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Golar LNG (GLNG) Reports Wider-Than-Expected Loss in Q2

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Golar LNG Limited’s (GLNG - Free Report) stock witnesses insignificant drop since second-quarter 2021 earnings announcement on Aug 9.

The company posted wide-than-expected loss and lagged the Zacks Consensus Estimate with respect to revenues. The shipping company’s shares did not show significant southward movement, possibly owing to bottom-line improvement on a year-on-year basis.

Golar LNG Limited Price, Consensus and EPS Surprise

 

Golar LNG Limited Price, Consensus and EPS Surprise

Golar LNG Limited price-consensus-eps-surprise-chart | Golar LNG Limited Quote

Delving Deeper

Golar LNG’s quarterly loss (excluding $4.35 from non-recurring items) of 7 cents per share was wider than the Zacks Consensus Estimate of a loss of 4 cents. However, the figure was narrower than the year-ago quarter’s loss of 8 cents despite rising expenses.

Adjusted revenues of $102.2 million missed the Zacks Consensus Estimate of $103.6 million and fell marginally on a year-over-year basis. Total operating revenues came in at $104.3 million, up 2% year over year owing to better Floating Liquefied Natural Gas (FLNG) performance. Notably, FLNG Hilli Episeyo maintained its 100% commercial uptime in the quarter under review.

Shipping revenues (approximately 40%) and FLNG revenues (approximately 53%) accounted for bulk of the company’s top line. Time and voyage charter revenues dropped nearly 2% year over year to $41.8 million. Liquefaction services revenues came in at $55.7 million compared with $54.5 million in the year-ago quarter. Revenues from Vessel and other management fees increased 31.4% year over year to $6.7 million. Additionally, Time Charter Equivalent earnings were $43,700 per day (on an average, excluding loss of hire revenues receivable) in the quarter under discussion compared with $45,100 in the year-ago quarter. Average daily TCE rate for TFDE fleet (Tri-Fuel Diesel Electric Propulsion Ships) declined to 43,700 from 45,100 in the prior-year quarter.

Vessel operating expenses of $31.4 million moved up 2.3% year over year due to rising freight and logistics costs for supplies.

Total administrative expenses increased 20.2% year over year to $10.1 million. Project-development expenses improved from $1.6 million in the year-ago quarter to income of $0.7 million.

The company, carrying a Zacks Rank #3 (Hold), exited the second quarter with cash balance of $338.5 million, of which $207.3 million was unrestricted cash. As of Jun 30, 2021, its total debt (current and non-current) was $2.38 billion. You can see the complete list of today's Zacks #1 Rank stocks here.

Outlook

TCE expects earnings (shipping) of around $47,000 per day in the September quarter.

Sectorial Snapshot

Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern (KSU - Free Report) recently reported second-quarter 2021 results.

Delta, carrying a Zacks Rank #3 (Hold), incurred a loss (excluding $2.09 from non-recurring items) of $1.07 per share. The figure was narrower than the Zacks Consensus Estimate of a loss of $1.41. Revenues of $7,126 million were substantially higher than the year-ago quarter’s levels, buoyed by the recent uptick in air-travel demand. The metric also topped the Zacks Consensus Estimate of $6,340.9 million.

Kansas City Southern, carrying a Zacks Rank of 4 (Sell), reported second-quarter 2021 earnings (excluding $6.23 from non-recurring items) of $2.06 per share. The figure missed the Zacks Consensus Estimate of $2.16. Quarterly revenues of $749.5 million surpassed the Zacks Consensus Estimate of $733.1 million and increased 36.8% year over year. The upside was driven by 31% rise in overall carload volumes.

J.B. Hunt, a Zacks #3-Ranked player, reported better-than-expected second-quarter 2021 results. Quarterly earnings of $1.61 per share surpassed the Zacks Consensus Estimate of $1.55. Total operating revenues of $2908.4 million outperformed the Zacks Consensus Estimate of $2722 million and rallied 35.5% year over year.