LNG shipping stocks: The last decline?

The UP World LNG Shipping Index (UPI), the world’s only stock index focused on LNG shipping companies, lost 5% last week. U.S. stocks represented by the S&P 500 (SPX) index gained 1.45%.

The UP World LNG Shipping Index continued to decline. The resulting five percent loss could have been even more significant if there wasn´t the Friday US stock rally. For example, New Fortress Energy (NASDAQ: NFE) ended the week down over 10% but was down a third during the week. Nevertheless, the situation is optimistic because, with this decline, the UP index reached the lower limit of the Bollinger band.

Only two companies could push their share prices to positive values last week. The most – +14.5% – went to Dynagas LNG Partners (NYSE: DLNG), which extended the contract for one of its ships. Although the increase is significant, the growth of the other com-pany is more important. It was none other than Qatar’s Nakilat (QSE: QGTS). The latter gained almost four percent but thereby con-firmed not only its growth trend but mainly the trend of the industry.

Aside from Shell’s (NYSE: SHEL) half-percent gain, everyone else was losing. The already mentioned NFE wrote off the most. It was followed by Flex LNG (NYSE / OSE: FLNG), which lost eight percent. Finally, Excelerate Energy (NASDAQ: EE) experienced a six-tenths smaller decline, and another Norwegian representative Cool Company (OSE: COOL) lost 6.3%.

GasLog Partners (NYSE: GLOP) and South Korea’s SM KLC (KRX: 005880) lost more than five percent. The losses of the Japanese trio – NYK Line (TSE: 9101), MOL (TSE: 9104), and “K” line (TSE: 9107) – were around four percent, supplemented by the last representative of Norway, Awilco LNG (OSE: ALNG).

Conversely, Chevron (NYSE: CVX) and bp (NYSE: BP) suffered relatively small declines, losing around 1.5%. Capital Product Partners (NASDAQ: CPLP) wrote off just 0.7%.

This decline might be one of the last, if not the last, to occur in the current correction.

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 the maritime transport of liquefied natural gas (LNG). This unique index covers 19 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covers over 65% of the world’s LNG carrier fleet. 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