Golar LNG reports net income of $13.9 million for the three months ended December 31, 2003 and operating income of $17.6 million, both of which are increased from last quarter's net income of $7.1 million and operating income of $12.0 million ($10.1 million and $16.1 million, respectively, for the fourth quarter of 2002). The increases are primarily due to the inclusion of a full quarter's trading from the Methane Princess and lower levels of offhire across the rest of the fleet. Included in operating income for the three months ended December 31, 2003 is a charge for depreciation and amortization of $8.8 million as compared to $7.8 million for the third quarter of 2003 ($7.7 million for the same period in 2002). Earnings per share for the quarter were $0.22 as compared to $0.12 for the third quarter of 2003 ($0.18 for the fourth quarter of 2002).
The result is after a net (after minority interests) gain of $2.8 million, as compared to a gain of $2.2 million in the previous quarter ($0.8 million for the fourth quarter of 2002) as a result of the movement of the fair value of interest rate swaps. Additionally, a net foreign exchange gain of $1.7 million has been recorded which relates to the translation of the different balances relating to the capital leases, all of which are denominated in British Pounds. As explained in our second quarter report this exchange gain represents an unrealised gain on long-term monetary assets and liabilities that will be realised over the term of the leases depending on the future movement of interest rates.
Operating revenues for the fourth quarter of 2003 were $37.2 million, ($33.5 million for the fourth quarter of 2002) which represents an increase of 26% from the third quarter as a result of, as noted above, the inclusion of a full quarter's trading from the Methane Princess and lower levels of offhire across the rest of the fleet. Average daily time charter equivalents (TCEs) were $57,500 for the quarter. The overall TCE for the quarter was affected by some offhire incurred as a result of repair work.
Vessel operating expenses for the fourth quarter of 2003 were $8.5 million compared with $7.6 million for the previous quarter and $7.8 million for the same period in 2002. The increase is mainly due to the inclusion of the Methane Princess for the whole of the fourth quarter of 2003.
Administration costs were $2.3 million for the quarter as compared to $2.1 million last quarter and $1.9 million for the fourth quarter of 2002. These amounts include expenses in respect of the Baja and Livorno projects.
Net interest expense for the fourth quarter of 2003 was $6.4 million, which includes a full quarter's charge for the financing of the Methane Princess, and compares to $5.2 million for the third quarter of 2003 and to $5.4 million for the same period in 2002. Included within interest expense and interest income for this quarter is $6.3 million and $6.1 million respectively relating to both of the Company's lease finance transactions. The $6.3 million expense is interest recorded in respect of the lease obligation and the $6.1 million income arises from the cash deposit securing the obligation.
Other financial items of $6.0 million income for the quarter, as compared to $3.0 million income last quarter, ($1.0 million income for the same period in 2002), include a gain of $4.7 million associated with the fair valuing of interest rate swaps, as compared to a gain of $3.7 million last quarter ($1.4 million gain for the same period in 2002). The gain is reduced by the minority interest element of 40 per cent resulting in a net book gain of $2.8 million for the fourth quarter of 2003.
For the twelve months ended December 31, 2003 the Company reports revenues of $130.6 million, (2002 $130.6 million), net income of $39.6 million, (2002 $27.1 million), and earnings per share of $0.68 (2002 $0.48). A decrease in revenue this year resulting from increased off hire as a result of drydocks and repairs in 2003 as compared to 2002 has been offset by the addition of revenue from the Methane Princess in 2003.
Stockholders equity has been increased during the quarter by $51 million as a result of an equity offering in December 2003 and by $106 million during the year as a result of this offering together with the equity issue that took place in July 2003. Golar's cash position has also been strengthened during the year as a result of lease finance transactions that have resulted in a cash inflow of $51 million.
The number of shares outstanding as of December 31, 2003 was 65,612,000 and was 56,012,000 as at December 31, 2002. The increase is as a result of the issuance of an additional 5.6 million shares during the quarter ended September 30, 2003 and a further 4.0 million during the quarter ended December 2003. The weighted average number of shares outstanding for the quarter and twelve months ended December 31, 2003 was 62,177,217 and 58,532,548 respectively.
February 29, 2004
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
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