Golar LNG Reports Strong Q3 Earnings

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Golar ($NASDAQ:GLNG) LNG is a liquefied natural gas company. It is engaged in the ownership, operation and development of LNG carriers and floating storage and regasification units. The company has a strong presence in the international LNG market with a modern fleet of LNG carriers. Golar LNG reported strong Q3 earnings with a net income of $141.1M and Adjusted EBITDA of $85.2M. Revenue of $68.63M missed by $4.84M. As of September 30, 2022, Golar had $498.2M of cash and cash equivalents and $130.9M of restricted cash.

Golar’s strong Q3 earnings are a result of the growing demand for LNG globally. The company’s modern fleet of LNG carriers is well-positioned to meet this demand. Golar is committed to expanding its fleet and footprint in the international LNG market.

Earnings

In its earning report of FY2022 Q2 ending June 30, GOLAR LNG earned 460.8M USD in total revenue, earned 492.3M USD in net income. Compared to previous year, 2.0% increase in total revenue, 18.9% increase in net income. GOLAR LNG’s total revenue reached from 438.6M USD to 460.8M USD in the last 3 years.

The company has a strong track record of earnings and growth, and its strong Q3 results are further evidence of this. Golar is well-positioned to continue its success in the coming years.

Market Price

Golar LNG stock opened at $26.0 on Wednesday, but closed at $24.4 after a 5.8% drop from its previous closing price of $25.9. Right now, news sentiment towards the company is mostly negative. The company’s earnings were better than expected, but investors may be worried about the future. The company has a strong fleet of LNG carriers, and its earnings have been rising in recent quarters.

Investors may be worried about the future of the company due to the current negative sentiment around LNG. The demand for LNG is expected to grow in the coming years, but there are concerns about over-supply and weak prices. Golar LNG has a strong fleet of LNG carriers, but it will need to continue to invest in new vessels to stay ahead of the competition.

VI Analysis

In general, a company’s fundamentals reflect its long term potential. The VI app makes it easy to analyze a company’s fundamentals and compare it to others in its industry. Based on the VI Star Chart, GOLAR LNG is classified as a “rhino”, which is a type of company that has achieved moderate revenue or earnings growth. Rhino companies are typically of interest to value investors, who seek companies that are undervalued by the market. GOLAR LNG is strong in terms of cash flow, asset quality, and growth potential.

However, it is weak in terms of profitability and dividend yield.

Additionally, GOLAR LNG has an intermediate health score of 6/10, which indicates that it is likely to be able to sustain future operations in times of crisis.

VI Peers

The competition between Golar LNG Ltd and its competitors is fierce. Each company is vying for a share of the market and customers. They all have different strengths and weaknesses, but Golar LNG Ltd has the edge.

– Fluxys Belgium SA ($LTS:0Q7U)

Fluxys Belgium SA is a leading gas infrastructure company in Belgium. The company has a market capitalization of 2.23 billion as of 2022 and a return on equity of 14.4%. Fluxys Belgium SA owns and operates a gas network of over 4,000 kilometers in Belgium, including the Zeebrugge LNG terminal. The company also owns and operates gas pipelines in France and the Netherlands.

– Genesis Energy LP ($NYSE:GEL)

Genesis Energy LP is a publicly traded limited partnership that engages in the midstream energy business in the United States. The company owns and operates a fleet of crude oil and refined product barges, pipelines, railcars, and trucks. It also owns and operates terminal facilities and a refinery. The company was founded in 1985 and is headquartered in Houston, Texas.

– EnLink Midstream LLC ($NYSE:ENLC)

EnLink Midstream LLC is a company that owns, operates, and develops midstream energy infrastructure in the United States. The company has a market cap of $5.72 billion as of 2022 and a return on equity of 26.4%. EnLink Midstream provides gathering, processing, transportation, and storage services to oil and gas producers in the United States. The company was founded in 2014 and is headquartered in Dallas, Texas.

Summary

Golar LNG is a liquefied natural gas company that owns and operates a fleet of LNG carriers and floating liquefied natural gas production vessels. Golar LNG has been in business for over three decades and is one of the world’s leading LNG shipping and production companies. The company’s vessels are among the most modern and efficient in the world, and its fleet is expected to grow in the coming years. Golar LNG has a strong financial position and is well-positioned to continue growing its business.

The company has a strong track record of profitability and has consistently grown its dividend payout. Golar LNG is an attractive investment for income-seeking investors looking for exposure to the growing liquefied natural gas industry.