Golar LNG Limited’s Earnings Call Highlights Strong Quarter

Golar LNG Limited ((GLNG)) has held its Q3 earnings call. Read on for the main highlights of the call.

Golar LNG Limited’s recent earnings call painted a picture of robust performance and promising prospects. The company reported a strong quarter, marked by full contracting of its existing FLNG fleet and significant financial progress. Despite facing challenges related to long lead items and securing new projects, Golar LNG’s outlook remains optimistic, with substantial growth opportunities on the horizon.

Full Contracting of Existing FLNG Fleet

Golar LNG has successfully contracted its existing fleet of three FLNGs on 20-year charter durations. This achievement has resulted in a substantial EBITDA backlog of $17 billion, even before considering potential commodity upside and inflationary adjustments. This long-term contracting strategy underscores the company’s strong market position and provides a solid foundation for future revenue streams.

Strong Financial Position and Liquidity

The company boasts a robust financial position, with a cash reserve of $1 billion and a net debt of approximately $1.4 billion. In the third quarter of 2025, Golar LNG reported total operating revenues of $123 million and a net income of $46 million, reflecting its strong financial health and operational efficiency.

Significant Progress on Fourth FLNG Unit

Golar LNG has made noteworthy technical and commercial advancements on its fourth FLNG unit. The company has secured commitments for long lead items and shipyard slots, positioning it well for future growth. These developments highlight Golar’s proactive approach to expanding its FLNG capabilities.

Successful U.S. Bond Issuance

In a strategic financial move, Golar LNG issued its first U.S. documented $500 million bond with a 5-year duration and a 7.5% coupon. This bond issuance not only strengthens the company’s financial flexibility but also reflects investor confidence in Golar’s long-term prospects.

Hilli’s Operational Excellence

The Hilli FLNG unit continues to demonstrate operational excellence, achieving 100% economic uptime for another quarter. This operational success contributed $51 million to the company’s adjusted EBITDA, reinforcing Golar’s reputation for reliability and efficiency.

Gimi’s Stabilizing Operations

Since commencing operations in June 2025, the Gimi FLNG unit has been stabilizing, with daily production frequently exceeding base capacity. This operational progress has added $48 million to Golar’s quarterly EBITDA, showcasing the unit’s growing contribution to the company’s financial performance.

Dividend Declaration and Share Buyback Program

Golar LNG declared a dividend of $0.25 per share and announced a new $150 million share buyback program. These shareholder-friendly initiatives reflect the company’s commitment to returning value to its investors and confidence in its financial stability.

Pressure on Long Lead Items

The company is experiencing significant pressure on the delivery and pricing of long lead items, primarily due to the AI data center boom in the U.S. This challenge poses a potential risk to future FLNG projects, necessitating strategic planning and resource management.

Challenges in Securing New Projects

While demand remains strong, Golar LNG faces challenges in narrowing down commercial opportunities and finalizing design decisions for its fourth FLNG unit. This ongoing process highlights the complexities involved in expanding the company’s project portfolio.

Forward-Looking Guidance

Golar LNG’s forward-looking guidance for the third quarter of 2025 emphasizes its strategic focus on growth and shareholder returns. The company anticipates its EBITDA to quadruple by 2028, driven by its strong balance sheet and proven operational track record. With earnings visibility extending through 2045, Golar aims to capitalize on opportunities in the FLNG market, leveraging its financial strength and market expertise.

In conclusion, Golar LNG Limited’s earnings call reflects a positive sentiment, underscored by strong financial performance and strategic initiatives. The company’s full contracting of its FLNG fleet and progress on new projects position it well for future growth. Despite challenges related to long lead items and project acquisition, Golar’s robust financial health and operational excellence provide a solid foundation for continued success.