Golar LNG reports net income of $8.8 million for the three months ended June 30, 2003 and operating income of $15.6 million as compared to $6.1 million and $16.0 million, respectively, for the three months ended June 30, 2002. Operating income includes a charge for depreciation and amortization of $7.0 million and $7.7 million, respectively, for the second quarters of 2003 and 2002. The reduction in the current quarter is due to the amortization of the deferred credit resulting from the lease finance transaction announced last quarter. The amount amortized during the three months ended June 30, 2003 was $0.8 million. Earnings per share for the quarter were $0.16 as compared to $0.11 for the same period in 2002.
The result is after a net (after minority interests) loss of $0.6 million ($2.8 million for the second quarter of 2002) as a result of the movement of the fair value of interest rate swaps. Additionally a foreign exchange gain of $1.0m has been recorded which relates to the translation of the difference between the capital lease obligation recorded on the balance sheet and the cash deposit securing this obligation, both of which are denominated in British Pounds. This is therefore the recognition of an unrealised gain on long-term monetary assets and liabilities. Further foreign exchange translation differences will arise over time as a result of exchange rate movements and their realisation will be dependent upon the movement in interest rates over the 20-year term of the lease.
Operating revenues for the second quarter of 2003 were $30.9 million ($32.1 million for the second quarter of 2002) and average daily time charter equivalents (TCEs) were $59,770. The decline in revenue is mainly as a result of offhire incurred as a result of the scheduled drydocking of one vessel. Two further vessels have drydocked during the third quarter and none are planned for the fourth quarter.
Vessel operating expenses for the second quarter of 2003 were $6.8 million and administration costs were $1.5 million as compared with $7.1 million and $1.5 million, respectively, for the same period in 2002.
The complete report is enclosed on the following link: