FLNG Hilli: Hilli has offloaded its 142nd cargo. The existing charter contract in Cameroon ends in July 2026. During Q3 2025, Golar selected Seatrium shipyard for the re-deployment scope following the unit’s exit from Cameroon and before starting 20-years of operations in Argentina. Hilli is expected to enter Seatrium’s Singapore yard in the third quarter of 2026 for upgrades and life extension works before arriving in Argentina for its charter with SESA during Q2 2027.
Key commercial terms for Hilli’s 20-year SESA agreement in Argentina include Adjusted EBITDA1 to Golar of $285 million per year, with an additional commodity linked FLNG tariff component of 25% of FOB prices in excess of $8/MMBtu. This will add approximately $30 million of potential annual upside to Golar for every US dollar the achieved FOB price is above the reference price of $8/MMBtu.
The current contractual Hilli sale leaseback financing facility has an outstanding balance at Q3 2025 of $524 million. Subject to pace of incremental FLNG growth units, we target to optimize the debt facility on Hilli on the back of her strong earnings visibility and proven operational track record.
FLNG Gimi: Gimi is in the process of offloading its 14th cargo under her 20-year charter to BP offshore Mauritania and Senegal. The vessel is operating well and is in its contractual post-COD appraisal period. During Q3 and into Q4, equipment was tuned to optimize performance. Production is now frequently exceeding base capacity, further operational efficiencies are expected. Golar owns 70% of Gimi, and the Company’s share of the net earnings backlog1 for the 20-year contract duration is expected to be approximately $3 billion.
Golar is actively working with the GTA partners to identify and develop value enhancing initiatives for the GTA project, including operational efficiencies and debottlenecking of production capacity to improve the project’s unit economics.
Gimi MS Corporation is in advanced stages of entering into a new credit approved $1.2 billion bank financing agreement for Gimi. The facility is estimated to close within Q4 2025.
3.5 MTPA MKII FLNG conversion: During the quarter and subsequent month, FID and all conditions precedent and customary closing conditions in connection with the 20-year charter of Golar’s 3.5 MTPA MKII FLNG to SESA were satisfied. This follows the execution of definitive agreements in May 2025. The project has received all key governmental approvals, including an unrestricted 30-year LNG export authorization in Argentina, and qualification as Strategic Investment under the Large Investments Incentive Regime (“RIGI”).
The 20-year charter of the MKII FLNG solidifies $8 billion of Adjusted EBITDA backlog1 over 20-years, equivalent to $400 million in annual Adjusted EBITDA1 to Golar, before commodity exposure and inflationary adjustments. The commodity linked tariff component will add approximately $40 million of potential annual upside to Golar for every US dollar the achieved FOB price is above the reference price of $8/MMBtu. The MKII FLNG will be deployed in the Gulf of San Matías, offshore Argentina, where it will operate in proximity to Hilli.
The MKII FLNG is currently under conversion with a total budget of $2.2 billion. Conversion work is proceeding to schedule. As of September 30, 2025, Golar had spent $1.0 billion on the conversion, all currently equity funded. The conversion work is scheduled to complete in Q4 2027. The FLNG unit will then sail to Argentina with contract start-up expected during 2028.
We are evaluating asset level financing on the back of the confirmed 20-year charter of the MKII FLNG where proceeds can be directed towards attractive FLNG growth opportunities.
Southern Energy: SESA is a company formed to enable LNG exports from Argentina. SESA is owned by a consortium of leading Argentinian gas producers including Pan American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%), as well as Golar (10%).
Golar’s 10% ownership of SESA provides additional commodity exposure. With both FLNGs operational, the 10% equity stake equates to additional commodity exposure to Golar for every US dollar/MMBtu change in achieved FOB prices above or below SESA’s cash break even. Combined with the commodity exposure in the FLNG charters Golar’s total commodity exposure for the FLNG charter contracts and through our ownership in SESA is therefore approximately $100m for every $1 the FOB price is above $8/MMBtu with a downside of $28m for every $1 the FOB price is below SESA’s cash break even.
Business development: With Golar’s existing FLNG assets on long term contracts and continued momentum for FLNG projects globally, we are increasing focus on attractive FLNG growth projects.
Recent announcements of additional FLNGs in Mozambique and Indonesia to liquify resource holders’ own gas in addition to Golar’s now concluded projects in Argentina to liquify third party gas, collectively reflect a growing industry recognition of the benefits of FLNG solutions. Golar remains the only proven provider of FLNG as a service.
Golar has entered into contracts with the three relevant shipyards for our MKI, MKII and MKIII FLNG designs to obtain updated pricing, delivery and payment terms for a contemplated 4th FLNG order. Competition for long lead items from industrial applications, including AI data centers, is increasingly affecting delivery timelines. The majority of the long lead items are interchangeable between the different designs but vary in magnitude and size of equipment. In order to safeguard an attractive timeline for our next FLNG we are planning to order long lead equipment during Q4 2025. We have also inspected suitable donor vessels for our MKI and MKII designs. The current state of the LNG shipping market allows for access to attractive conversion candidates.
Alongside the technical work stream we continue to develop our commercial pipeline, including potential expansion of existing clients’ liquefaction plans and further developing projects with charterers that were competing for Hilli’s redeployment and the first MKII contract as alternatives to the SESA contracts in Argentina. We continue to witness strong demand for FLNG to monetize stranded, associated and flared or re-injected gas reserves. The growing opportunity set includes new areas which currently do not employ FLNGs. We are pleased with strong counterparty engagement, including potential upstream partners and fiscal and export terms being developed with potential new LNG exporters. Golar remains on track to decide on the vessel design for its fourth FLNG in the coming months.
We see demand for several additional FLNG units in due course. Golar will maintain its policy of maximum one unchartered FLNG at a time.
Corporate/Other: Operating revenues and costs under corporate and other items are comprised of two legacy FSRU O&M agreements in respect of Italis LNG and LNG Croatia. The LNG Croatia contract concluded in late October 2025. The Italis LNG contract is expected to end in Q2 2026.
Shares and dividends: 102.4 million shares are issued and outstanding as of September 30, 2025. Golar’s Board of Directors approved a total Q3 2025 dividend of $0.25 per share to be paid on or around November 24, 2025. The record date will be November 17, 2025.
On November 4, 2025 the board approved a new $150 million share buyback program. The previous buyback program was fully utilized when the Company repurchased and subsequently cancelled 2.5 million shares in conjunction with the convertible bond offering in June 2025. In line with the Company’s view of a strong balance sheet, $17 billion Adjusted EBITDA backlog1 and attractive growth outlook the board see accretive value in continuing share buybacks.
1. Refer to accompanying press release (Report tab) section “Non-GAAP measures” for definition and reconciliation to the most comparable US GAAP measure, where applicable.
