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Golar LNG Inks Finance Lease Agreements With Chinese Consortium

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Golar LNG Limited (GLNG - Free Report) is gearing up to refinance its existing floating liquefaction natural gas (FLNG) vessel Gimi’s debt facility. To this end, GLNG has signed finance lease agreements with a consortium of Chinese leasing companies. The sale leaseback facility is valued at around $1.2 billion.

The deal is subject to customary closing conditions, which include the completion of documentation and receipt of third-party approvals. The facility is anticipated to be completed by the end of the second quarter of 2025.  

With a tenure of 12 years, the sale and leaseback facility features a 17-year amortization profile, during which quarterly repayment installments will be made throughout the lease period.

On the completion and repayment of the existing debt facility, Gimi MS Corporation is anticipated to generate net proceeds of almost $530 million. This amount includes the release of existing interest rate swaps.

GLNG is hopeful of gaining from 70% of these proceeds, which stands equivalent to almost $371 million.

GLNG’s Zacks Rank & Stock Price Performance

Golar LNG currently carries a Zacks Rank #3 (Hold).

GLNG shares have gained 59.7% in the past year, outperforming the transportation-shipping industry it belongs to.

GLNG Stock One-Year Price Comparison

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Other Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider SkyWest (SKYW - Free Report) and Frontier Group (ULCC - Free Report) .

SkyWest currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SKYW has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 16.7%. Shares of SKYW have risen 9.1% over the past six months.

Frontier Group has a Zacks Rank of 1 at present.

ULCC has an expected earnings growth rate of more than 300% for the current year.

The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average surprise is 1.1%. Shares of ULCC have surged 43% in the past six months.


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