| Over a month ago | ||||
Snam and Golar LNG have… Snam and Golar LNG have signed an agreement for the Snam Group to acquire 100% of the share capital of Golar LNG NB 13 Corporation, whose sole asset is a floating storage and regasification unit, or FSRU, named "Golar Tundra", for $350M. The transaction was approved by the Golar board of directors on May 30. The Golar Tundra can operate both as an LNG carrier and as an FSRU. The vessel, built in 2015, has a storage capacity of around 170,000 cubic meters of LNG and a continuous regasification capacity of 5B cubic meters per year. In order to maximize its regasification capacity, the vessel will be located in central-northern Italy, close to the areas with greatest gas consumption. The Golar Tundra is expected to start operations as an FSRU during the spring of 2023, subject to completion of authorization, regulatory processes and the construction of the necessary infrastructure connecting the terminal to the existing gas transport network. | ||||
B. Riley analyst Liam… B. Riley analyst Liam Burke raised the firm's price target on Golar LNG to $33.50 from $28 and keeps a Buy rating on the shares post the Q1 results. The company generates consistent underlying cash flow from Hilli Episeyo which reported 100% uptime, Burke tells investors in a research note. With the spin out of liquified natural gas carrier fleet assets in Q1, Golar LNG's cash flows will be lower year-over-year, but will be partially offset by an additional 200,000 tons of production in 2022, says the analyst. With the completion of the Gimi project in 2023, he expects to see another step up in internally generated cash. The new price target reflects a higher value of the Gimi project. | ||||
The company said,… The company said, "We are in detailed discussions with existing and prospective clients for new FLNG projects. Some of these projects would offer direct access to gas molecules or allow for a commodity linked earnings component, whilst others are on a tolling basis. Based on envisioned funding and ownership structures we expect that our Total Golar Cash and Listed Securities1 position could fund two FLNG growth projects." | ||||
Snam and Golar LNG signed… Snam and Golar LNG signed a contract through which Golar will deliver the existing LNG Carrier "Golar Arctic" as a floating storage and regasification unit, or FSRU, that Snam will install in the port area of Portovesme, in Sardinia, as part of a project to supply the island with energy. The contract, for a total consideration of 269M euros, includes the vessel and the capex for Golar to convert the Golar Arctic into an FSRU with storage capacity for up to 140,000 cubic meters. Further to the full conversion of the vessel, the FSRU will be sold to the Snam Group. Start of activities for the conversion of the ship into an FSRU and related fulfillments are subject to Snam's issuance of a Notice-to-Proceed and further to that the conversion is expected to take about two years for the Golar Arctic to be delivered. | ||||
Jefferies analyst… Jefferies analyst Christopher Robertson reinstated coverage of Golar LNG with a Buy rating with a price target of $27, up from $22. Rates across several maritime group sub-sectors experienced normal seasonal pressures during Q1, but rates and asset values are now on the rise across several sub-sectors and the Jefferies shipping index is up about 25% year-to-date, largely due to recent equity performance in the dry bulk and tanker space, noted Robertson, who remains positive on supply-side fundamentals as he reinstated coverage of the maritime shipping group at the firm. | ||||
| Over a quarter ago | ||||
Golar LNG Limited (GLNG)… Golar LNG Limited (GLNG) announces that it has sold approximately one third of the 18.6 million New Fortress Energy (NFE) shares received upon completion of the sale of Hygo Energy Transition to NFE in April 2021. The sale is expected to raise net proceeds of approximately $250M which Golar will seek to deploy to FLNG growth projects. | ||||
BTIG analyst Gregory… BTIG analyst Gregory Lewis raised the firm's price target on Golar LNG to $30 from $20 and keeps a Buy rating on the shares. Following a year of repositioning the company, Golar has a much improved capital structure, an existing base of LNG assets which could be FLNG conversion projects, and Floating LNG solutions, which positions the company to win multiple FLNG projects over the next two years, Lewis tells investors in a research note. | ||||
BofA analyst Ken Hoexter… BofA analyst Ken Hoexter upgraded Golar LNG to Neutral from Underperform with a price target of $19.50, up from $14. The analyst is citing commodity linked upside and momentum in Floating LNG liquefaction unit utilization. Based on the upside in Brent and increased FLNG utilization, Hoexter boosts his FY22 and FY23 earnings per share estimates by 38% and 5% respectively. | ||||
BofA analyst Ken Hoexter… BofA analyst Ken Hoexter upgraded Golar LNG to Neutral from Underperform with a $19.50 price target. | ||||
B. Riley analyst Liam… B. Riley analyst Liam Burke raised the firm's price target on Golar LNG to $28 from $20.50 and keeps a Buy rating on the shares following the Q4 results. Te company generates consistent underlying cash flow from Hilli Episeyo which reported 100% uptime, Burke tells investors in a research note. | ||||
