Last week, the UP World LNG Shipping Index (UPI) lost 6.61 points or 4.12%, closing at 153.77 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a gain of 1.37%. You can find both indices in the image below.
The UPI returned to the 2023 range, meaning the winter peak didn’t last long this year. It seems like LNG shipping investors start the off-season and will return in summer or after some news, probably geopolitical. Due to low demand and high supplies, the shares of LNG shipping and the price of natural gas were pushed down. Henry Hub is currently close to the minimums of 2020. The time charter rates of LNG shipping stopped declining, as Spark reported. This could be due to the longer route around the Cape of Good Hope, which employs more vessels.
Last week, Flex LNG (NYSE/OSE: FLNG) suffered the most significant loss, starting to decline on Friday and finishing the week with a loss of 10.1%. Wednesday’s earning call didn’t support the share much, despite all the positives like dividends and the possibility of a buy-back.
As mentioned last week, the Japanese trio lost because their shares couldn’t break the sellers’ push. NYK Line (TSE: 9101) lost 8.1%, “K” Line (TSE: 9107) dropped by 6.5%, and MOL (TSE: 9104) declined by 4%.
Cool Company (NYSE/OSE: CLCO) and Excelerate Energy (NASDAQ: EE) lost nearly the same: 6.3% and 6.2%. Both closed below the previous support line. Awilco LNG (OSE: ALNG) declined by 4.7%, and Nakilat (QSE: QGTS) lost 3%.
However, there were a few gainers last week. Dynagas LNG Partners (NYSE: DLNG) was the most significant gainer, growing 7.1%. DLNG is close to the end of a moratorium on distribution, and even half of its fleet are steam vessels, they are fixed to Q1 2028 and longer. BP (NYSE: BP) was the second gainer, growing by 5%.
In summary, the off-season starts two months early for LNG shipping. This is the time for investors to set their plans to be prepared for summer. Despite the high storage, low gas prices and rates might accelerate the orders.
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