Golar LNG Limited (GLNG) is positioned for substantial growth as global liquefied natural gas demand surges, supported by long-term contracts and a strategic fleet expansion. The company's recent financial performance and contractual backlog suggest robust upside potential for investors.
- GLNG has a contracted backlog of $4.2 billion with 78% of its fleet under long-term fixed-price charters.
- Adjusted EBITDA rose to $286 million in 2025, a 22% increase year-over-year.
- Free cash flow reached $189 million in 2025, supporting debt reduction and capital allocation.
- Two vessels are being converted into FSRUs by 2027, expected to generate an additional $110 million in annual revenue by 2028.
- New 15-year FSRU charter agreement with a European utility adds $230 million in total commitments.
- Stock trades at a 17% discount to implied asset value based on current LNG market pricing.
Golar LNG Limited (GLNG) is emerging as a compelling investment opportunity amid a structural shift in global energy markets. The company operates a fleet of 11 LNG carriers, including four floating storage and regasification units (FSRUs), with a significant portion of its capacity under long-term agreements. As of Q4 2025, GLNG reported a contracted backlog of $4.2 billion, spanning 14 years of revenue visibility, with 78% of its fleet under fixed-price, long-term charters. The company’s financials reflect improved operational efficiency and cash flow generation. In 2025, GLNG reported adjusted EBITDA of $286 million, up 22% year-over-year, driven by higher utilization rates and favorable market conditions in key regions such as Europe and Asia. Net debt to EBITDA stood at 3.1x, within a sustainable range, and the company generated $189 million in free cash flow, enabling a debt reduction strategy and potential shareholder returns. Strategic fleet development is a key pillar of GLNG’s bull case. The company is executing a capital plan to modernize its assets, including the conversion of two existing vessels into FSRUs by 2027. These upgrades are expected to increase utilization and add approximately $110 million in annual revenue by 2028. Additionally, GLNG has secured a firm agreement with a European utility for a new 15-year FSRU charter, valued at $230 million in total commitments. Market sentiment is shifting positively, with GLNG’s stock trading at a 17% discount to its implied asset value based on current LNG market pricing. Analysts tracking global energy infrastructure trends highlight the company’s unique positioning in the floating LNG sector, which offers flexible, scalable solutions to countries seeking energy security. The broader LNG import capacity gap, projected to reach 120 million tons per year by 2030, further strengthens GLNG’s long-term outlook.