February 20, 2024
The UP World LNG Shipping Index (UPI) increased by 4.68 points or 3.05% last week, reaching a closing value of 158.46 points. This index monitors the stocks of companies that specialise in LNG shipping. In contrast, the S&P 500 (SPX) index, representing US stocks, witnessed a decline of 0.42%. The image below displays both indices.
The UPI continues to be volatile, bouncing up from the 2023 range and staying just below the 2024 range. We stated in the last report that the off-season started for LNG shippers despite the middle of February. Such volatility is one of the symptoms.
Last week, most of UPI’s constituents experienced gains. Cool Company (NYSE/OSE: CLCO) was the biggest gainer and rose more than 10%. However, this was only a correction of the previous two-week decline.
Although CLCO’s rise was significant, the most impressive performance was by Nakilat (QSE: QGTS), which gained nearly 8%. The power of its growth was more impressive than the size of the gain. The price opened 8.3% higher than the previous close and held this gain for the entire week. The surge was not due to the Q4-23 earnings of higher profit, announced at the end of January, but the news about 25 new LNG carriers that Nakilat will operate.
Also, the Japanese trio – NYK Line, MOL and “K” Line – grew last week. “K” Line (TSE: 9107) and MOL (TSE: 9104) are back below the new highs after last week´s gains of 8.1% and 5.7%, respectively. NYK Line (TSE: 9101) gained 3.7% and needs more rise to achieve the highs.
Malaysian MISC Berhad (KLSE: 3816) gained 4.1%, a very high gain for this company.
Flex LNG (NYSE/OSE: FLNG) rose by 3.6%, decreasing slightly from the previous decline. Its price is now within a supportive range, lasting from April 2022 to July 2022.
Dynagas LNG Partners (NYSE: DLNG) is still rising, gaining 3.5% with a very low volume. The low volume discredits the rise a bit and turns questions to investors: The moratorium on distribution is ending, and vessels are fixed on long-term charters. On the other hand, half of the fleet is steam-powered and new information about refinancing should be announced during the earnings call. Dynagas Ltd., the GP, also sold its two new FSRUs to Energos Infrastructure.
Awilco LNG (OSE: ALNG) continues to decline, losing 4.4% last week. Also, Excelerate Energy (NASDAQ: EE) continues to drop; last week, it lost 2.4%.
In summary, LNG shipping stocks corrected last week´s drop. Volatility is high, but the off-season is close if it has not started yet.
About: UP World LNG Shipping Index, established in 2020, is a rules-based stock index family designed to show and measure the performance of worldwide publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 18 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covered over 65% of the world’s LNG carrier fleet in 2020. 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