Stock of the Day

Today's Trend

Golar LNG Limited (NASDAQ: GLNG) shares increased as investors reacted to stronger second-quarter results, a bullish analyst price-target revision and the company’s decision to proceed with a fourth floating LNG production vessel.

• Q2 earnings and EBITDA beat expectations: Golar reported adjusted EBITDA of $127.4 million, up 159% year over year, while net income attributable to shareholders rose 145% to $38.3 million. Earnings of $0.68 per share exceeded the $0.55 consensus estimate and more than doubled from $0.26 a year earlier. Golar LNG Q2 Earnings and Revenues Beat Estimates
• Fourth FLNG project approved: Golar signed a roughly $2.45 billion engineering, procurement and construction contract for a 3.5 million-ton-per-year FLNG unit. The vessel is expected to be delivered by the end of 2029 and could expand the company’s long-term LNG production capacity, with management citing favorable delivery timing and improved payment terms. Golar LNG orders 4th FLNG unit for 2029 delivery
• Analyst becomes more bullish: BTIG Research raised its price target from $67 to $70 and reaffirmed a “buy” rating, implying substantial upside from the current trading level.
• Dividend maintained: Golar declared a quarterly cash dividend of $0.25 per share, payable September 2 to shareholders of record on August 24. The annualized yield is approximately 2%.
• Revenue growth was strong but slightly mixed against estimates: Quarterly operating revenue increased 72% year over year to $130.5 million. However, one report placed revenue modestly below the $131.3 million analyst consensus, making the earnings beat the more important positive catalyst.
• Significant capital commitment: The new FLNG project will require approximately $2.45 billion, and Golar’s share of contractual debt was $2.68 billion, up 31% year over year. Investors may therefore monitor financing, construction execution and leverage risks as the expansion advances.