We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Golar LNG Boosts Operational Efficiency Through FLNG Expansion
Read MoreHide Full Article
Golar LNG (GLNG - Free Report) ,a Bermuda-based company, is set to enhance its floating LNG production capabilities. The company has signed an Engineering, Procurement and Construction (“EPC”) agreement worth $1.6 billion with CIMC Raffles for a new MK II Floating LNG Production (“FLNG”) vessel. The vessel will have an annual liquefaction capacity of 3.5 million tons of LNG per annum.This agreement represents a strategic investment in advanced technology and modular construction, which should enhance operational efficiency.
Under this agreement, GLNG’s partner, Black & Veatch, will employ its licensed PRICO technology to conduct detailed engineering and process design. It will specify and procure topside equipment and provide commissioning support for the FLNG’s topsides and liquefaction process. This collaboration leverages Black & Veatch's successful track record with Golar’s previous FLNG projects, ensuring a strong foundation for this new venture.
The Golar MK II design builds on the MK I design from the FLNG Hilli and FLNG Gimi and involves converting the existing LNG carrier Fuji LNG, which has a storage capacity of 148,500 m³. The design evolution from the MK I to the MK II, using the existing Fuji LNG carrier, demonstrates Golar's commitment to innovation while maximizing existing assets.
The total EPC price is $1.6 billion, with an overall budget for the MK II conversion at $2.2 billion, covering various costs, including yard supervision and initial bunker supply. Golar has already invested $0.3 billion to date, with 63% of the engineering and long lead items completed.
The MK II FLNG vessel is expected to be delivered in the fourth quarter of 2027. Moreover, Golar has secured an option for a second MK II FLNG conversion with CIMC, with a potential delivery in 2028. This EPC contract follows Golar's recent agreements with Pan American Energy, which include a 20-year FLNG vessel deployment in Argentina.
Golar LNG is the sole provider of FLNG as a service. GLNG ranks first in terms of FLNG capacity. The FLNG market is growing due to its economic viability and is expected to display significant capacity growth, particularly in Africa and North America. Given the bright prospects associated with FLNG, the company’s decision to enhance its FLNG capabilities is highly prudent.
Driven by the robust FLNG market, GLNG shares have rallied 48% over the past year, surpassing the industry’s 31.5% growth.
Image Source: Zacks Investment Research
Zacks Rank
GLNG currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks for investors’ consideration in the Zacks Transportation sector include C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 18.3% in the past year.
WAB sports a Zacks Rank #1 at present and has an expected earnings growth rate of 26% for the current year.
The company has a discouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The average beat is 11.8%. Shares of WAB have climbed 66.4% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Golar LNG Boosts Operational Efficiency Through FLNG Expansion
Golar LNG (GLNG - Free Report) ,a Bermuda-based company, is set to enhance its floating LNG production capabilities. The company has signed an Engineering, Procurement and Construction (“EPC”) agreement worth $1.6 billion with CIMC Raffles for a new MK II Floating LNG Production (“FLNG”) vessel. The vessel will have an annual liquefaction capacity of 3.5 million tons of LNG per annum.This agreement represents a strategic investment in advanced technology and modular construction, which should enhance operational efficiency.
Under this agreement, GLNG’s partner, Black & Veatch, will employ its licensed PRICO technology to conduct detailed engineering and process design. It will specify and procure topside equipment and provide commissioning support for the FLNG’s topsides and liquefaction process. This collaboration leverages Black & Veatch's successful track record with Golar’s previous FLNG projects, ensuring a strong foundation for this new venture.
The Golar MK II design builds on the MK I design from the FLNG Hilli and FLNG Gimi and involves converting the existing LNG carrier Fuji LNG, which has a storage capacity of 148,500 m³. The design evolution from the MK I to the MK II, using the existing Fuji LNG carrier, demonstrates Golar's commitment to innovation while maximizing existing assets.
The total EPC price is $1.6 billion, with an overall budget for the MK II conversion at $2.2 billion, covering various costs, including yard supervision and initial bunker supply. Golar has already invested $0.3 billion to date, with 63% of the engineering and long lead items completed.
The MK II FLNG vessel is expected to be delivered in the fourth quarter of 2027. Moreover, Golar has secured an option for a second MK II FLNG conversion with CIMC, with a potential delivery in 2028. This EPC contract follows Golar's recent agreements with Pan American Energy, which include a 20-year FLNG vessel deployment in Argentina.
Golar LNG is the sole provider of FLNG as a service. GLNG ranks first in terms of FLNG capacity. The FLNG market is growing due to its economic viability and is expected to display significant capacity growth, particularly in Africa and North America. Given the bright prospects associated with FLNG, the company’s decision to enhance its FLNG capabilities is highly prudent.
Driven by the robust FLNG market, GLNG shares have rallied 48% over the past year, surpassing the industry’s 31.5% growth.
Image Source: Zacks Investment Research
Zacks Rank
GLNG currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks for investors’ consideration in the Zacks Transportation sector include C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
C.H. Robinson Worldwide currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. CHRW has an expected earnings growth rate of 25.2% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 18.3% in the past year.
WAB sports a Zacks Rank #1 at present and has an expected earnings growth rate of 26% for the current year.
The company has a discouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The average beat is 11.8%. Shares of WAB have climbed 66.4% in the past year.