Analysts Jonas Advocaat Kraft and Eirik Haavaldsen downed the John
Frdedriksen-led company from buy to hold just days after a weak fourth quarter
showing.
They note Golar has yet to secure a
single contract for the 10 LNG newbuildings in a market which is already somewhat over-supplied.
“We
believe that the near-term upside from the current share-price level is
limited,” they wrote in a report today.
“Though the company has plenty of funding-options, we do believe that
dayrates on the newbuilds could surprise consensus on the downside.”
Golar booked a profit of $22.8m as fourth-quarter.
Earnings per share
weighed in at $0.28, which was well below analysts’ $0.43 consensus estimate.
Kraft and Haavaldsen say the earnings miss was due to higher
operating costs kicking in a bit earlier than foreseen.
Golar’s
plan for a spin-off of its FLNG-arm caught the eye when its fourth quarter
report was released.
“An FLNG-subsidiary is fine, but we believe there is a
long way to the cash flow here,” the analysts wrote.
“At
the moment we are more focused on their capex program – and the limited backlog.
“The
company has ten LNG carriers and three FSRUs under construction – around $2.5bn
in remaining capex.
“Though
selected preferred bidders for FSRUs in Chile and Jordan, none of the newbuilds
have yet formally secured contracts.”
Kraft and Haavaldsen say LNG spot rates are falling
quickly and the downward pressure is forecast to continue near term.
They
suggest the share price could come under pressure as analysts rework their
numbers and the consensus figure falls.
