Golar LNG (NASDAQ:GLNG) reported fourth-quarter 2025 results highlighted by higher revenues, continued strong performance from its operating FLNG assets, and additional progress in Argentina and on financing. Management also emphasized expanding long-term cash flow visibility from its contracted portfolio, continued share repurchases, and a board-led strategic process intended to explore ways to enhance shareholder value ahead of a step change in cash generation expected later in the decade.
Portfolio update and long-term contract visibility
CEO Karl Fredrik Staubo said Golar now owns three FLNG vessels with 20-year charter backlog. He described the Hilli as “the best performing FLNG globally,” noting it delivered another quarter of 100% economic uptime. The FLNG Gimi began its 20-year contract for BP offshore Mauritania and Senegal in June 2025 and is producing above its contracted volume, while the company’s Mark II FLNG conversion project remains under construction and on schedule for delivery by year-end 2027, ahead of a planned long-term charter in Argentina.
Management also reiterated the scale of contracted cash flow, citing an EBITDA backlog of $17 billion before commodity-linked earnings and inflation adjustments. Staubo said adjusted EBITDA was $232 million for 2025, and the company expects that figure to rise to about $800 million once the fleet is fully delivered and operating on long-term contracts.
Q4 2025 financial results and shareholder returns
CFO Eduardo Maranhão reported operating revenues of $133 million in the fourth quarter and $394 million for the full year, an increase of more than 52% versus 2024. Net income was $23 million for the quarter and $113 million for the full year, up 40% year-over-year. Adjusted EBITDA was $91 million in Q4 and $265 million for the year, which he said was supported by Hilli’s 100% commercial uptime and overproduction, along with higher Gimi earnings driven by increased volumes and improved ambient conditions.
The company declared a quarterly dividend of $0.25 per share, with a March 9 record date and March 18 payment date. Maranhão also said Golar remained active in repurchasing shares: the company bought back and canceled 1.1 million shares during Q4 at an average price of $37.76 per share, and repurchased and canceled 3.6 million shares during 2025. Management said approximately $190 million remained under the buyback authorization.
In its capital allocation discussion, management said it intends to allocate most operating cash flow after debt service to shareholders while recycling capital via asset-level financings and debt optimization to support growth. Maranhão said total returns to shareholders in 2025 were about $250 million (dividends and buybacks combined), while the company invested more than $750 million in FLNG-related capital expenditures during the year.
Financing activity and balance sheet positioning
Golar completed two major financing transactions in Q4 totaling $1.7 billion. Staubo and Maranhão highlighted a $1.2 billion commercial bank refinancing for Gimi, replacing the prior $630 million structure. Management said the new facility had improved terms and “proves the bankability” of operational FLNG assets under long-term contracts. The company also entered the U.S. rated unsecured bond market with a $500 million five-year senior unsecured note offering at a 7.5% coupon; Maranhão added that $190 million of the company’s 2021 bonds were repaid at that time.
At year-end, the company had $1.2 billion of cash, total gross debt of $2.7 billion, and net debt of $1.5 billion. Maranhão said that on a fully delivered basis in 2028—once the Argentina FLNG units are operating—net leverage is expected to decline to just over 3.4x.
On future financing potential, Maranhão said the Gimi refinancing raised approximately 5.6x annual contracted EBITDA. He noted that applying a similar multiple to other assets could imply “in excess of $1.5 billion” for Hilli and “over $2 billion” for Mark II, underscoring what management views as substantial financing capacity under 20-year agreements.
Operational performance: Hilli, Gimi, and Mark II progress
For Hilli, management said 2025 included slight overproduction, with $2.5 million of excess earnings recognized above the contracted 1.4 million tons capacity. Staubo also noted that in December the vessel reached a milestone of producing 10 million tons of LNG since its 2018 startup. Long-lead items for the upcoming Singapore yard work have been ordered, and prefabrication has begun. Management estimated a total redeployment budget of $350 million, including towing, yard stay, recommissioning, training, spares, and contingencies.
For Gimi, management said the unit continues to optimize in collaboration with the upstream partners at the Greater Tortue Ahmeyim (GTA) project. In Q4, Golar invoiced a dayrate 3% above the contractual dayrate due to higher utilization and said it is “now frequently producing” at volumes that would exceed nameplate on an annualized basis, while noting throughput varies with gas quality and ambient temperatures. Staubo said the contracted rate is based on 90% of nameplate, with pro rata earnings for production above that level, and management expects Gimi to exceed contracted volumes on an annual average basis.
Mark II construction remains on budget and on schedule, with conversion work close to 50% complete. Staubo said approximately $1.1 billion of the $2.2 billion conversion scope has been spent, all equity financed to date, and that the project has exceeded 6 million man-hours without lost-time injuries.
Argentina development, market outlook, and strategic process
Management said Southern Energy S.A. (SESA) is advancing supporting infrastructure in Argentina, including awarded investments of approximately $500 million to date for pipeline grid connections, support vessels, and a land-based warehouse. SESA is also progressing a new pipeline from Vaca Muerta to the Gulf of San Matias, with contracts for turbo compressors and line pipes awarded in December 2025, and an EPC award targeted in the first half of 2026.
In Q4, SESA signed a letter of agreement for an eight-year offtake deal for the first 2 million tons of production in Argentina with SEFE (a subsidiary of the German government). Staubo said 1 million tons is linked to Brent and 1 million tons is linked to Henry Hub plus a premium, and management expects additional details to be disclosed once finalized.
Staubo reiterated the company’s view that its Argentina contracts include “embedded commodity upside” through a profit-sharing mechanism and Golar’s 10% shareholding in Southern Energy, while also describing downside sensitivity if local prices fall below a cash break-even level. Management said it expects commodity-linked earnings for Hilli to rise into its contract end in July 2026 and noted that the market may be underappreciating the Argentina-linked upside.
On growth, Golar said it has confirmed yard availability and pricing for three FLNG “growth designs,” and is in discussions for potential deployments in Africa, the Middle East, and South America. Staubo said the company does not expect meaningful capital expenditures until commercial terms mature and emphasized the importance of matching vessel design to project requirements.
Chairman Tor Olav Trøim said the board believes the company’s share price does not fully reflect the value of its contracts, embedded options, and “Golar franchise.” He said the board has initiated a process to seek external advice and explore alternatives to enhance value ahead of the expected cash flow ramp in 2028, but declined to discuss specific paths or timing. Management said the strategic discussions would not change day-to-day operations or its focus on advancing new FLNG opportunities, while acknowledging a desire to align the timing of additional newbuild or conversion commitments with a stronger cash flow period.
About Golar LNG (NASDAQ:GLNG)
Golar LNG Ltd. is a leading owner and operator of liquefied natural gas (LNG) carriers and floating infrastructure. The company specializes in the transportation of LNG on long-term and spot charters for major energy firms around the world. In addition to shipping, Golar LNG has broadened its services to include project development and the conversion of existing carriers into Floating Liquefied Natural Gas (FLNG) and Floating Storage and Regasification Unit (FSRU) vessels.
Since pioneering the first purpose-built FLNG conversion project, Golar LNG has been at the forefront of offshore gas monetization.
