Golar LNG: Growth Energy Stock For Shipping Investors

KD Research
2.13K Followers
(11min)

Summary

  • The third quarter of 2024 brought exciting news. Hili is committed to a 20-year contract with Pan American Energy, thus increasing the company’s EBITDA backlog to $11 billion.
  • Golar and BP resolved their dispute about Gimi’s payments. Gimi's COD is scheduled for the first half of 2025.
  • Despite stable revenue and gross profit, the company reported net loss mainly due to non-cash losses.
  • Golar reported significant progress with its MK II project. The company signed an agreement with CIMC Raffles for MK II in September.
  • I expect more positive developments in the coming quarters: completion of the PAE contract, tangible progress with MK II, and Gimi's COD. In conclusion, I give again a Strong Buy rating.

LNG tanker and carrier as floating LNG storageand import terminal in port. Alternative gas supply, commercial freight, energy crisis, diversification

Natallia Pershaj

Note: I previously covered Golar LNG (NASDAQ:GLNG) in April. I reviewed the company’s attractive position as the only provider of liquefication as a service. At that time, Golar progressed with its new FLNG(floating LNG) Gimi and its MKII

This article was written by

2.13K Followers
I am a voracious reader and self-taught investor. In the past, I was an accountant in the maritime industry. Now, I am a happy retiree passionate about writing and financial markets. As the kids are grown up, I have time to pursue my endeavors: growing my portfolio and developing my writing skills. You will find enticing investment ideas in KD Research that are not limited by region or sector. However, all of them share a few common things: • They are overlooked. • They offer asymmetric risk rewards. • They pay dividends with juicy yields. When I filter for new ideas, I look for at least two of the three to be presented. As an investor and analyst, I prefer shipping and mining enterprises. However, I will dive deep without hesitation if I spot a company from another industry suitable for my investment style. My analytical approach is focused on fundamentals. Do not forget I was an accountant, and I love scrambling numbers. Nevertheless, the fundamentals are not good enough to time the market. I add technical analysis to avoid being too early or too late for the party. I am excited to join Seeking Alpha contributors and share my thoughts with SA's thriving investor community. I am associated with the existing author Banks and Beyond.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GLNG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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