LNG shipping stocks: A volatile week
The UP World LNG Shipping Index, the world’s only stock index focused on companies in the LNG shipping industry, lost 0.1 points, or 0.13%, last week. US stocks represented by the S&P 500 (SPX) index gained 0.81%.
We named the growth of the previous week as coincidental. The events of the past week proved us right. There was increased volatility in the markets last week.
Stocks of companies for which LNG maritime transport is rather minority have strengthened the most. BP p.l.c. (NYSE: BP) and Chevron (NYSE: CVX) grew by 9%, Royal Dutch Shell p.l.c. (NYSE: RDS.A) added 6.9%.
Chart below shows both UP World LNG Shipping Index and S&P 500.
Growth of 4.4% or 3.6% added Korean SM KLC (KRX: 005880) and Japanese NYK Line (TSE: 9101). Even these companies also have other revenues then only by LNG transport. Btw. all these companies are counted in the UP World LNG Shipping Index only by a part corresponding to the share of revenues generated by maritime LNG transport.
Companies and partnerships like Höegh LNG Partners LP (NYSE: HMLP), which added 3.2%, are counted fully in the UP index.
Companies that went ex-dividend last week mostly lost, like the world LNG giant Qatar Gas Transport Company (Nakilat, QSE: QGNT) and the NorwegianFlex LNG Ltd. (NYSE: FLNG). The first decrease for 5.8%, the second 7.2%.
Other major losers were Golar LNG Ltd. (NYSE:GLNG, lost 5%) and GasLog Partners LP (NYSE:GLOP, lost 7.7%).
UP World LNG Shipping Index is a rules-based stock index family designed to show and measure the performance of world publicly traded companies involved in maritime transport of liquefied natural gas (LNG). This world unique index covers 20 companies and partnerships from countries all over the world like the USA, Qatar, Japan, Norway, South Korea or Malaysia. The index covers more than 65 % of the world LNG carrier fleet.