Höegh LNG Holdings (Hold, TP: NOK15.00) - Important next 12–18 months
We reiterate our HOLD but have cut our target price to NOK15 (24). The FSRU market seems to be improving, and we see significant upside potential if Höegh LNG fixes its four open units on long-term charters. However, time is of the essence for Höegh LNG Holdings. Its fleet of open FSRUs continues to secure time charters as LNGCs, but with rates down to USD40k/day, we estimate cash burn per vessel could potentially reach USD14m in 2021, highlighting the need to sign several FSRU contracts in 2020 and 2021.Leif Hoegh & Co. is engaged as an international shipping company that offers transportation and logistics solutions for customers worldwide within selected industrial shipping segments. Co. is involved in the following segments: Ro/Ro, Liquified Natural Gas (LNG), Dry Bulk, Reefer Vessels, Open Hatch, and Hoegh Fleet Services (HFS). Co. operates a fleet of vessels within the deep sea and short sea segments, operating in the transportation of cars and high/heavy rolling stock. Co. operates LNG carriers employed on long-term contracts for the transportation of liquefied natural gas.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.