The past week can be characterized by two numbers up the UP LNG shipping indices: UP Total Return Index wrote off nearly 116 points and the UP volume index ascribed 4798 points. In other words: a big drop with a huge volume. Comment on the last Christmas week we start with a table, it is worth it.
[Table ID = 3/]
The graphical view shows the values even better. The UP Total Return index got into the negative, the values are close to those of the years 2016 and the increase in volume is similar to that of December 2015, which heralded later growth.
[Visualizer id = “3861”]
There was no pre-Christmas reassuring, on the contrary. The downturns were even more pronounced. DLNG wrote down 17%, GLOP-14.6%, GLOG-13% and HMLP-10%. Volumes were the largest on 20th December and mostly (except HMLP) it was a squeeze in price increases, so the candle graph was formed by long wick.
But! Looking at the intraday charts, we will see something completely different:
iBoth graphs, volume at price and 30 min. Candle chart show that practically the whole volume was made after regular hours and it was probably a buyback. We can see similar events with GMLP and GLOP. Disclaimer: Intraday data come from my broker and actual purchases may have been even higher. But even so, the increase in the volume is still significant.
Volumes were the most prominent of all the above-mentioned titles, i.e. TGP, GMLP and GLOP, similar in height to GLNG with twice the weekly diameter and HMLP, which was practically threefold in volume. DLNG had an increased volume, but not as previous ones.
Interesting at the end
I have read discussions and articles on SeekingAlpha and documents published by DLNG in the SEC. I realized my flaps on my eyes, when I automatically assume the same amount of payments for the entire duration of the contract. In particular, the DLNG daily rates are rising:
2018: 57 142 USD
2019: 60 370 USD
2020: 62 795 USD
These are not significantly different amounts and may be affected by the start and end of contracts. But that we do not know how the internal rules of the contracts apply.
LNG highlights of the past week:
- Cheniere seeks FERC permit to start Corpus Christi Train 2 commissioning
- Hoegh LNG wins another FSRU contract for Australian LNG import project
- German regulator deletes Brunsbüttel LNG connection pipeline from plans
- Cheniere, Malaysia’s Petronas Sign 20-Year LNG Pact
- Teekay LNG approves $100 mln share repurchase
All graphs can be found on a separate page.
Comparison of development UP Total Return Shipping index LNG with the popular ETF SPY. [Visualizer id = “4227”]