Golar LNG (Buy, TP: USD39.00) - Below Q2 consensus
We are below Q2 consensus, we believe owing to FLNG Hilli accounting (results due at 13:00 CET on 31 August). The key challenge is greater certainty about FID dates in Africa, as Golar LNG had guided for a BP FLNG FID by end-2018. This looks to be the next catalyst along with a continued LNG shipping market recovery and FLNG Hilli vessel utilisation rising to 100%, which we believe is fair to assume at a gas price of USD10/mnBtu and an oil price of USD75/bbl. We reiterate our BUY and USD39 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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