Breaking Down Golar LNG Limited (GLNG) Financial Health: Key Insights for Investors

You've been watching Golar LNG Limited's transition from a shipping company to a pure-play Floating Liquefied Natural Gas (FLNG) powerhouse, and honestly, the Q3 2025 numbers show the strategy is defintely paying off. They just posted an Adjusted EBITDA of $83 million on $122.54 million in revenue, which is a strong beat, but the real story is the long game. That new 20-year charter for the MKII FLNG, which just hit Final Investment Decision (FID) or the final go-ahead, locks in an additional $8 billion in Adjusted EBITDA backlog, pushing their total contracted backlog to a staggering $17 billion-all before commodity upside. That's visibility. Still, with their share of contractual debt sitting at $2.028 billion against a robust $962 million in cash, we need to look past the headline growth to the capital structure that funds it, especially as they plan for the next FLNG unit. We need to figure out what that $0.25 per share quarterly dividend really means for total return when the analyst consensus price target is $50.50. Let's break down the true financial health.

Revenue Analysis

You're looking for a clear picture of Golar LNG Limited (GLNG)'s cash-generating ability, and the takeaway is simple: the company has successfully transitioned from a mixed fleet operator to a pure-play, high-margin Floating Liquefied Natural Gas (FLNG) powerhouse. This shift is defintely the story here.

For the nine months ended September 30, 2025, Golar LNG Limited reported total revenue of $260.71 million, a significant jump from the $194.46 million in the prior year period. This growth highlights the strategic focus on their core FLNG business, which is now the maximum revenue generator. The last twelve months (LTM) ending Q3 2025 saw revenue climb to $326.63 million, representing a 19.15% increase year-over-year. That's strong momentum in a capital-intensive sector.

The primary revenue streams now flow almost entirely from their FLNG assets, which convert natural gas into liquid form right at the offshore source. This is a high-value, long-term contracted service, not a volatile shipping business. The company's Q2 2025 operating revenue of $75.67 million was up 17 percent year-over-year, driven by this change.

• Liquefaction Services (FLNG): The core segment, contributing $56.51 million in Q2 2025.
• Sales-Type Lease Revenue: A new, crucial stream, bringing in $8.22 million in Q2 2025.
• Vessel Management and Other: This revenue doubled to $10.94 million in Q2 2025.

Here's the quick math on the shift: the company reported virtually no time and voyage charter revenues in Q2 2025, compared to $3.13 million a year earlier. They are winding down the legacy Floating Storage and Regasification Unit (FSRU) business, with two legacy agreements expected to end in Q4 2025. This is a deliberate move to simplify the model and focus on the superior economics of liquefaction.

The most significant change is the Commercial Operations Date (COD) of the FLNG Gimi in June 2025, which immediately triggered a 20-year sales-type lease with BP PLC. This single event locks in a projected $3 billion in net earnings backlog over the contract's life. Plus, the finalization of the MKII FLNG charter in Q3 2025 added an $8 billion Adjusted EBITDA backlog. This means Golar LNG Limited has secured all its current and under-conversion FLNG units into 20-year charters, creating a combined Adjusted EBITDA backlog of $17 billion (Golar's share) before commodity exposure. That's exceptional revenue visibility for the next two decades. For a deeper dive into who is betting on this long-term stability, check out Exploring Golar LNG Limited (GLNG) Investor Profile: Who's Buying and Why?

The table below shows the clear segment transition based on Q2 2025 data:

What this estimate hides is the commodity-linked upside in the FLNG contracts, which provides potential for even greater revenue if natural gas prices rise above contractual floors. The base revenue is locked in, but the upside is substantial.

Profitability Metrics

You want to know if Golar LNG Limited (GLNG) is finally turning its massive Floating Liquefaction Natural Gas (FLNG) backlog into real, consistent profit. The answer is a resounding 'yes' for the near term, with a dramatic swing in performance visible in the latest Q3 2025 results, largely thanks to the FLNG Gimi reaching its Commercial Operations Date (COD) in June 2025.

The company's profitability is currently in a major transition, moving from a capital-intensive development phase to a high-margin, infrastructure-like cash flow model. For the third quarter of 2025, Golar LNG Limited reported total operating revenues of $123 million and a net income attributable to Golar of $31 million. This translates to a strong Net Profit Margin of approximately 25.2% for the quarter, a significant departure from the Trailing Twelve Months (TTM) net margin.

Margin Analysis and Industry Comparison

Looking at the full 2025 fiscal year picture (using TTM data as of mid-year, before the full impact of Gimi's operations), you see the historical drag on profitability. The TTM data shows a negative net margin, but the underlying operational efficiency is strong, which is the real story.

• Gross Margin (TTM): 48.38% vs. Industry Average of 39.45%. [cite: 9 in first search]
• Operating Margin (TTM): 2.39% vs. Industry Average of 22.76%. [cite: 9 in first search]
• Net Profit Margin (TTM): -2.4% vs. Industry Average of 13.98%. [cite: 9 in first search]

Here's the quick math: Golar LNG Limited's gross margin is 893 basis points higher than the industry average, which shows phenomenal cost management in its core Floating Liquefaction Natural Gas operations (Cost of Revenue). But the operating margin drops sharply, indicating that overhead, depreciation, and other operating expenses have historically eaten up most of the gross profit. This is typical for a company with massive assets under development, but the Q3 2025 results show the tide is defintely turning.

Operational Efficiency and Profitability Trends

The operational efficiency of Golar LNG Limited is best measured by its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which strips out the non-cash items that skew the net income during the growth phase. Adjusted EBITDA for Q3 2025 jumped to $83 million, a 41% increase from the prior quarter, driven by the first full quarter of operations for both FLNG Hilli and FLNG Gimi.

This massive shift is the clear trend. Analysts project that profit margins will reverse from the TTM -2.4% to a staggering 47.2% by 2028, which would place the company well above the US Oil and Gas sector average. [cite: 6 in first search] This forecast is grounded in the company's contracted backlog, which now stands at a combined Adjusted EBITDA backlog of $17 billion (Golar's share) from its fully chartered FLNG fleet.

The key takeaway is this: the company's gross margin already beats the industry, and with the two FLNG units (Hilli and Gimi) now fully operational, the high fixed costs are being amortized over a much larger and more stable revenue base. You're seeing the switch from a development company to a pure-play infrastructure cash flow generator. If you want a deeper look at the valuation, you can read the full post: Breaking Down Golar LNG Limited (GLNG) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at Golar LNG Limited (GLNG) and trying to figure out if their growth is built on a solid foundation of equity or if it's over-leveraged with debt. That's the right question to ask, especially in a capital-intensive sector like Floating Liquefied Natural Gas (FLNG). The short answer is Golar LNG Limited is managing its balance sheet with a relatively conservative debt-to-equity profile, but it has been very active in the debt markets in 2025 to fund its massive FLNG expansion.

As of the first quarter of 2025, Golar LNG Limited's Debt-to-Equity (D/E) ratio stood at a healthy 0.60. This is a strong figure, especially when you compare it to a major LNG peer like Cheniere Energy, which has a D/E ratio around 1.96. A D/E ratio below 1.0 suggests the company is funding more of its assets with shareholder equity than with borrowed money, which is defintely a good sign of financial stability.

Here's the quick math on their recent debt movements, which map directly to their FLNG growth strategy:

• Total Contractual Debt: Golar LNG Limited's share of contractual debt was $2,028 million as of September 30, 2025.
• Net Debt Position: After accounting for cash, the net debt was $1,367 million at the end of Q3 2025.
• Post-Issuance Debt: Following October 2025's financing activities, the contractual debt increased to $2,338 million, with net debt rising slightly to $1,376 million.

The company is clearly balancing its financing, using debt for large, long-term, contracted projects while committing significant equity. For instance, the $1.0 billion spent on the MKII FLNG conversion as of Q3 2025 was fully equity funded. This shows management is willing to put shareholder capital to work on core growth assets.

The company has been very busy in 2025, strategically raising capital to both fund growth and manage its maturity profile. In July 2025, Golar LNG Limited completed a private placement of $575 million in senior convertible notes due in 2030, carrying a low annual interest rate of 2.75%. This is a smart move because convertible notes offer a lower interest rate than traditional debt, essentially selling investors a future equity option in exchange for cheaper capital today. Plus, they used part of those proceeds to repurchase 2.5 million common shares, which reduces the share count and boosts earnings per share.

More recently, in October 2025, Golar LNG Limited issued $500 million in unsecured senior notes due in 2030 at a 7.500% interest rate. What this issuance hides is a key piece of refinancing: $190 million of the net proceeds were immediately used to repay the outstanding principal balance of the 2021 Unsecured Bonds that matured that same month. This is simply good treasury management, pushing out debt maturities.

The credit rating agencies recognize this mix of stable cash flows from long-term contracts and the inherent risk of operating in high-risk jurisdictions like Argentina. S&P Global Ratings assigned Golar LNG Limited an issuer credit rating of 'B' with a Stable Outlook in October 2025, rating the new senior unsecured notes at 'B-'. Moody's Investors Service also assigned a 'B2' long-term foreign currency credit rating in September 2025. These ratings are non-investment grade, reflecting the company's concentration risk in emerging markets, but the stable outlook signals confidence in the highly predictable cash flows from their long-term, take-or-pay FLNG contracts. You should also review the Mission Statement, Vision, & Core Values of Golar LNG Limited (GLNG) to understand the strategic intent behind this aggressive financing.

Liquidity and Solvency

The immediate takeaway for Golar LNG Limited (GLNG) is a strong, strategically managed liquidity position, but one that is actively being deployed for growth, which is reflected in a negative near-term free cash flow. You have a company with ample cash to meet short-term obligations and fund its massive Floating Liquefied Natural Gas (FLNG) expansion, which is defintely a strength.

When we look at the short-term health, the current and quick ratios (liquidity positions) tell a solid story. The current ratio, which measures the ability to cover all short-term debt with short-term assets, stood at 1.32 in the most recent quarter (MRQ) of 2025. More importantly, the quick ratio (or acid-test ratio), which strips out less liquid assets like inventory, was a healthy 1.20. Both figures are comfortably above the 1.0 benchmark, meaning Golar LNG Limited can cover its current liabilities with its most liquid assets, a sign of good operational efficiency.

The working capital trends are dominated by strategic financing. Following the October 2025 bond activities, the company's total cash position stands at approximately $1 billion, which is a significant war chest. This cash was bolstered by a $575 million convertible senior notes offering in Q2 2025 and a new $500 million senior unsecured bond in October 2025. This is a clear move to fund their growth pipeline, even while the net debt is just under $1.4 billion.

The cash flow statements overview highlights the company's aggressive investment phase. While the core FLNG operations are generating cash, the overall free cash flow (FCF) is negative, clocking in at -$166.71 million for Q3 2025. That's a big number. This negative figure is driven by heavy capital expenditures (capex) in investing activities, specifically the conversion of the MKII FLNG, which has seen $1.0 billion spent and equity-funded as of Q3 2025. This is the cost of building future revenue streams.

Here's the quick math on the cash flow trends:

• Operating Cash Flow (OCF) is positive, but not enough to cover the massive capex.
• Investing Cash Flow (ICF) is heavily negative due to the $2.2 billion MKII FLNG conversion budget.
• Financing Cash Flow (FFC) is strongly positive, thanks to the new debt issuances like the $500 million bond, which is covering the investment gap.

The potential liquidity strength is in the long-term, contracted cash flows. The new 20-year charters for FLNG Hilli and MKII FLNG with Southern Energy S.A. (SESA) confirm an enormous Adjusted EBITDA backlog of $13.7 billion. What this estimate hides is that the current negative FCF is a temporary, planned consequence of funding these massive, long-term assets. The risk isn't immediate liquidity; it's execution risk on the MKII FLNG project. For a deeper dive into the strategic implications of these contracts, you can read our full analysis: Breaking Down Golar LNG Limited (GLNG) Financial Health: Key Insights for Investors.

Your next step should be to track the quarterly capital spending on the MKII FLNG and the progress toward its 2027 delivery, as that's the key to turning the current negative FCF into the projected, significantly higher EBITDA. Finance: map the quarterly capex burn rate against the $1 billion cash balance by next Monday.

Valuation Analysis

You're looking at Golar LNG Limited (GLNG) and wondering if the market has it right. Is it a screaming buy, or is the price already factoring in all the good news? Honestly, Golar LNG Limited's valuation metrics are a mixed bag, which is typical for a company transitioning into a pure-play Floating Liquefied Natural Gas (FLNG) powerhouse.

The headline numbers suggest the stock is priced for future growth, not current earnings. For example, the trailing twelve months (TTM) Price-to-Earnings (P/E) ratio has recently been as high as 1,130.00, and other reports show a negative P/E of -515.50, which tells you that net income is either very small or negative. That's a red flag if you only look at P/E, but it's a consequence of the massive capital expenditure (CapEx) and start-up costs for major projects like the Gimi FLNG unit finally coming online.

A better measure here is the Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which accounts for debt and non-cash expenses. Golar LNG Limited's TTM EV/EBITDA stands around 32.35 as of November 2025. Here's the quick math: the median EV/EBITDA for Golar LNG Limited over the last 13 years was 17.87, so the current multiple is defintely elevated. This premium is the market's way of pricing in the long-term, high-margin contract backlog from their FLNG fleet.

The Price-to-Book (P/B) ratio, which compares the stock price to the company's net asset value, is also on the higher end at approximately 2.2x for the latest twelve months. Historically, the median P/B was closer to 1.0x, suggesting you are paying more than twice the accounting value of its assets, but that's because the market sees the earning power of those assets-the FLNG vessels-as far greater than their book value. It's a growth story, not a deep-value play.

For more on who is jumping into this story, you should check out Exploring Golar LNG Limited (GLNG) Investor Profile: Who's Buying and Why?

• P/E (TTM): 1,130.00 (Signals low or negative recent earnings).
• P/B (TTM): 2.2x (Premium to historical median of 1.0x).
• EV/EBITDA (TTM): 32.35 (Significantly higher than the 13-year median of 17.87).

Stock Performance and Analyst Outlook

Looking at the last 12 months, Golar LNG Limited's stock has traded in a wide range, from a 52-week low of $29.56 to a high of $45.98. The recent closing price is around $37.13 as of mid-November 2025. The stock has been volatile, but it remains well above its low, suggesting a consolidation after a period of strong operational news, particularly the successful start-up of the Gimi FLNG unit.

The dividend picture is interesting. Golar LNG Limited pays an annual dividend of $1.00 per share, which translates to a current yield of approximately 2.72%. The payout ratio based on trailing earnings is high, around 175.44%, which is not sustainable long-term. But, what this estimate hides is the expected step-change in earnings. Analysts forecast a much more sustainable payout ratio of just 61.73% for the next fiscal year, reflecting the full-year contribution from the newly operational FLNG vessels.

Wall Street consensus is bullish, with a consensus rating of Moderate Buy to Strong Buy. The average 12-month price target from analysts is between $50.42 and $51.44. This target represents a substantial upside from the current price, indicating that the analyst community believes the market is currently undervaluing the long-term cash flow potential of the FLNG contracts.

Risk Factors

You're looking at Golar LNG Limited (GLNG) and seeing a massive, secured Adjusted EBITDA backlog of $17 billion, which is compelling. But any seasoned analyst knows that a long-term backlog simply maps out long-term risks, and for Golar, those risks center on execution, geopolitics, and capital structure.

The core of Golar's business is Floating Liquefied Natural Gas (FLNG) vessels, which means their risks are high-stakes. The biggest near-term threat isn't demand-it's getting the new units online on time and on budget. Delays on the MKII FLNG conversion, which has an asset under development value of $1.0 billion as of Q3 2025, could push back the projected quadrupling of EBITDA by 2028. Execution risk is the one thing that can defintely break a high-growth thesis.

Financially, while the company has a strong cash position, the capital-intensive nature of FLNG requires constant vigilance on debt. As of the end of Q3 2025, Golar's net debt position stood at $1,367 million. The company recently raised $500 million in October 2025 through 5-year senior unsecured notes at a 7.5% coupon, which shows the cost of capital in a higher-for-longer interest rate environment.

Here's a quick breakdown of the key risks and the company's counter-measures, as highlighted in their 2025 reports:

• Geopolitical and Regulatory Risk: Operating in emerging markets (EM) exposes Golar to potential tax liability increases or adverse shifts in local political conditions, like those seen in parts of West Africa or South America.
• Commodity Price Volatility: Although the base charter rates are fixed, a portion of Golar's earnings is tied to commodity prices. A material decline in LNG prices could impact the upside from the profit-sharing mechanisms, which kick in when the FOB price is above $8 per MMBtu.
• Client Concentration: The entire current fleet is locked into long-term contracts with a small set of major counterparties (like BP and Southern Energy S.A. (SESA)). If one counterparty struggles, it creates a significant revenue stability risk.

To be fair, Golar has built a robust framework to mitigate these threats. They use long-term, 20-year contracts to secure cash flow visibility, and their legal agreements-including the new SESA contracts-are governed by English Law with dispute resolution handled by the International Chamber of Commerce (ICC) arbitration in France. This gives them a layer of protection against local legal shifts. Also, the company maintains a policy to have a maximum of one unchartered FLNG unit at any given time, which limits exposure to a sudden market downturn.

The table below summarizes the financial risks and contractual protections for their two key assets, based on Q3 2025 data and recent announcements:

You should also review Mission Statement, Vision, & Core Values of Golar LNG Limited (GLNG) to understand the long-term strategic alignment with these risk tolerances.

Growth Opportunities

You want to know where the real money is coming from for Golar LNG Limited (GLNG), and the answer is clear: the company is transitioning from a project-based company to a stable, high-cash-flow infrastructure giant. The linchpin is their Floating Liquefied Natural Gas (FLNG) model, which is defintely a game-changer for monetizing stranded gas reserves.

The biggest driver is the massive, predictable revenue stream secured through long-term contracts. The company has a total contracted EBITDA backlog of approximately $17 billion, which provides revenue visibility for two decades. This backlog is the foundation for analysts' projections that Golar's fully contracted EBITDA will quadruple by 2028. That's a huge step up.

Here is the quick math on their near-term financial picture, based on the latest 2025 data:

What this estimate hides is the step-change in earnings that happened in mid-2025. The FLNG Gimi reached its Commercial Operations Date (COD) in June 2025, kicking off its 20-year lease with BP and immediately boosting FLNG tariffs.

The core of Golar LNG Limited's growth strategy centers on expanding its FLNG fleet and capitalizing on its unique, low-cost solution:

• Product Innovation: The next-generation MKII FLNG design, with a 3.5 mtpa capacity, is a key focus, leveraging the same proven technology as the existing fleet.
• Market Expansion: The company is actively working on securing a charter for a fourth FLNG unit and is exploring different designs (MKI, MKII, and MKIII) with capacities up to 5.4 MTPA.
• Strategic Partnerships: The Final Investment Decision (FID) was reached on the MKII FLNG's 20-year charter with Southern Energy S.A. (SESA) in Argentina, which alone adds $8 billion to the Adjusted EBITDA backlog. Plus, Golar holds a 10% equity stake in SESA, giving them extra commodity price exposure.

The competitive advantage is simple: Golar LNG Limited is the only proven provider of FLNG as a service. Their conversion-based approach offers an industry-leading all-in cost of about $600 million per mtpa, which is roughly half the cost of a new land-based plant. This cost and speed advantage is what secures those 20-year contracts, which include a fixed fee plus a commodity upside tied to LNG prices above $8 per MMBtu. That profit-sharing mechanism provides significant asymmetric earnings growth if global LNG prices stay high. You can learn more about their long-term vision in their Mission Statement, Vision, & Core Values of Golar LNG Limited (GLNG).