LONDON: Golar LNG (GLNG) has a market cap of $2.6 billion. After the company’s fiscal 3Q15 earnings report, GLNG rose by 2.3% to close at $27.35 per share on November 30, 2015. GLNG’s price movements on weekly, monthly, and YTD bases are -1.9%, -4.1%, and -22.3%, respectively.
Technically, the stock has broken the support and is trading below all moving-day averages. Currently, GLNG is trading 5.1% below its 20-day moving average, 8.3% below its 50-day moving average, and 25.9% below its 200-day moving average.
The PowerShares WilderHill Progressive Energy Portfolio (PUW) invests 2.2% of its holdings in Golar LNG. The ETF tracks an index of companies that improve the use of fossil fuels and nuclear energy. These companies are weighted equally by sector within the ETF. PUW’s YTD (year-to-date) price movement is -20.9%. The Guggenheim Russell MidCap Equal Weight ETF (EWRM) invests 0.26% of its holdings in Golar LNG. The PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) invests 0.08% of its holdings in Golar LNG.
Golar LNG’s competitors (GLNG) and their market caps are listed below:
Teekay Corporation (TK)—$2.0 billion
Teekay LNG Partners (TGP)—$1.8 billion
Golar LNG’s performance in fiscal 3Q15
The company reported fiscal 3Q15 operating revenues of $27.4 million, a rise of 36.3% when compared to operating revenues of $20.1 million in fiscal 2Q15. Revenue from Time Charter rose by 43.2%, and revenue from Vessel and other management fees fell by 3.1% in fiscal 3Q15 on a quarter-over-quarter basis. The company’s operating expenses as a percentage of operating revenue fell by 40.5% in fiscal 3Q15.
Golar LNG’s net financial income and net income fell to -$126.5 million and -$146.1 million, respectively, in fiscal 3Q15, as compared to net financial income and net income of $35.1 million and -$2.6 million, respectively, in fiscal 2Q15. Its operating revenue fell by 4.9% in fiscal 3Q15, as compared to fiscal 2Q15.
Meanwhile, cash and cash equivalents fell by 40.6% in fiscal 3Q15 on a quarter-over-quarter basis. The company’s current ratio fell to 1.0, and its debt-to-equity ratio rose to 1.0 in fiscal 3Q15, as compared to its current ratio and debt-to-equity ratio of 2.0 and 0.89, respectively, in fiscal 2Q15.
Some of Golar LNG’s key activities in fiscal 3Q15 are listed below:
Dynagas, GasLog (GLOG), and Golar LNG have entered into a liquefied natural gas, or LNG, carrier pooling agreement to market vessels that are currently operating in the LNG shipping spot market.
Golar LNG received an underwritten commitment for its GoFLNG project from CSSC (Hong Kong) Shipping Company in relation to a conversion financing and sale and leaseback transaction for the GoFLNG Hilli.
The company has entered into an agreement for the conversion of the 126,000 m3 LNG carrier Gandria to a Golar LNG floating liquefaction facility.
It has entered into a contract to provide West African Gas Limited with Floating Storage and Regasification Unit (FSRU) services to support LNG import operations in Ghana.
On August 4, 2015, the company approved a unit purchase program to purchase up to $25 million worth of Golar LNG Partners’ outstanding units over the next 12 months.
As of September 30, 2015, it had forward contracts to repurchase 3.5 million of its shares at an average price of $27.88 per share.
The company received an underwritten financing commitment for December 2015 delivery of the newbuild FSRU Golar Tundra.
