Golar LNG Limited

What they do

Golar LNG builds, owns, and operates FLNG vessels that convert natural gas into LNG at sea. The company's primary assets include the FLNG Hilli, the FLNG Gimi, and the Mark II FLNG, which are deployed under long-term contracts with customers such as Perenco, BP, and the National Oil Company of Gabon. Revenue is derived from liquefaction services, sales-type leases, and time and voyage charters.

Revenue drivers

• Liquefaction Services — Revenue from providing liquefaction services on FLNG vessels, primarily from the FLNG Hilli and FLNG Gimi under long-term contracts. This is a major revenue source.
• Sales-Type Lease Revenue — Revenue recognized from leasing FLNG vessels or related equipment under sales-type lease arrangements, contributing to overall revenue.
• Time and Voyage Charter Revenue — Revenue from chartering LNG carriers and other vessels on time or voyage basis, primarily from the company's shipping operations.
• Vessel Management Fees and Other Revenues — Revenue from managing vessels and providing other services to third parties, a smaller but recurring revenue stream.

Recent performance

For fiscal year 2025, Golar LNG reported revenue of $393.5 million, up from $260.4 million in 2024. Net income was $65.7 million in 2025, compared to $50.8 million in 2024. The increase in revenue was primarily driven by the commencement of operations of the FLNG Gimi in 2025, contributing to higher liquefaction services revenue. Despite higher revenue, net income growth was moderated by higher operating expenses and depreciation related to the new asset.

Strategy

Golar LNG's strategy focuses on expanding its FLNG fleet and securing long-term contracts for its vessels. The company is progressing with the conversion of the Mark II FLNG vessel, expected to be delivered in 2026, and is actively marketing additional FLNG projects. In 2025, the company closed a $1.2 billion facility for the Gimi and issued $1.0 billion in senior unsecured notes to fund growth and refinance debt. Management prioritizes maintaining a strong balance sheet and returning capital to shareholders when appropriate.

Risks

• Concentration Risk — A significant portion of revenue is derived from a limited number of customers and vessels, making the company vulnerable to contract terminations or non-performance.
• Operational Risk — FLNG operations involve complex technology and are subject to operational disruptions, which could lead to reduced revenue and increased costs.
• Commodity Price Risk — The company's business is indirectly affected by natural gas and LNG prices, which can impact demand for liquefaction services and charter rates.
• Financing Risk — The company has significant debt and may need additional financing for future projects; adverse market conditions could increase borrowing costs or limit access to capital.

Outlook

Management expects the FLNG Gimi to contribute full-year revenue in 2026 and anticipates the Mark II FLNG to commence operations in 2026, driving growth. The company is also exploring further FLNG projects and may seek additional contracts. However, results will depend on operational performance and market conditions.