Golar LNG (NASDAQ:GLNG) reported what management described as a record quarter for LNG production in the first quarter of 2026, as its floating liquefied natural gas units delivered strong operating performance and the company advanced plans for additional growth.
Chief Executive Karl Fredrik Staubo said Hilli continued its 100% economic uptime, while Gimi produced 19% above committed contractual capacity during the quarter. The company’s Mark II FLNG remains on budget and scheduled for delivery by year-end 2027, with expected start-up under a 20-year charter in summer 2028.
Revenue, EBITDA and Net Income Rise
Chief Financial Officer Eduardo Maranhão said total operating revenue rose to $138 million in the quarter, while EBITDA increased 16% from the prior quarter to $106 million. Net income increased to $102 million.
Maranhão said the quarter demonstrated the earnings power of Golar’s FLNG platform with only two FLNG units currently operating and before any contribution from Mark II. He said Gimi’s outperformance was supported by strong production, favorable ambient conditions and operational optimization, while Hilli again maintained 100% commercial uptime.
The company declared another quarterly dividend of $0.25 per share for the first quarter of 2026. Maranhão said Golar deployed about $200 million during the quarter across dividends and growth investments, including approximately $25 million returned to shareholders through dividends and more than $134 million invested in FLNG growth projects.
Backlog and Earnings Outlook
Golar said its EBITDA backlog stands at $17 billion before commodity upside and inflation adjustments, with all FLNGs under 20-year charters. Staubo said operating expenses, maintenance capital expenditures and local taxes are covered by charter counterparties under the company’s long-term contracts.
Management said Golar’s 70% ownership in FLNG Gimi translates into annual EBITDA generation of $150 million before utilization bonuses. Hilli is expected to generate $285 million annually once it begins its long-term contract in Argentina, while Mark II is expected to generate $400 million.
On a fully delivered basis, once all three units are in operation, Maranhão said annual run-rate EBITDA is expected to exceed $800 million before commodity upside. He said the current capital structure would imply leverage declining to about 3.4 times, supported by long-term contracted cash flows.
Golar also highlighted commodity-linked upside in its Argentina contracts. Staubo said the increase in LNG price indices during the quarter raised the value of the company’s commodity exposure by approximately $200 million to $500 million per year in the first three years of operations. Maranhão said every $1 per million BTU increase in LNG prices above $8 is estimated to generate about $100 million of incremental annual upside.
Argentina Projects Advance
Hilli is scheduled to end its current charter in Cameroon in July before sailing to Singapore for vessel upgrades expected to last six to seven months. It is then expected to relocate to Argentina to begin a 20-year contract in summer 2027. Staubo said Hilli has produced 152 cargoes since beginning operations in 2018 and generated $47 million in the first quarter.
The company also advanced supporting infrastructure in Argentina. Staubo said Golar entered into a 10% investment in the San Matías Pipeline, which will move gas from the Vaca Muerta field to Golfo San Matías to support Hilli and Mark II. Golar expects to invest about $77 million of equity in the pipeline, which Staubo said is expected to generate an infrastructure return over 20 years once operational.
Staubo said work is underway on compressor stations and trenching for onshore and offshore pipeline infrastructure. He said a 19-kilometer connection to Argentina’s existing gas grid is on schedule for Hilli, while a dedicated pipeline of more than 500 kilometers from Vaca Muerta to Golfo San Matías is also progressing. During the quarter, line pipe, compressor stations and EPC work were awarded for the dedicated pipeline.
In response to analyst questions, Staubo said rights of way and regulatory approvals are in place for the dedicated pipeline, which will run alongside an oil pipeline started in December 2024. He said construction time is “well within two years” and should be ready when Mark II arrives.
Fourth FLNG Targeted for 2026
Staubo said Golar is actively working to order its fourth FLNG unit this year, with target regions including West Africa, the Middle East and South America. The company is securing long-lead items, inspecting donor vessels and confirming shipyard pricing, payment terms and delivery schedules.
During the question-and-answer session, Staubo said disruptions in the Middle East had increased urgency among potential customers seeking earlier liquefaction capacity. He said Golar believes it can deliver an FLNG in about 36 months for Mark I and Mark II designs, which he described as potentially the earliest available liquefaction capacity globally.
Staubo said the next unit is expected to be either a Mark I or Mark II design, and that a donor vessel could be used for either. He reiterated that Golar targets long-term contracts of 15 to 20 years with CapEx-to-EBITDA in the range of five to six times, while also seeking inflation adjustments and commodity upside where possible.
Management also said the company is conducting a strategic review to explore options to accelerate FLNG growth and maximize shareholder returns. Staubo said Golar would not provide additional commentary on that process until the review is complete.
Balance Sheet Flexibility and Market Position
Maranhão said Golar ended the quarter with just over $1 billion in cash and about $1.7 billion in net interest-bearing debt. Mark II remains unencumbered despite $1.2 billion invested to date, which he said creates flexibility for future financing. He also said potential optimization of Hilli’s financing structure could unlock additional liquidity to support further FLNG growth.
Golar said its market capitalization has grown to approximately $5.7 billion, with average daily trading volume above $100 million. The company also has about $800 million outstanding across two senior unsecured bonds, alongside a $575 million convertible bond maturing in 2030.
Staubo said Golar has delivered more than 185 LNG cargoes with no unplanned downtime and remains focused on expanding its FLNG platform. He said the company sees strong demand for energy diversification and expects floating LNG to play a growing role in opening new export markets.
About Golar LNG (NASDAQ:GLNG)
Golar LNG Ltd. is a leading owner and operator of liquefied natural gas (LNG) carriers and floating infrastructure. The company specializes in the transportation of LNG on long-term and spot charters for major energy firms around the world. In addition to shipping, Golar LNG has broadened its services to include project development and the conversion of existing carriers into Floating Liquefied Natural Gas (FLNG) and Floating Storage and Regasification Unit (FSRU) vessels.
Since pioneering the first purpose-built FLNG conversion project, Golar LNG has been at the forefront of offshore gas monetization.
