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Golar Lng Limited (GLNG)
NASDAQ:GLNG
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Golar LNG
(NASDAQ:GLNG)
Rating:65Neutral
Price Target:
$44.00
▲(7.82%Upside)
Positive Factors
Earnings potential
Gimi offloaded its first LNG cargo and is on pace to achieve COD, with a 20-year contract expected to generate significant annual EBITDA.
Long-term contracts
Finalizing long-term employment for its three existing FLNGs paves the way for additional newbuilds.
Negative Factors
Asset utilization
Lower cash flows are anticipated from the Hilli until its full deployment in Argentina.
Utilization
The Hilli is currently only 55% utilized, resulting in lower cash flows until its deployment in Argentina.
Golar LNG (GLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.27B
Dividend Yield2.45%
Average Volume (3M)1.36M
Price to Earnings (P/E)1538.3
Beta (1Y)1.32
Revenue Growth-10.89%
EPS Growth-97.48%
CountryUS
Employees474
SectorEnergy
Sector Strength45
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.31
Shares Outstanding104,622,475
10 Day Avg. Volume815,761
30 Day Avg. Volume1,355,966
Financial Highlights & Ratios
PEG Ratio-17.33
Price to Book (P/B)2.17
Price to Sales (P/S)0.00
P/FCF Ratio-51.41
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue4.89
Enterprise Value/Gross Profit57.74
Enterprise Value/Ebitda8.97
Forecast
1Y Price Target
$50.00Price Target Upside22.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Golar LNG Business Overview & Revenue Model
Company DescriptionGolar LNG Limited designs, builds, owns, and operates marine infrastructure for the liquefaction and regasification of LNG. It operates through Shipping and FLNG segments. The company engages in the operation and chartering of LNG carriers, Floating Liquefaction Natural Gas Vessel (FLNG), and floating storage regasification units (FSRUs), as well as operates external vessels. As of December 31, 2021, it operated nine LNG carriers, one FSRU, and three FLNGs. The company was founded in 1946 and is headquartered in Hamilton, Bermuda.
How the Company Makes MoneyGolar LNG makes money through a diversified revenue model centered around the leasing and operation of its fleet of LNG carriers, FSRUs, and FLNG vessels. The company generates income through long-term charter agreements with energy producers and utilities, ensuring a stable cash flow. These agreements often include fixed-fee contracts for the use of Golar's assets. Additionally, Golar LNG engages in spot market operations, where it charters its vessels for shorter durations at market rates. The company also capitalizes on its technical and operational expertise by providing engineering and management services to third parties. Strategic partnerships with major energy companies enhance Golar's market position, contributing to its earnings by expanding its commercial opportunities and operational capabilities.
Golar LNG Earnings Call Summary
Earnings Call Date:May 27, 2025
(Q1-2025)
| % Change Since: 8.83%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Golar LNG's strong long-term positioning with significant contract backlogs and operational excellence, though concerns about current EBITDA performance related to market conditions and potential undervaluation were noted.Q1-2025 Updates
Positive Updates
Securing Long-term Charters
Golar LNG secured two 20-year charters, one for FLNG Hilli and another for Mark II FLNG, ensuring significant long-term revenue streams.
Record EBITDA Backlog
The company announced an EBITDA backlog of approximately $17 billion before commodity exposure, providing long-term cash flow visibility.
Strong Financial Position
Golar LNG has a market cap of around $4 billion, net debt of $800 million, and maintains a solid balance sheet with a net debt to EBITDA ratio of 2.8 times.
Operational Excellence
FLNG Hilli achieved 100% operational uptime, delivering 132 cargoes and producing more than 9.2 million tons of LNG since 2018.
Successful Refinancing
Golar LNG signed a $1.2 billion debt facility to refinance FLNG Gimi, expected to generate net proceeds of approximately $530 million.
Negative Updates
Lower EBITDA Due to Market Conditions
Total EBITDA reached $41 million in Q1, driven by lower Brent and TTF prices, compared to previous quarters.
Commodity Price Exposure
Golar LNG has a downside exposure of up to $210 million if annual average FOB prices fall between $7.5 and $6.
Market Valuation Concerns
Despite strong performance, the Board expressed concerns about undervaluation by the market, hinting at strategic alternatives if the situation persists.
Company Guidance
In the first quarter of 2025, Golar LNG Limited reported significant developments and financial metrics, highlighting its transformation into a focused FLNG company. The company secured two 20-year charters, including a contract for the FLNG Hilli and a definitive agreement for its Mark II FLNG, resulting in an EBITDA backlog of $17 billion. The company also exited LNG shipping, reported a market cap of $4 billion, and maintained a net debt of $800 million, with an anticipated net debt to EBITDA ratio of 2.8 times. Operationally, the FLNG Hilli achieved 100% uptime, contributing to the production of over 9.2 million tons of LNG. Golar also reported operating revenues of $63 million and declared a quarterly dividend of $0.25 per share. The company aims to optimize its balance sheet, targeting a net debt to EBITDA ratio of 5 times, potentially unlocking over $1.9 billion of equity for growth initiatives, including new FLNG units.Golar LNG Financial Statement Overview
Summary
Golar LNG exhibits a stable yet challenging financial outlook. Strong gross profit margins and manageable debt levels are positive, but profitability is a concern with a negative EBIT margin and low ROE. The company needs to improve cash flow management due to negative free cash flow.Income Statement
Golar LNG's income statement reveals a mixed performance. The TTM shows a decline in total revenue compared to the previous year. Gross profit margin for TTM is at 35.1%, indicating a strong ability to cover costs despite revenue drop. Net profit margin for TTM is 1.0%, suggesting slim profitability. The EBIT margin is negative for TTM, reflecting operational challenges. However, EBITDA margin remains robust at 36.7%, showing potential operational efficiency. Revenue growth is volatile, highlighting potential risks.72
Positive
Balance Sheet
The balance sheet shows a moderate financial position. The debt-to-equity ratio for TTM is 0.71, indicating manageable leverage. The equity ratio stands at 45.6%, suggesting a healthy proportion of assets financed by equity. Return on equity (ROE) is low at 0.1% for TTM, indicating limited returns to shareholders. Overall, the balance sheet reflects stability but limited growth potential.68
Positive
Cash Flow
Golar LNG's cash flow analysis reveals certain challenges. The TTM free cash flow is negative, indicating a cash outflow situation. Operating cash flow to net income ratio is high, suggesting efficient cash generation relative to net income. However, free cash flow to net income ratio is negative, pointing towards potential liquidity issues. The company needs to focus on improving cash flow management.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 257.92M | 260.37M | 298.43M | 267.74M | 451.76M | 438.64M |
| Gross Profit | 90.59M | 126.45M | 154.80M | 140.78M | 214.71M | 209.15M |
| EBITDA | 94.71M | 138.64M | 53.21M | 1.08B | 29.54M | 193.07M |
| Net Income | 2.67M | 50.84M | -46.79M | 787.77M | -9.68M | 8.60M |
Balance Sheet | ||||||
| Total Assets | 4.38B | 4.37B | 4.08B | 4.28B | 4.95B | 4.34B |
| Cash, Cash Equivalents and Short-Term Investments | 521.43M | 566.38M | 684.38M | 1.13B | 268.63M | 127.69M |
| Total Debt | 1.42B | 1.46B | 1.22B | 1.19B | 2.41B | 2.38B |
| Total Liabilities | 2.00B | 2.00B | 1.48B | 1.38B | 2.77B | 2.71B |
| Stockholders Equity | 1.99B | 2.01B | 2.07B | 2.50B | 1.73B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | -84.30M | -119.16M | -189.96M | 31.46M | 15.60M | -156.40M |
| Operating Cash Flow | 381.08M | 318.24M | 135.25M | 298.88M | 230.00M | 145.78M |
| Investing Cash Flow | -375.36M | -416.98M | -131.71M | 1.07B | -74.35M | -103.03M |
| Financing Cash Flow | 47.30M | 43.85M | -244.95M | -691.64M | -51.61M | -137.11M |
Golar LNG Technical Analysis
Positive
40.81
Price Trends
40.81
Positive
38.80
Positive
38.94
Positive
Market Momentum
-0.12
Positive
49.58
Neutral
35.42
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 40.81 is below the 20-day moving average (MA) of 40.91, above the 50-day MA of 40.81, and above the 200-day MA of 38.94, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 49.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 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 (69)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $130.78M | 2.61 | 10.57% | 4.11% | -2.37% | 32.03% | |
79 Outperform | $1.14B | 13.09 | 7.38% | 1.22% | 6.38% | 9.47% | |
78 Outperform | $1.55B | 4.81 | 18.57% | 4.46% | -21.27% | -34.25% | |
72 Outperform | $2.35B | 14.77 | 542.39% | 10.02% | -8.79% | 7.75% | |
72 Outperform | $1.22B | 12.14 | 12.69% | 13.02% | -3.95% | -2.25% | |
69 Neutral | €9.42B | 16.57 | 12.20% | 2.90% | -3.06% | 23.36% | |
65 Neutral | $4.27B | 1,538.26 | 0.13% | 2.45% | -10.89% | -97.48% |
* Energy Sector Average
Performance Comparison
GLNG
Golar LNG
40.54
6.29
18.36%
TNK
Teekay Tankers
44.17
-15.76
-26.30%
DKL
Delek Logistics
44.00
7.08
19.18%
NVGS
Navigator Holdings
16.02
0.00
0.00%
DLNG
Dynagas LNG Partners
3.54
-0.20
-5.35%
FLNG
FLEX LNG
23.14
-0.45
-1.91%
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.