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
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For
the month of January
2008
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Golar
LNG
Limited
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(Translation
of
registrant’s
name into
English)
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Par-la-Ville
Place, 14
Par-la-Ville Road, Hamilton, HM 08, Bermuda
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(Address
of principal executive
offices)
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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 August 22, 2007.
Exhibit 99.1
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SECOND
QUARTER INTERIM
REPORT
April
- June
2007
Highlights
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·
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Golar
LNG reports its highest ever
quarterly net income for the third quarter in a
row
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·
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Sale
of Korea Line investment
gives rise to $73.5 million
gain
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·
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Improvement
in utilization of
Golar’s
spot
vessels
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·
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A
gain this quarter of $6.6
million in respect of the Company’s
equity
swap
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·
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Golar
announces a cash dividend of
$0.50 per share
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Results
Golar
LNG reports net income of $89.6
million for the three months ended June 30, 2007 (the “second
quarter”),
as compared to $53.3 million for the
three months ended March 31, 2007 (the “first
quarter”).
This significant improvement is
mainly attributable to the gain arising as a result of the sale of the
Company’s
investment in Korea line, which
resulted in a book gain of $73.5 million. Operating income for the second
quarter of $18.8 million was down on the first quarter’s
$58.6 million but after adjusting for
the gain on sale of a newbuilding of $41.1 million booked in the first quarter
there is an underlying increase in the second quarter of $1.3
million.
Operating
revenues have increased to
$57.1 million in the second quarter as compared to $53.7 million for the first
quarter and have benefited from improved levels of utilization of the
Company’s
spot vessels. Revenues have been
negatively affected in both quarters by the drydocking of vessels. The
drydocking of the Gimi in the second quarter straddled the quarter end and
stretched into the third quarter by approximately 15 days. Average daily time
charter equivalents (TCE’s)
for the fleet were $50,936 for the
second quarter as compared to $48,416 for the first quarter of 2007 and $49,700
for the second quarter of 2006.
Vessel
operating expenses at $13.4
million for the second quarter were in line with the first quarter.
Administrative expenses were $5.2 million, an increase of $1.4 million on the
first quarter of 2007. The increase is mainly due to an increase in the charge
in respect of share options as a result of an improvement in the
Company’s
share price.
An
impairment charge of $2.3 million has
been booked this quarter, which relates to parts ordered for the
Company’s
original speculative FSRU conversion
project that will not now be required for the conversion of the Golar Spirit
(or
the Golar Winter) for the Petrobras contract. These parts could potentially
be
used in alternative projects or sold to a third party but given the specialised
nature of the assets these alternative uses may not recover the full cost to
the
Company. The charge has been made based on management’s
best estimate of the likely
recoverable amount for these parts, the total cost of which, after this
impairment charge, is $17 million.Net
interest expense for the second quarter was $14.5 million, slightly down from
$15.2 million for the first quarter of 2007.
Other
financial items were a gain in the second quarter of $15.4 million as compared
to a loss of $2.0 million for the first quarter. This is primarily due to a book
gain on
interest rate swap valuations in the second quarter of $8.4 million and a gain
of $6.6 million arising as a result of the termination of the
Company’s
equity swap. The interest rate
swap gains arose as a result of rising long-term interest rates during the
quarter, however that movement has now largely been reversed.
As
noted above and previously announced
the company sold its shares in Korea Line during the second quarter. The net
proceeds from this sale amounted to $173.4 million, which after deducting the
book value of $99.9 million gives rise to a gain on sale of $73.5 million.
This
investment originally cost the Company $34 million in 2004 and therefore
represents a significant return on investment.
Earnings
per share for the second
quarter were $1.37 as compared to $0.81 for the first quarter and are therefore
$2.18 for the six months to June 30, 2007.
The
Board has declared three dividends
in 2007 totalling $1.75 per share based on the results for 2006, the sale of
one
newbuilding and the sale of the Korea Line investment. As previously
communicated the Board expects to pay regular dividends moving forward but
these
will be dependent upon results. The Board has declared a dividend this quarter
of $0.50 per share; part of this dividend is a final distribution in respect
of
the Korea Line share sale and so should not been seen as an indicative level
of
quarterly dividends for the future. The record date for the dividend is
September 3, 2007, ex dividend date is August 30, 2007 and the dividend will
be
paid on or about September 18, 2007.
Corporate
and Other Matters
Following
the award of the two 10 year
FSRU charters by Petrobras, reported last quarter, project engineering and
development work has progressed significantly. The project teams within Golar
and Moss Maritime, who Golar have contracted to work on both vessels, have
now
fully mobilised the resources needed to finalise the design and engineering
for
the conversion of Golar Spirit and Golar Winter into FSRU’s
for employment by Petrobras.
Arrangements are also being finalised with the shipyards and suppliers to ensure
on time delivery of both the FSRU’s. The
full suite of
contractual agreements relating to the 2 FSRU’s
have been finalised during the quarter
and are scheduled for formal signing shortly.
The
Livorno project continues to make
steady progress toward the final investment decision (FID), which is now
targeted for October 2007. Saipem continues work on the vessel conversion on
a
limited notice to proceed (LNTP) basis as reported last quarter. A
team of Saipem engineers have sailed on Golar Frost in order to complete a
detailed inspection of the vessel’s
existing equipment as part of the
detailed design of the conversion work scope. During the quarter, the
shareholders of
OLT Offshore LNG Toscana SpA, the operating company behind the regasification
terminal, agreed to a capital increase to fund the project until
FID. Endesa and Iride, as the main offtakers of the terminal, have
fully committed to funding the capital increase and will be responsible for
the
development of the project until FID. The shareholdings have now
become Endesa 30.46%, Iride 27.15%, OLT-E 23.74%, Golar 16.38% and ASA
2.27%.
The
Cyprus Floating Power Generating
Plant (FPGP) project continues to make steady but slow progress. The
license to import, store and use the liquefied natural gas (LNG) required to
fuel the FPGP is still pending. The regulatory authorities have announced that
Golar’s
application is complete and is
currently under review, however the delay appears to be linked to the
government’s
overall LNG strategy. It has been
announced that there will be a tender launched by the Cyprus government later
this year requesting bids for the supply of LNG into Cyprus. Golar is
now considering a modification to the FPGP project scope in order to enable
the
supply of regasified LNG as well as power from the unit. This
combined power and gas solution has strong economic and timing
benefits.
Golar
continues to progress several
other FSRU projects and sees this as a major area of business expansion. Most
of
these projects could utilize the Company’s
older vessels currently on charter to
BG and which are likely to be redelivered by BG at the end of each
charter’s
initial term during the period from
2008 to 2011, which fits well with the anticipated project
portfolio.
The
Company recently refinanced an
existing loan facility in respect of the Gracilis with a new $120 million
facility which has improved terms and which provided a small amount of
additional financing.
Market
From
a depressed first quarter impacted
by ships used in the later part of 2006 for floating storage all being released
back onto the market in the Far East at about the same time, the second quarter
has seen a steady increase in employment opportunities accompanied by a modest
increase in charter rates. In July a reported accident in Japan at one of
TEPCO’s
nuclear power plants has noticeably
tightened the market with cargoes originally intended for the Atlantic Basin
markets now being diverted to Japan and other Far East markets to help make
up
the additional demand for fuel caused by the outage of the nuclear power
station.
It
currently looks unlikely that the
forward gas market conditions needed to support floating storage plays, similar
to those experienced during the second half of 2006, will repeat themselves
in
the second half of 2007. However the forward market for gas is being watched
closely by several market participants with the appetite to repeat last years
experience if the fundamentals become supportive.
The
development in the charter market in
the coming months will be strongly influenced by the demand for long haul
cargoes into Japan to fill the gap created by the nuclear power station outage.
Some reports suggest that this increased appetite for LNG in Japan could persist
for the next 12 months. At the moment this additional demand from Japan has
driven spot market TC rates up above $70k per day while rates for one-year
employment are around $65k per day.
Liquefaction
projects scheduled for
start up during the next 6 months include Snohvit and Nigeria LNG Train 6 and
Qatar Gas 2. Whilst these new sources of LNG production have arranged dedicated
shipping capacity the significant increase in LNG output should further improve
liquidity in the short term LNG trading and chartering
businesses.
Outlook
The
Board believes that the award of the
Petrobras contracts represents a significant milestone in the development of
the
Company and its project portfolio, which fully covers LNG mid-stream activity
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liquefaction, shipping, trading and regasification. It demonstrates the
Company’s
ability to successfully develop these
projects, provides a clear demonstration of their potential value and also
provides evidence of the growing market for floating
solutions.
The
previously announced study on how to
optimise the value of the Company’s
LNG logistic investments and projects
continued during the quarter. The study carefully considered two restructuring
options. The first option considered separation of traditional LNG shipping
activities from project development activities. The second option considered
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 initially pursue option 2. The Company has therefore been reviewing
alternative structures, including master limited partnerships (MLPs), with
the
objective of enhancing shareholder value and providing investors with a choice
of risk profiles.
The
Board anticipates that earnings in
the third quarter of 2007 from the Company’s
spot vessels may show some improvement
on the second quarter, this will however be offset by the Spirit being withdrawn
from service in readiness for the FSRU conversion work. Due to existing time
charters, time delays and offhire TCE results will be lower than the current
spot market rates. The Company will also not be equity accounting for Korea
Lines results following the sale of this investment.
The
Board is pleased with the recent
development of the Company and is optimistic about future the development of
the
Company’s
various maturing business
opportunities and the possibilities to increase long-term returns to
shareholders.
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.
August
22, 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
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GOLAR
LNG LIMITED
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(Registrant)
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By:
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/s/
Graham Robjohns
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Graham
Robjohns
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Chief
Financial Officer
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Dated: August
22, 2007
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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.
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Golar
LNG Limited
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(Registrant)
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Date:
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January 4,
2008
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By:
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/s/
Graham Robjohns
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Graham
Robjohns
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Chief
Financial
Officer
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SK
03849 0004
843139