EDISON EQUITY RESEARCH: LIQUEFIED NATURAL GAS LTD
July 15 2015 - 12:59PM
InvestorsHub NewsWire
EDISON EQUITY RESEARCH: LIQUEFIED NATURAL GAS
LTD - ASSETS AND LONG-TERM GROWTH
Liquefied Natural Gas Ltd (LNGL) has two LNG liquefaction projects
in development with planned start-ups in 2018/19. The company is
using its own patent protected technology (OSMR®), which should
lead to lower capex and opex costs. Lump sum turn-key contracts are
being finalized, while tolling fees arrangements mean that cash
flows from the projects are predictable (and material). Despite the
significant share price rise in the last 18 months, our modelling
indicates that there is significant value accretion available for
investors. Our risked DCF approach implies a value of A$3.7/share
(US$10.9/ADR), but a NAV over time reveals that this could increase
to over A$9/share (US$27/ADR) in 2019.
Liquefied Natural Gas Ltd is an ASX-listed company devoted to the
development of two LNG export terminals (in US and Canada) with
total capacity of 16mtpa, which are planned to reach financial
close in 2016 and start production in 2018/19.
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