- The UP World LNG Shipping Index (UPI) rose 1.55% last week, breaking through months of resistance, supported by broad sector participation and higher trading volumes.
- New Fortress Energy and Golar LNG led gains, while Norwegian firms Cool Company and Flex LNG also posted strong advances.
- Major players like BP, Chevron, Shell, and Japanese lines ‘K’ Line and NYK Line are approaching or surpassing key technical resistance levels.
- Some companies, including Exmar and Awilco LNG, faced declines, while others like Nakilat and Adnoc remained in sideways or corrective trends.
LNG shipping stocks saw a strong performance last week, with the UP World LNG Shipping Index (UPI) rising 1.55% to 170.72 points, surpassing months of resistance. Broad gains across the sector highlighted the industry’s resilience and role within the global energy landscape, led by New Fortress Energy and Golar LNG. According to the report published by LNG Shipping Stocks, the breakout points to renewed investor confidence amid ongoing market volatility.
UPI Outperforms Despite Sector Maturity and Investor Confidence
The UP World LNG Shipping Index (UPI), which tracks listed LNG shipping companies, rose 2.61 points (1.55%) last week, closing at 170.72 points, outperforming the S&P 500, which gained 0.27%. Trading volumes were notably higher than average, and broad participation across the sector highlighted the market’s strength and resilience.
Several factors contributed to the UPI breaking through months of resistance. First, the LNG shipping sector has reached a level of maturity, establishing itself as a critical component of the global energy mix. Second, seasonal patterns played a supporting role, reinforced by recently published quarterly results that clarified the impact of lower spot rates and uncertainties in other markets, such as technology. Together, these factors renewed investor interest and confidence.
However, geopolitical risks remain a key consideration. Changes in global conflict dynamics or the increased acceptance of force to resolve disputes could quickly alter market perceptions. In this context, evaluating long-term shipping routes for each fleet provides useful insight into how the sector may respond to evolving global conditions.
Performance of Individual UPI Constituents
The UP World LNG Shipping Index saw broad participation last week, with 13 stocks rising, 7 declining, and one remaining unchanged. Leading the gains, New Fortress Energy (NYSE: NFE) surged 14.5%, rebounding strongly after several weeks of declines. Golar LNG (NYSE: GLNG) followed with an 11% increase, closing above its previous high from the end of last year and reaching levels not seen since 2015, supported by slightly above-average trading volumes.
Norwegian companies Cool Company (NYSE/OSE: CLCO) and Flex LNG (NYSE/OSE: FLNG) also posted solid gains, rising 8.1% and 6.9%, respectively. FLNG closed above a key technical threshold, ending a downtrend that had persisted since October 2023, while CLCO continued to strengthen its position. Recent corporate updates, including refinancing, share buybacks, and improved cash reserves, have contributed to investor confidence. Cosco Shipping Energy (SS:600026) added 7%, signaling a potential trend reversal after weeks of hovering around support.
Tsakos Energy Navigation (NYSE: TEN) gained 4.7%, closing above previous resistance levels, while Excelerate Energy (NYSE: EE) and Dynagas LNG Partners (NYSE: DLNG) made modest advances of 2.4% and 3.4%, respectively, as both companies remained near support levels. Among the majors, BP (NYSE: BP), Chevron (NYSE: CVX), and ‘K’ Line (TSE: 9107) have likely broken through technical resistance, with Shell (NYSE: SHEL) and NYK Line (TSE: 9101) approaching similar thresholds. Korea Line Corporation (KRX: 005880) may have completed its growth correction.
On the downside, Exmar (BSE: EXM) and Awilco LNG (OSE: ALNG) posted double-digit losses, with ALNG’s 10.2% decline linked to lower vessel utilization in the competitive spot market. Nakilat (QSE: QGTS) fell 1%, maintaining its sideways movement, while Adnoc (ADX: ADNOCLS) corrected 0.75% but sustained its broader growth trend.
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Source: LNG Shipping
