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Golar LNG (NASDAQ:GLNG) +0.5% to a six-year high in Tuesday’s trading as BTIG rates the stock as a Buy with a $45 price target, raised from $36, seeing the owner and operator of liquefied natural gas vessels continuing to benefit from growing LNG demand as part of the energy transition.
Golar LNG (GLNG) operates one FLNG unit which provides secured cash flows and is on schedule to have its second FLNG unit start operating next year, BTIG’s Gregory Lewis says.
The analyst says all signs point to Golar LNG (GLNG) making steady progress towards the re-contracting of the Hilli – which rolls off its current contract in Q3 2026 – and taking a final investment decision on its first Mark II FLNG, which could see the company having three FLNGs on the water in H2 2027, with his base case pointing to each FLNG unit being worth $15-$20/share.
Last week, the Hilli‘s current charterer Perenco said it acquired a ~10% stake in Golar LNG (GLNG) through its investment affiliate Naria, and Lewis believes the ownership stake points to a long-term strategic partnership.
Also, with a strong liquidity position, Lewis expects Golar LNG (GLNG) to benefit from a secular tailwind across the global LNG value chain, which should enable the company to deploy capital accretively on LNG projects.