11/05 - As mentioned prior, although Golar LNG (GLNG) owns floating vessels, I don’t count them as a shipping company. The floating vessels are production assets, so I think the company is more an LNG infrastructure play. GLNG reported their Q3 2025 results earlier today.
Golar is a tricky investment idea. The company does have contract backlog about $6.5B grew to about $11B (in 2024), and now $17B (in 2025) with additional potential upside. The problem is, a majority of the revenue is earned after 2027, when FLNG Hilli’s 2nd contract starts up. Before that, there is a gap period of about a year (July 2026 - mid 2027) when FLNG Hilli goes thru an upgrade in Singapore, then sails down to Argentina. At least to me, that’s the “nervous” time with this holding.
With FLNG Gimi in production mode, the revenue generation is there. Plus, GLNG get the tolling side from FLNG Hilli. Adj EBITDA increased to $83M (from $49M in Q2 2025). There’s a completed Senior Notes offering, some of which pay off earlier debt (has the hint of SFL’s debt punt bond structure). That said, the MK II conversion is progressing, and so far GLNG has paid $1.0B of the $2.2B cost. Given the asset has contract coverage, it might be easier to talk financing for the asset. It still has a couple of years in the yard. On a somewhat positive note, GLNG have already started ordering long lead items for FLNG asset 4. The company did something similar for FLNG asset #3.
GLNG maintained 25c/sh dividend, and has a new share buyback program in place.
https://ml-eu.globenewswire.com/Resource/Download/09f4c5d2-f034-4720-986d-342907f92174
