Golar LNG 2025 Q2 Earnings Revenue Rises 17% While Earnings Decline 12.6%

Golar LNG (GLNG) reported its fiscal 2025 Q2 earnings on August 15, 2025. The results reflected strong revenue growth, albeit alongside a decline in net income and earnings per share.

Golar LNG’s earnings report for Q2 2025 highlighted a mixed performance, with revenue outpacing expectations but earnings falling short. The company did not provide specific guidance adjustments, with results largely in line with prior expectations for the revenue growth but below in terms of profitability.

Revenue

Total revenue for Golar LNG increased by 17.0% year-over-year to $75.67 million in Q2 2025, compared to $64.69 million in the same quarter of the previous year. This marked a solid performance in the face of industry headwinds, driven by continued demand for the company’s floating liquefied natural gas (FLNG) solutions and operational efficiencies.

Earnings/Net Income

Despite the revenue increase, Golar LNG’s earnings per share (EPS) declined by 38.6% to $0.15 in Q2 2025, compared to $0.25 in Q2 2024. The company’s net income also decreased to $30.78 million, representing a 12.6% decline from $35.23 million in the prior-year quarter. The drop in profitability was attributed to higher operational costs and lower commodity-linked contract performance.

Price Action

The stock price of Golar LNG edged up 0.70% during the latest trading day, but declined slightly by 0.07% over the most recent full trading week. Month-to-date, the stock gained 0.12%, reflecting relatively muted volatility in the near-term.

Post-Earnings Price Action Review

The strategy of buying Golar LNG shares following a quarter with revenue growth and holding for 30 days delivered moderate returns. However, the approach underperformed the benchmark with a compound annual growth rate (CAGR) of 9.75%, lagging by 16.32 percentage points. The strategy was characterized by a low-risk profile, indicated by a maximum drawdown of 0.00% and a Sharpe ratio of 0.26. Despite the low risk, the stock exhibited significant price swings, with a 37.61% volatility level.

CEO Commentary

Karl Fredrik Staubo, CEO of Golar LNG, described Q2 2025 as a successful quarter, marked by key milestones such as securing 20-year charters for the Hilli and Mark II FLNG units. He emphasized Golar’s leadership in FLNG as a service and its strong financial position, with $900 million in cash and a net debt-to-EBITDA ratio of 3.4x. Staubo reiterated the company's strategy of adding units incrementally and ensuring long-term contracts precede new orders. He also highlighted FLNG’s competitive advantages—cost efficiency, flexibility, and shorter shipping distances—and the potential for commodity-linked upside in contracts. The CEO reaffirmed the company’s focus on balance sheet discipline and growth through accretive projects.

Guidance

Golar LNG anticipates EBITDA growth to expand fourfold compared to the last 12 months, with the potential for further upside from commodity-linked contracts. The company expects to finalize remaining conditions precedent for the Mark II FLNG unit by 2025, with delivery anticipated in Q4 2027 and operations commencing in 2028. Management plans to leverage financing from existing projects to fund additional FLNG units and prioritize shareholder returns through dividends and buybacks, while maintaining a net debt-to-EBITDA target of around 3.4x.

Additional News

In the three weeks following Golar LNG’s Q2 earnings report on August 15, 2025, there were no significant non-earnings-related events reported that met the criteria of M&A activity, C-level changes, or dividend/buyback news. Nigerian media outlets, including Punch Newspapers, covered various developments, such as political by-election tensions, law enforcement actions, and cultural events, but none of these were directly linked to Golar LNG. The company remained focused on its strategic goals and long-term growth through its FLNG projects.