NEW YORK (TheStreet) -- Shares of Golar LNG Limited (USA) (GLNG - Get Report) are up 4.85% to $57.98 on Wednesday morning after the company announced the pricing of its offering of 11 million shares of common stock at $54 per share.
The company, which owns and operates liquefied natural (LNG) gas carriers and floating storage regasification units, granted underwriters a 30-day option to purchase up to an additional 1,650,000 common shares.
Proceeds from the public offering will go towards fully funding initial milestone payments under a conditional agreement with Keppel Shipyard Limited (KPELY) regarding the conversion of an LNG carrier into a floating liquefaction natural gas vessel, Golar said.
Separately, TheStreet Ratings team rates GOLAR LNG LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLAR LNG LTD (GLNG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels.
- Compared to its closing price of one year ago, GLNG's share price has jumped by 68.16%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The revenue fell significantly faster than the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 41.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for GOLAR LNG LTD is currently extremely low, coming in at 5.18%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 61.96% has significantly outperformed against the industry average.
- Net operating cash flow has significantly decreased to -$80.96 million or 3358.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: GLNG Ratings Report