Golar LNG Energy - New Time Charter Contracts

Golar LNG Energy Limited is pleased to announce that it has entered into agreements to time charter its 4 modern LNG carriers (Golar Grand, Golar Viking, Golar Arctic and Golar Maria) for periods of between 12 and 18 months to various charterers. Total charter coverage amounts to 57 months. The commencement of the different fixtures ranges from February to April 2011.
The combined annualized EBITDA contribution of all 4 vessels derived from these time charters is approximately $80 million based on assumed levels of operating costs. This represents attractive rates above the current spot market rate for LNG carriers.
The spot market for LNG vessels over the last decade has been highly volatile resulting in difficulties maintaining reasonable utilization rates. Total operating costs for LNG carriers while not on-hire are significantly higher than in other shipping markets; due to high fuel consumption during idling, cool down requirements and repositioning costs. This fact, along with current attractive charter rates, is a contributing factor with regards to the decision to fix out the vessels for the near term.
Golar Energy's CEO, Oscar Spieler said in a comment: "The LNG shipping market has recently tightened and these four time charters, together with the recent success on the Nusantara Regas Project in West Java, puts the Company in a strong position for further growth. The charter coverage will strengthen the Company's liquidity position and create liquidity for developing additional FSRU projects without raising additional equity. We believe that the market will strengthen further in the years to come due to a relatively small newbuilding order book, strong increases in LNG production, and changing trading patterns."
Source: Press release