Hygo Energy IPO postponment an overhang for Golar LNG share price?

Golar LNG was expected to receive net proceeds of USD 420.9mn from Hygo Energy IPO based on the IPO price of USD 19.50 per share
(mid-point of the offering price range). Hygo, which is Golar LNG’s joint venture with Stonepeak Infrastructure (previously known as Golar
Power), planned to use the net proceeds for expansion in Brazil. Of the total proceeds, about USD 80mn capex was meant for Barcarena
LNG Terminal which included acquiring remaining equity interests in the Barcarena terminal, USD 40mn capex was related to the Santa
Catarina regasification terminal and USD 180mn for the redemption of preferred shares owned by Stonepeak. The remaining proceeds
from the IPO were to be used for working capital and general corporate purposes.
Golar LNG has been increasing its presence in Brazil’s energy utility sector through Hygo Energy. Following the delay in Hygo Energy’s
IPO, we expect Golar LNG’s growth plans in Brazil to be hampered. Furthermore, according to a recent media report, Golar LNG was
disqualified from a Petrobras terminal tender.