Golar LNG - Increasing the Company's New Building Investment
Golar LNG Limited ("Golar" or the "Company") is pleased to announce that the Company has entered into firm contracts with Samsung Heavy Industries Co. Ltd for a further two LNG carriers.
The two additional vessels, each with a capacity of 160,000cbm have a combined total cost of slightly above $400 million. The first of the carriers is scheduled for delivery in the second quarter of 2014 and the second in early 2015. Subject to declaration deadlines, each contract also comes with an option for a further carrier for 2015 delivery. Attached to both options is the right to select an FSRU alternative and the vessel contracted for delivery in early 2015 also comes with the option for construction as an FSRU. As with Golar's existing new building orders, the vessels will be delivered with tri-fuel diesel electric engines and the lowest boil off rates in the industry making them extremely attractive prospects to charterers.
Chairman John Fredriksen says in a comment: With a total of 13 newbuilings and a further 4 options Golar LNG has secured a strategic unequal position to meet our customers' demand in the fast growing LNG industry. The Board has already seen strong interest for short and long term charters and expects that a solid charter portfolio can be developed prior to the individual deliveries of the new buildings. The increased activities in the LNG market including possible US export also supports a strong spot market in the years to come. The Board is of the opinion that current weakness in Global shipbuilding prices creates limited downside in building prices and an attractive chartering upside. With the existing new building program in place both Golar LNG and Golar Partners has secured the strategic position to have strong growth in cash flow and earnings in the period up to 2016.
Forward Looking Statements
The statements in this press release that are not historical facts may be forward-looking statements. Such forward looking statements, based upon the current beliefs and expectations of Golar's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The information set forth herein should be read in light of such risks. Golar does not assume any obligation to update the information contained in this press release.
Golar LNG Limited
26 February, 2012
Golar LNG Management Ltd - +44 207 063 7900