NEW YORK (TheStreet) -- Shares of Golar LNG Limited (GLNG) are down by 3.84% to $34.34 in mid-afternoon trading on Monday, as oil prices slump as investors realize disruptions in Libya will not offset the global supply glut, Reuters reports.
Crude oil for February delivery is lower by 1.97% to $53.65 per barrel on the NYMEX this afternoon.
Oil prices rose earlier today as investors felt the global oversupply would be reduced, as damage from fires in Libya are keeping the country's two largest ports, Es Sider and Ras Lanuf, closed, Reuters added.
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Oil tanks at Es Sider have been on fire for five days, Reuters said, after one of the tanks was hit by a rocket.
Almost 850,000 barrels of oil were lost as a result of the fires, but Libya is now producing about 350,000 barrels of crude per day, the same levels as last week, Bloomberg reports.
Speaking with Bloomberg today, National Oil spokesman Mohammed Elharari said that "three fires are burning and three others have been put out," at Es Sider.
Separately, TheStreet Ratings team rates GOLAR LNG LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLAR LNG LTD (GLNG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its price level of one year ago, GLNG is up 0.90% to its most recent closing price of 36.67. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- GLNG's very impressive revenue growth greatly exceeded the industry average of 6.7%. Since the same quarter one year prior, revenues leaped by 84.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GOLAR LNG LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $18.98 million or 16.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: GLNG Ratings Report