OB:HLNG

Stock Analysis Report

Höegh LNG Holdings

Executive Summary

Höegh LNG Holdings Ltd., together with its subsidiaries, provides floating energy solutions worldwide.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has Höegh LNG Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLNG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.7%

HLNG

-6.0%

NO Oil and Gas

-5.1%

NO Market


1 Year Return

-47.2%

HLNG

-22.0%

NO Oil and Gas

-5.6%

NO Market

Return vs Industry: HLNG underperformed the Norwegian Oil and Gas industry which returned -22% over the past year.

Return vs Market: HLNG underperformed the Norwegian Market which returned -5.6% over the past year.


Shareholder returns

HLNGIndustryMarket
7 Day-9.7%-6.0%-5.1%
30 Day-26.7%-14.4%-5.3%
90 Day-35.4%-12.9%-3.2%
1 Year-45.8%-47.2%-17.4%-22.0%-0.7%-5.6%
3 Year-74.2%-76.6%19.9%4.9%25.1%9.4%
5 Year-73.1%-77.2%34.0%7.5%52.3%18.3%

Price Volatility Vs. Market

How volatile is Höegh LNG Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Höegh LNG Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLNG (NOK21.45) is trading below our estimate of fair value (NOK148.32)

Significantly Below Fair Value: HLNG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HLNG is poor value based on its PE Ratio (16.3x) compared to the Oil and Gas industry average (16.1x).

PE vs Market: HLNG is poor value based on its PE Ratio (16.3x) compared to the Norwegian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: HLNG is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: HLNG is good value based on its PB Ratio (0.4x) compared to the NO Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Höegh LNG Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

105.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLNG's forecast earnings growth (105.3% per year) is above the savings rate (0.7%).

Earnings vs Market: HLNG's earnings (105.3% per year) are forecast to grow faster than the Norwegian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HLNG's revenue (3.7% per year) is forecast to grow faster than the Norwegian market (3.3% per year).

High Growth Revenue: HLNG's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLNG's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has Höegh LNG Holdings performed over the past 5 years?

71.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLNG has high quality earnings.

Growing Profit Margin: HLNG's current net profit margins (3%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: HLNG has become profitable over the past 5 years, growing earnings by 71.8% per year.

Accelerating Growth: HLNG's earnings growth over the past year (90.1%) exceeds its 5-year average (71.8% per year).

Earnings vs Industry: HLNG earnings growth over the past year (90.1%) exceeded the Oil and Gas industry -18%.


Return on Equity

High ROE: HLNG's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Höegh LNG Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HLNG's short term assets ($230.8M) do not cover its short term liabilities ($386.4M).

Long Term Liabilities: HLNG's short term assets ($230.8M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: HLNG's debt to equity ratio (243.9%) is considered high.

Reducing Debt: HLNG's debt to equity ratio has increased from 102.1% to 243.9% over the past 5 years.


Balance Sheet

Inventory Level: HLNG has a high level of physical assets or inventory.

Debt Coverage by Assets: HLNG's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HLNG is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HLNG is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Höegh LNG Holdings's current dividend yield, its reliability and sustainability?

4.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLNG's dividend (4.37%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.99%).

High Dividend: HLNG's dividend (4.37%) is low compared to the top 25% of dividend payers in the Norwegian market (6.42%).


Stability and Growth of Payments

Stable Dividend: HLNG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HLNG has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.3%), HLNG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLNG is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Sveinung J. Støhle (61yo)

US$740,000

Compensation

Mr. Sveinung J. S. Støhle serves as Director at Avenir LNG Limited. Mr. Støhle has been Chief Executive Officer of Höegh LNG AS since August 2014 and serves as its President. Mr. Støhle has been the Chief  ...


Leadership Team

NamePositionTenureCompensationOwnership
Sveinung J. Støhle
CEO & President0yrsUS$740.00k0.26% $4.3m
Håvard Furu
Chief Financial Officer0yrsno datano data
Vegard Hellekleiv
Chief Operations Officer0yrsUS$211.00k0.047% $763.2k
Øivin Iversen
Chief Technical Officer13.1yrsno datano data
Stephan Tschudi-Madsen
Chief Administrative Officer0yrsUS$286.00kno data
Knut Arnholdt
Vice President of Investor Relations & Strategy0yrsno datano data
Camilla Nyhus-Møller
Chief Legal & Compliance Officer7.2yrsno data0.0048% $78.6k
Tom Solberg
Chief of Staff5.1yrsno datano data
Ragnar Wisløff
Head of Change & Transformation0yrsUS$219.00k0.031% $513.4k
Richard Tyrrell
Chief Development Officer1.4yrsno data0.029% $465.9k

6.1yrs

Average Tenure

50yo

Average Age

Experienced Management: HLNG's management team is seasoned and experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HLNG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Höegh LNG Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Höegh LNG Holdings Ltd.
  • Ticker: HLNG
  • Exchange: OB
  • Founded:
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: kr1.635b
  • Shares outstanding: 76.20m
  • Website: https://www.hoeghlng.com

Number of Employees


Location

  • Höegh LNG Holdings Ltd.
  • Canon’s Court
  • 22 Victoria Street
  • Hamilton
  • HM 12
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLNGOB (Oslo Bors)YesCommon SharesNONOKJul 2011
5HGDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2011
0Q2TLSE (London Stock Exchange)YesCommon SharesGBNOKJul 2011
HOLH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2011
HLNGOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKJul 2011

Biography

Höegh LNG Holdings Ltd., together with its subsidiaries, provides floating energy solutions worldwide. The company operates through HMLP, Operations, and Business Development and Project Execution segments. It owns and operates floating LNG import terminals, floating storage and regasification units (FSRUs), and LNG carriers (LNGCs). The company also acquires FSRUs, LNGCs, and other LNG infrastructure assets under long-term charters. As of December 31, 2018, it operated a fleet of two LNG transportation vessels, nine floating storage and regasification units, and one FSRU under construction. The company is also involved in the commercial management and bareboat hiring; and business development and project execution activities. In addition, it owns ships. The company is based in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:35
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.