Prepared by Imprima

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 6-K


REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of August 2009


        Golar LNG Limited       
(Translation of registrant’s name into English)

Par-la-Ville Place,
14 Par-la-Ville Road,
Hamilton,
HM 08,
Bermuda

(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F

Form 20-F [X]     
     Form 40-F [  ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [  ]     
      No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-_____________________



Item 1. INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached as Exhibit 99.1 is a copy of the press release of Golar LNG Limited dated August 31, 2009.


Exhibit 99.1


SECOND QUARTER 2009 RESULTS

Highlights

Golar LNG reports net income of $11.9 million and operating income of $1.9 million
Spot traded vessel earnings weak as anticipated, some signs of improvement now appearing
Restructuring and equity offering in respect of Golar LNG Energy completed post quarter end
Golar LNG and PTTEP sign agreements to jointly enter FEED studies in respect of an FLNG project located offshore North West Australia
Gladstone LNG project and various FSRU discussions continue to progress

Financial Review

Golar LNG Limited (“Golar” or the “Company”) reports a net income of $11.9 million and operating income of $1.9 million for the three months ended June 30, 2009 (the “second quarter”). Net income has been positively impacted by other financial items gain of $24.8 million largely relating to non-cash interest rate and equity swap valuation gains.

Operating income is decreased from the first quarter of 2009 (the “first quarter”) mainly as a result of reduced revenue due to Golar Arctic and Ebisu being idle for virtually the entire quarter, offset to some extent by reduced operating expenses. Net income for the second quarter at $11.9 million is improved from the first quarter loss of $5.1 million largely as a result of other financial items gain of $24.8 million as noted above.

Results for the three months to June 30, 2009

Revenues in the second quarter were $46.8 million decreased from $52.5 million for the second quarter of 2008. Average utilisation decreased to 69% in the second quarter of 2009 from 78% for the same quarter in 2008. Second quarter average daily time charter equivalent rates (“TCEs”) in 2009 fell to $37,600 per day as compared to $39,900 per day for the second quarter of 2008. The Golar Spirit was on hire for the whole of the second quarter of 2009 but not for the second quarter of 2008 and the Khannur was drydocked in the second quarter of 2008 and there were no drydockings in the second quarter of 2009. However, these improvements in revenue in the second quarter of 2009 have been offset by the fact that; Golar Winter was not on hire for the second quarter of 2009, Golar Arctic was idle in 2009 but similar to Golar Winter on hire in 2008, the Golar Freeze completed its long-term charter at the end of May 2009 and a general decrease in earnings from vessels trading in the spot market in the second quarter of 2009 as compared to the second quarter of 2008.

Voyage expenses increased marginally from $10.4 million in the second quarter of 2008 to $11.3 million for the second quarter. Vessel operating expenses were lower at $14.0 million for the second quarter in 2009 as compared to $15.8 million for the second quarter of 2008 whilst administrative expenses for the second quarter in 2009 remained in line with the same quarter in the prior year at $4.5 million.

1


Net interest expense of $11.5 million for the quarter to June 30, 2009 is down from $12.8 million for the second quarter of 2008. The decrease is as a result of the reduction of interest rates in respect of floating rate debt not swapped to a fixed rate and due to slightly lower levels of debt.

Other financial items show a considerable gain in the second quarter of 2009 of $24.8 as opposed to $19.5 million for the same period in 2008. The increase is mainly attributable to increased gains in respect of mark-to-market gains on equity swaps, some of which were not in place for the second quarter of 2008. In addition gains in respect of foreign currency retranslations and mark-to-market gains on foreign currency forward contracts were increased partly offset by reduced interest rate swap mark-to-market gains.

Results for the six months to June 30, 2009

Golar reports net income of $6.8 million and operating income of $8.6 million for the six months ended June 30, 2009.

Revenues in the first six months were $100.7 million as compared to $111.2 million for the first six months of 2008. The average daily time charter equivalent rates (“TCEs”) also declined to $41,274 per day for the first six months of 2009 from $46,550 per day for the similar period in 2008 with the average utilisation of 74% and 85% respectively.

Voyage expenses increased to $22.7 million for the first six months of 2009 from $11.9 million for the first six months of 2008, largely due to the charter in expense related to Golar Frost and Ebisu. Ebisu was chartered in September 2008 and Golar Frost was sold and chartered back in July 2008.

Vessel operating expenses at $30.0 million for the first six months have decreased from $31.3 million for the same period in 2008. Administrative expenses were slightly less at $8.7 million as compared to $8.9 million for the first half of 2008.

Net interest expense for the first six months was $21.9 million down from $27.3 million for the first six months of 2008 quarter as a result of lower Libor interest rate in respect of floating rate debt.

Other financial items were a gain of $26.7 million in the first six months of 2009 as compared to a loss of $1.95 million for the same period of 2008. The gain resulted primarily from the non-cash gain on interest rate swap valuations.

Financing, corporate and other matters

In June 2009, the Company entered into a revolving credit facility with World Shipholding, the Company’s major shareholder, to provide short-term bridge financing, please refer to note 3 for further information.

Consistent with the announcement made in Golar's first quarter report the Company recently announced that it had incorporated Golar LNG Energy Limited ("Energy") in Bermuda for the purpose of transferring the part of its asset portfolio not employed on long term charters. The transfer included the following assets and activities:

the ownership of 4 modern LNG carriers ("Gracilis", "Grandis", "Granosa" and "Golar Arctic")
the ownership of 3 1970's built LNG carriers ("Khannur", "Gimi" and "Hilli")
a 50 % ownership interest in another 1970's build LNG carrier ("Gandria")
a 13,6 % ownership interest in the Australian listed company LNG Ltd.
Golar's current project portfolio
certain financial obligations, notably swap arrangements.

In addition, Energy has acquired the subsidiary owning the 1970 built LNG carrier "Golar Freeze" which is scheduled to be converted to an FSRU vessel. The purchase of the "Golar Freeze" was financed by way of a

2


seller's credit. Golar has been granted an option to reacquire "Golar Freeze" from Energy when its conversion to FSRU vessel is completed. Energy will have an identical option to sell "Golar Freeze" to Golar. The price to be paid by Golar in this transaction shall equal the aggregate of the seller's credit and the conversion cost of the vessel.

Subsequent to the restructure Golar was pleased to announce that Energy had completed an equity offering. A total of 55 million shares (USD 110 million) were issued mainly to International and Norwegian institutional investors. Attached to the offering is a 'green shoe' option. The managers were therefore granted an over allotment option, exercisable for 30 days for an additional 5 million shares (USD 10 million). Energy shares are currently trading on the Oslo OTC market, but the process to move to a full listing on the Oslo Stock Exchange is well underway.

The underlying rationale for the restructuring was to create an aggressive, well funded high growth, mid stream LNG Company with a focus on regasification projects, liquefaction and transport and trading of LNG. The remaining Golar LNG business will have a low risk profile with a focus on long term charters. Golar will have a fleet of 5 LNG carriers (including "Golar Freeze") and a controlling interest in Energy

When Golar Freeze commences its charter in Q2 2010, assuming Golar effects its option to reacquire Golar Freeze, the Company will have five vessels (“LNGC’s” and “FSRU’s”) on long term charter agreements at attractive rates. The total contract value of these charters is approximately $1.9 billion and the five vessels will, when Golar Freeze commences its charter in 2010 have an EBITDA of approximately $1551 million per annum.

Based on current debt amortisation plus an assumed increase in debt associated with Golar Freeze to a level of approximately $125 million together with assumed rates of interest, the five ships will generate approximately $75 million2 per annum in free cash after debt service and net of minority interests once the Golar Freeze is on hire, which is expected to be in the second quarter of 2010.

It is the Company’s intention to distribute the significant majority of its cash generation to shareholders by way of dividend. As noted above when Golar Freeze commences its charter in the second quarter of 2010, the five vessels will generate approximately $75 million in free cash flow after debt service. In 2013 the debt in respect of Golar Mazo will be fully paid down and the increase in free cash flow will be approximately $15 million p.a. (after minority interests). The Company expects dividend payments to commence from no later than the second quarter of 2010. The commencement of dividend payments will however be dependant, in particular, upon raising the required debt financing in respect of the Golar Freeze. Golar intends, in addition, to distribute some of its shares in Energy as a special dividend to shareholders in second half of 2009.

Operational Review

Shipping

Trading performance of the Company’s vessels operating in the spot/short term market weakened over the quarter as was expected. Rates have been depressed due to a reduction in demand for LNG (especially in the Far East) and an oversupply of LNG Shipping tonnage due to project delays and LNG plant outages.

However, there are some demonstrable signs of improvement with a number of FOB cargoes soaking up spot market tonnage in the Atlantic basin, new LNG production ramping-up or coming to market over the next few months and increasing use of floating storage. This should ease the vessel over-supply, especially the growing disparity in demand for shipping between the East & West markets which has become evident over the last month or two. With an already limited amount of tradable tonnage in the West any vessels employed to load Atlantic Basin cargoes will change the scenery of the market and should provide (along

 


1 Based on current operating cost expectations
2 Based on current interest rate swap rates and an assumed rate for libor of 3.5%

3


with Terminal compatibility issues and an increased need for economic and efficient vessels due to eroding commodity margins) an upward price push as we move into the Autumn and Winter period.

Indeed, two of the Company’s vessels, Golar Arctic and Ebisu, have recently been fixed on short-term charters from mid-August after prolonged periods of idle time at rates above those seen in the second quarter.

The longer term LNG Shipping market is becoming interesting with Australian developments on both East and West coast leading the way and BG currently in the market for up to two vessels for between 2 and 8 years. Additionally there have been no orders so far this year for LNG tankers (and only six placed in 2008). Furthermore, only two tankers are scheduled for delivery in 2012 and there are indications are that some new supply projects are also considering employing existing tonnage rather than ordering new vessels.

Regasification

Positive progress continues on Golar's strategy to be a world leader in floating regasification solutions and the recent restructuring of the Company and establishment of Golar LNG Energy creates the platform to grow this business. Golar LNG Energy places a high priority on securing additional floating regasification commitments.

Outlook
Global market inquiry for new floating regasification projects remains strong, particularly in non-OECD countries. During 2Q09, Israel issued an Prequalification Document (”PQ”) to be followed by an Invitation to Bid in 1Q10 for an offshore LNG Receiving Terminal. Additionally, market reports suggest Indonesia and Uruguay ITBs will follow in the coming months. In addition to formal tenders, Golar LNG Energy is developing numerous other projects directly with interested parties.

Golar LNG Energy is aggressively pursuing new business and is well positioned to deliver 'fast track' projects to market. With new liquefaction plants now coming on-stream against weaker short and mid-term pricing fundamentals, new developers should have a 'window of opportunity' to fast track their projects.

Current projects
After departure from Keppel shipyard in Singapore Golar Winter collected a cargo of LNG in Trinidad en-route to Petrobras’s Pecem Terminal, Brazil. Initial commissioning and testing commenced in Pecem before the vessel departed for Petrobras’s Rio Terminal for a further period of testing. The vessel then left Rio and together with Golar Spirit has split load a full cargo brought to Pecem by another LNG carrier. Golar Winter is now returning to Rio to complete testing and commissioning in September. During the testing period some minor modification work has been required to the vessel and the vessel is expected to commence its long term charter agreement in September.

Detailed engineering for the Golar Freeze FSRU project is now well advanced and the site team are now being mobilised to supervise the vessel conversion process at Keppel Shipyard. Construction of the regas-skids is well underway, and Keppel have commenced prefabrication for the conversion. Golar Freeze will enter the shipyard early September and is scheduled to commence operations with the Dubai Supply Authority in the second quarter of 2010.

Liquefaction

Gladstone Project
Good progress continues to be made on the Gladstone LNG project. In addition to the milestones reported in last quarter’s report the Company is encouraged by positive results from technical reviews carried out by Foster Wheeler and SK Engineering of the technology to be used in the project; good progress on final FEED; acceptance of the membrane tank technology by the Queensland approving authorities and progress towards the selection of an LNG industry experienced/proven Project Management Consultant.

4


 

Golar has in parallel with the project development activity continued a dialogue with prospective LNG buyers. Discussions with the short listed buyers are progressing positively and the Company anticipates the satisfactory conclusion of an HOA in the fourth quarter.

PTTEP Floating LNG Projects
Golar recently announced that it had signed agreements to jointly enter into FEED (“Front End Engineering and Design”) with PTTEP in relation to developing a floating LNG project offshore North Western Australia in respect of the Coogee Resources oil and gas fields recently acquired by PTTEP. Golar’s agreement with PTTEP provides for an option for Golar to farm into the gas reserves held by PTTEP resulting from its acquisition of Coogee Resources on a 50:50 basis.

The FEED study will involve the complete scope of the project including the development of the upstream gas fields as well as the floating liquefaction unit (“FLNG unit”). Both new buildings and conversion of existing assets will be considered for the FLNG unit. The FEED studies have commenced and the next milestone will be the completion of the PRE FEED studies in the first half of 2010.

In addition to the Coogee project Golar and PTTEP are also looking at other potential FLNG opportunities.

Market

The first half of 2009 has seen a significant amount of liquefaction plant outages. Although outages are a normal part of the commissioning process at new LNG trains, most of this year’s closures have been unscheduled and extended.

Recent closures have been seen at Sakhalin-T2, Tangguh T1 and Qatargas-2 T4. Snohvit is also planning another three-month outage from mid-August at the end of which the plant will be operating at full capacity. North West Shelf and Atlantic LNG also plan maintenance this quarter. The security situation continues to hamper output from Nigeria and in Algeria exports have also been reduced due to feed-gas supply problems

Nonetheless confidence remains high that these plants will resume capacity production in the near term and with new start-ups, further floating storage, new trade routes and diversions, which should all be positive for LNG Shipping and trading.

Additionally new start-ups continue to bring more product to the market with Sakhalin-2’s 4.8 MTPA T2 now producing. The second 3.8 MTPA Tangguh train will begin operating in September and Yemen LNG’s 3.35 MTPA Train 1 is undergoing commissioning. Further, Qatar’s Rasgas Train 6 officially started production in mid August and another 15 MTPA from Qatargas-2 T 5 and RasGas T7 is also due on line by end-year.

Outlook

Following the creation of Golar LNG Energy the mission of Golar LNG Limited’s has been reduced to the following objectives:

Operate its five vessels in a safe, professional and cost efficient way.
Be an active shareholder and maximize the value of the Company’s share holding in Golar LNG Energy
Organize the Company’s financing with the purpose of optimising cash flow in order to be able to sustain the highest possible long-term dividend payment to shareholders.

Whilst the short-term LNG shipping sector has been depressed during the first half of 2009 there are discernable signs of improvement and the overall outlook for the LNG sector looks positive. Spot vessel

5


earnings are expected to be somewhat improved in the third quarter. It is further anticipated that the utilisation of the LNG fleet will improve over the next three to five year period. Increased LNG production, lower vessel supply growth and a focus on clean cheap energy will be the major contributors.

The results for Q3 will influenced by a termination of the Company’s equity swap in respect of Arrow Energy realising income of approximately $9 million, of which approximately $7.8 million will be booked as income in the third quarter of 2009.

The creation of Golar LNG Energy provides a platform for growth within the mid-stream of the LNG supply chain and Energy plans to aggressively pursue the development of its regasification and liquefaction projects as well as shipping and trading opportunities.

The creation of Energy has also paved the way for the transformation of Golar LNG Ltd, into a high paying dividend stock with significant growth opportunity linked to its investment as major shareholder in Golar LNG Energy.

Forward Looking Statements

This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends made by the management of Golar LNG. Although Golar LNG believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, Golar LNG cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: inability of the Company to obtain financing for the new building vessels at all or on favourable terms; changes in demand; a material decline or prolonged weakness in rates for LNG carriers; political events affecting production in areas in which natural gas is produced and demand for natural gas in areas to which our vessels deliver; changes in demand for natural gas generally or in particular regions; changes in the financial stability of our major customers; adoption of new rules and regulations applicable to LNG carriers and FSRU’s; actions taken by regulatory authorities that may prohibit the access of LNG carriers or FSRU’s to various ports; our inability to achieve successful utilisation of our expanded fleet and inability to expand beyond the carriage of LNG; our ability to complete on our restructuring plans; increases in costs including: crew wages, insurance, provisions, repairs and maintenance; changes in general domestic and international political conditions; the current turmoil in the global financial markets and deterioration thereof; changes in applicable maintenance or regulatory standards that could affect our anticipated dry-docking or maintenance and repair costs; our ability to timely complete our FSRU conversions; failure of shipyards to comply with delivery schedules on a timely basis and other factors listed from time to time in registration statements and reports that we have filed with or furnished to the Securities and Exchange Commission, including our Registration Statement on Form 20-F and subsequent announcements and reports.

Nothing contained in this press release shall constitute an offer of any securities for sale.

August 28, 2009
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda

Questions should be directed to:

Golar Management Ltd - +44 207 063 7900:
Graham Robjohns: Chief Financial Officer

 

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Golar LNG Limited

SECOND QUARTER CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

2009
2008
 
Condensed Consolidated Income Statement
 
2009
2008
2008
 
Apr-Jun
Apr-Jun
 
(in thousands of $, except per share data)
 
Jan-Jun
Jan-Jun
Jan-Dec
 











 
       
Operating revenues
             
46,819   52,470   Time charter revenues   100,678   111,242   228,779  











 
46,819   52,470  
Total operating revenues
  100,678   111,242   228,779  











 
                       
-   -   Gain on sale of vessel/newbuilding   -   -   78,108  
                       
        Operating expenses              
13,977   15,826   Vessel operating expenses   30,042   31,284   61,868  
11,293   10,365   Voyage and charter-hire expenses   22,695   11,906   33,126  
4,461   4,469   Administrative expenses   8,738   8,971   17,815  
15,146   14,634   Depreciation and amortization   30,636   30,372   62,005  
-   (226 ) Gain on sale of long-lived asset   -   (226 ) (430 )
-   64  
Impairment of long-lived assets
  -   64   110  











 
44,877   45,132  
Total operating expenses
  92,111   82,371   174,494  











 
1,942   7,338  
Operating income
  8,567   28,871   132,393  











 
                       
        Financial income (expenses)              
3,136   12,196   Interest income   7,793   24,722   45,828  
(14,614 ) (24,959 ) Interest expense   (29,733 ) (52,067 ) (96,489 )
24,764   19,489  
Other financial items, net
  26,712   (1,949 ) (82,100 )











 
13,286   6,726  
Net financial expenses
  4,772   (29,294 ) (132,761 )











 
                       
        Income (loss) before equity in net              
        earnings of investees, income taxes              
15,228   14,064   and minority interest   13,339   (423 ) (368 )











 
(350 ) 120   Income taxes   (591 ) 125   (510 )
(837 ) (24 ) Equity in net earnings of investees   (1,371 ) (289 ) (2,406 )
        Net income attributable to non              
(2,171 ) (2,456 ) controlling interest   (4,627 ) (3,384 ) (6,705 )
-   -   Gain on sale of investee   -   -   -  











 
11,870   11,704   Net income/ (loss)   6,750   (3,971 ) (9,989 )











 
                       
        Per common share amounts:              
$0.18   $0.17   (Loss) earnings - Basic   $(0.10 ) $(0.06 ) $(0.15 )

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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Golar LNG Limited

SECOND QUARTER CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

2009  
2008
 
Statement of Comprehensive Income
 
2009
 
2008
 
2008
 
Apr-Jun  
Apr-Jun
 
(in thousands of $)
 
Jan-Jun
 
Jan-Jun
 
Jan-Dec
 











 
                       
11,870  
11,704
 
Net (loss) income
 
6,750
 
(3,971
)
(9,989
)
                       
        Other comprehensive (loss) income, net of tax:              
-   -   (Losses) gains associated with pensions   -   -   (1,821 )
-   327   Unrealized (losses) gains on marketable   -   (153 ) (399 )
        securities held by the Company and investee              
-   -   Other-than-temporary impairment of available-   -   -   399  
        for-sale securities reclassified to the income              
        statement              
10,947   -   Unrealized net loss on qualifying cash flow   12,459   -   (25,916 )
        hedging instruments              











 
10,947   327  
Other comprehensive income (loss)
  12,459   (153 ) (27,737 )











 
                       











 
22,817   12,031   Comprehensive income (loss)   19,209   (4,124 ) (37,726 )











 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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Golar LNG Limited

SECOND QUARTER CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Condensed Consolidated Balance Sheet
2009
 
2008
 
2008
 
(in thousands of $) Jun-30   Jun-30   Dec-31  






 
             
ASSETS            
Current Assets            
Cash and cash equivalents 58,412   72,055   56,114  
Restricted cash and short-term investments 49,144   54,868   60,352  
Other Current Assets 19,827   27,234   27,766  
Amounts due from related parties 684   281   538  
Held for sale assets            
Vessel and equipment held for sale, net -   153,236   -  






 
Total current assets 128,067   307,674   144,770  
             
Long-term assets            
Restricted cash 618,506   753,009   557,052  
Equity in net assets of non-consolidated investees 30,529   17,461   30,924  
Vessels and equipment, net 1,566,208   1,501,414   1,561,313  
Other long-term assets 80,774   80,636   65,670  






 
Total assets 2,424,084   2,660,194   2,359,729  






 
LIABILITIES AND STOCKHOLDERS’ EQUITY            
Current liabilities            
Current portion of long-term debt 74,736   172,759   71,395  
Current portion of obligations under capital leases 7,809   5,819   6,006  
Other current liabilities 131,915   88,040   189,488  
Amounts due to related parties 196   269   140  






 
Total current liabilities 214,656   266,887   267,029  
Long-term liabilities            
Long-term debt 754,644   720,800   737,226  
Long Term capital leases obligations 860,751   1,021,393   784,421  
Other long-term liabilities 75,474   76,236   77,220  






 
Total liabilities 1,905,525   2,085,316   1,865,896  






 
Commitments and contingencies (See Note 30)            
Total stockholders’ equity 473,604   534,512   452,145  
Non controlling interest 44,955   40,366   41,688  
             






 
Total liabilities and equity 2,424,084   2,660,194   2,359,729  






 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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Golar LNG Limited

SECOND QUARTER CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

2009
 
2008
 
STATEMENT OF CASH FLOWS
 
2009
 
2008
 
2008
 
Apr-Jun
 
Apr-Jun
 
(in thousands of $)
 
Jan-Jun
 
Jan-Jun
 
Jan-Dec
 

 
 
 
 
 
 
                       
                       
       
OPERATING ACTIVITIES
             
11,870  
11,704
 
Net income / (loss)
 
6,750
 
(3,971
)
(9,989
)
                       
        Adjustments to reconcile net income/ (loss) to              
        net cash provided by operating activities:              
15,146   14,634   Depreciation and amortisation   30,636   30,372   62,005  
-   (226 ) Gain on sale of vessels/newbuildings   -   (226 ) (78,108 )
321   323   Amortisation of deferred charges   642   670   2,773  
-   -   Fixed rate debt settlement costs   -   -   8,998  
-   -   Gain on sale of long lived asset   -   -   (430 )
2,171   2,456   Income attributable to minority interests   4,627   3,383   6,705  
        Undistributed net earnings of non-consolidated              
836   24   investee   1,370   288   2,406  
(95 ) (11,129 ) Drydocking expenditure   (229 ) (11,950 ) (19,598 )
628   788   Stock-based compensation   1,353   1,591   3,092  
        Other than temporary impairment of available              
-   -   for sale securities.   -   -   1,871  
        Change in market value of equity, interest rate              
(44,326 ) (19,448 ) and currency derivatives   (47,067 ) 1,587   99,900  
        Interest element included in capital lease              
254   532   obligations   549   1,062   1,908  
17,490   (154 ) Unrealised foreign exchange loss / (gain)   15,159   (452 ) (42,767 )
0   64   Impairment of long-lived assets   -   64   110  
6,346   16,239   Change in operating assets and liabilities   9,628   20,445   9,619  











 
10,641   15,807  
Net cash provided by operating activities
  23,418   42,863   48,495  











 
                       
        INVESTING ACTIVITIES              
(28,577 ) (32,128 ) Additions to vessels and equipment   (50,778 ) (246,171 ) (322,183 )
-   1,900   Proceeds from disposal of long lived assets   -   1,900   233,244  
9,426   37,131   Long-term restricted cash   4,105   38,361   42,352  
-   -   Additions to unlisted investments   -   (3,063 ) (25,970 )
-   -   Purchase of marketable securities   (85 ) (2,372 ) (2,372 )
-   -   Proceeds from disposal of marketable securities   -   -   165  
7,535   7,284   Short-term restricted cash and investments   11,208   (2,762 ) (8,246 )
-   -   Proceeds from termination of equity swap   (1,844 ) -   (538 )











 
(11,616 ) 14,187  
Net cash used in investing activities
  (37,394 ) (214,107 ) (83,548 )











 

10


Golar LNG Limited

SECOND QUARTER CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

2009
 
2008
 
STATEMENT OF CASH FLOWS
 
2009
 
2008
 
2008
 
Apr-Jun
 
Apr-Jun
 
(in thousands of $)
 
Jan-Jun
 
Jan-Jun
 
Jan-Dec
 











 
                       
                       
       
FINANCING ACTIVITIES
             
20,000   -   Proceeds from long-term debt   55,000   120,000   370,000  
        Repayments of long-term capital lease              
(1,680 ) (1,267 ) obligation   (3,125 ) (2,494 ) (5,497 )
(23,217 ) (26,119 ) Repayments of long-term debt   (34,241 ) (42,107 ) (377,044 )
-   (557 ) Financing & debt settlement costs paid   -   (1,693 ) (13,600 )
-   -   Cash dividends paid   -   (16,896 ) (67,438 )
(1,360 ) -   Dividends paid to non controlling interests   (1,360 ) -   (2,000 )
        Proceeds from the disposal of/receipt of              
-   343   dividends on treasury shares   -   750   1,007  











 
(6,257 ) (27,600 )
Net cash provided by financing activities
  16,274   57,560   (94,572 )











 
                       
(7,232 ) 2,394   Net (decrease) / increase in cash and cash   2,298   (113,684 ) (129,625 )
        equivalents              











 
65,644   69,661   Cash and cash equivalents at beginning of   56,114   185,739   185,739  
        period              











 
58,412   72,055  
Cash and cash equivalents at end of period
  58,412   72,055   56,114  











 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

11


Golar LNG Limited

SECOND QUARTER CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Statement of Changes in
Equity
(in thousands of $)
Share
Capital
Treasury
Shares
Additional
Paid in
Capital
Accumulated
Other

Comprehensive

Loss
Retained
Earnings
Total
Stockholders’

Equity
 












 
                         
Balance at Dec 31, 2007
67,577
  (8,201 ) 288,672   (6,902 ) 211,386   552,532  












 
                         
Net loss -   -   -   -   (9,989 ) (9,989 )
Cash dividends -   348   -   -   (67,438 ) (67,090 )
Grant of share options -   -   3,092   -   -   3,092  
Disposal of treasury                        
shares on exercise of                        
share options -   1,019   (479 ) -   130   670  
Gain on issuance of                        
shares by investees -   -   667   -   -   667  
Other comprehensive loss -   -   -   (27,737 ) -   (27,737 )












 
Balance at Dec 31, 2008 67,577   (6,834 ) 291,952   (34,639 ) 134,089   452,145  












 
                         
Net loss -   -   -   -   6,750   6,750  
Cash dividends -   -   -   -   -   -  
Grant of share options -   -   1,353   -   -   1,353  
Gain on issuance of                        
shares by investees -   -   890   -   -   890  
Other comprehensive loss -   -   -   12,466   -   12,466  












 
Balance at Jun 30, 2009 67,577   (6,834 ) 294,196   (22,173 ) 140,839   473,604  












 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

12


Golar LNG Limited

Notes to Condensed Consolidated Interim Financial Statements

1.  GENERAL

Golar LNG Limited (the “Company” or “Golar”) was incorporated in Hamilton, Bermuda on May 10, 2001 for the purpose of acquiring the liquefied natural gas (“LNG”) shipping interests of Osprey Maritime Limited (“Osprey”) and of Seatankers Management Co. Ltd (“Seatankers”), which were controlled by Mr. John Fredriksen. The Company’s ordinary shares are listed on Nasdaq and on the Oslo Stock Exchange.

2.  ACCOUNTING POLICIES

Basis of accounting
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The condensed consolidated financial statements do not include all the disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at December 31, 2008.

Significant accounting policies
The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2008, except for the adoption of following standards - SFAS No. 141(R), Business Combinations; SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, (“FAS 160”); SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities; SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles, SFAS No. 165, Subsequent Events, and SFAS No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles – a replacement of FASB Statement No. 162”.

None of these new or revised accounting standards has had a material impact on the current or prior periods except that noncontrolling interest is now classified as a component of equity in accordance with FAS 160. The Company has evaluated subsequent events through August 28, 2009, the date of issuance of our financial position and results of operation

3.  DEBT

In June 2009, the Company entered into an $80 million revolving credit facility with World Shipholding, to provide short-term bridge financing. The facility accrues fixed interest at a rate per annum of 8% together with a commitment fee of 0.75% of any undrawn portion of the credit facility. The revolving credit facility is available for a period of two years. All amounts due under the facility must be repaid within two years from the date of the first draw down. The Company drew down an initial amount of $20 million on June 30, 2009. The facility is currently unsecured. However, in order to draw down amounts in excess of $35 million the Company will be required to provide security to the satisfaction of World Shipholding. This is envisaged to take the form of a second priority lien over cash generating assets.

In connection with the Company’s Golar LNG Partners revolving credit facility, the Company drew down a further $25.0 million in January 2009 and the remaining $10.0 million of the facility in March 2009.

4.  FINANCIAL INSTRUMENTS

Fair values
The carrying value and estimated fair value of the Company’s financial instruments at June 30, 2009 and December 31, 2008 are as follows:

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(in thousands of $)
Jun 30,
2009
Carrying Value
June 30
2009
Fair Value
Dec 31,
2008
Carrying Value
Dec 31,
2008
Fair Value
 
Non-Derivatives:                
      Cash and cash equivalents 58,412   58,412   56,114   56,114  
      Restricted cash and short-term investments 49,144   49,144   60,352   60,352  
      Long-term restricted cash 618,506   618,506   557,052   557,052  
      Long-term unlisted investments 10,707   10,707   10,347  
N/a
 
   Marketable Securities -   -   360   360  
      Short-term debt – floating 74,736   74,736   71,395   71,395  
      Long-term debt – floating 754,644   754,644   737,226   737,226  
      Long-term debt – fixed         -   -  
      Short-term obligations under capital leases 7,809   7,809   6,006   6,006  
      Long-term obligations under capital leases 860,751   860,751   784,421   784,421  
                 
Derivatives:                
      Interest rate swaps liability 38,316   38,316   65,329   65,329  
      Foreign currency swaps liability 25,845   25,845   50,088   50,088  
      Equity swaps liability -   -   8,211   8,211  
      Equity swaps asset 1,899   1,899   -   -  

The carrying value of cash and cash equivalents, which are highly liquid, is a reasonable estimate of fair value.

The estimated fair value for restricted cash and short-term investments is considered to be equal to the carrying value since they are placed for periods of less than six months. The estimated fair value for long-term restricted cash is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly basis.

The fair value of the Company’s marketable securities is determined using the closing quoted market price.

As at June 30, 2009, the Company did not identify any events or changes in circumstances that would indicate the carrying value of its unlisted investments in both TORP Technology and OLT–O were not recoverable.

Accordingly, the Company did not estimate the fair value of these investments as at June 30, 2009.

The estimated fair value for floating long-term debt is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly or six monthly basis. The estimated fair value for long-term debt with fixed rates of interest of more than one year is estimated by obtaining quotes for breaking the fixed rate at the year end, from the related banking institution.

The estimated fair values of long-term lease obligations under capital leases are considered to be equal to the carrying value since they bear interest at rates, which are reset on a quarterly basis.

The fair value of the Company’s derivative instruments is the estimated amount that the Company would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates, closing quoted market prices and the creditworthiness of the Company and its swap counterparties.

The following table summarizes the valuation of the Company’s financial instruments by the SFAS 157 pricing levels as of June 30, 2009:

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(in thousands of $)
Quoted
market prices
in active
markets
(Level 1)
Significant
Other
Observable
Inputs
( Level 2)
 
Total
 
Interest rate swaps – liability position
-
 
38,316
 
38,316
 
Foreign currency swaps – liability position
-
 
25,845
 
25,845
 
Equity swaps – asset position
-
 
1,899
 
1,899
 

SFAS 157 states that the fair value measurement of a liability must reflect the non-performance risk of the entity. Therefore, the impact of the Company’s creditworthiness has also been factored into the fair value measurement of the derivative instruments in a liability position.

6.  RELATED PARTY TRANSACTIONS

Receivables (payables) from related parties:

(in thousands of $)
6months to
June 2009
2008
 
Frontline 438   385  
Seatankers (62 ) (24 )
Ship Finance 111   37  
Arcadia -   -  




 
  487   398  




 

Receivables and payables with related parties comprise primarily of unpaid management fees, advisory, administrative services. In addition, certain receivables and payables arise when the Company pays an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears.

During the periods ended June 30, 2009 and December 31, 2008, Faraway Maritime Shipping Company, which is 60% owned by Golar and 40% owned by China Petroleum Corporation ("CPC"), paid dividends totalling $3.4 million and $5.0 million, of which 60% was paid to Golar and 40% was paid to CPC.

In June 2009, the Company entered into an $80 million revolving credit facility with World Shipholding Limited, to provide short-term bridge financing, please refer to note 3.

As of June 30, 2008, World Shipholding Limited, a company indirectly controlled by Mr. John Fredriksen owned 46.17% (2008: 45.97%) of Golar.

7.  OTHER COMMITMENTS AND CONTINGENCIES

Assets Pledged

(in thousands of $)
June 30,
2009
December 31,
2008
 
 
 
Book value of vessels secured against long-term loans
 
and capital leases
1,564,700
1,559,858
 




 

8.  SUBSEQUENT EVENTS

On August 12, 2009 Golar LNG Limited completed a restructuring and equity offering in a new Bermudan incorporated subsidiary, Golar LNG Energy Limited (Energy). The restructuring resulted in the transfer of the following key assets:

- 4 modern LNG carriers ("Gracilis", "Grandis", "Granosa" and "Golar Arctic")
- 3 1970's built LNG carriers ("Khannur", "Gimi" and "Hilli")
- 50 % ownership interest in another 1970's build LNG carrier ("Gandria")
- 13.6 % ownership interest in the Australian listed company LNG Ltd.
- Golar's current project portfolio

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- other financial obligations, notably swap arrangements.

In addition, Energy has acquired the subsidiary owning the 1970 built LNG carrier "Golar Freeze" which is scheduled to be converted to an FSRU vessel. The purchase of the "Golar Freeze" was financed by way of a seller's credit. Golar has been granted an option to reacquire "Golar Freeze" from Energy when its conversion to FSRU vessel is completed. Energy will have an identical option to sell "Golar Freeze" to Golar. The price to be paid by Golar in this transaction shall equal the aggregate of the seller's credit and the conversion cost of the vessel.

Subsequent to the restructure Golar was pleased to announce that Energy had completed an equity offering. A total of 55 million shares (USD 110 million) were issued mainly to International and Norwegian institutional investors. Attached to the offering is a 'green shoe' option. The managers were therefore granted an over allotment option, exercisable for 30 days for an additional 5 million shares (USD 10 million). Energy shares are currently trading on the Oslo OTC marketand the process to move to a full listing on the Oslo Stock Exchange is well underway.

Responsibility Statement

We confirm, to the best of our knowledge, that the condensed consolidated interim financial statements for the period January 1 to June 30, 2009 have been prepared in accordance with U.S generally accepted accounting principles, and give a true and fair view of the Company’s assets, liabilities, financial position and profit or loss as a whole. We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties transactions.

The Board of Directors

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

               Golar LNG Limited               
                    (Registrant)
 
Date: August 31, 2009 By: /s/ Graham Robjohns             
Graham Robjohns
Chief Financial Officer