Please ensure Javascript is enabled for purposes of website accessibility

Why Golar LNG Plunged More Than 30% Today

By Howard Smith – Sep 24, 2020 at 4:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The LNG company commented on allegations against the CEO of its joint-venture subsidiary.

What happened

Shares of liquified natural gas transportation company Golar LNG (GLNG 2.51%)closed the session near the low point of the day, down 32%. 

So what 

The company acknowledged bribery allegations against Eduardo Antonello, the chief executive officer of Hygo Energy Transition, a joint venture between Golar and private equity firm Stonepeak Infrastructure Partners. 

Liquified natural gas tanker sailing in open waters.

Image source: Getty Images.

The company noted that the allegations against Mr. Antonello are not related to his work at Hygo, as the alleged conduct occurred in a prior position when Mr. Antonello represented Seadrill Group (SDRL). Golar said it would still initiate a review to determine whether there have been any "deviations from its culture of compliance" related to Mr. Antonello's work with Hygo.

Now what

Brazilian police executed search and seizure warrants related to a criminal investigation dubbed "Operation Car Wash." The current phase of the investigation seeks to determine if a shipping company in Brazil paid $40 million in bribes to win a $2.7 billion contract from Brazilian oil company Petrobras (PBR 7.40%)

According to the Federal Public Ministry, the shipping company allegedly hired a lobbyist to get inside information from Petrobras to help create a winning bid and passed that information to Mr. Antonello, who represented Seadrill at the time. 

Hygo owns liquified natural gas carriers, including floating storage and regasification units (FSRU). Golar, along with its joint-venture partner Stonepeak, are among those that have invested more than $527 million in Hygo. Hygo Energy has filed for an initial public offering and had planned to price its shares tonight, Sept. 24, 2020. It is unclear whether there is any change to those plans.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Golar LNG Stock Quote
Golar LNG
$24.92 (2.51%) $0.61
Petroleo Brasileiro Stock Quote
Petroleo Brasileiro
$11.32 (7.40%) $0.78
SeaDrill Limited Stock Quote
SeaDrill Limited

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.