Golar LNG (NASDAQ:GLNG) Issues Quarterly Earnings Results

Key Points

• Golar LNG beat earnings expectations, reporting $0.49 EPS versus the $0.41 consensus estimate. The company also posted strong profitability metrics, including a 16.69% net margin.
• Operational performance was a standout, with record Q1 LNG production, Gimi running above contracted capacity, and Hilli at 100% economic uptime. Management said this helped drive $106 million in EBITDA and $102 million in net income.
• Growth visibility remains strong thanks to a $17 billion EBITDA backlog and potential annual run-rate EBITDA above $800 million once all three units are online. Golar also said it may order a fourth FLNG unit within 2026 and continues to progress its Argentina project on schedule.

Golar LNG (NASDAQ:GLNG - Get Free Report) released its quarterly earnings data on Wednesday. The shipping company reported $0.49 earnings per share for the quarter, beating analysts' consensus estimates of $0.41 by $0.08, Zacks reports. Golar LNG had a return on equity of 6.24% and a net margin of 16.69%.

Here are the key takeaways from Golar LNG's conference call:

• Golar reported a record Q1 for LNG production, with Gimi running 19% above contracted capacity and Hilli maintaining 100% economic uptime. Management said this drove EBITDA to $106 million and net income to $102 million.
• The company reiterated a $17 billion EBITDA backlog from long-term FLNG charters and said annual run-rate EBITDA could exceed $800 million once all three units are in operation. Golar also declared a quarterly dividend of $0.25 per share.
• Management said commercial momentum has accelerated and now expects to order a fourth FLNG unit within 2026, citing geopolitical disruption and rising demand for diversified LNG supply. They also said a strategic review is underway to accelerate FLNG growth and maximize shareholder returns.
• The Argentina project remains on schedule, including the Hilli relocation, dedicated pipeline work, and the Mark II FLNG, which is still targeted for delivery at year-end 2027. Management said the San Matías pipeline awards are in place and the project is progressing well versus budget.
• Golar highlighted commodity upside in its Argentina contracts, saying higher LNG price indices lifted the value of its exposure in Q1. The company also noted that some volumes may be reserved for spot sales, but the final mix between fixed and commodity-linked pricing is still being negotiated.

Golar LNG Trading Down 2.0%

Shares of Golar LNG stock opened at $55.65 on Wednesday. Golar LNG has a twelve month low of $35.02 and a twelve month high of $57.79. The firm has a market capitalization of $5.64 billion, a PE ratio of 86.95 and a beta of 0.06. The firm's 50-day moving average price is $52.88 and its 200 day moving average price is $44.45. The company has a current ratio of 2.55, a quick ratio of 2.55 and a debt-to-equity ratio of 1.19.

Golar LNG Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Monday, March 9th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Monday, March 9th. Golar LNG's dividend payout ratio is 156.25%.

Institutional Trading of Golar LNG

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Rubric Capital Management LP raised its holdings in shares of Golar LNG by 2.3% in the 2nd quarter. Rubric Capital Management LP now owns 9,178,978 shares of the shipping company's stock worth $378,082,000 after purchasing an additional 203,829 shares during the period. PointState Capital LP grew its stake in shares of Golar LNG by 19.3% during the fourth quarter. PointState Capital LP now owns 3,932,104 shares of the shipping company's stock valued at $146,314,000 after acquiring an additional 637,081 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its position in shares of Golar LNG by 253.7% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,306,379 shares of the shipping company's stock worth $85,821,000 after acquiring an additional 1,654,353 shares during the last quarter. Morgan Stanley grew its position in shares of Golar LNG by 14.0% during the fourth quarter. Morgan Stanley now owns 2,110,671 shares of the shipping company's stock worth $78,538,000 after buying an additional 259,915 shares in the last quarter. Finally, State Street Corp raised its holdings in Golar LNG by 1.4% in the second quarter. State Street Corp now owns 1,914,741 shares of the shipping company's stock valued at $78,868,000 after acquiring an additional 26,838 shares in the last quarter. Hedge funds and other institutional investors own 92.21% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Wall Street Zen downgraded Golar LNG from a "hold" rating to a "sell" rating in a report on Saturday, April 25th. The Goldman Sachs Group set a $56.00 target price on shares of Golar LNG in a report on Monday, February 2nd. Finally, BTIG Research increased their price target on shares of Golar LNG from $50.00 to $53.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $51.13.

About Golar LNG

Golar LNG Ltd. is a leading owner and operator of liquefied natural gas (LNG) carriers and floating infrastructure. The company specializes in the transportation of LNG on long-term and spot charters for major energy firms around the world. In addition to shipping, Golar LNG has broadened its services to include project development and the conversion of existing carriers into Floating Liquefied Natural Gas (FLNG) and Floating Storage and Regasification Unit (FSRU) vessels.

Since pioneering the first purpose-built FLNG conversion project, Golar LNG has been at the forefront of offshore gas monetization.

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