It's important to understand the relationship between GLOG and GLOP.
GLOG builds/aquires vessels and sells to GLOP (the "drop down" of assets to GLOP) vessels under long term contract. GLOG receives cash from these sales, and which fund additional vessel build/aquisition cycle----a "recycling" of cash that drives growth for both entities.
A very good symbiotic relationship.
Additionally, GLOG's strong relationship with RDS and BG group is hugely important to securing long term charters for the vessels.
If you view NG/LNG strategically on long term global trends basis----GLOG/GLOP is extremely attractive.
If GLOP is buying the ships from GLOG where is the benefit to GLOG longer term...? It seems GLOG's business size contracts. Could you explain the drop down concept, please?..
Several large projects are under construction on the U.S. Gulf coast, including Cheniere Energy's Sabine Pass, due to come on stream later this year, and Sempra Energy's Cameron LNG, set for completion in 2018.
"Right now we have one of the largest LNG facilities in the world being built in Louisiana," Zukunft said, referring to the Cameron plant. "In the next 3-4 years there are not enough gas ships in the world that can accommodate that growth."
Cameron LNG received approval from the U.S. Energy Department in January for exports of up to 12 million tonnes of LNG per year.
"We sit on 20 percent of the world's LNG, so the question is how do we get this commodity into the market place and how do we leverage it for our shipping industry," Zukunft said, adding that the expansion of the Panama Canal, set to finish in 2016, will help.
Cheniere is the best positioned LNG company in the US. They sell their capacity on a take or pay basis which means a customer has to pay regardless. Read Cheniere's 10K.
Because LNG is going to produce and sell LNG doesn't automatically mean they will make a positive ROR doing.But it will be shipped at a profit to the Shipper.
A rule of thumb is to cut your losses and sell a stock when its down 8% because this will prevent you from wracking up an even larger loss if the stock continues to fall. If you like the stock you can always buy it back after 30 days. Short term trading is usually disastrous over the long term. GLOG is a good stock to buy and hold for a few years. Why? Cheniere Energy's (LNG) will begin exporting LNG from late 2015 to early 2016 and tankers will be needed to transport their product. If you are investing in GLOG it makes a lot of sense to pay attention to Cheniere (symbol: LNG).
DLNG is getting CLOSE to a buy point. I sold my GLOG a few days ago. Not at the top but I did okay. :O)
Will jump back in to GLOG sometime.
Sitting here with more money in my pocket. Jumped out a few days ago but will get back in when I like the charts.
moving profits into NAT already have a large pos but looking for them to announce an increase of 75% to div on Mon. Also buying some TGP been down as of late but nice div payable on Mon