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Golar LNG Limited recently reported its second-quarter 2025 results, highlighting revenue of US$75.67 million, net income of US$15.64 million, and the Board’s approval of a US$0.25 per share dividend payable in early September, with key operational milestones including FLNG Gimi’s start of a 20-year lease with BP and a new FLNG charter investment decision by SESA also announced.
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While quarterly earnings were lower than some analysts expected, contract wins and project commencements further reinforce the company’s positioning as a major provider of floating LNG infrastructure.
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We will examine how the launch of the FLNG Gimi’s 20-year BP contract shapes Golar LNG’s investment proposition going forward.
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To own Golar LNG shares, investors need to believe in the long-term demand for floating LNG solutions and the company’s ability to convert new customer wins into stable cash flow. The latest earnings, while below some expectations, do not materially affect the key near-term catalyst, successful ramp-up and execution of recently secured long-term contracts, nor the largest risk, which remains the company’s exposure to overcapacity in the FLNG sector and potential future pressure on charter rates.
The most relevant recent announcement is Golar’s FLNG Gimi entering commercial operation and beginning its 20-year lease with BP, which substantially increases contracted backlog and underpins near-term revenue visibility. This contract commencement directly supports a core investment thesis for the business: locked-in, multi-year earnings that are less exposed to short-term market volatility, a critical factor for those considering future cash flow stability as a reason to invest.
However, investors should also be aware that if industry overcapacity materializes, Golar’s ability to maintain premium charter rates and high vessel utilization could be put to the test especially…
Read the full narrative on Golar LNG (it’s free!)
Golar LNG’s outlook sees revenues reaching $435.5 million and earnings at $208.7 million by 2028. This scenario relies on annual revenue growth of 17.4% and a $215.2 million increase in earnings from the current -$6.5 million.
Uncover how Golar LNG’s forecasts yield a $50.70 fair value, a 13% upside to its current price.
Fair value estimates from four Simply Wall St Community members range from US$18.48 to US$60.87 per share, capturing a broad variety of outlooks. As the company builds cash flow visibility through long-term contracts, it is worth considering how these diverse perspectives might reflect differing views on sector competition and future demand.
Explore 4 other fair value estimates on Golar LNG – why the stock might be worth less than half the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include GLNG.
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