No ‘Sell’ Rating for Teekay LNG Partners
On June 9, 2017, Morgan Stanley reduced the target price for Teekay LNG Partners (TGP) to $15 from $18. Currently, the consensus target price is $19.20.
On June 21, 2017, Golar LNG (GLNG) signed an agreement with Delfin LNG to develop the Delfin LNG project in the Gulf of Mexico.
GasLog Partners believes GasLog Geneva will add ~$23.0 million to its EBITDA in the first 12 months after closing.
In June 2017, Maxim reduced the target price for Dynagas LNG Partners (DLNG) to $18 from $20. The consensus 12-month target price is $17.70.
The consensus 12-month target price for Höegh LNG Partners (HMLP) is $27.19. Based on the June 27 price, the target price implies a potential upside of 16.5%.
Ten analysts have given recommendations for Golar LNG Partners (GMLP). The consensus rating on the stock is 2.4, which means a “buy.”
Since the start of 2017, LNG (liquefied natural gas) carrier stocks have given mixed returns. GasLog (GLOG) has had the highest year-to-date return.
Excess debt and capacity aren’t the only problems facing China. As pollution rises, the Chinese government is putting greater emphasis on environmental sustainability.
Since iron ore is primarily used to manufacture steel, and China is the largest producer and consumer of the two commodities, China’s crude steel production is a key indicator that dry bulk shipping investors should watch.
Weak manufacturing activity in China is putting pressure on China’s oil consumption, crude oil imports, and demand for crude tankers.
Even if more product oil is shipped from the United States to Europe and Europe decides to import less crude oil, higher consumption could offset a decrease.
For the week ended April 18, 2014, total products supplied stood at 18,051 thousand barrels per day, as compared to 18,414 thousand barrels a day for the prior week
As of the beginning of April, China’s total iron ore inventory at ports amounts to about 107.65 million metric tonnes, compared to 74.9 million metric tonnes in April 2013.
Based on the last five years of data, valuations are on the higher end. However, investors should note that people have been afraid to put their money into the stock market.
As the Guggenheim Shipping ETF (SEA) and dry bulk shipping companies trade on the public stock market, day-to-day movements in share prices are also subject to market psychology.
As the United States is the largest oil consumer, U.S. oil consumption patterns will continue to sway the Guggenheim Shipping ETF (SEA) and tanker companies’ outlooks.
Indonesia’s ban on unprocessed nickel and bauxite can drive down shipping rates in the short run—especially for smaller dry bulk vessels that are more often used to transport minerals.
As a major producer and exporter of oil, gas, and minerals (including gold, nickel, copper, tin, and thermal coal), Indonesia’s exports account for a significant share of Indonesia’s GDP.
While oil consumption doesn’t directly affect crude trade and tanker rates, it nonetheless often reflects positive economic fundamentals and tends to support crude tanker demand.
As most investors know, the United States has been a large importer of crude oil. It still is, even though it may not be the biggest “net importer” anymore, having been replaced by China.