U.S. LNG Shipping Stocks Lack Volume

Aug. 13, 2020 10:43 AM ET, , , , , , , 21 Comments
Tomas Novotny
401 Followers

Summary

  • Stocks of the LNG shipping sector go up globally accompanied by Natural Gas prices and shipping spot rates.
  • UP World LNG Shipping Index beat ETF SPY last week.
  • But US LNG shipping stocks go sideways at low volume.

Take a quick look at the whole LNG maritime transport sector. There was good news published last week.

First the Natural Gas prices started rising accompanied by the world LNG shipping companies as shown in the first chart. UP World LNG Shipping Stock Index includes 17 world LNG shipping companies and is described in my previous article.

UP World LNG Shipping Index versus Natural Gas Price

UP World LNG Shipping Stock Index versus Natural Gas prices (source: UP-Indices.com)

This price recovery was accompanied by a small rise of spot prices as shown on the second chart. One-year time charters didn´t move. Many inquiries have come in for winter shipping requirements but charterers want shorter tenors than what shipowners desire, says Poten & Partners.

UP World LNG Shipping Index versus Spot and Charter Rates

UP World LNG Shipping Stock Index versus Spot rates and 1-year charter rates. (source: UP-Indices.com, this chart also uses data from Fearnleys)

The third chart compares UP World LNG Shipping Index with ETF SPY. You can see that the world LNG shipping stocks are moving less than the rest of the US market. But last week the UP Index rose over 6 % while SPY added "only" 2.5 %.

UP World LNG Shipping Index versus SPY

UP World LNG Shipping Stock Index versus ETF SPY (source: UP-Indices.com)

How is this positive sentiment reflected by US listed companies? The general answer is: not so far.

Dynagas LNG

Dynagas LNG Partners LP (DLNG) has a rest after a successful period. The resistance at $4 persists as same as the support line around $3. Volume is now low again and will be low till a significant move. Thanks to long-term high-rates contracts, DLNG is in a better position than the others.

DLNG weekly chart (source: author via Amibroker platform)

Flex LNG

The fleet of Flex LNG Ltd. (FLNG) is still rising. On July 29 was delivered Flex Aurora as the first newbuilding this year and will

This article was written by

401 Followers
6/2022 - now: Member of Society of Technical Analysts in UK 9/2016 - now: UP forum s.r.o. 3/2016 - now: LNG shipping investor 7/2009 - now: Private investor at Warsaw Stock Exchange 11/2006 - now: Board Member of Czech National Association of Technical Analysis 2/2011-6/2016: Board Member at Financial Progress Group a.s. 1/2003-4/2013: Head of Sales and Marketing, Theatre Na zábradlí, Prague 2004-2010: Master degree of Arts Management at Academy of Performing Arts, Prague

Analyst’s Disclosure:I am/we are long DLNG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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