OREANDA-NEWS. Golar LNG ("Golar" or the "Company") reports second quarter 2013 ("second quarter") net income of USD 59.0 million (including a non-cash gain of USD 47.9 million on interest rate swaps).

EBITDA* generated in the quarter amounts to USD 8.2 million.

Underlying dividends received from Golar LNG Partners ("Golar Partners") during the second quarter 2013 increase to USD 16.0 million from the first quarter level of USD 14.4 million.

Spot market remains volatile and inefficient, as a result the Hilli and Gandria enter layup in Indonesia.

Board maintains dividend at USD 0.45 for the quarter.

Subsequent events

Golar concludes USD 1.1 billion funding facility for eight of its thirteen newbuilds.

Ten year FSRU time charter for the Golar Eskimo concluded with the Hashemite Kingdom of Jordan.

Five year FSRU time charter for the Golar Igloo concluded with the Kuwait National Petroleum Company.

Golar Tundra shipbuilding contract amended to include FSRU capability with new delivery date of November 2015.

Golar Viking continues to trade in the spot market.

Note on Accounting Treatment for Golar Partners

Effective December 13, 2012, the operating income of Golar LNG excludes the operating results of Golar Partners.  This means that the Company's share of the Partnership's results are now split and recorded below operating income based on the class of shares held. 

Dividends pertaining to the Company's common unit holding in the Partnership, General Partner stake and Incentive Distribution Rights (IDRs) will be treated and reported as dividend income.  Equity in Net Earnings of Affiliates will include Golar's share of the Partnership's results in respect of the Company's holding in the subordinated units only.  Against these earnings will be a charge in relation to amortization of a share of the basis difference representing the fair value gain recognized upon deconsolidation.  Where there has been an asset sale to the Partnership, as was the case in the first quarter ("first quarter") the asset concerned will be recorded at fair value and a gain or loss on sale will be recognized within operating income. A portion of the gain or loss will be deferred and amortized over the remaining useful life of the asset concerned.

 
* EBITDA is defined as earnings before interest, depreciation and amortization equal to operating income plus depreciation and amortization.