- EBITDA Backlog & Growth Golar holds $17 billion EBITDA backlog; adjusted EBITDA rose to $232M in 2025, projected to reach $800M upon full fleet delivery.
- Production Surplus Gimi exceeded contractual volumes by 3%, driven by ambient conditions and gas composition, with higher winter output expected.
- Capital Efficiency Mark II construction remains on schedule for 2027 delivery, with 40% lower CapEx per ton vs. land-based solutions despite inflation.
- Shareholder Returns $0.25/share dividend declared; $190M remaining in buyback program, with $575M in convertibles and $800M in unsecured bonds.
- Debt Reduction Outlook Net debt/EBITDA ratio to drop to 3.4x by 2028 as FLNGs operationalize in Argentina, supporting $5/share annual free cash flow pre-commodity upside.
Operational Highlights
The company's FLNG vessels continued to perform well, with Hilli delivering 100% economic uptime and Gimi producing above contracted volume after starting its 20-year contract in June 2025. Mark II is under construction and on schedule for delivery by year-end 2027. The company's embedded commodity upside, comprising a profit-sharing mechanism and a 10% shareholding in Southern Energy, provides an incremental upside of approximately $100 million for every dollar the offtake price is above $8 Argentina.
Valuation and Dividend
Golar's market capitalization is over $4.5 billion, and its P/E Ratio stands at 75.23, indicating a relatively high valuation. The company's dividend yield is 2.32%, and it declared a dividend of $0.25 per share. The net debt-to-EBITDA ratio is expected to reduce significantly to just over 3.4x when all FLNGs are in operation in Argentina in 2028.
Growth Prospects
The company's EBITDA is expected to grow to over $800 million before further commodity upside, and its free cash flow generation is expected to reach around $500 million per year or approximately $5 a share before commodity upside. The commercial pipeline for new projects remains under development, and Golar sees terms that are highly accretive to their platform value. The company is considering alternative ways to enhance value for shareholders, including exploring options with industrial and financial partners.
Future Outlook
The company's focus is on pushing some of the next vessels to the right to reallocate capital, potentially buying back shares. Golar has a remaining allowance of up to $190 million under its buyback program and plans to continue its active approach to accretive buybacks. The company's net present value is increasing daily until both FLNGs are operational in Argentina, driven by the commodity exposure on the SESA contract.