LNG shipping stocks: Uncertainty remains but direction seems chosen
The UP World LNG Shipping Index, the world’s only stock index focused on LNG shipping companies, lost 0.28% last week. US stocks represented by the S&P 500 Index lost 1.22%.
Uncertainty remains among shares of the LNG maritime sector, but most appear to have chosen the up direction.
Double-digit increases as well as decreases appeared again. Let’s start with them this time, because one of the biggest loss suffered Höegh LNG Partners (NYSE:HMLP). Today, however, everything is different, because the gossip about the expected takeover bid has been confirmed. The GP (Höegh LNG Ltd.) really made a buy-back offer at shocking amount of $4.25. It must be said that similar practices do not add to the popularity among investors in the sector.
But let’s move on to happier events. Two companies recorded growth of around 30%. The small Norwegian Awilco LNG Partners (OSE:ALNG) rose the most, 31.7%. Japanese Kawasaki Kisen Kaisha aka “K” Line (TSE:9107) increased its value by 27.7%.
The other two Japanese companies included in the UP Index also grew significantly. Mitsui O.S.K. Lines Ltd. aka MOL (TSE:9104) gained 17.4% and Nippon Yusen Kawasaki Kaisha aka NYK Line (TSE:9101) rose 10.7%.
Shell (NYSE:RDS-A), bp (NYSE: BP) and Chevron (NYSE:CVX) and Dynagas LNG Partners (NYSE:DLNG) had a positive development, averting a possible breakthrough for now.
Flex LNG (NYSE: FLNG) lost 11.6% after dividend ex-date. Golar LNG (NYSE:GLNG) lost 6.7%.
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 19 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.