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Golar LNG Limited (GLNG - Free Report) incurred a loss (excluding $1.51 from non-recurring items) of 8 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 10 cents. Moreover, the amount of loss declined year over year. Low costs aided the bottom line.
Adjusted revenues of $100.7 million surpassed the Zacks Consensus Estimate of $90.3 million. Total operating revenues came in at $102.24 million. The top line also increased year over year, backed by an impressive performance at FLNG and a strong shipping business. Notably, FLNG Hilli Episeyo maintained its 100% commercial uptime in the quarter under review.
FLNG revenues accounted for bulk (53.3%) of the company’s top line. Revenues from vessel and other operations reflected the balance. Notably, Time and voyage charter revenues plunged 32.4% sequentially. Additionally, Time Charter Equivalent (“TCE”) earnings declined to $45,100 per day in the quarter under discussion, compared with $61,900 in first-quarter 2020. Golar LNG anticipates TCE earnings to be around $35,000 per day with utilization of approximately 78% in third-quarter 2020.
Golar LNG Limited Price, Consensus and EPS Surprise
Vessel-operating expenses of $24.24 million decreased 19.8% sequentially. This was due to reduction in expenses associated with repairs and maintenance, procurement of spares and logistics among other things due to coronavirus-related movement restrictions. However, the company expects vessel-operating expenses to increase in the second half of 2020 as restrictions are lifted and normal business work is resumed.
Total administrative expenses dropped 15.3% from first-quarter 2020 to $8.6 million due to cost-reduction efforts such as lower payroll and travel costs. Project-development expenses fell 66.2% sequentially to $1.25 million.
The company, currently carrying a Zacks Rank #3 (Hold), exited the second quarter with a cash balance of $265.2 million, of which $128.7 million was unrestricted cash. As of Jun 30, 2020, its total debt (current and non-current) was $2.54 billion.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter earnings results.
Kirby Corporation’s (KEX - Free Report) second-quarter earnings of 42 cents per share were in line with the Zacks Consensus Estimate. The bottom line plunged 46.8% year over year. This Zacks Rank #5 (Strong Sell) company’s total revenues of $541.2 million lagged the Zacks Consensus Estimate of $618.4 million and declined 29.8% year over year.
United Parcel Service’s (UPS - Free Report) earnings (excluding 10 cents from non-recurring items) per share of $2.13 surpassed the Zacks Consensus Estimate of $1.04. The bottom line also improved 8.7% year over year. The company, sporting a Zacks Rank #1 (Strong Buy), generated revenues worth $20,459 million in the quarter, outperforming the Zacks Consensus Estimate of $17,344.4 million. Moreover, the top line improved 13.4% on a year-over-year basis. You can see the complete list of today's Zacks #1 Rank stocks here.
Norfolk Southern Corporation’s (NSC - Free Report) second-quarter earnings of $1.53 per share surpassed the Zacks Consensus Estimate of $1.39. However, the bottom line plunged 43% on a year-over-year basis. Railway-operating revenues in the quarter under review came in at $2,085 million, edging past the Zacks Consensus Estimate of $2,061.5 million. This Zacks Rank #3 company’s top line however declined 29% year over year.
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Golar LNG (GLNG) Surpasses Q2 Earnings & Revenue Estimates
Golar LNG Limited (GLNG - Free Report) incurred a loss (excluding $1.51 from non-recurring items) of 8 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 10 cents. Moreover, the amount of loss declined year over year. Low costs aided the bottom line.
Adjusted revenues of $100.7 million surpassed the Zacks Consensus Estimate of $90.3 million. Total operating revenues came in at $102.24 million. The top line also increased year over year, backed by an impressive performance at FLNG and a strong shipping business. Notably, FLNG Hilli Episeyo maintained its 100% commercial uptime in the quarter under review.
FLNG revenues accounted for bulk (53.3%) of the company’s top line. Revenues from vessel and other operations reflected the balance. Notably, Time and voyage charter revenues plunged 32.4% sequentially. Additionally, Time Charter Equivalent (“TCE”) earnings declined to $45,100 per day in the quarter under discussion, compared with $61,900 in first-quarter 2020. Golar LNG anticipates TCE earnings to be around $35,000 per day with utilization of approximately 78% in third-quarter 2020.
Golar LNG Limited Price, Consensus and EPS Surprise
Golar LNG Limited price-consensus-eps-surprise-chart | Golar LNG Limited Quote
Vessel-operating expenses of $24.24 million decreased 19.8% sequentially. This was due to reduction in expenses associated with repairs and maintenance, procurement of spares and logistics among other things due to coronavirus-related movement restrictions. However, the company expects vessel-operating expenses to increase in the second half of 2020 as restrictions are lifted and normal business work is resumed.
Total administrative expenses dropped 15.3% from first-quarter 2020 to $8.6 million due to cost-reduction efforts such as lower payroll and travel costs. Project-development expenses fell 66.2% sequentially to $1.25 million.
The company, currently carrying a Zacks Rank #3 (Hold), exited the second quarter with a cash balance of $265.2 million, of which $128.7 million was unrestricted cash. As of Jun 30, 2020, its total debt (current and non-current) was $2.54 billion.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter earnings results.
Kirby Corporation’s (KEX - Free Report) second-quarter earnings of 42 cents per share were in line with the Zacks Consensus Estimate. The bottom line plunged 46.8% year over year. This Zacks Rank #5 (Strong Sell) company’s total revenues of $541.2 million lagged the Zacks Consensus Estimate of $618.4 million and declined 29.8% year over year.
United Parcel Service’s (UPS - Free Report) earnings (excluding 10 cents from non-recurring items) per share of $2.13 surpassed the Zacks Consensus Estimate of $1.04. The bottom line also improved 8.7% year over year. The company, sporting a Zacks Rank #1 (Strong Buy), generated revenues worth $20,459 million in the quarter, outperforming the Zacks Consensus Estimate of $17,344.4 million. Moreover, the top line improved 13.4% on a year-over-year basis. You can see the complete list of today's Zacks #1 Rank stocks here.
Norfolk Southern Corporation’s (NSC - Free Report) second-quarter earnings of $1.53 per share surpassed the Zacks Consensus Estimate of $1.39. However, the bottom line plunged 43% on a year-over-year basis. Railway-operating revenues in the quarter under review came in at $2,085 million, edging past the Zacks Consensus Estimate of $2,061.5 million. This Zacks Rank #3 company’s top line however declined 29% year over year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
See their latest picks free >>