Last week, the UP World LNG Shipping Index (UPI) stayed at the previous level, losing 3.36 points or 2.27%, closing at 144.70 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a gain of 0.21%. You can find both indices in the image below.
Week 50-2023: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices.com)
The UP World LNG Shipping Index continues moving in the side-way range to its low levels. This move supported nearly all of the constituents.
Only three minor constituents were able to mark gains last week. After its earning call, Dynagas LNG Partners (NYSE: DLNG) scored the biggest gain of 3.7%. In this call, it was mentioned that the backlog´s TCE is about $73.5kpd per vessel. Dynagas owns three steam vessels and three DFDE/TFDE vessels, showing good values. Contracts for steam vessels finish in mid-2028 when these vessels will be 20 years old. Still with ten years of lifespan, but probably won´t be chartered due to obsolescence. The most important event for Dynagas is next year’s balloon debt payment, which will finish the period of detained dividends. The refinancing of the debt should be announced in the first quarter of 2024 due to management. With this announcement, we also await a statement of the future of this partnership, as it will be the last publicly traded MLP of LNG shippers.
The other two gainers were Exmar (BSE: EXM), with 3.2% and Korea Line Corporation (KRX: 005880), which gained only 1.5% after a significant rise during the week.
Excelerate Energy (NASDAQ: EE) marked the most significant loss, dropping by 7%. Cool Company´s NYSE listing (NYSE / OSE: CLCO) lost 6.6%, and Kawasaki Kisen Kaisha (TSE: 9107) declined by 5.3%. New Fortress Energy (NASDAQ: NFE) decreased by 4.6%. All other constituents lost 2-3 %. Only Chevron (NYSE: CVX) and Awilco (OSE: ALNG) lost less than 0.3 and 0.9%, respectively.
In summary, the negative wave is washing the LNG shipping sector now. UPI still moves in a range; the key level is at 140 points.
About: UP World LNG Shipping Index, established in 2020, is a rules-based stock index family designed to show and 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, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covered over 65% of the world’s LNG carrier fleet in 2020. UP Index is a premium service. We offer freemium (the basic chart of the UP Index and S&P 500 index) and trial access to all charts.
Source: UP-Indices.com, By Tomas Novotny