Aug 13, 2026 earnings call — New FLNG unit order and growth plan
Golar signed a new FLNG order and said total EBITDA backlog is $17 billion before commodity upside.
Revenue $0.1B (est $0.1B) · EPS $0.68 (est $0.55)
Key quotes
"Overnight, we signed our fourth FLNG unit, which is another Mark II FLNG to be constructed at CIMC Raffles Shipyard in China."
"With Gimi, Hilli and Esperanza fully operational, we expect an annual run rate EBITDA of approximately $800 million by 2028 before commodity upside and inflation adjustments."
"During the quarter, Hilli completed her 8-year contract for Perenco offshore Cameroon with 100% economic uptime for the life of the contract."
Analyst Q&A 6
How to find a customer and returns
Q (John Mackay · Goldman Sachs): He asked how the company will commercialize the fourth vessel and the timeline/milestones to sign a customer. He also asked about target return profiles for the vessel.
A: Management said they chose a Mark II and expect to secure a long-term charter around a 20-year duration. They gave a clear three-step commercial path: signing a term sheet or framework, converting that to a definitive contract, and then lifting the CPs. They also reiterated guidance around a 5 to 6x CapEx to EBITDA range.
"So 3, call it, key steps, signing of term sheet, signing of definitive contracts and lastly, lifting of CPs." — Karl Staubo (CEO)
Choosing shipyard and budget difference
Q (Alexander Bidwell · Webber Research & Advisory): He asked how the company decides between shipyards for the next unit and if there are any differences. He also asked about the budget delta between Esperanza and the second Mark II.
A: Management said they are comfortable with both yards and the choice will come down to price, payment terms and delivery, with possible charter preferences for one yard. For the budget delta, they said the second Mark II is around a 10% increase mainly from long-lead equipment cost inflation, steel prices and currency effects, and that the stated price is an all-in price that includes EPC, crew training, bunkering, transport and the mooring system.
"I would also like to highlight that when we say that this is the price, that's the all-in price." — Karl Staubo (CEO)
Why choose Mark II and options timing
Q (Sherif Elmaghrabi · BTIG): He asked why the company ordered a Mark II now and whether that reflects charter discussions. He also asked when the additional options expire and the delivery lead time.
A: Management said the primary reason for choosing Mark II is the strongest charter engagement for relatively near-term employment and attractive CapEx per tonne and OpEx per MMBtu, supported by the shipyard's solid performance. They declined to give exact option expiry dates for commercial reasons, but said typical delivery is around 38 to 40 months depending on shipyard.
"The primary reason for going with that unit is that's where we see the strongest charter engagement for relatively near-term employment of the unit." — Karl Staubo (CEO)
Multiple units in one country and review status
Q (Christopher Robertson · Deutsche Bank): He asked if a fifth vessel could go to the same country or if opportunities are spread out. He also asked for an update and timing on the ongoing strategic review and about the Hilli refurb budget and timeline.
A: Management said both scenarios exist: some countries can take multiple units and others will take one, citing Argentina and Mozambique as examples, and they usually start with one and build from there. On the strategic review, they said it is ongoing and they will not comment on outcome or timing until there is material information or the Board decides; and they confirmed the refurb budget for Hilli is around $350 million from departure in Cameroon until arrival and commissioning in Argentina.
"So the answer is, yes, we can definitely look at multiple deployments in certain geographies." — Karl Staubo (CEO)
CapEx schedule and committing long-lead items
Q (Jostein Aschjem · Clarksons): He asked about the CapEx schedule for unit #4 and whether delivery by 2029 is the aim, and how CapEx will be paid over time. He also asked if the company will start ordering long-lead items for optional units and how far they will commit.
A: Management said the CapEx on unit #4 is meaningfully improved versus the Esperanza, with substantially lower capital outlays in the first two years, and payments remain pay-as-you-go. For the options, they said they negotiated packages that secure many long-lead items for a potential unit #5 at little to no incremental cost, but those packages have time constraints and extending them can push delivery later because of pressure on long-lead items.
"So the CapEx on #4 is meaningfully improved from the Esperanza." — Karl Staubo (CEO)
Counterparty credit and leverage plans
Q (Sunil Sibal · Seaport Global): He asked what geographic and credit qualities they will seek in a fourth counterparty and what credit features to watch. He also asked whether desired leverage changes now that a fourth unit is planned.
A: Management said they are in advanced charter talks in several geographies with NOCs, independents and IOCs, and contract structure will vary with counterpart credit quality; financeability improves with IOCs but may give up commodity upside. On leverage they said past financings show asset-level deals at about 5.5x are possible, they do not want to overextend the balance sheet, and as they lock in more EBITDA backlog they expect the net debt-to-EBITDA ratio not to meaningfully change.
"At the end of the day, an FLNG is paid by the client who buys the offtake gas." — Karl Staubo (CEO)