The global LNG shipping index (UP World LNG Shipping Index) rose by 3.75 points (1.59%) last week, reaching 239.62 points and marking its highest level in history. Meanwhile, the S&P 500 faced a decline of 0.80%. The increase in this index is attributed to the performance of 16 affiliated companies, among which 4 companies saw a decline and one company remained unchanged. An average increase of 2.07% in these companies and a growth of 0.6% in the weighted index (wUPI) is clearly observable.
Significant Growth of New Fortress Energy and Tsakos Energy
New Fortress Energy, with a 20.44% increase, gained significant attention due to the completion of its restructuring and the merger of shares at a ratio of 50:1. The company also announced that it will transfer its Brazilian operations to an independent company named BrazilCo, and a new NFE will be established. These changes will allow creditors to gain confidence in new investments and reduce issues related to previous debts.
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Tsakos Energy Navigation also continued its financial successes with a 9.51% increase due to the potential rise in dividends. The company recently announced in a press conference that its financial results have improved, leading to an increase in its stock price.
Gas Price Situation and Geopolitical Impacts
Gas prices in Europe and Asia were significantly affected last week, reaching their highest level in Europe since December 2022. Prices in Europe averaged above 80 euros per megawatt-hour. Additionally, reports indicate that major Asian buyers such as South Korea and Bangladesh continue to purchase spot LNG cargoes. South Korea has committed to buying between 14 to 20 cargoes for delivery between November and January, while Bangladesh has purchased 20 cargoes for delivery between October and June.
In light of the new tensions between the United States and Iran, major oil companies have also continued to grow. ADNOC Logistics & Services achieved a 6.84% increase in its successes, and other major oil companies also experienced significant growth under these conditions.
Daily rates for LNG tankers remain low at $20,000 for the Atlantic and $24,000 for the Pacific. These conditions could impact the LNG market and pose challenges for investors.
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