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Golar LNG (GLNG) Rides on FLNG Growth Amid Rising Expenses
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Golar LNG Limited (GLNG - Free Report) is benefiting from an improved FLNG (Floating Liquefied Natural Gas) performance. The FLNG unit continues to perform well, aiding the company’s top line. The demand for LNG vessels is likely to get stronger owing to the Russia-Ukraine war as the European countries look for gas supplies outside Russia. The improved shipping performance is aiding the company.
The company anticipates a substantial improvement in cash generation in the next two years owing to strength in the LNG shipping market, increased utilization of Hilli, higher oil and gas price environment and the commencement of the Gimi contract in 2023. The company expects a significant increase in adjusted EBITDA generation over the next two-three years, driven by its FLNG and shipping units.
On the flip side, total operating expenses at the FLNG segment increased 8.6% year over year in the second quarter of 2022. The uptick was due to a 9.5% rise in vessel operating expenses, which are ikely to remain an overhang on Golar LNG’s bottom line.
Zacks Rank and Stocks to Consider
Currently,Golar LNG carries a Zacks Rank #3 (Hold).
ZTO Express has an expected earnings growth rate of 22.9% for the current year. ZTO delivered a trailing four-quarter earnings surprise of 8.9%, on average.
The Zacks Consensus Estimate for ZTO’s current-year earnings has improved 4.4% over the past 90 days. Shares of ZTO have lost 19.6% over the past year.
Copa Holdings has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.2%, on average.
Shares of CPA have lost 15.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 172.86% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 88.3% over the past year.
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Golar LNG (GLNG) Rides on FLNG Growth Amid Rising Expenses
Golar LNG Limited (GLNG - Free Report) is benefiting from an improved FLNG (Floating Liquefied Natural Gas) performance. The FLNG unit continues to perform well, aiding the company’s top line. The demand for LNG vessels is likely to get stronger owing to the Russia-Ukraine war as the European countries look for gas supplies outside Russia. The improved shipping performance is aiding the company.
The company anticipates a substantial improvement in cash generation in the next two years owing to strength in the LNG shipping market, increased utilization of Hilli, higher oil and gas price environment and the commencement of the Gimi contract in 2023. The company expects a significant increase in adjusted EBITDA generation over the next two-three years, driven by its FLNG and shipping units.
Golar LNG Limited Price
Golar LNG Limited price | Golar LNG Limited Quote
On the flip side, total operating expenses at the FLNG segment increased 8.6% year over year in the second quarter of 2022. The uptick was due to a 9.5% rise in vessel operating expenses, which are ikely to remain an overhang on Golar LNG’s bottom line.
Zacks Rank and Stocks to Consider
Currently,Golar LNG carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Zacks Transportation sector are ZTO Express (ZTO - Free Report) , Copa Holdings (CPA - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ZTO Express has an expected earnings growth rate of 22.9% for the current year. ZTO delivered a trailing four-quarter earnings surprise of 8.9%, on average.
The Zacks Consensus Estimate for ZTO’s current-year earnings has improved 4.4% over the past 90 days. Shares of ZTO have lost 19.6% over the past year.
Copa Holdings has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.2%, on average.
Shares of CPA have lost 15.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 172.86% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 88.3% over the past year.