Golar LNG Is Cut to ?Hold? at Pareto as Ship Rates Seen Falling

Published Mar 7, 2013 10:36 AM by The Maritime Executive

Golar LNG Ltd., an owner of tankers hauling liquefied natural gas, was lowered to “hold” from “buy” at Pareto Securities AS on prospects for reduced charter rates for the vessels.

LNG supplies will be limited before 2015, which is expected to drive hire costs for the ships lower, Eirik Haavaldsen and Jonas Advocaat Kraft, analysts at the Oslo-based investment bank, said in a report today.

“Without a single contract on their 10 LNG carriers yet, in a market that is already somewhat oversupplied, we believe that the near-term upside from the current share-price level is limited,” the analysts said of Golar LNG.