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Golar LNG Limited (GLNG)
:GLNG
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Golar LNG
(NASDAQ:GLNG)
Rating:51Neutral
Price Target:
$41.00
â–¼(-7.28% Downside)
Positive Factors
Operational Performance
FLNG Hilli has had 100% up-time for its entire operating history, highlighting the company's efficiency and reliability.
Strategic Agreements
The company signed two attractive long-term agreements in Argentina, which could enhance its market position and revenue streams.
Negative Factors
Market Rating
Downgrading Shares of GLNG from Buy to Neutral on Valuation indicates a cautious approach due to current stock pricing.
Stock Valuation
Shares of Golar LNG Limited are above the price target, leading to a downgrade from Buy to Neutral based on current valuation.
Golar LNG (GLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.59B
Dividend Yield2.28%
Average Volume (3M)1.15M
Price to Earnings (P/E)1531.4
Beta (1Y)1.29
Revenue Growth-2.78%
EPS Growth-105.22%
CountryUS
Employees474
SectorEnergy
Sector Strength67
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.24
Shares Outstanding104,622,475
10 Day Avg. Volume1,313,417
30 Day Avg. Volume1,150,521
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue21.08
Enterprise Value/Gross Profit38.22
Enterprise Value/Ebitda65.32
Forecast
1Y Price Target
$42.75Price Target Upside-3.32% Downside
Rating ConsensusHold
Number of Analyst Covering2
Golar LNG Business Overview & Revenue Model
Company DescriptionGolar LNG (GLNG) is a leading provider of integrated LNG services, focusing primarily on the transportation, regasification, and liquefaction of liquefied natural gas. The company operates in the LNG shipping sector and is involved in the development of floating liquefied natural gas (FLNG) projects, offering innovative solutions for the production and delivery of LNG. Golar LNG's fleet includes a range of LNG carriers and FLNG units, positioning it as a key player in the global energy market.
How the Company Makes MoneyGolar LNG generates revenue primarily through long-term charters and contracts for its LNG carriers and floating storage regasification units (FSRUs). The company earns income from the leasing of its vessels, which are often under long-term agreements with major energy companies and utilities. Additionally, Golar LNG benefits from partnerships in FLNG projects, which involve both the liquefaction of natural gas and the subsequent sale of LNG. Revenue streams also include fees related to the operation and maintenance of its vessels and facilities. The company strategically aligns with global energy trends, capitalizing on the increasing demand for cleaner energy solutions, particularly in developing markets.
Golar LNG Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance and strategic growth initiatives, marked by securing long-term contracts and enhancing cash flow visibility. While there were some challenges, such as delays in refinancing, the overall outlook remains positive due to the company's robust position and expansion plans.Q2-2025 Updates
Positive Updates
Securing Long-term Contracts
Golar secured a 20-year charter for the Hilli and signed definitive agreements for the Mark II FLNG, enhancing cash flow visibility and increasing the EBITDA backlog to $17 billion.
Strong Financial Position
The company issued $575 million in convertible bonds, boosting its cash position to just under $900 million, and repurchased 2.5 million shares.
Operational Milestones
The Gimi reached its commercial operations date in June, marking a significant milestone for the company.
Positive EBITDA and Dividend Declaration
Total EBITDA reached $49 million, and the company declared a dividend of $0.25 per share.
Expansion Plans
Plans for a fourth FLNG unit are underway, with agreements signed to confirm EPC price and delivery schedule.
Negative Updates
Gimi Refinancing Delays
The $1.2 billion Chinese sale leaseback refinancing facility for Gimi is delayed due to factors outside Golar's control.
Board Member Changes
The departure of two Board members, Georgina Sousa and Thorleif Egeli, may affect board dynamics, though new members have been welcomed.
Company Guidance
During Golar LNG's Q2 2025 earnings call, the company provided a comprehensive update on its strategic initiatives and financial metrics. Key highlights included securing a 20-year charter for the Hilli, achieving a final investment decision (FID) for the Mark II FLNG, and increasing the company's cash position to just under $900 million following a $575 million convertible bond issuance. Golar reported a net debt-to-EBITDA ratio of 3.4x and a substantial EBITDA backlog of $17 billion, excluding potential commodity upside. The company also discussed its plans to expand its FLNG fleet, with a focus on adding a fourth unit and potentially a fifth, financed through debt proceeds and the flexibility of its balance sheet. Additionally, Golar announced a quarterly dividend of $0.25 per share and highlighted its growth prospects in the FLNG market, which it views as an attractive and sustainable business model compared to traditional land-based liquefaction solutions.Golar LNG Financial Statement Overview
Summary
Golar LNG faces financial challenges with a negative net profit margin and increased leverage. While the gross profit margin is strong, operational inefficiencies and cash flow volatility are concerns.Income Statement
Golar LNG's income statement shows a mixed performance. The TTM gross profit margin of 55.16% is strong, indicating efficient cost management. However, the net profit margin is negative at -2.83%, reflecting challenges in achieving profitability. Revenue growth is modest at 4.26% TTM, but EBIT and EBITDA margins have declined significantly compared to previous years, suggesting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a moderate financial position. The debt-to-equity ratio has increased to 1.03 TTM, indicating higher leverage, which could pose risks if not managed properly. Return on equity is negative at -0.38% TTM, highlighting profitability challenges. However, the equity ratio remains stable, suggesting a balanced asset structure.50
Neutral
Cash Flow
Cash flow analysis shows volatility. Operating cash flow is positive, but free cash flow is negative, indicating potential liquidity issues. The free cash flow growth rate is high at 271.54% TTM, but this is due to a low base effect. The operating cash flow to net income ratio is reasonable, but the free cash flow to net income ratio is negative, reflecting cash flow challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 268.90M | 260.37M | 298.43M | 267.74M | 451.76M | 438.64M |
| Gross Profit | 148.34M | 126.45M | 154.80M | 140.78M | 214.71M | 209.15M |
| EBITDA | 86.78M | 138.64M | 53.21M | 1.08B | 29.54M | 193.07M |
| Net Income | -7.60M | 50.84M | -46.79M | 787.77M | -9.68M | 8.60M |
Balance Sheet | ||||||
| Total Assets | 4.77B | 4.37B | 4.08B | 4.28B | 4.95B | 4.34B |
| Cash, Cash Equivalents and Short-Term Investments | 893.25M | 566.38M | 684.38M | 1.13B | 268.63M | 127.69M |
| Total Debt | 1.95B | 1.46B | 1.22B | 1.19B | 2.41B | 2.38B |
| Total Liabilities | 2.49B | 2.00B | 1.48B | 1.38B | 2.77B | 2.71B |
| Stockholders Equity | 1.89B | 2.01B | 2.07B | 2.50B | 1.73B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | -313.20M | -120.31M | -189.96M | 31.46M | 15.60M | -156.40M |
| Operating Cash Flow | 413.88M | 318.24M | 135.25M | 298.88M | 230.00M | 145.78M |
| Investing Cash Flow | -646.27M | -416.98M | -131.71M | 1.07B | -74.35M | -103.03M |
| Financing Cash Flow | 525.25M | 43.85M | -244.95M | -691.64M | -51.61M | -137.11M |
Golar LNG Technical Analysis
Positive
44.22
Price Trends
41.43
Positive
40.64
Positive
39.54
Positive
Market Momentum
0.91
Negative
60.76
Neutral
43.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLNG, the sentiment is Positive. The current price of 44.22 is above the 20-day moving average (MA) of 42.49, above the 50-day MA of 41.43, and above the 200-day MA of 39.54, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 43.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLNG.
Golar LNG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.75B | 6.30 | 15.78% | 3.84% | -21.71% | -37.58% | |
77 Outperform | $1.44B | 14.78 | 12.50% | 11.63% | -2.98% | -17.51% | |
76 Outperform | $1.13B | 12.91 | 7.39% | 1.20% | 1.19% | 12.56% | |
75 Outperform | $135.90M | 2.73 | 10.57% | 5.20% | -2.37% | 32.03% | |
73 Outperform | $2.31B | 14.65 | 542.39% | 10.25% | -12.08% | 1.44% | |
65 Neutral | $15.28B | 7.48 | 3.19% | 5.33% | 4.10% | -60.58% | |
51 Neutral | $4.59B | 1,531.44 | -0.38% | 2.28% | -2.78% | -105.22% |
* Energy Sector Average
Performance Comparison
GLNG
Golar LNG
44.22
13.93
45.99%
TNK
Teekay Tankers
52.08
0.46
0.89%
DKL
Delek Logistics
43.22
6.37
17.29%
NVGS
Navigator Holdings
16.62
1.32
8.63%
DLNG
Dynagas LNG Partners
3.77
0.22
6.20%
FLNG
FLEX LNG
25.80
3.38
15.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.