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LNG Carrier Stocks: Analysts’ Recommendations before 4Q17 Results

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Stock performance

Since the beginning of 2018, LNG (liquefied natural gas) carrier stocks have given mixed returns. GasLog Partners, Golar LNG, and GasLog traded in the red, while other LNG carrier stocks traded in the green.

The YTD (year-to-date) returns for LNG (UNG) carriers as of January 19, 2018, were:

  • GasLog (GLOG) fell 8.5%.
  • Golar LNG (GLNG) fell 1.8%.
  • Teekay LNG Partners (TGP) rose 4.4%.
  • Höegh LNG Partners (HMLP) rose 3.2%.
  • Golar LNG Partners (GMLP) fell 0.61%.
  • Dynagas LNG Partners (DLNG) rose 6.7%.
  • GasLog Partners (GLOP) fell 0.4%.

The SPDR Dow Jones Industrial Average ETF (DIA) has broad exposure to the industrial sector. It has risen 4.2% YTD.

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LNG market

In 2017, LNG production rose to a record high of 290 million tonnes—12% higher year-over-year. The growth was mainly driven by rapid growth from Australia and the US. In 2018, the production is expected to increase to 300 million tonnes. The shipping market’s recovery is underway. For the first time since 2013, shipping demand has exceeded supply growth. The demand grew due to a combination of additional liquefaction volumes and rising ton-mile demand.

Series overview

LNG carrier companies will release their 4Q17 results soon. In this series, we’ll discuss analysts’ 4Q17 revenue and EBITDA estimates for these companies. We’ll also see what analysts recommend for these stocks.

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