Golar reports operating income of $13.9 million and a net loss of $57.7 million, which includes Other Financial Items loss of $57 million largely relating to non cash interest rate swap valuation losses and foreign currency exchange retranslation losses
Spot traded vessel earnings performance improved over the quarter although spot market softening moving into the first quarter 2009
The FSRU Golar Spirit entered regasification service after smooth commissioning period
Floating LNG cooperation with PTTEP now focusing on identified opportunities
Golar signs Heads of Agreement with LNG Limited covering project participation in (40%) and sole LNG -off-take from the Gladstone LNG project
Continued strong market inquiry for FSRUs
Golar suspends dividend payment to strengthen balance sheet in advance of near term project opportunities
Golar LNG Limited ("Golar" or the "Company") reports a net loss of $57.7 million and operating income of $13.9 million for the three months ended December 31, 2008 (the "fourth quarter"). Net income has been negatively impacted by other financial items loss of $57 million largely relating to non-cash interest rate swap valuation losses and foreign currency exchange retranslation losses.
Revenues in the fourth quarter were $59.5 million increased from $58.1 million for the third quarter of 2008 (the "third quarter").
Headline spot charter rates retained the improvement from the third quarter for the early part of the fourth quarter but began to fall toward the end of the fourth quarter. Average utilisation increased from 83% in the third quarter to 84% in the fourth quarter. Fourth quarter average daily time charter equivalent rates ("TCEs") improved to $46,407 per day compared to $43,443 per day during the third quarter.
The Golar Spirit was employed throughout the fourth quarter on charter to Petrobras, whilst the Golar Winter entered the shipyard for FSRU conversion at the end of the third quarter and will remain in the yard until the second quarter of 2009. The newly chartered in vessel Ebisu went on hire soon after delivery at the end of the third quarter and will remain on hire through the first quarter of 2009.
There were no dry dockings performed during the fourth quarter. The Hilli and the Gandria have not been employed throughout the fourth quarter and are not expected to have earnings throughout 2009.
Measures remain in place to minimise operating costs on these vessels until chartering or project opportunities arise.
Voyage expenses, which largely relate to fuel costs associated with commercial waiting time and vessel positioning, decreased marginally from $11.0 million in the third quarter to $10.2 million for the fourth quarter, aided by the decline in fuel costs and slightly improved utilisation. Vessel operating expenses were higher at $16.0 million for the fourth quarter as compared to $14.6 million for the third quarter whilst administrative expenses were lower …