GLNGGolar’s not exactly coasting
Golar LNG just served up a Q2 that was more fireworks than filler. Net income attributable to the company hit $38 million, up from $15.6 million a year ago, while revenue climbed 72% to $130.5 million. Adjusted EBITDA more than doubled to $127.4 million, which is the kind of jump that makes investors lean a little closer to the screen.
The bigger storyline: another FLNG bet
The real headline, though, is the company’s final investment decision for its 4th FLNG project. Golar signed an EPC contract with Yantai CIMC Raffles for a 3.5 MTPA MKII unit with a fully delivered cost of about $2.45 billion. Translation: Golar is still pressing the gas on floating LNG infrastructure, and that’s a very different vibe from a company just milking today’s numbers.
Why investors should care
This is the classic “great quarter, plus an even bigger future project” setup. On one hand, the current business is clearly throwing off more cash and profit. On the other, a multi-billion-dollar buildout can be exciting, but it also raises the usual questions about execution, financing, and how much leverage the company wants to lug around like a backpack full of bricks.
Big picture
If you’re bullish on LNG demand and Golar’s niche in floating liquefaction, this update gives you more fuel. If you’re more cautious, the new project is the part to watch — because in capital-intensive land, the next growth engine can also become the next migraine.