LNG shipping stocks: Rising into summer

The UP World LNG Shipping Index (UPI) gained 3.24% last week. Key drivers of this increase were Korea Line Corporation, Nakilat and Golar LNG, among others. The sentiment on LNG shipping remains positive.

UPI & SPX
Last week, UPI, which tracks listed LNG shipping companies, gained 5.09 points or 3.24%, closing at 162.36 points. In contrast, the S&P 500 index remained nearly the same, with a slight loss of 0.08%. The chart below illustrates this divergence in performance.

Broader view
Most public-listed LNG shipping companies continued rising last week, allowing UPI to return to the top 2024 levels above 165 points. There was only one double-digit rise; the rest of the gains were mostly lower than 5% and started with number three. That means many constituents joined the rise, confirming the coming summer season.
Our UPI TCE data follow the real charters of UPI´s constituents, and we update these metrics every quarter. To see the dynamic of freight charters, we publish Sparks Commodities indices: Atlantic rates rose to $87,000 per day, while Pacific rates rose by $4,000 to $51,750. This increase in rates confirms rising activity in LNG shipping. The outlook for LNG shippers remains optimistic.

Constituents
Last week, the market mainly saw lower single-digit gains and a few higher gains. However, three stocks saw significant increases. Korea Line Corporation (KRX: 005880) experienced substantial growth, a nearly 30% increase at 28.7%. This marks the fourth instance of significant growth for KLC since the end of last year. Moreover, this time, the rise was accompanied by above-average trading volume.
The next huge growth made Nakilat (QSE: QGTS) and Golar LNG (NASDAQ: GLNG). Both gained around 8.5%, continuing the rise based on previous positive information.

Awilco LNG ASA (OSE: ALNG) gained 5%, reducing the ex-dividend drop by nearly half.
The huge group of constituents, which gain starts with three, can be split into two groups. The first includes Dynagas LNG Partners (NYSE: DLNG), Cool Company (NYSE/OSE: CLCO), and Excelerate Energy (NASDAQ: EE), all of which rose closely by 4% gains. The second, consisting of Shell (NYSE: SHEL) and „K“ Line Corporation (TSE: 9107), gained around 3.2%.
New Fortress Energy (NASDAQ: NFE) stopped or paused its downtrend in the support area, forming a doji candle pattern. Its gain was 2.4%.

The rest of the growing constituents moved more slowly. BP (NYSE: BP) rose by 1.7%, and Chevron (NYSE: CVX) rose by 0.7%. The rest of the Japanese trio—NYK Line (TSE: 9101) and Mitsui O.S.K. Lines (TSE: 9104)—gained 0.9% and 0.8%, respectively.
Flex LNG (NYSE/OSE: FLNG) and Capital Product Partners (NASDAQ: CPLP) dropped by 1.5%. Flex corrected the previous week’s gain. The most lost Exmar (NSE: EXM), as it declined by 2.7%, is still on nearly no volume as de-listing is coming.

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