In August 2017, Hoegh LNG Partners (HMLP), which provides floating LNG services under long-term contracts, released its second quarter earnings. The company reported revenue of $35 million in 2Q17, up from $22.8 million in 2Q16. It earned an operating income and net income of $23.1 million and $12.2 million, respectively. Hoegh LNG Partners paid a dividend of $0.43 per share, which is equivalent to $1.72 per share on an annualized basis. HMLP’s total distributions amounted to $14.4 million, and its distributable cash flow was $15.2 million. Thus, it has a dividend payout ratio of more than one, which is considered healthy.
The consensus rating on Hoegh LNG Partners is 1.4, which means a “strong buy.” The consensus ratings for other LNG (UNG) carrier companies are as follows:
- Dynagas LNG Partners (DLNG): 2.1 (buy)
- Teekay LNG Partners (TGP): 2.3 (buy)
- Gaslog Partners (GLOP): 1.8 (buy)
- Golar LNG Partners (GMLP): 2.4 (buy)
Nine analysts cover Hoegh LNG Partners (HMLP). All the analysts are bullish on the stock. Five analysts recommend a “strong buy,” and four analysts recommend a “buy” for HMLP. None of the analysts gave a “hold,” “sell,” or “strong sell” rating to the stock. In 2017, only one analyst revised their recommendation for HMLP. Barclays upgraded the stock to “overweight” in July.
The consensus 12-month target price on HMLP is $21.96. Compared to the current market price of $18.4 on September 18, the target price implies a potential upside of 19%.
In the next part of the series, we’ll look at analyst recommendations for Gaslog and Gaslog Partners.
According to Reuters, the consensus rating for Gaslog Partners (GLOP) is 1.83, which means “buy.”
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