Golar LNG Limited’s (GLNG - Free Report) newly incorporated subsidiary — Gimi MS Corporation — has signed a 20-year Lease and Operate Agreement (LOA) with BP for the charter of an FLNG vessel, Gimi. The agreement is aimed at servicing the Greater Tortue Ahmeyim project.
The FLNG Unit, Gimi, is likely to begin production in 2022. It will be able to produce approximately 2.5 million tonnes of LNG per annum in the first phase of the Greater Tortue Ahmeyim project.
The FLNG Gimi has an estimated cost of nearly $1.3 billion, excluding financing costs. On acceptance under the contract, Golar LNG anticipates annual EBITDA (earnings before interest, tax, depreciation and amortization) of around $215 million or more.
Markedly, the recently announced LOA is Golar LNG’s second such FLNG tolling agreement. Earlier in May, FLNG Hilli Episeyo — the world’s first FLNG vessel developed as a conversion project from an LNG carrier — began production. With the onset of the Hilli Episeyo operation, Golar LNG has been witnessing a significant increase in free cash flow. Earnings from Hilli are expected to boost the company’s overall results in the fourth quarter, set to be released on Feb 27.
Zacks Rank & Stocks to Consider
Golar LNG has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are Frontline Ltd. (FRO - Free Report) , Trinity Industries (TRN - Free Report) and Expeditors International of Washington (EXPD - Free Report) . While Frontline and Trinity sport a Zacks Rank #1 (Strong Buy), Expeditors carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Each of the companies has an impressive earnings history. While Frontline and Expeditors have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, Trinity has trumped estimates in three of the preceding four quarters.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Golar LNG Limited’s (GLNG - Free Report) newly incorporated subsidiary — Gimi MS Corporation — has signed a 20-year Lease and Operate Agreement (LOA) with BP for the charter of an FLNG vessel, Gimi. The agreement is aimed at servicing the Greater Tortue Ahmeyim project.
The FLNG Unit, Gimi, is likely to begin production in 2022. It will be able to produce approximately 2.5 million tonnes of LNG per annum in the first phase of the Greater Tortue Ahmeyim project.
The FLNG Gimi has an estimated cost of nearly $1.3 billion, excluding financing costs. On acceptance under the contract, Golar LNG anticipates annual EBITDA (earnings before interest, tax, depreciation and amortization) of around $215 million or more.
Markedly, the recently announced LOA is Golar LNG’s second such FLNG tolling agreement. Earlier in May, FLNG Hilli Episeyo — the world’s first FLNG vessel developed as a conversion project from an LNG carrier — began production. With the onset of the Hilli Episeyo operation, Golar LNG has been witnessing a significant increase in free cash flow. Earnings from Hilli are expected to boost the company’s overall results in the fourth quarter, set to be released on Feb 27.
Zacks Rank & Stocks to Consider
Golar LNG has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are Frontline Ltd. (FRO - Free Report) , Trinity Industries (TRN - Free Report) and Expeditors International of Washington (EXPD - Free Report) . While Frontline and Trinity sport a Zacks Rank #1 (Strong Buy), Expeditors carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Each of the companies has an impressive earnings history. While Frontline and Expeditors have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, Trinity has trumped estimates in three of the preceding four quarters.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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