GLNG - Golar LNG: A LNG Stock With Significant Upside Potential (Upgrade)

2024-04-18 16:18:52 ET

Summary

• A rising geopolitical volatility combined with a clean energy transition translates into growing LNG demand.
• One of the best ways to play that theme is in Golar LNG. In 2024, GLNG plans to commission its second FLNG, Gimi.
• GLNG 2023 results were not exceptional. The company realized 11% revenue growth, although YoY adj EBITDA remained unchanged.
• With Gimi in operation, I expect considerable profitability growth, leading to increased dividend and buyback yield. I updated my GLNG rating to Strong Buy.

Note: I previously covered Golar LNG ( GLNG ) in February 2024. I explored the FLNG (floating LNG) market and value chain and discussed GLNG's position in this niche segment. The FLNG market is gaining traction due to its economic viability. I pointed out that GLNG remains the sole enterprise offering FLNG as a service and ranks first in FLNG capacity. GLNG had a sound balance sheet and adequate liquidity despite the intense CAPEX. Besides that, it distributed dividends with attractive yields. At that time, I gave GLNG a buy rating. Since GLNG's share price has moved up by 17.1%....

For further details see: