LNG shipping stocks continued their upward drift last week, with the UP World LNG Shipping Index (UPI) rising 6% to 168.54—pushing above its pre-Trump era resistance levels. Despite the quiet global environment and stable spot freight prices, the index showed broad participation, with nearly all constituents posting gains. However, the calm growth belied uncertainty, as many companies, including Golar LNG and Shell, hesitated at technical thresholds. Notably, Asian firms led the advance, with Japan's Mitsui O.S.K. Lines topping the list at 12.5%, joined by „K“ Line, NYK Line, and Malaysia's MISC. Capital Clean Energy Carriers also stood out with an 11.5% gain and a fresh all-time high. Overall, while volume was slightly above average, the market’s tone remains cautiously optimistic with some signs of indecision beneath the surface.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, gained 9.53 points (6%), closing at 168.54 points, while the S&P 500 index gained 5.27%. The chart below illustrates the performance of both indices with weekly data.
Broader view
Nothing wild happened in the past week; it was quiet. But the world fleet is still undergoing a long-term generational turnover, with old steam tankers leaving the scene. Spot freight prices are showing no significant changes from previous weeks.
Constituents
UPI is back to pre-Trump levels and more – it is at the resistance set in October 2024 and submitted in January and February this year. Traded volume was a bit higher than average.
Almost all companies contributed to the growth, but only one company experienced a greater than one per cent loss. Unfortunately, substantial growth cannot indicate prevailing optimism, as many companies hesitate about the next direction: Golar LNG, Dynagas LNG, Cool Company, Excelerate Energy, Shell, Chevron, and Awilco LNG. Trends such as those of Capital Clean Energy Carriers, Tsakos Energy Navigation, or even MISC are all the more valuable.
It was an Asian week, as three of the four top-growing companies were from Asia, specifically Japan. But they were joined by a Malaysian and a Korean company. But first things first.
The biggest riser was Mitsui O.S.K. Lines (TSE: 9104), up 12.5%. Even so, it is still below pre-Trump prices. Moreover, it lost a similar percentage in late April/May, which is up very slightly. That puts Capital Clean Energy Carriers (NYQ: CCEC) in second place, rising for the fourth week and reaching a new all-time high with an 11.5% gain.
Other gains have been under ten per cent. The “K” Line (TSE: 9107) and NYK Line (TSE: 9101) were up slightly over nine per cent but are back to pre-total levels. Even their traded volume is slightly above average.
Tsakos Energy Navigation (NYQ: TSE) and Korea Line Corporation (KRX: 005880) also breached the five per cent growth threshold. Malaysia’s MISC (KLSE: 3816) was up 4.3%. Golar LNG (NYQ: GLNG) also rose, but while MISC seems to have caught the uptrend, GLNG is still faltering.
Awilco LNG (OSE: ALNG) was up 3.2%, but the growth is not convincing. The weekly candle on the charts shows uncertainty about the future direction.
Chevron (NYQ: CVX) added 2.6%, but stalled in a low-volume zone below prior supports.
Flex LNG (NYSE/OSE: FLNG) added less than three per cent and rose just below pre-market price levels.
New Fortress Energy (NYQ: NFE) fell nearly sixty per cent after reporting first-quarter results that fell short of analyst expectations. The company continues to sell assets to reduce its heavy debt load.
This is the last report for the next four weeks. The next one will be published in the second half of June. Thank you, readers, for your patronage so far!
Crystal Ball
Despite the growing global uncertainty caused by the US administration, our outlook remains cautiously optimistic. However, we expect increased volatility in the coming weeks. LNG spot rates stayed low, but the impact remains marginal for most UPI constituents. The market is watching for potential breakouts at key resistance levels, which could determine the next price direction.
Our outlook remains steadfastly positive in the long term. The burgeoning demand for LNG, bolstered by situational or management-driven actions and the potential for new long-term contracts, paints a promising picture. Investors should watch policy developments, market competition, and upcoming corporate earnings for further direction.
Source: By Tomas Novotny, UP-Indices.com