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Golar LNG (GLNG) Q3 Loss Narrower Than Expected, Stock Down

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  • GLNG
  • JBHT
  • GATX

Golar LNG Limited’s GLNG stock witnesses a drop of 6.9% since third-quarter 2021 earnings announcement on Nov 9.

Golar LNG’s quarterly loss (excluding 83 cents from non-recurring items) of a penny per share was narrower than the Zacks Consensus Estimate of a loss of 8 cents. On a year-over-year basis, the metric improved more than 93.8%.

Golar LNG Limited Price, Consensus and EPS Surprise

Golar LNG Limited Price, Consensus and EPS Surprise
Golar LNG Limited Price, Consensus and EPS Surprise

Golar LNG Limited price-consensus-eps-surprise-chart | Golar LNG Limited Quote

Delving Deeper

Adjusted revenues of $105.4 million surpassed the Zacks Consensus Estimate of $103.3 million and rose 10.8% on a year-over-year basis. Total operating revenues came in at $106.6 million, up 12% year over year on the back of upbeat revenues in the Floating Liquefied Natural Gas (FLNG) and shipping segments. FLNG Hilli Episeyo maintained its 100% commercial uptime in the quarter under review.

While revenues from the shipping segment contributed approximately 43% to the top line, the FLNG unit contributed nearly 51% of the company’s top line. Time and voyage charter revenues declined nearly 28.7% year over year to $45.8 million. Liquefaction services revenues came in at $54.5 million, kept in line with the year-ago quarter. Revenues from Vessel and other management fees increased 25.8% year over year to $6.3 million. Time Charter Equivalent earnings were $49,500 per day (on an average) in the quarter under discussion compared with $39,100 in the year-ago quarter. TCE earnings (full fleet) was $49,500 in the September quarter, up 13.3% sequentially.

Vessel operating expenses amounted to $31.9 million in the quarter, up 13% year over year due to scheduled repairing of the damaged motor.

Total administrative expenses increased 7.5% year over year to $8.6 million. Project-development expenses deteriorated from $1.2 million in the year-ago quarter to an income of $1.3 million.

The company, sporting a Zacks Rank #1 (Strong Buy), exited the third quarter with total cash balance of $268.2 million, of which $123.7 million was unrestricted cash. As of Sep 30, 2021, its total debt (current and non-current) was $2.28 billion. You can see the complete list of today's Zacks #1 Rank stocks here.

Outlook

TCE is expected to be around $53,500 per day in the December quarter.

Sectorial Snapshot

Within the broader Transportation sector, GATX Corporation GATX and J.B. Hunt Transport Services JBHT recently reported third-quarter 2021 results.

GATX’s third-quarter 2021 earnings of $1.11 per share surpassed the Zacks Consensus Estimate of $1. Total revenues of $313.5 million inched up approximately 3% year over year, mainly due to a 3.9% rise in lease revenues to $283.9 million.

Uptick in revenues was primarily due to 3.9% rise in lease revenues to $283.9 million. Lease revenues contributed 90.6% to the top line. Marine operating revenues contributed 1.6% to the top line. The balance came from other sources. The stock has rallied 35.1% in the past year. GATX carries a Zacks Rank #2 (Buy).

J.B. Hunt reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million.

The company exited the third quarter with cash and cash equivalents of $529.6 million compared with $313.3 million at the end of 2020. Long-term debt was $944.9 million compared with $1.31 billion at 2020-end. The stock has surged 52.4% in the past year. J.B. Hunt carries a Zacks Rank #2.


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