LNG shipping stocks: Growing importance of LNG shipping sector
The UP World LNG Shipping Index, the world’s only stock index focused on LNG shipping companies, lost 0.55% last week. US stocks represented by the S&P 500 Index gained 0.79%.
Although the Japanese trio continues to correct its long-term growth, the two largest UP Index companies have prevented larger losses.
Qatar Gas Transport Company Ltd. (Nakilat, QSE: QGTS) and Golar LNG Limited (NYSE: GLNG) grew by 1.1% or 0.9% respectively. Along with the growth of mining companies, whose weight in the UP Index varied from 2 to 5 %, the UP Index ended up with only a small loss. BP, p.l.c. (NYSE: BP) gained the most, 4.6%. Chevron Corporation (NYSE: CVX) grew 3.6% and Royal Dutch Shell plc added 2.6%.
Teekay LNG Partners LP gained a solid 9.3%, but only thanks to an offer to buy and delist shares from the stock exchange. It is the fourth company that goes private. This trend marks the growing importance of the LNG shipping sector.
The correction of all three Japanese companies was around 11%. Other losing companies were SM KLC (KRX: 005880) and Awilco LNG ASA (OSE: ALNG).
The following picture provides a comparison of the UP Index and S&P 500 development.
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 17 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.