Ahead Of Golar LNG's Q3 Results

(RTTNews) - Liquefied natural gas shipping company Golar LNG Ltd. (GLNG) is increasingly encouraged by the growing portfolio of interesting floating liquefaction technology or FLNG projects. The company expects a significant share of growth in the LNG market over the coming years to come from LNG replacing coal and oil based power generation.

The company said lower gas price environment is triggering lower cost LNG production, hence it believes this will create additional demand for the fast track and flexible GoFLNG concept.

In the second quarter, net loss attributable to Golar LNG narrowed to $2.56 million from the prior year's loss of $24.2 million. Second-quarter's net loss was $0.2 million, driven by a poor operating result substantially offset by significant non-cash financial gains linked to mark to market valuation of interest rate and Total Return Swaps. Total operating revenues decreased to $20.1 million from $21.1 million generated a year ago.

Total operating expenses for the second quarter more than doubled to $63.6 million versus $31.7 million incurred in the previous year. Operating loss was $44.3 million versus loss $11.1 million reported last year.

The company's second-quarter operating results were negatively impacted by lower utilization and underlying revenue net of voyage expenses. Utilization of the Golar fleet declined from 46% in the first quarter to 33% in second quarter.

Utilization of the shipping fleet has however improved in the third quarter versus second quarter. This improvement in utilization is likely to result in a solid improvement in the third-quarter operating results.

Golar LNG's third-quarter results are due to be released before the bell on Monday, November 30. Analysts polled by Thomson Reuters are estimating a loss of $0.30 per share on revenue of $29.60 million.

Earlier this month, Golar LNG said it executed a firm contract to provide West African Gas Limited (with Floating Storage and Regasification Unit or FSRU services to support their Liquefied Natural Gas (LNG) import operations in Ghana.

September 30, Golar said its Cameroon floating liquefied natural gas project has reached a major milestone with the final approval by all parties of the Gas Convention for the project. This final investment decision commits the project to a targeted start date for commissioning of second quarter, 2017.