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LNG shipping stocks: A positive sentiment continues

Tuesday, 09 July 2024 | 12:00

Last week, the UP World LNG Shipping Index (UPI) gained 4.40%. This surge was driven by positive market sentiment and a Louisiana court’s preliminary cancellation of the moratorium on new U.S. LNG export projects. Notably, Golar LNG (NASDAQ: GLNG) rose 7% following a major 20-year deal with Argentina’s Pan American Energy, while Japan’s “K” Line (TSE: 9107) saw a 15.4% increase due to a substantial share repurchase program. However, some stocks like SM Korea Line Corporation (KRX: 005880) and New Fortress Energy (NASDAQ: NFE) experienced significant declines.

Last week, UPI, which tracks listed LNG shipping companies, gained 7.15 points or 4.40%, closing at 169.51 points. In contrast, the S&P 500 index gained 1.95%. The chart below shows both indices with weekly data.

Week 28-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)

Broader view
The positive sentiment on LNG shipping stocks pushed UPI to a new all-time high with a strong move, but only average traded volume.
A Louisiana district court preliminarily cancelled the moratorium on new U.S. LNG export projects. This move can boost confidence in the LNG sector even though a sufficient number of projects have been permitted before.

Golar LNG (NASDAQ: GLNG) has entered into definitive agreements with Argentinas´s Pan American Energy for a 20-year deployment of FLNG Hilli or another Golar´s suitable FLNG unit. This news pushed GLNG stocks by 7%. As this is essential news, the growth was not the highest.
The biggest gain made Japan´s „K“ Line (TSE: 9107), which grew by 15.4%. On July 1, „K“ Line released information about its own share repurchases. Due to this release, the buyback in June was about 7.3 million shares. The total buyback since May 9, 2024, was nearly 32 million, and around 7.8 million shares can still be purchased until the end of July.
The two other UPI constituents from Japan grew, too. Mitsui O.S.K. Lines (TSE: 9104) rose 6.1%, and NYK Line (TSE: 9101) added 5.1%.

The rest of the gains were between 1.5 and 3%, as MISC (KLSE: 3816) gained 3.1%, Exmar (BSE: EXM) grew by 3%, BP (NYSE: BP) rose by 2.6%, and Shell (NYSE: SHEL) increased its price by 1.5%.
The most lost SM Korea Line Corporation (KRX: 005880), which corrected its previous 20%-gain by 13.3%. New Fortress Energy (NASDAQ: NFE) continued in decline by a loss of 9.3% and is close to breaking the support line.
Dynagas LNG Partners (NYSE: DLNG) lost 4% but still holds the top range, which grew in April. Similar did Excelerate Energy (NASDAQ: EE), but this share tries to continue in the new uptrend. Last week, it dropped by 3%.

Established in 2020, the UP World LNG Shipping Index is a rules-based stock index family designed to measure the performance of worldwide publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 18 companies and partnerships worldwide, representing over 65% of the world’s LNG carrier fleet in 2020. The UP Index offers premium services with freemium and trial access to charts.
Source: By Tomas Novotny, UP-Indices.com

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