I've been trying to figure what would be comparable to Golar LNG. I don't think it should be valued like a pipeline like the company's presentation suggests but should be valued like an oil tanker line or other specialized bulk cargo carrier. If they are a ocean going gas pipeline then oil tanker lines are ocean going oil pipelines. Companies trading in the U.S. that move oil or LPG that I took a quick look at, trade under the following symbols.
BHO, FRO, GMR, OMM, MCX, NAT, OSG, SJH, SNSA, TK, TNP and VLCCF.
OSG, SJH, TK, and TNP look good to me. OSG, TK, TNP pay dividends. OSG recently raised their dividend. SNSA's dividend may be at risk.
None of the above companies is a LNG play but I think they can be used for comparision purposes. I don't think Golar should trade at any great premium simply because of the cargo they carry. Small specialized carriers seem to live and die on their long term charters with the major oil companies. The majors drive hard bargains and don't leave much profit for the carriers. JMO. |
