GLNG - Golar LNG: Still Far Too Much Debt Even After Their Asset Divestitures

• Golar LNG started 2021 by announcing the divestitures of their Hygo Energy and Golar LNG Partners stakes to New Fortress Energy.
• Whilst this sounds transformational, sadly they still have far too much debt even after these asset divestitures for shareholders to expect any dividends after years of waiting.
• Their leverage remains very high since most of the proceeds were shares in New Fortress Energy and their free cash flow remains negative due to high capital expenditure.
• Even if these shares were liquidated to repay debt, their leverage would still be well into the very high territory.
• At least their previous crisis level liquidity has improved but risks still remain until their debt refinancing is completed, which means that I only believe upgrading to a neutral rating is appropriate.

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