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Investing.com - B.Riley downgraded Golar LNG Ltd . (NASDAQ:GLNG) from Buy to Neutral on Monday, while maintaining a price target of $44.50. The stock, currently trading at $44.84, sits near its 52-week high of $45.03, having gained 8.49% in the past week. According to InvestingPro analysis, the company appears to be trading above its Fair Value.
The downgrade comes as B.Riley reassessed the company’s valuation based on its current adjusted EBITDA backlog of $16.8 billion, which excludes potential commodity upside and inflationary adjustments.
The firm noted that $13.8 billion of the backlog is tied to operations in Argentina, involving FLNG (OL:FLNG) Hilli and MKII, with both contracts running for 20-year durations and including 30% inflation adjustments with commodity upside potential.
B.Riley highlighted the anticipated capacity of the two FLNGs at 5.95 million tons per annum (mtpa) with an estimated utilization rate of 90%, while pointing out that Hilli has historically operated at 100% utilization.
The research firm expressed difficulty in valuing potential future projects expected to come online in 2028 and beyond, citing the lack of detailed information on additional contracts despite the pass-through nature of all operating expenses.
In other recent news, Golar LNG Limited announced its second quarter 2025 financial results. The company reported an earnings per share (EPS) of $0.25, which was slightly below the analysts’ forecast of $0.2597, resulting in a 3.74% negative surprise. On the revenue front, Golar LNG outperformed expectations by reporting $75.1 million, surpassing the anticipated $73.2 million by 2.6%. This revenue beat highlights the company’s ability to generate higher-than-expected sales during the quarter. Analysts and investors closely monitor such earnings and revenue figures, as they provide insights into the company’s financial health and operational performance. Additionally, while the EPS miss might raise some concerns, the revenue beat could be seen as a positive indicator. These recent developments are crucial for stakeholders evaluating Golar LNG’s market position and future prospects.
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