DNB Markets has raised its rating on Golar LNG in the wake of a new joint venture with US private equity firm Stonepeak Infrastructure Partners.
Analysts at the finance house elevated Golar to buy from hold today, suggesting the formation of Golar Power would cover equity elements of a number of FSRUs and the Sergipe power project, while releasing liquidity for a second FLNG newbuild.
Nicolay Dyvik, Oyvind Berle and Petter Haugen say the new venture frees up cash for Golar, reduces cash burn and lowers debt and capital expenditure.
“We argue this looks positive for Golar LNG’s FLNG ambitions, freeing liquidity for a second FLNG newbuild, while allowing the company to continue growing in the FSRU space,” the analysts said.
The DNB analysts raised their target price from $20.6 per share to $21.3 per share.
