Wired News – Golar LNG Announces New Long-Term FSRU Contract; Project Commencement Expected in Q4 2018
LONDON, UK / ACCESSWIRE / January 23, 2018 / Active-Investors.com has just released a free research report on Golar LNG Partners L.P. (NASDAQ: GMLP) ("Golar LNG"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GMLP as the Company's latest news hit the wire. On January 19, 2018, the Company, a leading LNG-based organization servicing the entire LNG midstream from liquefaction to shipping and regasification, announced that it executed a 15-year charter with an energy and logistics Company for the provision of a floating storage and regasification unit (FSRU) and related services in the Atlantic Basin. The charter, according to Golar LNG, delivered the partnership with the flexibility to either nominate the Golar Spirit or the Golar Freeze to service the contract subject to the case that the nominated FSRU qualifies certain technical specifications ahead of the project start-up, which is expected in Q4 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Golar LNG Partners most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=GMLP
The Announcement
Golar LNG stated that the vessel is expected to be in service for up to 15 years without drydock and would, therefore, undergo drydocking and some additional minor modifications prior to service commencement. According to the Company, the capital element of the charter rate would vary as per the demand for regasification throughput, but would also include a cap and a floor, resulting in the expected generation of annual operating income between $18 million and $22 million.
The charter includes an option after 3 years for the charterer to conclude the contract and seek an alternative gasification solution, in the event that certain throughput targets remain unmet. Moreover, Golar LNG will hold the matching right to provide the alternative solution, with a 5-year extension option for the charter. Golar LNG views this contract as a step to demonstrate the underlying value of the Company's existing assets, adding significant term and revenue backlog, while simultaneously reducing re-contracting risk.
Company Growth Prospects
On November 30, 2017, Golar LNG reported its Q3 2017 results for the three-month period ended September 30, 2017. The Company reported an operating loss of $22.9 million versus an operating loss of $24 million in Q2 2017. During the quarter, the Company closed a Series A Preferred Unit offering, raising net proceeds of $134 million. The Company additionally issued first 50% of Incentive Distribution Right reset Earn-Out Units to Golar LNG.
On August 15, 2017, Golar LNG entered into a Purchase and Sale Agreement for the sale of equity interests in the Hilli. The interests represented about 50% of two liquefaction trains, out of the four, that had been contracted to Perenco Cameroon SA, and Societe Nationale Des Hydrocarbures for an eight-year term.
The sold interest, according to Golar LNG, included a 5% stake in any future incremental earnings generated by the current uncontracted expansion capacity, but did not include exposure to the oil linked component of Hilli's current revenue stream. The agreement was closed at $658 million, less net lease obligation under the vessel financing facility, which was expected to be between $468 million - $480 million, representing 50% of the Hilli post-delivery facility. The closing of the sale was expected to take place on or before April 30, 2018.
Stock Performance Snapshot
January 22, 2018 - At Monday's closing bell, Golar LNG Partners' stock rose 1.22%, ending the trading session at $23.22.
Volume traded for the day: 407.56 thousand shares, which was above the 3-month average volume of 266.61 thousand shares.
Stock performance in the last month – up 2.34%; previous three-month period – up 0.87%; past twelve-month period – up 0.87%; and year-to-date - up 1.84%
After yesterday's close, Golar LNG Partners' market cap was at $1.57 billion.
Price to Earnings (P/E) ratio was at 10.25.
The stock has a dividend yield of 9.95%.
The stock is part of the Services sector, categorized under the Shipping industry. This sector was up 0.9% at the end of the session.
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