Golar LNG has 15 vessels dedicated to the transportation of liquified natural gas. They are in the process of expanding their services by converting some LNG tankers to Floating Storage and Regasification Units (FSRU). They currently have tow FSRUs on contract with Petrobras and two more LNG tankers being converted to FSRU. The company is currently working on a Floating Liquification (FLNG) project. It is obvious Golar LNG is pursuing other value added services in addition to the basic moving of LNG around the globe.
Reading through the earnings report shows a company that has encountered difficulties with the slowdown in global energy use. Golar LNG has a couple of ships idle after completing contracts and delays in the start up of NG liquification capacity has left an current over-supply of shipping capacity. GLNG is in need of additional capital or loans to complete some of their FSRU conversions and other projects.
Management is considering the viability to restructure the company into two separate companies. One would hold the ships on long term contracts and be able to pay out sustained distributions and one would be a development company holding the ships chartered on the spot market and the vessels in conversion. They would have separate goals of steady income and growth possibilities.
Golar LNG is a company going through a rough time now primarily driven by the expectations that global LNG use would be much greater at this point than it is. If you believe that LNG is one answer to long term global energy use, the future for the company is attractive. I would wait to see how the restructuring plan works out then make a decision on the attractiveness of GLNG as an investment.
Golar LNG 1st quarter results
Golar LNG – Press Releases.
Golar LNG has 15 vessels dedicated to the transportation of liquified natural gas. They are in the process of expanding their services by converting some LNG tankers to Floating Storage and Regasification Units (FSRU). They currently have tow FSRUs on contract with Petrobras and two more LNG tankers being converted to FSRU. The company is currently working on a Floating Liquification (FLNG) project. It is obvious Golar LNG is pursuing other value added services in addition to the basic moving of LNG around the globe.
Reading through the earnings report shows a company that has encountered difficulties with the slowdown in global energy use. Golar LNG has a couple of ships idle after completing contracts and delays in the start up of NG liquification capacity has left an current over-supply of shipping capacity. GLNG is in need of additional capital or loans to complete some of their FSRU conversions and other projects.
Management is considering the viability to restructure the company into two separate companies. One would hold the ships on long term contracts and be able to pay out sustained distributions and one would be a development company holding the ships chartered on the spot market and the vessels in conversion. They would have separate goals of steady income and growth possibilities.
Golar LNG is a company going through a rough time now primarily driven by the expectations that global LNG use would be much greater at this point than it is. If you believe that LNG is one answer to long term global energy use, the future for the company is attractive. I would wait to see how the restructuring plan works out then make a decision on the attractiveness of GLNG as an investment.