Golar LNG is still looking to dump its shipping business and could explore asset sales to do so.

Jefferies analyst Randy Giveans said that the Tor Olav Troim-backed company could look to sell its way out of the LNG shipping business as a spin-off of its gas carriers has been held up for months.

"Management commented that the Company is continuing to look at ways to simplify its structure through a spin [off] or asset sales," Giveans wrote in a note on Friday.

Last May, Golar LNG announced a plan to create a new shipping company with Awilco LNG and TMS Cardiff Gas as it moved toward becoming a pure-play LNG infrastructure company.

That deal had fallen through by November with Golar citing "misalignment" across the three companies.

It had intended to complete a spin-off by mid-year, but Giveans noted that the Covid-19 pandemic has postponed the move further.

Giveans said Golar LNG has secured more charter contracts in the meantime, with 80% utilisation of its fleet forecast for the second quarter. With LNG forward curves in contango, shipping rates are expected to be supported in the second half of the year, he added.

"However, in the near term, global gas inventories remain bloated, US cargo cancellations continue to climb and several 'phase two' liquefaction project FIDs (final investment decisions) could get delayed," he said.

The entire Golar fleet, across Golar LNG and Golar LNG Partners, is worth $509.3m, according to valuation service provider VesselsValue.

Its most expensive ship is the 160,000-cbm Golar Tundra (built 2015) at $144.2m.

In Friday's early afternoon trading, Golar LNG shares were down $0.27 to $8.08. Giveans has a buy rating on the shares, with a price target of $15. Golar LNG Partners shares were down just under $0.02 to $2.82.

Both are listed on Nasdaq.