Golar LNG Ltd. Earnings Call Insights: Financing Details and Carriers

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Golar LNG, Ltd. (NASDAQ:GLNG) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.

Financing Details

Mike Webber – Wells Fargo: There’s lot going on and you guys said in a number of releases that kind of came out ahead of the quarter the financing efforts that are used. So I kind of wanted to zero in on liquefaction to start and maybe start with Douglas Channel. Can you maybe give kind of an updated timeframe around FID? And then, you mentioned a couple key commercial and shareholder issues, if you can give a little bit more color there around where that stands? And I think, Doug, you also mentioned, you guys had actually looked at a loan intra-quarter and maybe some more color around whether or not that was finalized, that you guys will make 25% at once? And then maybe, could you give, like, what the financing stands for that project?

Doug Arnell – CEO: Yeah. So in terms of timing, I think that the final investment decision will certainly depend on the FEED work being completed for both the production facility and on the onshore facilities. We’re running really hard to try and get those done by the end of September. That’s our goal. I’d say that there’s a bit of a risk that that slips a little bit into the fourth quarter, but that’s kind of the timing we’re working on now. The issues that we’re working around with shareholders and commercial, it’s a lot to do with just having to put a lot of details together in a short amount of time, and hence the original structure is still holding together, but it takes a lot of details. There’s a fair number of commercial agreements for gas supply, structuring the shareholder agreements around the various parts of the asset structuring the off-take sale. So it’s just a matter of getting through all of that which is quite a complex set of agreements, nothing more than that. But I just – we just don’t want anybody to get ahead of themselves, there is work to be done and commercial issues to be resolved before the final investment decision can take place. The loan I was referring to was actually the funding that went into the project. I believe this was described in some form in the release we made about – I believe, we included something about Douglas Channel in the first quarter results release. But the loan that I was referring to was the loan that went into the project in order to provide funds to take the project to FID, not beyond…

Mike Webber – Wells Fargo: Okay, okay.

Doug Arnell – CEO: So that was a loan. We probably put around $14 million to $15 million in play on this project both in internal costs and that loan. The loan is the vast majority of those dollars. And that loan is collateralized by the project assets, obviously, which include the export license and the pipeline capacity and the engineering work and stuff like that…

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