Good day ladies and gentlemen and welcome to the second quarter 2012 results presentation conference call. For your information, today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Brian Tienzo. Please go ahead sir.

Thank you. Hello everyone and welcome to Golar LNG second quarter results presentation. And my name is Brian Tienzo and I will be going through with you the second quarter highlights as well as financial highlights. I am joined here today by our CEO, Doug Arnell, who will take you through the business update and the outlook section. On that note let’s turn now to page four and to go through our second quarter highlights. Consolidated operating income increased by 108% over Q1 to $58 million. Alongside that, we had net income increase of approximately 133% to $35.4 million. Quarterly cash dividend been increased by 14% to $0.40 per share. That’s a jump of $0.05 from Q1 and again reflects the Board’s confidence in the company’s earnings capability. There were material increases in average time charter rates and virtual 100% utilization on charted vessels. There is also a significant decrease in operating expenses of 36%. As announced during the quarter, Nusantara Regas Satu commenced charter on May 4th; the vessel there then completed commissioning and was expected on July 13th. She was subsequently sold out to Golar LNG Partners on July 19th. That SRU has been working well since completion. Golar LNG successfully achieved an award for the Gas Atacama FSRU and again this amends the company’s profile as one of the leading FSRU solution providers and an FSRU project. During Q3, Golar Maria re-charted on a voyage basis at historically higher rates. We expect longer-term contracts will be contemplated in the coming months. In July, Golar LNG Partners raised net proceeds from public follow-on offering of approximately $188 million as part of the Nusantara Regas Satu topline. Let's now turn over the page to go through our financial highlights. Highlighted there are net operating revenue for the quarter of…

Thank you Brian and good morning and good afternoon everybody. I’d like to start my presentation on slide number 10. Obviously as Brian said, we're extremely pleased with the way the second quarter 2012 has gone. We’ve had significant upturn in our earnings and I would just like to go through a little bit what underpinned that because it tells us the story of what we can look forward to in the quarters to come. So during the second quarter two major new charters began or should I say we had full quarter contribution from both vessels Arctic and Grand, both of the base term of those charters are three years in length with the Grand having a three year option on the backend of it. Also during the quarter, we started up a new charter a little bit early on Golar Viking with a substantial increased day rate. Again during the quarter, the Nusantara Regas Satu FSRU charter began and it obviously began its contributions by the Golar LNG partners. At the same time, we decreased operating expenses again this is mostly due to the completion of reactivations for both Gandria and Hilli, but important to note there is that the entire fleet now is out of layup and reactivated so we can see a little more predictable with our operating expenses forward as we won't have those kinds of programs on the vessels in the upcoming quarters. Underpinning all of that activity on chartering has been excellent execution on operation side; we have virtually 100% uptime on our chartered vessels so we are really happy to see that. In upcoming quarters, we have some embedded growth that we are looking forward to for the third quarter as you will see full contribution from Viking in the third, a…

(Operator Instructions) Our first question say comes from Jon Chappell of Evercore Partners. Please go ahead.

Well, a couple of quick charter questions. So first with the new buildings, you've laid out pretty well on the press release that the market is still back graded and you expect that to narrow a little bit, but assuming about how early you would want to think about chartering some of those and the reason I ask is after the drop down of the Regas Satu, it doesn't appear that there is any assets that would fit the qualifications for a GMLP drop down that obviously was a very successful transaction, it helps a lower your cost to capital. So would you potentially you know take one or two assets maybe charter then a little bit before you typically would just to kind of lock in that revenue security and add to the GMLP growth story.

Yeah, maybe not as simple answer to that one Jon, but I mean first of all I think we are pleased with the growth that we have provided to the MLP so far. I think our annual dividend growth rate is something like 11.6%, so that’s a little bit better than we kind of projected when we started out with the MLP. Secondly, you are right. I mean there's no contracts that are existing that fit that model, but there are certainly assets upcoming that have the potential to fit the bill for the MLP prior to the new buildings coming out. So the Maria for example is open and the Viking will come open in spring time. So just as hypothetical if we in the next near term achieved a charter for Viking that extended out for a reasonable length of time, we could execute that drop down whenever it made more sense, same with Maria. I think that one thing is for sure we have to be pragmatic about how we play the shorter or medium-term charter market against that need to keep the MLP growth intact and the bottom line is we have to do both and so far we have been pretty successful at it and with the number of assets we have got for to support the MLP, it’s not something that we are entirely worried about and certainly given that we have just done the Nusantara drop down, we feel we have done our job there a little bit and aren't sort of pushing the panic button in any way to feed the MLP in the very, very near term.

A couple of other quick ones. So I just wanted to be sure the Gandria and the Hilli, are they not employed at all right now even on the spot market. You are just kind of holding them for the winter months when the market may tighten a little bit?

Yeah they are not -- they haven’t traded at all. They are both in Asia, they are both warm. We are looking for that right first charter for both of them and which will have to include a gas up and cool down and you know the appropriate type of voice for that generation of vessel. I won't say we are holding them back. We are certainly active and looking for business for them now.

Right and are they still generating operating cost at a similar level to what they would be when operating or is it at a much lower cost basis while they are in warm [lap]?

It is not a lot different. You know the two thirds of the operating cost or so is crewing when they got anchored, you generally have them fully crewed, may be slightly reduced. So somewhat reduced, but not materially.

And then just can you give us sense what the Maria has been earning in the spot market and it is not the most liquid market in the world, but for the couple of numbers over a wide range though if you can just give any clarity on that, that will be helpful?

We don’t release charter rates. Typically there has been some numbers in the press and they are generally above rate, it might be a little hard.

Okay then last one before turning it over. I know you can't speak much about the FSRU tenders that are hopefully coming up later this year, the terms or the timing, but are they somewhat similar as we look at the Atacama, are they similar to those type of terms from a rate and duration perspective?

Certainly, from a duration perspective, yeah they are, well I should say there is a mix; they are certainly the most attractive ones are the longer term charters. There could be some, actually some five-year type deals out there, which you would expect the rates to be a little bit higher to compensate for the shorter-term. The other interesting thing is that on at least a couple of the opportunities are that coming up, they would actually go into service before and significantly before actually the Gas Atacama FSRU would.

Thank you. We will now take the question from Michael Webber of Wells Fargo. Please go ahead.

I just wanted to follow-up on, first on the Chilean FSRU and potentially converting one of your newbuild slots. Can you give us kind of an idea about the incremental capital that would be required there? I mean this is stopping short or to supplying the multiple on the EBITDA you guys have already [thrown out] potentially for the FSRU, but how should we think about the incremental capital that you guys need to raise above and beyond what we might be expecting for the traditional newbuild?

Yeah, Michael that’s tough one to answer. You know obviously extremely sensitive competitive information. I think we have talked about enough about our kind of what the speculative FSRUs are running and that if that kind of vessel be slightly more expensive than that.

And I may have missed this earlier, something like, did you guys give an update on the vendor financing you guys have employed for the Satu and how that process in terms of securing longer-term financing has gone?

Yeah, I mean for the vendors certainly for the Nusantara Regas Satu, I mean we said that there is a sort of process in place to try and refinance that before the end of the year for the vendor financing with respect to the (inaudible) I think obviously we are constantly on the lookout for the best way of refinancing that. We do have a turn within the vendor financing that allows us to keep it up to three years. But I think as long as the market is there to try and refinance it at an efficient way then we will go there, but apparently we're just monitoring the market at the moment. But for Nusantara Regas Satu there is a near term process to try and refinance that.

We heard from some other players in the offshore space about a tightening lending environment actually impacting their ability to re-buy some assets that actually have decent charters on them. I mean have you guys noticed a shift in the net financing in the financing market that is impacting your ability to secure long-term financing at all?

No, not really I mean certainly we've been talking to banks and we talk to them quite regularly to also gauge the appetite out there and the message come across really well which is, if you got a decent charter, hopefully a long-term charter then you’ve got a long list of banks that are keen to get involved in that project.

Last quarter you guys put the share repurchase program out there with the $45 price starting on it, I know your share didn't hang out in the mid to low 30s for too long, but it’s noticeable you guys didn’t buyback any shares during the quarter and instead raising the dividend. Can you talk a little bit about that thought process and how you think about implementing that going forward?

Yeah I mean certainly the proposal that was made and the Board took it on; it wasn’t as previously mentioned in previous quarter, we didn’t have specific timelines to when we would effect it; I think obviously the Board is there and constantly monitoring the situation as you can see Golden Ocean did a similar sort of strategy and we have that at the back of our pocket; I think the one think to note of course is that the dividends have gone up and I think given that and the near term visibility of our increased earnings, we can see that at least the dividends will be maintained.

Thank you. We will now move to Fotis Giannakoulis of Morgan Stanley. Please go ahead.

I want to ask also about the chartering market and you mentioned about the short-term volatility that you expect in the market in the next couple of years and the softness during the summer because of the maintenance of some facilities. Can you let us know where are these facilities located and where do you expect that the charter market will move when the 6.5 million tons will come back to production?

I think what’s really important Fotis, on the spot rates, they are quite unpredictable in the really near term in LNG shipping right now because there are some shipping deals being done, so there is very few vessels. So if you get a little bit of shift in say maintenance or usually it’s the Asian LNG buyers coming into the market and so driving an arbitrage, you can get a big swing in the spot rate with one or two deals done. So the parameters and be able to make a prediction about what’s upcoming when that buying comes on to the market, I think is something that we just aren’t able to do and to be honest we don’t focus on at the time. It’s not really driving our revenue line right now; when we are out with our vessels we are looking at huge range of potential deals from single voyage which would be very few off; we did one in Maria, but it’s time and exception, two to three years to five years to 10; so I think we are not really the ones to make that kind of prediction about what’s going to happen with spot rates in the very near term.

And regards to the location of these facilities (inaudible) line; are these Qatari facilities?

I don’t know of the Qatari side had any maintenance going on, may be we can check into that for you Fotis or give a call to Brian and we’ll get you that information.

And how many vessels, modern vessels like Maria, you think are available right now in the market for a short-term voyages?

Again it flips around from week-to-week but there is generally been two or three vessel competing for a spot business.

And if we try to put some number of ships that are required for 6.5 million tonnes, lets say assuming that this was a capacity from Qatar, would it be safe to say that something around a couple of vessels for 8 million tonnes would be a good number?

We generally, I mean again obviously it's specific to where that is going on, where the ships are going to go. You know, 1.5 million tonnes on a ship over a period of time is not bad. 1.5 ships for a million tonnes is not a bad estimate. So 6 million tonnes is certainly used more than two or three vessels.

Just jumping to the FSRU market and the project that you are currently pursuing. You mentioned that you are short listing three of these additional projects apart from the [Chile] just won. We read in the press that the (inaudible) season for them, FSRU will take place next month. What about the other two at least project fourth quarter event or a third quarter?

I am not first of all I am not 100% sure the project you mention is actually going to be a third quarter event. So just little help warning there but all three are important to be and best information we have before the end of the year.

Is it possible to give us a little bit more color about the five additional projects that you mention where out of these projects located when do you think that these projects will be in operation?

They are all, the new ones would be all sort of 2014, '15 start ups. They are concentrated in Middle East, India and Asia.

And my last question it's about the new building activity. We have seen some decline in the number of new orders that have come in the last couple of months, is it because of a lack of announcing what is the reason behind this slow activity in it and did you think that we might see some of the importers particularly the importer from this have been past facility to start ordering some vessels in the next couple of quarters?

So the first question is about why the ship orders have slow down I think it's we can’t speak for anybody else really and we haven’t been ordering simply because we think that there is better deals to come and the timing hasn’t’ been exactly right. We would like to trend the way the ship building market is going and we definitely think there is possibility that we could do some more ordering if we find the right deal. I think that we have a bit of a luxury of a fairly strong financial position to be able to increase that order book we chose to that’s not necessary the case with other operators. I think the financing situation is generally difficult. Obviously out there right now. So players haven’t been willing to enter in with new orders when looking out at quite frankly 2015, '16, it’s not like today’s market, it looks a little bit more balanced than you definitely going into a new order you have to be feeling very, very good about the being able to support a shipping fleet long-term. The buyers of the Sabine LNG all new players with new production have all the options out there to place new orders work charter that tension is always in the system, but we believe that with the nature of the companies that are buying those products or those that are producing new LNG in Australia the decision to deploy capital in a financing constrained environment to deploy capital on vessels is probably unattractive to them so we feel pretty good that a lot of them are going to go the chartering route.

Could you comment there was an article about John Fredrick potentially buying two existing new building contracts this December can you comment on?

No.

Thank you. Our next question comes from the line of (inaudible) DnB Nor Markets. Please go ahead.

As we saw with TK supposedly fixed one of last week we are 30 months ahead in the mid 80’s region for three years and this spring with contracts roughly 150,000 (inaudible) is still correct, do we see [liquidation] of 70,000 a day and could you help us understand how the market looks right now if we are to fix the vessel for three years and how will this develop?

Sorry your question is about like the three year, delivery now for three years. Well I think that what you have seen over the last few months is the people, owners that had a vessel for three year market probably had been pushing for over $150,000 and $160,000 a day for that type of charter. There haven’t been many of them done so where it settles out, I don’t know we can, our three year deal is that we signed the charter started up in late first quarter, we signed the deals round the end of the year. They were certainly not too far below that in what was a less heated market than it is now. So, but it is true that as the spreads going to start tightening as we move out in time here, we get closer to the time when a lot of the new building vessels are on the horizon. So that back gradation is going to start coming out of the market. So the velocity at which that happens is hard to predict .

Okay, but if you're saying, if I understand you right, the market is still quite hot. So when can we see Maria being fixed in a contract and do you see a three-year plus contract and possible perhaps even a five-year plus contract, which facilitates the drop down to the MLP.

Yes it is possible, but again we aren’t being driven solely by creating drop downs for the MLP again. We're quite happy with the growth that we've provided to the MLP so far. When we are looking at chartering the Maria, we will look at all options and as I think we've done a pretty good job to date, we’ll do what's best for the company in terms of value.

Also on the Hilli and Gandria, how much of that do you see these kind of vessels trading, given their high OpEx, is that a high fuel cost? Are they over the year or will you only see that (inaudible)

Yeah they can be. I mean the Gimi is the same performance characteristics really and that vessel will go all the way through this year. It started last September. She will trade all through this year and in to next. So, it's just a matter of finding the right specific trade where the unique nature of those performance characteristic work. So certainly the winter peak is the most obvious time. It is also the summer peak that exist in the chartering market. Shoulder times are a little bit tougher, but you know we're kind at this point looking at deploying those ships through the winter and then we'll take it from there.

We will now take a question from Martin Korsvold of Pareto. Please go ahead.

Thinking about your first, this is how you are delivering in 2013. I think if I heard your right you mentioned that the three firm contract you are bidding on this 1415 (inaudible) is that looking a bit earlier or are you looking at the business which will fit to the delivery of the Haul 2031.

Well, we've got multiple potential FSRU projects there with 2014 delivery. I mean it would have been hard to be that smart that we nailed it exactly that the FSRU project was ready exactly in 2013. We are not too concerned about you know up to a year time in between delivery of the FSRU and when she goes into service on a FSRU project. Two reasons, if the FSRU project is a long-term contract like a 15-year contract, the charter will actually pay you to keep the ship idle. So they don't have any risk of something going wrong with the vessel and between the time it gets delivered and when it goes into the project, so you in effect recover that year anyway. And as I said those vessels are that FSRU is in all respects and LNG carriers well with the same performance parameter. So it should be very attractive vessel especially September 2013 when we expect vessel demand to be quite strong. So we are not at all really worried about having to get an FSRU project or the day after she comes out of the yard.

And the second I guess, one of the three-year contracts that you are bidding on this Indonesia contract where there were some delays, can you give us an update on how that’s looking at the moment, is that fully back on track?

Yes, it’s difficult to say Indonesia can be challenging at times in terms of trying to predict when things go ahead, but that’s just the nature of doing business fair and Golar has worked in Indonesia for many, many years quite successfully. So we kind of understand how it works and understand that predicting it isn’t all that easy. I think the political situation is turning in favor of the project somewhat, but I wouldn’t say it’s very clear. Yet I think it’s in terms of what the charter is saying is about it, they seem quite optimistic about being able to kick off the project before the end of the year. But we have to be honest and say there is a little bit of noise around it and that’s not uncommon with big FSRU project. So we are still optimistic. I wouldn’t say it’s at the top of the list of likelihood out of the tree that will get awarded before the end of the year.

And lastly you also mentioned in your report that you are looking currently looking at (inaudible) and storage. I mean you have been talking about that for quite some time, is there anything you're going on there which you could share with us?

Nothing that we can share; I think that it is fair to say internally we've turned up the activity level a little bit in terms of refining our concepts or loading LNG. Again when we talk about floating LNG we are talking about a smaller scale approach to it and not the full scale offshore type project, but so I say the internal activity is ramped up some what and we are trying to get a more refined concept and kind of a approach to the market determine that will work the best, but we don’t. There is nothing new in terms of field development that we can talk about at this point.

Thank you. We will now take a question from Rishav Puri of Linden Advisors. Please go ahead.

Just wanted to go over the projected CapEx that you guys have and then you guys mentioned that you don’t expect that there is any equity at the GLNG level and expect that at the GLNG level. So if you could just map out how much CapEx do you have and what do you expect to get from bank financing and then the remaining, how do you expect to fund, how much more would you expect to fund at the GLNG level from that?

I think we've basically mentioned various sources funds we expect to be able to use the fund. The equity portion of the newbuilding program, so the IPO of LNG Partners helped us to get off the ground and whilst the Nusantara Regas Satu, the vendor financing is still outstanding. We have received [$230 million] of that already. There is a $155 million still to come. You can call the freeze vendor financing is out there that is due to LNG Limited, the convertible bond issuance that we did in Q3. So I think all of that potentially with drop downs and where there are opportunities for long-term charters that attracts new debt financing and that will enable us to take us through to the delivery of the newbuild program. I think as far as the schedule of the newbuild obligations come through, as we previously mentioned it’s very much back ended. So there are obviously installments along the way but majority of the payment come through on delivery.

So let’s say, drilling down a little bit on this, so let’s say there is around $1 billion of CapEx next year. What can we expect, how much of that would be equity, how much of that would be bank debt, how much of that would be additional unsecured debt or whatever you are expecting?

I mean, that’s very difficult to say. Let’s assume that there are other – there are potentially opportunities that allow us to charter some of the vessels in which case there is potential to raise quite an efficient new debts on those assets. So it’s very much dependent on what you assume to be those vessels that we’ll be doing. I think I mentioned earlier you know as long as the vessel where the vessels have you know any medium to long-term charters there are sufficient good lift of banks out there that very much knee to get involved in those projects.

Okay. And just one more question from my side. I mean is there like a particular metric that you are aiming for like okay this is debt-to-equity ratio that I want for you know for a long-term basis or you know leverage ratio or anything that we can that you guys think about or have in mind when think you were the long-term you know capital structure to come?

Currently has we are, I think we are quite well leveraged, I mean we are certainly not near seven continents that we have. When we talking about the new building program again that's very much dependent on what the state say of those when they come out, and if in the event a carrier was to be on chart for 10 years you can leverage that up you know any way between 70% to 80% quite easily. Whereas obviously if it's on spot then you’re expectation should be anywhere between 60%.

(Operator Instruction) Gentlemen as we have no further questions, I would like to turn the call back to over for any additional or closing remarks.

Thank you for that and thank you everyone for contributing to the call, from myself and Doug good bye and we look forward to seeing you next quarter. Good bye.

Thank you. Ladies and gentlemen, that will conclude today’s conference call. Thank you for your participation. You may now disconnect.