Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fearnley Reduces LNG Rate Estimate, Maintains ‘Buy’ Rating

Don't Miss Out —
Follow us on:

Sept. 19 (Bloomberg) -- Rates to ship liquefied natural gas will probably be lower than expected in the fourth quarter and first three months of 2013, Fearnley Securities AS said, while reiterating its recommendation to buy the shares of the companies carrying the fuel.

The vessels will earn an average of $125,000 a day in the fourth quarter and first three months of next year, the Oslo-based investment bank said in an e-mailed report today, lowering prior estimates of $150,000. Declining LNG prices in Japan have narrowed the gap with costs in the Atlantic region, eliminating the profit from transporting the fuel to Asia, Fearnley said.

“We are still long-term positive to the LNG market,” the bank said. Shares of Golar LNG Ltd., which has the largest number of LNG tankers on order, will probably rise 19 percent to $47 within 12 months, Fearnley said. The company, based in Hamilton, Bermuda, will report earnings per share of 54 cents in the third quarter and 63 cents in the following three months, the bank estimated. It made 44 cents in the second quarter.

A colder winter in North Asia would be needed to boost shipments from the Atlantic by opening a so-called price arbitrage, Fearnley said.

To contact the reporter on this story: Michelle Wiese Bockmann in London at mwiesebockma@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.