GLNG holds arguably the world’s most valuable Floating LNG (FLNG) technology.  With one FLNG vessel in operation and another due to come online in 2023 under a 20-year deal with BP, GLNG has a proven technical and commercial model for developing offshore liquefaction facilities at a globally competitive cost.  We believe the floating segment of the LNG market is in the early innings of a long-term growth stretch.  And GLNG is uniquely positioned to benefit from macro tailwinds driving further LNG demand worldwide.


Teekay LNG Partners (NYSE: TGP)

TGP is a geographical diversification play, targeting the burgeoning LNG trade route from Russia to China.  Undergoing a large buildout program similar to GLOG, TGP has signed charters for a majority of its vessels which last for essentially the entire economic life of the asset, assuring a steady cashflow for years to come.  
The current buildout program will substantially increase cashflow and enable TGP to improve its balance sheet and, in due course, pay attractive distributions to shareholders. 



Flex holds the most modern collection of LNG carriers worldwide and has opportunistically fixed several units onto long-term charter at attractive rates.  Flex has initiated a strong dividend, currently yielding 10%, which appears to be amply covered by contracted cashflows going to at least 2024.  Management has a history of shareholder-friendly behavior, including a share buyback program which remains active.


Sources: SEC filings (i.e. Form 20-F) and company presentations of each respective company
Disclosure: The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. Past performance shown is not indicative of future results, which could differ substantially.

The simulated performance shown was created by Ashland, applying historical LNG shipping stock market cycles to present market prices in order to estimate potential future capital gains.  Dividend returns are estimated by applying the current payout level and adjusting for future distributable cashflow as estimated by Ashland's analysis.  The simulated performance shown is not necessarily indicative of future performance, which could differ substantially. The results shown do not represent the results of actual trading using client assets but were achieved by means of the retroactive application of a model that was designed with the benefit of hindsight. The simulated performance was compiled after the end of the period depicted and does not represent the actual investment decisions of Ashland. These results do not reflect the effect of material economic and market factors on decision-making.