Liquefied Natural Gas

AU: LNGL

AU$146.9m market cap

AU$0.26 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 Limited’s (LNGL) Magnolia LNG development project 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. The focus for LNGL remains the signature of long-term offtake contracts for Magnolia LNG. In March 2019, authorisation was received from the US Department of Energy for expansion of export capacity to 8.8Mtpa (from 8.0Mtpa) to free trade agreement countries. Management expects FERC approval and non-FTA consent to follow shortly. Our valuation has been updated to reflect higher Magnolia export capacity, offset by our assumption of lower contract pricing. The net impact is a decrease in valuation from A$1.01/share to A$0.70/share.

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 (30.7) (30.3) (0.1) N/A N/A
2020E 0.0 (33.8) (34.0) (0.1) N/A N/A
Last updated on 25/07/2019
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 25/07/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net cash (A$m) 19
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 4.1 (43.3) (57.5)
Relative* 1.6 (46.9) (60.9)
52-week high/low A$0.8/A$0.2
*% relative to local index
Key management
Richard Beresford Chairman
Mike Mott CFO
Norman Marshall CFO

Content on Liquefied Natural Gas

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