Golar fixes LNG carrier on five-year charter

Golar LNG has recently fixed one of the company’s LNG carriers on a five-year charter, boosting its shipping revenue backlog to $259 million, according to chief executive Karl Fredrik Staubo.

Staubo, who took over as Golar’s CEO in May, revealed this during the company’s second-quarter earnings conference call, but he did not provide any additional information.

Golar reported the company’s “best ever quarterly net income” of $471.4 million, inclusive of a gain on disposal of Hygo Energy and Golar LNG Partners to New Fortress Energy.

“We continue to see strengthening near- and long-term fundamentals for our shipping segment and upward pressure, both on rates and asset values,” Staubo said during the call.

Moreover, Golar’s shipping portfolio achieved a time charter equivalent of $46,700 for the quarter.

Golar currently owns nine LNG carriers and operates seven more, according to its website.

Staubo did not reveal the name of the LNG carrier or the charterer behind the new deal.

“One of the reasons why we decided to do it is that when you have a meaningful shipping fleet, it’s helpful to tie in some of the ships, especially if you can do it way above or well above all-in cash breakeven,” the CEO said.

“Doing a five-year term on one ship also helps with our discussions with the bank in where and how you can potentially refinance the shipping fleet non-recourse to Golar to prepare the shipping fleet for a separation from our FLNG business,” Staubo said.

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