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    GLNG
    Earnings call· Mar 2026(Q1 FY26)

    GOLAR LNG Q1 FY26 earnings call GLNG

    May 20, 2026 Source

    Executive summary

    Golar LNG Q1 FY26 — Record FLNG Production and Accelerated Growth Ambitions

    Golar LNG delivered a record Q1 FY26, driven by exceptional operational performance from its FLNG units and significant commodity upside from its Argentina contracts. The company is actively pursuing accelerated FLNG growth, targeting a fourth unit order in 2026, and is exploring strategic options to maximize shareholder returns, positioning itself as a leading FLNG infrastructure platform. Geopolitical events are accelerating commercial discussions for new units, shifting focus to early delivery.

    Highlights

    5

    • Gimi FLNG produced 19% above contractual capacity, generating over $700,000 per day in Q1 FY26.

    • Hilli FLNG maintained 100% economic uptime, having produced 152 cargoes since 2018.

    • Mark II FLNG remains on budget and schedule for delivery by year-end 2027.

    • Commodity upside in Argentina contracts increased by approximately $200 million to $500 million annually for the first three years of CESA operations.

    • Total operating revenues increased to $138 million, and EBITDA increased 16% quarter-over-quarter to $106 million in Q1 FY26.

    Concerns

    3

    • Geopolitical risks, such as the Rosneft incident, highlight global energy market vulnerability and supply disruptions.

    • Hilli's current charter in Cameroon ends in July, requiring 6-7 months of upgrades in Singapore before starting its 20-year Argentina contract.

    • Gimi's 19% overproduction in Q1 FY26 is not expected to be annualized due to seasonal temperature effects.

    Guidance & targets

    11
    CategoryTargetConfidence
    Fourth FLNG unit order
    Order placed
    high materiality
    High
    Mark II FLNG delivery
    Year-end '27
    high materiality
    High
    Mark II FLNG 20-year charter start
    Summer of '28
    high materiality
    High
    Hilli FLNG 20-year charter start (Argentina)
    Summer of next year (2027)
    high materiality
    High
    New FLNG unit construction time
    Around 36 months
    medium materiality
    High
    FLNG growth rate
    Add at least one FLNG per year
    high materiality
    High
    Annual run rate EBITDA
    Exceed $800 million
    high materiality
    High
    Leverage (Net Debt to Adjusted EBITDA)
    Around 3.4x
    high materiality
    High
    Annual free cash flow generation
    Approximately $5 per share
    high materiality
    High
    Dividend growth potential
    Grow to over $5 per share annually
    high materiality
    High
    Long-term contract terms
    15 to 20 years at a CapEx to EBITDA between 5 and 6x
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    FLNG Gimi
    Achieved all-time high production, part of outperformance attributed to ambient temperature. Not expected to be annualized, but meaningful overproduction expected annually.
    Production above contractual capacity: 19%
    		$700,000 a day———
    FLNG Hilli
    Maintained market-leading performance since 2018. Preparing for disconnection in July, upgrades in Singapore for 6-7 months, then 20-year charter in Argentina.
    Economic uptime: 100%Cargoes produced: 152
    		$47 million———

    Operational metrics

    35
    Total operating revenues
    $138 millionIncreased
    Q1 FY26

    Increased in the quarter.

    EBITDA
    $106 million16% QoQ increase
    Q1 FY26

    Increased 16% quarter-over-quarter.

    Net income
    $102 millionIncreased significantly
    Q1 FY26

    Highlighting the operating upside embedded within the business model.

    Quarterly dividend
    $0.25
    Q1 FY26

    Declared, consistent with capital allocation framework.

    Total cash
    just over $1 billion
    Quarter end

    Maintained a strong balance sheet.

    Net interest bearing debt
    around $1.7 billion
    Quarter end

    Maintained a strong balance sheet.

    Mark II investment to date
    $1.2 billion
    To date

    Fully unencumbered despite investment, creating significant embedded flexibility for future financing.

    Total investment in San Matthias pipeline (equity)
    around $77 million
    Estimated total

    Will generate an attractive infrastructure return once operational for 20 years.

    Annual run rate EBITDA (all 3 units operational)
    exceed $800 million
    Annual

    Expected once all three units are in operation.

    Leverage (Net Debt to Adjusted EBITDA)
    around 3.4xReducing
    Fully delivered basis

    Fully supported by long-term contracted cash flow once all three units are in operation.

    Current dividend run rate
    approximately $1
    Annual

    Expected to grow to over $5 per share based on contracted EBITDA.

    Market capitalization
    approximately $5.7 billionGrown
    Current

    Increased scale, liquidity, and institutional participation.

    Average daily trading volume
    exceeds $100 million
    Current

    Increased scale, liquidity, and institutional participation.

    Senior unsecured bonds outstanding
    approximately $800 million
    Current

    Across two bonds.

    Convertible bond outstanding
    $575 million
    Current

    Maturing in 2030.

    Total shareholder distributions
    approximately $25 million
    Q1 FY26

    Returned to shareholders through dividends.

    Total growth investments
    more than $134 million
    Q1 FY26

    Across FLNG growth projects.

    World oil equivalent consumption
    approximately 270 million barrels of oil equivalent
    Today

    According to BP's energy market outlook.

    World oil equivalent consumption target
    295 million barrels of oil equivalentGrowth from 270 million
    2035

    Expected to grow by 2035.

    LNG growth rate
    42%
    2035

    Second fastest source of energy growth.

    US & Qatar LNG market share
    42%
    Today

    Expected to increase to 53%.

    US & Qatar LNG market share target
    53%Up from 42%
    Future

    Expected increase in market share.

    US LNG market share target
    33%
    Future

    US is the marginal and most expensive producer.

    FLNG units on water
    9
    Current

    FLNG industry started in 2018.

    FLNG units in construction
    5
    Current

    FLNG industry started in 2018.

    Total FLNG units (on water + construction)
    14
    Current

    FLNG industry started in 2018.

    Hilli current charter end
    July
    CY26

    Unit will then go to Singapore for upgrades.

    Hilli upgrade duration
    6 to 7 months
    Post-July 2026

    Before sailing to Argentina for 20-year contract.

    Mark II delivery
    year-end '27
    FY27

    Remains on schedule and budget.

    New FLNG construction time
    around 36 months
    Future

    Expected construction time for new units, somewhat longer for Mark II.

    CESA-Securing Energy for Europe SPA term
    8-year
    Contract duration

    For 2 million tonnes of LNG production.

    CESA-Securing Energy for Europe SPA volume
    2 million tonnes
    Annual

    Signed for LNG production in Argentina.

    LNG price increase for annual upside
    $100 millionFor every $1 per million BTU increase in LNG prices above $8
    Annual

    Estimated incremental annual upside from CESA contracts.

    Total LNG cargoes delivered
    more than 185
    Cumulative

    With no unplanned downtime.

    Unplanned downtime
    no
    Cumulative

    Across more than 185 LNG cargoes delivered.

    Industry KPIs

    3
    MetricValueDetails
    Sanctioned expansion backlog$17 billionUSD
    FCF shareholder distributionsapproximately $5 per shareUSD
    Take or pay contract structure90%%

    Orderbook & backlog

    4
    LNG production under 8-year SPA2 million tonnesQ1 FY26

    Signed with CESA and Securing Energy for Europe for Argentina production.

    Total guaranteed LNG capacity (Hilli + Mark II)6 million tonnesQ1 FY26

    Based on 90% guaranteed uptime.

    Remaining CESA LNG capacity to sell4 million tonnesQ1 FY26

    Out of 6 million tonnes total capacity, 2 million tonnes already sold.

    Target for spot LNG cargoes (CESA)around 1 million tonnesQ1 FY26

    Actively discussing amongst CESA shareholders to reserve this volume for spot sales, targeting new local demand in South America.

    Deals & partnerships

    2
    CESA and Securing Energy for EuropeSale and Purchase Agreement for LNG production from Argentina2 million tonnes8-year

    For LNG production that will be produced in Argentina.

    Southern Energy10% investment in the San Matthias pipelinearound $77 million20 years (operational)

    All shareholders committed to invest pro rata in the pipeline, which will bring gas from the Vaca Muerta field to the Gulf of San Matias.

    Capital programs

    2
    San Matthias pipelineunderway
    Funding: equity

    Benefit: Bring gas from Vaca Muerta field to Gulf of San Matias to service Hilli and Mark II

    Golar to invest around $77 million in equity, expecting attractive infrastructure return for 20 years. Line pipes, compressor stations, and EPC awarded. Right-of-way and regulatory approvals in place.

    Mark II FLNG Constructionon schedule and budget
    Spent to date: $1.2 billion
    Funding: equity funded

    Benefit: FLNG unit

    Midship fabrication concluded. Fully unencumbered despite $1.2 billion invested to date, creating significant embedded flexibility for future financing.

    Risks & headwinds

    3
    Geopolitical risks and supply disruptions3 to 5 years

    Rosneft incident took out at least 7 million tonnes of LNG supply for 3 to 5 years.

    Mitigation: Driving strong demand for FLNG, accelerating commercial discussions and urgency for early delivery of new units.

    Seasonal production variability for Gimi FLNGSummer months

    19% above contractual levels in Q1 FY26, but not annualized due to ambient temperatures.

    Mitigation: Still expect meaningful overproduction annually, contributing extra cash earnings to Golar with no associated cost.

    Hilli FLNG transition periodJuly 2026 to early 2027

    Hilli's current charter ends in July, followed by 6-7 months for upgrades in Singapore.

    Mitigation: Primary focus is on preparation work to ensure smooth disconnection, upgrades, and timely start of the 20-year Argentina contract.

    What to watch in Q2 FY26

    5

    Fourth FLNG Unit Order

    within 2026
    CurrentActively securing slots for long lead items, inspecting donor vessels, confirming shipyard pricing
    TargetOrder placed for fourth FLNG unit

    Why it matters

    Key to accelerating FLNG growth and capitalizing on strong commercial pipeline and market demand.

    We are now actively working to order our fourth unit within '26.

    Q&A highlights

    7

    How have geopolitical events, specifically the Iran war and Rosneft incident, influenced commercial discussions for new FLNG units?

    The Rosneft incident, which removed 7 million tonnes of LNG supply for 3-5 years, has created urgency for early delivery of new FLNG capacity. This has shifted commercial discussions from price to securing capacity, a more favorable dynamic for Golar.

    “So instead of having sort of a price war with the counterpart, it's who gets the first delivery, and that's a much better dynamic for us than to discuss tariff details.”

    asked by John Mackay · answered by Karl Staubo

    2 min read6 chapters

    Detailed Narrative

    01

    FLNG Market Development

    The FLNG industry, which commenced in 2018, currently comprises 14 units (9 operational, 5 under construction) and is projected to expand significantly to well over 100 units over time⏳, drawing parallels to the growth trajectory of the FPSO industry. Golar asserts that floating solutions offer a highly sustainable competitive advantage, stemming from lower gas sourcing costs, a 30-40% cost advantage compared to land-based liquefaction, and favorable shipping distances to key markets.

    02

    Argentina Project Progress

    The San Matthias pipeline, a critical infrastructure component for the Hilli and Mark II FLNG operations in Argentina, is advancing ahead of schedule. Contracts for line pipes, compressor stations, and Engineering, Procurement, and Construction (EPC) have been awarded, with the pipeline expected to be completed within two years, aligning with the Mark II's anticipated arrival. Golar has committed an equity investment of approximately $77 million in the pipeline, anticipating attractive infrastructure returns over 20 years.

    03

    Commercial Pipeline & New Unit Orders

    Geopolitical disruption🌐s, particularly the Rosneft incident which removed 7 million tonnes of LNG supply for 3-5 years, have significantly accelerated commercial discussions for new FLNG units. This has shifted the focus from price negotiations to securing the earliest possible delivery. Golar is actively securing long-lead items for a potential fourth FLNG unit, targeting a 36-month construction timeline, and is evaluating donor vessels and confirming shipyard pricing and delivery schedules.

    04

    Commodity Upside

    A substantial increase in LNG price indices during Q1 FY26 has enhanced the value of Golar's commodity exposure embedded in its Argentina contracts. This is expected to generate an additional $200 million to $500 million in annual earnings for the first three years of CESA operations. The company plans to lock in these commodity-linked earnings through hedging activities once the remaining 4 million tonnes of offtake capacity is secured.

    05

    Strategic Review

    Golar has initiated a strategic review to explore various options aimed at accelerating its FLNG growth ambitions and maximizing shareholder returns. This initiative underscores the company's intent for further expansion beyond its current three units, with a stated policy to add at least one FLNG unit per year going forward⏳. The review's outcome is expected to shape the company's future growth trajectory and capital allocation strategy.

    06

    Operational Excellence

    The Gimi FLNG unit achieved an all-time high production in Q1 FY26, operating 19% above its contractual levels and generating over $700,000 per day. While this overperformance is partially attributed to favorable ambient temperatures and is not expected to be fully annualized, Golar anticipates meaningful annual overproduction. The Hilli FLNG unit maintained its market-leading 100% economic uptime since commencing operations in 2018, having successfully produced 152 cargoes.

    AI-generated summary of the company’s earnings call. Not investment advice.