The UP World LNG Shipping Index (UPI) reached a new all-time high last week, reflecting the continued strength of the LNG shipping sector. The index, which tracks listed LNG shipping companies, saw a significant boost, climbing by 2.92% to close at 176.15 points. This performance was notably better than the S&P 500 index, which gained 0.62% in the same period.
Market Performance and Broader Trends
Stock markets continued their upward trajectory last week, buoyed by optimistic signals from the Federal Reserve. This positive sentiment helped the UPI break past its previous high of 174 points. The uptrend, which began in May, has been driven by strong market fundamentals and investor confidence in the LNG shipping industry.
Key Constituents and News Highlights
Two major events shaped the performance of UPI constituents last week. Firstly, Saudi Arabia announced plans to increase its oil output, which had mixed effects on energy companies. Secondly, Golar LNG (NASDAQ: GLNG) surged 9.9% following rumors of a potential acquisition by Perenco, which currently holds a 10% stake through its investment affiliate, Naria. Analysts predict that if a deal is finalized, it could be at a significant premium, with share prices potentially exceeding $50 to $60.
Impact of Saudi Arabia’s Oil Output Plans
Saudi Arabia’s move to potentially abandon its unofficial price target of $100 per barrel for crude oil had varied effects on UPI constituents. While BP (NYSE: BP) and Shell (NYSE: SHEL) experienced declines of 3.7%, Chevron (NYSE: CVX) remained relatively stable, closing only 0.1% lower.
Top Performers of the Week
Korea Line Corporation (KRX: 005880) led the gains, rising 10%, followed closely by Capital Clean Energy Carriers (NASDAQ: CCEC), which saw a 7% increase. Excelerate Energy (NASDAQ: EE) continued its upward trend, gaining 6.1%. Two prominent Japanese shipping companies, “K” Line (TSE: 9107) and NYK Line (TSE: 9101), also posted strong performances, rising 5.8% and 5.1%, respectively. Mitsui O.S.K. Lines (TSE: 9104) saw a more modest gain of 1.3%.
Challenging Week for Some Stocks
Not all stocks fared as well, with New Fortress Energy (NASDAQ: NFE) gaining 3% last week but experiencing a setback after announcing a dividend payment delay on September 30. Awilco LNG ASA (OSE: ALNG) dropped 4.7%, though it has since stabilized, while MISC (KLSE: 3816) saw a 1.6% decline, leaving analysts uncertain about the stock’s future direction.
In summary, the LNG shipping sector showed resilience and growth last week, with notable gains for key players, although some challenges remain for certain companies amid broader market shifts.
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Source: LNG Shipping Stock
