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Golar LNG (GLNG) Reports Wider-Than-Expected Loss in Q2

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Golar LNG Limited’s GLNG stock witnesses insignificant drop since second-quarter 2021 earnings announcement on Aug 9.

The company posted wide-than-expected loss and lagged the Zacks Consensus Estimate with respect to revenues. The shipping company’s shares did not show significant southward movement, possibly owing to bottom-line improvement on a year-on-year basis.

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

Golar LNG’s quarterly loss (excluding $4.35 from non-recurring items) of 7 cents per share was wider than the Zacks Consensus Estimate of a loss of 4 cents. However, the figure was narrower than the year-ago quarter’s loss of 8 cents despite rising expenses.

Adjusted revenues of $102.2 million missed the Zacks Consensus Estimate of $103.6 million and fell marginally on a year-over-year basis. Total operating revenues came in at $104.3 million, up 2% year over year owing to better Floating Liquefied Natural Gas (FLNG) performance. Notably, FLNG Hilli Episeyo maintained its 100% commercial uptime in the quarter under review.

Shipping revenues (approximately 40%) and FLNG revenues (approximately 53%) accounted for bulk of the company’s top line. Time and voyage charter revenues dropped nearly 2% year over year to $41.8 million. Liquefaction services revenues came in at $55.7 million compared with $54.5 million in the year-ago quarter. Revenues from Vessel and other management fees increased 31.4% year over year to $6.7 million. Additionally, Time Charter Equivalent earnings were $43,700 per day (on an average, excluding loss of hire revenues receivable) in the quarter under discussion compared with $45,100 in the year-ago quarter. Average daily TCE rate for TFDE fleet (Tri-Fuel Diesel Electric Propulsion Ships) declined to 43,700 from 45,100 in the prior-year quarter.

Vessel operating expenses of $31.4 million moved up 2.3% year over year due to rising freight and logistics costs for supplies.

Total administrative expenses increased 20.2% year over year to $10.1 million. Project-development expenses improved from $1.6 million in the year-ago quarter to income of $0.7 million.

The company, carrying a Zacks Rank #3 (Hold), exited the second quarter with cash balance of $338.5 million, of which $207.3 million was unrestricted cash. As of Jun 30, 2021, its total debt (current and non-current) was $2.38 billion. You can see the complete list of today's Zacks #1 Rank stocks here.

Outlook

TCE expects earnings (shipping) of around $47,000 per day in the September quarter.

Sectorial Snapshot

Within the broader Transportation sector, Delta Air Lines DAL, J.B. Hunt Transport Services JBHT and Kansas City Southern KSU recently reported second-quarter 2021 results.

Delta, carrying a Zacks Rank #3 (Hold), incurred a loss (excluding $2.09 from non-recurring items) of $1.07 per share. The figure was narrower than the Zacks Consensus Estimate of a loss of $1.41. Revenues of $7,126 million were substantially higher than the year-ago quarter’s levels, buoyed by the recent uptick in air-travel demand. The metric also topped the Zacks Consensus Estimate of $6,340.9 million.

Kansas City Southern, carrying a Zacks Rank of 4 (Sell), reported second-quarter 2021 earnings (excluding $6.23 from non-recurring items) of $2.06 per share. The figure missed the Zacks Consensus Estimate of $2.16. Quarterly revenues of $749.5 million surpassed the Zacks Consensus Estimate of $733.1 million and increased 36.8% year over year. The upside was driven by 31% rise in overall carload volumes.

J.B. Hunt, a Zacks #3-Ranked player, reported better-than-expected second-quarter 2021 results. Quarterly earnings of $1.61 per share surpassed the Zacks Consensus Estimate of $1.55. Total operating revenues of $2908.4 million outperformed the Zacks Consensus Estimate of $2722 million and rallied 35.5% year over year.


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