- Broader Market Weakness and Earnings Results Drive Decline.
- Golar LNG Suffers Sharpest Weekly Loss.
- Japanese and Korean Carriers Report Weaker Results.
The UP World LNG Shipping Index, which keeps an eye on listed LNG shipping companies, took a dip of 3.38 points (1.98%), closing at 167.15. Meanwhile, the S&P 500 also saw a decline of 1.63%. The latest chart provides a snapshot of how both indices performed over the week. On October 31, the regular UPI rebalancing occurred, but there were no additions or removals, just some adjustments in weighting due to changes in fleet and shares, reports LNG Shipping Stocks.
Index Performance Overview
The UPI briefly hovered above 170 points before retreating. Out of the companies tracked, eight saw gains while thirteen faced losses. Those with more diverse portfolios experienced sharper declines, while the pure LNG shippers managed to hold their ground better. This movement was primarily influenced by earnings reports and the overall mood of the market. The median movement was -1.41%, with trading volumes remaining above average.
Top Decliners: Golar and Asian Players Lead Losses
- Golar LNG (NYQ: GLNG) took the hardest hit, wiping out last week’s gains. Even though they reported higher revenues from the commissioning of FLNG GIMI, analysts are still cautious due to rising costs and shrinking margins. Right now, the stock is trading sideways.
- COSCO Shipping Energy Transport (SS: 600026) fell by 6%, but it’s still on an upward trend in the long run. NYK Line (TSE: 9101) followed closely with a 5.65% drop, briefly dipping below support before bouncing back by the end of the week. Other Japanese companies showed a similar trend—“K” Line (TSE: 9107) lost 4.3%, and
- MOL (TSE: 9104) fell 2.6%, all reporting weaker results compared to last year.
Korea Line Corporation (KRX: 005880) also saw a nearly 5% decline after disappointing quarterly results, but it managed to rebound from resistance and continues to trade sideways. - Capital Clean Energy Carriers (NYSE: CCEC) slipped 3% after reporting lower annual results, as it transitions into a multi-gas carrier operator following the sale of two container ships.
Top Gainers: Excelerate, Nakilat, and BP Outperform
- Excelerate Energy (NYQ: EE) took the lead with a solid 6.4% growth, even though it wrapped up the week just shy of resistance. Nakilat (QSE: QGTS) climbed 5.24%, bouncing back from support and hinting at more potential gains ahead.
- BP (NYSE: BP) also had a good week, advancing 4.1% and breaking through resistance. Meanwhile, Shell (NYSE: SHEL) held its ground above resistance for the third consecutive week, adding a modest 0.9%. Chevron (NYSE: CVX) managed to stave off a bigger drop but still ended the week down by 1.7%.
- New Fortress Energy (NYQ: NFE) saw a 3.9% increase, staying within its typical 10% volatility range. Flex LNG (NYSE: FLNG) rose 2.2% as it approached earnings, nearing resistance at $27.5. Tsakos Energy Navigation (NYSE: TEN) added 1.1%, keeping its growth trend alive despite some modest weekly gains.
Outlook: Short-Term Volatility, Long-Term Optimism
The late-summer rally seems to have lost steam, with UPI returning to its previous trading range, buoyed by solid technical levels. We should brace for increased short-term volatility among the index constituents. However, the long-term outlook is still bright. With rising LNG demand, smart management decisions, and the potential for new long-term contracts, the sector looks poised for continued strength. Investors should keep an eye on policy changes, competitive shifts, and upcoming corporate earnings to gauge the direction of the market.
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Source: LNG Shipping Stocks
