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Golar LNG Limited (GLNG) is entering into the first phase of significant growth with the commencement of its Gimi FLNG vessel following the commercial reset of its agreement with BP p.l.c. (
Golar LNG Has Multiple Growth Catalysts At Play
Summary
- Golar LNG is poised for significant EBITDA growth, as the firm brings Gimi onstream with BP. Golar may realize incremental EBITDA growth through commodity-linked agreements.
- Golar's transition to a pure FLNG company through its strategic asset sales, positions it for higher-margin growth through long-term, 20-year FLNG contracts.
- Despite potential risks from high capital investments for new FLNG vessels, Golar's long-term contracts and market positioning provide durability and more visibility into future earnings.
- Natural gas prices may be positively impacted by geopolitical factors, including the EU transitioning from Russian gas imports.
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.
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.
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