Golar LNG's Q2 2025: Navigating Contradictions in FLNG Capacity Expansion and Demand Strategies

FLNG capacity expansion strategy, debottlenecking potential for Gimi, FLNG unit swapping and demand, and future FLNG project capacity are the key contradictions discussed in Golar LNG Limited's latest 2025Q2 earnings call.



FLNG Fleet Expansion and Growth:
- Golar LNG's EBITDA backlog stands at $17 billion before inflationary adjustments and commodity exposure, with a fully delivered net debt-to-EBITDA ratio of around 3.4x.
- The growth is driven by securing long-term charters, such as the 20-year contract for Hilli and the FID for the Mark II FLNG, demonstrating strong demand for FLNG solutions to monetize stranded gas opportunities.

Contract Upsides and Financial Flexibility:
- Golar LNG has flexibility to fund incremental FLNG growth units, with cash on hand exceeding $900 million and a planned increase in fully contracted EBITDA by more than 4x.
- This financial flexibility is supported by long-term 20-year charters and significant upside potential in contracts, particularly the SESA charters, which have limited downside and substantial upside contingent on LNG FOB prices above $8 per MMBtu.

Shareholder Returns and Dividend Strategy:
- Golar LNG declared a $0.25 per share dividend, with a record date of August 26, as part of its strategy to increase shareholder returns significantly.
- The company has a history of returning capital to shareholders, with $787 million in dividends and share buybacks over the past 4.5 years, indicating its commitment to maintaining strong financial health and shareholder value.