||
|
ASSETS
|
||||||||||||
|
Short
term
|
||||||||||||
|
Cash
and cash
equivalents
|
127,296 | 65,329 | 56,616 | |||||||||
|
Restricted
cash and short-term
investments
|
60,938 | 53,976 | 52,287 | |||||||||
|
Other
current
assets
|
30,156 | 24,872 | 22,651 | |||||||||
|
Amounts
due from related parties
|
817 | 525 | 778 | |||||||||
|
Long
term
|
||||||||||||
|
Restricted
cash
|
807,737 | 747,899 | 778,220 | |||||||||
|
Equity
in net assets of
non-consolidated associate
|
12,616 | 80,531 | 97,255 | |||||||||
|
Newbuildings
|
33,107 | 49,713 | ||||||||||
|
Vessels
and equipment,
net
|
1,435,079 | 1,481,217 | 1,465,825 | |||||||||
|
Other
long term
assets
|
61,398 | 31,325 | 42,844 | |||||||||
|
Total
assets
|
2,536,037 | 2,518,781 | 2,566,189 | |||||||||
|
LIABILITIES
AND STOCKHOLDERS’
EQUITY
|
||||||||||||
|
Short
term
|
||||||||||||
|
Current
portion of long-term
debt
|
75,760 | 72,461 | 72,587 | |||||||||
|
Current
portion of capital lease
obligations
|
5,581 | 4,994 | 5,269 | |||||||||
|
Other
current
liabilities
|
47,722 | 51,154 | 50,248 | |||||||||
|
Amounts
due to related parties
|
130 | 111 | 253 | |||||||||
|
Long
term
|
||||||||||||
|
Long
term
debt
|
761,488 | 827,249 | 803,771 | |||||||||
|
Long
term capital lease
obligations
|
1,047,596 | 971,963 | 1,009,765 | |||||||||
|
Other
long term
liabilities
|
83,692 | 83,027 | 84,816 | |||||||||
|
Minority
interest
|
37,253 | 32,801 | 32,436 | |||||||||
|
Stockholders’
equity
|
476,815 | 475,021 | 507,044 | |||||||||
|
Total
liabilities and
stockholders’ equity
|
2,536,037 | 2,518,781 | 2,566,189 | |||||||||
|
STATEMENT
OF CASH
FLOWS
(in
thousands of
$)
|
2007
July
–
Sept
unaudited
|
2006
July
–
Sept
unaudited
|
2007
Jan
–
Sept
unaudited
|
2006
Jan
–
Sept
unaudited
|
2006
Jan
–
Dec
audited
|
|||||||||||||||
|
OPERATING
ACTIVITIES
|
||||||||||||||||||||
|
Net
income / (loss)
|
(8,784 | ) | (5,929 | ) | 134,091 | 39,359 | 71,673 | |||||||||||||
|
Adjustments
to reconcile net income to net cash
|
||||||||||||||||||||
|
provided
by operating
activities:
|
||||||||||||||||||||
|
Depreciation
and amortisation
|
15,116 | 14,723 | 44,826 | 41,713 | 56,822 | |||||||||||||||
|
Gain
on disposal of vessels/newbuildings
|
- | (41,088 | ) | - | - | |||||||||||||||
|
Amortisation
of deferred charges
|
(121 | ) | 471 | 744 | 1,212 | 1,644 | ||||||||||||||
|
Income
attributable to minority interests
|
889 | 663 | 4,817 | 5,214 | 7,049 | |||||||||||||||
|
Gain
on disposal of investment
|
- | (73,552 | ) | - | - | |||||||||||||||
|
Undistributed
net earnings of non-consolidated investee
|
(205 | ) | (1,600 | ) | (11,588 | ) | (6,064 | ) | (15,809 | ) | ||||||||||
|
Drydocking
expenditure
|
(970 | ) | (5,140 | ) | (14,625 | ) | (5,790 | ) | (5,864 | ) | ||||||||||
|
Stock-based
compensation
|
2,705 | 735 | 4,996 | 2,084 | 2,790 | |||||||||||||||
|
Change
in market value of equity, interest rate and currency
derivatives
|
9,493 | 9,477 | (8,006 | ) | (18,614 | ) | (26,156 | ) | ||||||||||||
|
Interest
element included in capital lease obligations
|
628 | 526 | 2,536 | 3,791 | 5,067 | |||||||||||||||
|
Unrealised
foreign exchange loss / (gain)
|
3,084 | 4,076 | 6,210 | 11,427 | 17,644 | |||||||||||||||
|
Change
in operating assets and liabilities
|
(5,739 | ) | 2,149 | (10,202 | ) | 516 | 2,359 | |||||||||||||
|
Net
cash provided by operating activities
|
16,096 | 20,151 | 39,159 | 74,848 | 117,219 | |||||||||||||||
|
INVESTING
ACTIVITIES
|
||||||||||||||||||||
|
Additions
to newbuildings
|
- | (726 | ) | (1,103 | ) | (224,300 | ) | (240,906 | ) | |||||||||||
|
Additions
to vessels and equipment
|
(16,329 | ) | (1,606 | ) | (23,254 | ) | (10,799 | ) | (16,673 | ) | ||||||||||
|
Disposals
of new buildings/vessels
|
- | - | 92,618 | - | - | |||||||||||||||
|
Long-term
restricted cash
|
410 | 2,594 | 3,429 | 3,738 | 5,064 | |||||||||||||||
|
Purchase
of unlisted investments
|
- | - | (500 | ) | (5,501 | ) | ||||||||||||||
|
Purchase
of marketable securities
|
- | - | (10,386 | ) | (10,386 | ) | ||||||||||||||
|
Proceeds
from disposal of marketable securities
|
171,595 | 2,248 | 2,248 | |||||||||||||||||
|
Short-term
restricted cash and investments
|
(8,676 | ) | (6,430 | ) | (8,651 | ) | (4,528 | ) | (2,839 | ) | ||||||||||
|
Proceeds
from termination of equity swap
|
7,974 | - | - | |||||||||||||||||
|
Net
cash used in investing activities
|
(24,595 | ) | (6,168 | ) | 242,608 | (244,527 | ) | (268,993 | ) | |||||||||||
|
FINANCING
ACTIVITIES
|
||||||||||||||||||||
|
Proceeds
from long-term debt
|
120,000 | - | 120,000 | 120,000 | 120,000 | |||||||||||||||
|
Proceeds
from long-term capital lease obligation
|
- | - | - | 102,983 | 102,983 | |||||||||||||||
|
Repayments
of long-term capital lease obligation
|
(1,203 | ) | (1,242 | ) | (3,548 | ) | (2,798 | ) | (3,860 | ) | ||||||||||
|
Repayments
of long-term debt
|
(122,357 | ) | (12,944 | ) | (159,110 | ) | (46,038 | ) | (69,390 | ) | ||||||||||
|
Financing
costs paid
|
(160 | ) | - | (160 | ) | (1,366 | ) | (1,370 | ) | |||||||||||
|
Cash
dividends paid
|
(80,110 | ) | - | (145,772 | ) | - | - | |||||||||||||
|
Dividends
paid to minority shareholders
|
- | - | - | - | (2,200 | ) | ||||||||||||||
|
Payments
to repurchase equity
|
- | (22,823 | ) | - | - | |||||||||||||||
|
Proceeds
from issuance of equity
|
- | 326 | - | - | ||||||||||||||||
|
Net
cash provided by financing activities
|
(83,830 | ) | (211,087 | ) | 172,781 | 146,163 | ||||||||||||||
|
Net
(decrease) / increase in cash and cash equivalents
|
(92,329 | ) | (203 | ) | 70,680 | 3,102 | (5,611 | ) | ||||||||||||
|
Cash
and cash equivalents at beginning of period
|
219,625 | 65,532 | 56,616 | 62,227 | 62,227 | |||||||||||||||
|
Cash
and cash equivalents at end
of period
|
127,296 | 65,329 | 127,296 | 65,329 | 56,616 | |||||||||||||||
Notes
|
1.
|
The
financial information included
in this interim report has been derived from information prepared
by the
Company in accordance with accounting principles generally accepted
in the
United States
of
America.
|
|
2.
|
The
number of shares outstanding
as of Sept 30, 2007 was 64,345,700 (June 30, 2007: 64,345,700).
The
weighted average number of shares outstanding for the third quarter
and
the year up to 30 September 2007 were 64,345,700 and 65,102,279respectively,
and was 65,567,616
for the twelve months ended December 31,
2006.
|
|
GOLAR
LNG LIMITED
|
|||
|
(Registrant)
|
|||
|
By:
|
/s/
Graham Robjohns
|
||
|
Graham
Robjohns
|
|||
|
Chief
Financial Officer
|
|||
|
|
|||
|
Dated: November
16, 2007
|
|||
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)
|
|
Date:
|
January
3, 2008
|
By:
|
/s/
Graham Robjohns
|
|
|
Graham
Robjohns
|
||||
|
Chief
Financial
Officer
|
SK
03849 0004
842887