Liquefied Natural Gas

AU: LNGL

AU$280.2m market cap

AU$0.49 last close

Liquefied Natural Gas Ltd is an ASX-listed company devoted to the development of LNG export terminals in the US, Canada and other potential locations. It has traded ADRs.

Investment summary

Liquefied Natural Gas’s (LNGL) Magnolia development is looking to take advantage of the expected rebalancing of the LNG market in 2022-23. With low capex/opex/gas prices, the project has the potential to be very lucrative for partners selling to Europe/Asia. We expect LNGL to sign tolling agreements and move towards FID in 2019, with first gas in 2023/2024. In June 2018, LNGL completed a fund-raise of A$28.2m and our valuation now stands at A$1.01/share (US$3.18/ADR). On a longer-term basis, this valuation should rise as the project is de-risked by tolling agreements and moves towards first LNG.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 0.6 (26.8) (26.7) (0.1) N/A N/A
2018A 1.9 (21.7) (21.5) 0.0 N/A N/A
2019E 0.0 (24.8) (25.0) 0.0 N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 21/02/2019
Industry outlook

A significant opportunity exists to take advantage of the arbitrage between North American gas prices (Henry Hub and AECO), Asian spot LNG prices and European gas prices (TTF).

Last updated on 21/02/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net cash (A$m) 45.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (12.5) 5.4 1.0
Relative* (16.2) (3.0) (1.7)
52-week high/low A$0.8/A$0.4
*% relative to local index
Key management
Richard Beresford Chairman
Mike Mott CFO
Norman Marshall CFO

Content on Liquefied Natural Gas

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