Golar LNG (Buy, TP: USD48.00) - Upside potential building
We believe focus for investors will be the potential contracts in Argentina rather than the Q1 report. Recent developments look to have left Golar LNG in pole position for two FLNGs for ~6mtpa Argentine LNG exports, and we would expect more visibility once the FID for Hilli is in place in Q2e. Moreover, we believe the project pipeline could allow for further announcements in due course as the company maintains an option for FLNG #4 at the shipyard. Hence, we find the risk/reward has improved despite the broader risk-off in equity markets, and have upgraded to BUY (HOLD), with an increased USD48 (42) 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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