Golar LNG (Buy, TP: USD33.00) - Expect more upbeat management
We expect management to be more upbeat at the Q3 earnings call, with LNG spot rates at USD70k/day and FLNG Hilli having successfully arrived in Cameroon. We are 17% above consensus net profit ahead of Q3 results due 30 November. Investor feedback indicates a crowded entry point into the stock in Q1 2018 once the technology has been proven, as we expect multiple FIDs into H1 with a wide-open natural gas arbitrage, and the stock is already on an upward trend on the back of LNG spot rates surprising the market on the upside. We reiterate our BUY recommendation and USD33 target price.Golar LNG is a midstream liquefied natural gas (LNG) company based in Bermuda. Co. is engaged in the transportation, regasification, liquefaction and trading of LNG. Through its subsidiaries and affiliates, Co. is engaged in the acquisition, ownership, operation and chartering of LNG carriers and floating storage regasification units (FSRUs), and the development of liquefaction projects such as Floating Liquefaction Natural Gas Vessels. Co. owns and operates a fleet of 19 LNG carriers and seven FSRUs, and under management agreements operates Golar LNG Partner LP's fleet of six FSRUs and four LNG carriers.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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