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Golar LNG (GLNG) Q2 Loss Wider on Shipping Market Weakness
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Golar LNG Limited (GLNG - Free Report) posted lower-than-expected results in the second quarter of 2018. It incurred wider-than-expected loss (excluding 74 cents from non-recurring items) of 38 cents. The Zacks Consensus Estimate for the same stood at 19 cents. However, the amount of loss narrowed significantly from 51 cents a year ago.
Total operating revenues of $59.4 million also missed the Zacks Consensus Estimate of $63.2 million. However, the top line surged more than 100% year over year. Of the total revenues, Time and voyage charter revenues accounted for the bulk (51.9%), grossing $30.80 million (up 57.5% year over year). While Time charter revenues-collaborative arrangement were $4.87 million (up 10.6%), Vessel and other management fees were $5.13 million (up 15.3%). Meanwhile, Liquefaction services revenues were $18.58 million.
As was expected, seasonal softening of the shipping market caused a reduction of $16,400 in daily TCE (Time Charter Equivalent) earnings to $19,600 during the second quarter from $36,000 in the first. However, with improvement in the shipping market, third-quarter TCE is expected to at least double the second-quarter figure.
Total operating expenses soared 50.3% in the quarter under discussion to $78.73 million. Vessel operating expenses escalated 69.4% year over year to $20.5 million, primarily due to rise in FLNG operating costs with the onset of Hilli Episeyo's operation. Moreover, on commencement, Hilli Episeyo’s value depreciated and thus depreciation and amortization expenses climbed 17.8% year over year to $20.46 million.
Golar LNG Limited Price, Consensus and EPS Surprise
At the end of the second quarter, the company had cash and cash equivalents of $375.07 million compared with $214.86 million at December 2017 end. As of Jun 30, 2018, the company’s long-term debt totaled $1.85 billion compared with $1.02 billion as of Dec 31, 2017.
Dividend Hike
The company has raised its dividend payment for the second quarter to 12.5 cents per share (50 cents annually) from the previous 5 cents, courtesy of a sound financial position, lower capital expenses and the initiation of Hilli Episeyo contract.
Q3 Outlook
Third-quarter results are anticipated to get a boost from the operation of Hilli Episeyo and an improving shipping market.
Shares of GATX, Trinity and SkyWest have gained more than 41%, 26% and 95%, respectively, in a year.
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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Golar LNG (GLNG) Q2 Loss Wider on Shipping Market Weakness
Golar LNG Limited (GLNG - Free Report) posted lower-than-expected results in the second quarter of 2018. It incurred wider-than-expected loss (excluding 74 cents from non-recurring items) of 38 cents. The Zacks Consensus Estimate for the same stood at 19 cents. However, the amount of loss narrowed significantly from 51 cents a year ago.
Total operating revenues of $59.4 million also missed the Zacks Consensus Estimate of $63.2 million. However, the top line surged more than 100% year over year. Of the total revenues, Time and voyage charter revenues accounted for the bulk (51.9%), grossing $30.80 million (up 57.5% year over year). While Time charter revenues-collaborative arrangement were $4.87 million (up 10.6%), Vessel and other management fees were $5.13 million (up 15.3%). Meanwhile, Liquefaction services revenues were $18.58 million.
As was expected, seasonal softening of the shipping market caused a reduction of $16,400 in daily TCE (Time Charter Equivalent) earnings to $19,600 during the second quarter from $36,000 in the first. However, with improvement in the shipping market, third-quarter TCE is expected to at least double the second-quarter figure.
Total operating expenses soared 50.3% in the quarter under discussion to $78.73 million. Vessel operating expenses escalated 69.4% year over year to $20.5 million, primarily due to rise in FLNG operating costs with the onset of Hilli Episeyo's operation. Moreover, on commencement, Hilli Episeyo’s value depreciated and thus depreciation and amortization expenses climbed 17.8% year over year to $20.46 million.
Golar LNG Limited Price, Consensus and EPS Surprise
Golar LNG Limited Price, Consensus and EPS Surprise | Golar LNG Limited Quote
Liquidity
At the end of the second quarter, the company had cash and cash equivalents of $375.07 million compared with $214.86 million at December 2017 end. As of Jun 30, 2018, the company’s long-term debt totaled $1.85 billion compared with $1.02 billion as of Dec 31, 2017.
Dividend Hike
The company has raised its dividend payment for the second quarter to 12.5 cents per share (50 cents annually) from the previous 5 cents, courtesy of a sound financial position, lower capital expenses and the initiation of Hilli Episeyo contract.
Q3 Outlook
Third-quarter results are anticipated to get a boost from the operation of Hilli Episeyo and an improving shipping market.
Zacks Rank & Key Picks
Golar LNG has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are GATX Corporation (GATX - Free Report) , Trinity Industries, Inc. (TRN - Free Report) and SkyWest, Inc (SKYW - Free Report) . While GATX carries a Zacks Rank #2 (Buy), Trinity and SkyWest sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of GATX, Trinity and SkyWest have gained more than 41%, 26% and 95%, respectively, in a year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>