GasLog (GLOG +4.7%) is initiated with an Overweight rating and a $26 price target while gas shipping peer Golar LNG Partners (GMLP -3.6%) is downgraded to Equal Weight with a $33 target at Morgan Stanley.
GLOG offers relatively low downside, having most of its fleet locked in solid long-term charters with strong counterparties and a reputation as a top quality operator, the firm says; GLOG's ability to identify attractive acquisition opportunities, not only by ordering newbuilds but also secondhand vessels, suggests stable growth potential.
The firm sees lower upside for GMLP due to the anticipated difficulty of its parent, Golar LNG (GLNG +1%), to secure long-term contracts for its newbuilds during the next 12 months; however, even with the $33 price target, GMLP still offers 10%-15% total return including a 6.7% yield.
Golar LNG Partners (GMLP -6.2%) is defended at Clarkson Capital, which reiterates its Outperform rating and $38 price target after GMLP reveals plans to offer 5.1M units; parent Golar LNG (GLNG +0.4%) will sell 3.4M GMLP units as part of the offering.
The acquisition of the Golar Igloo from GLNG was expected before the vessel begins service on a five-year contract to Kuwait National Petroleum in March 2014, the firm says; the transaction value is in-line with expectations, and the firm believes GMLP has solid distribution growth potential and strong unit coverage.
Golar LNG's (GLNG +1.6%) ambitions to build several floating liquefied natural gas vessels remains the dominant variable for GLNG shares, Wells Fargo says, with the company providing significantly more color on its move in its Q3 report.
The firm believes the potential for positive FLNG conversion and commercial updates throughout 2014 should continue to help break down the stock's correlation with spot LNG earnings, keeping it as buyers of the stock despite what it sees as a softer LNG carrier rate environment in 2014.
Rates for the biggest crude carriers sank 68% in the past two weeks, more than reversing their advance since the end of June; the rise is seen as a blip, as the U.S. meets the highest share of its own energy needs in three decades.
Rates for VLCCs, each hauling 2M barrels, fell to $7,954/day on Aug. 2 after rising as high as $24,493 on July 12; earnings last exceeded the $25.5K that FRO says it needs to break even in November.
While U.S. oil production is bearish for crude tankers, it’s boosting demand for ships to export refined products, chemicals and liquefied petroleum gas; Scorpio Tankers (STNG) is expected to benefit.
Liquefied natural gas shipper Golar LNG (GLNG +4.6%) powered higher following earlier news that it secured $1.125B in financing for the first eight of 13 planned newbuild vessels and FSRUs. In anticipation of the financing, GLNG had entered into interest rate swaps to hedge much of the loan so that the all-in interest cost for the initial seven years of the facility will be ~3.74%.
Golar LNG (GLNG +2.4%) is upgraded to Neutral from Sell with a $32.50 price target at Goldman Sachs following recent underperformance. Since the firm added GLNG to its Sell list on May 14, shares are down 14% vs. the S&P 500's 2% drop; over the last 12 months, shares are down 18.4% vs. S&P's 17.6% gain.
Golar LNG Partners (GMLP) -4.5% AH after announcing a public offering of 3.9M common units; Golar LNG Ltd. (GLNG) will purchase $12.4M of units in a private placement to close concurrently with the public offering. GMLP plans to use net proceeds to fund part of its purchase of LNG carrier Golar Maria.
Golar LNG (GLNG +10.5%) surges after an SEC filing announces it reached an agreement with Keppel Shipyards to develop its first floating liquefied natural gas production vessel. GLNG has already converted three Moss carriers into floating storage and regasification units, of which Keppel has converted two.
SA author Kevin Quon highlights 5 firms that are prospering from low natural gas prices, including those that benefit from the use of gas as a fuel source and those that make it readily available. The five are Clean Energy Fuels (CLNE +7.55%), Fuel Systems (FSYS +2.9%), Golar LNG (GLNG +3.6%), Chart Industries (GTLS +5.3%) and Westport (WPRT +11.3%).
Golar LNG (GLNG +4.9%) moves higher after Dahlman Rose ups the shares to Buy on valuation, saying the company has landed some lucrative contracts and is in a strong position operationally to take advantage of positive LNG market fundamentals.
Golar LNG (GLNG -8%) dips after Goldman cuts the shares to Neutral from Buy on valuation and removes it from its Conviction List. The firm cites a rise in LNG spot shipping rates and better relative value in other peer names.
Golar LNG (GLNG) falls 4.7% premarket after reporting a Q2 loss of $0.6M on revenue of $74M (+33% Y/Y). Vessel utilization increased to 97%, from 91% the previous quarter, adding to the top-line result. The firm sees the market for tankers designed to carry natural gas for long hauls as "structurally tight."
mapodga+ FollowFollowing- Unfollow|Send Message25 Jun
: How to buy secondary? Where?
Jun 25, 5:12 PM
TFCAB+ FollowFollowing- Unfollow|Send Message18 Jun
$GLNG closed long for huge win; will look to re-enter
Jun 18, 3:08 PM
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mapodga+ FollowFollowing- Unfollow|Send Message18 Jun
: it droped like a stone. Have problem to escape. Do you think will drop further?
Jun 18, 4:06 PM
TFCAB+ FollowFollowing- Unfollow|Send Message18 Jun
: i am not good at predicting the future...LT goes higher, but it was running too hot
Jun 18, 5:41 PM
GLNG vs. ETF Alternatives
Golar LNG Ltd is a midstream LNG company engaged primarily in the transportation, regasification and liquefaction and trading of LNG. It is engaged in the acquisition, ownership, operation and chartering of LNG carriers.