GasLog Ltd., an international owner, operator and manager of LNG carriers, has reported its financial results for the second quarter of 2014.
- Completion of the initial public offering (IPO) of GasLog Partners, raising gross proceeds of approximately US$ 203 million.
- Completed the acquisition of six vessels from a subsidiary of BG Group for US$ 936 million.
- Completed a second follow-on equity offering, raising approximately US$ 110 million.
- Entered into contracts with Samsung Heavy Industries and Hyundai Heavy Industries for the purchase of two 174,000 m3 newbuildings from each shipyard for delivery in 2017.
- EBITDA of US$ 46.4 million.
- Adjusted EBITDA of US$ 46.6 million.
Commenting on the company’s results, GasLog CEO, Paul Wogan, said: ““I am very pleased with the achievements of GasLog in the second quarter of 2014. We executed on a large number of planned initiatives that have continued to drive the growth of the company.
“During the three months to June 30, 2014, we almost doubled the size of our on-the-water fleet with the acquisition of six vessels from BG Group, all of which have six year contracts on average and the delivery of the Solaris, a newbuilding which immediately commenced a seven year charter to a subsidiary of Royal Dutch Shell plc (Shell). We now have fifteen vessels on the water, compared with eight at the end of March. Of these fifteen vessels, and in line with GasLog’s strategy of being largely contracted, fourteen are currently on multiyear charters, with one on a short -term contract.
In May, we successfully launched the GasLog Partners Master Limited Partnership (MLP). GasLog Partners will provide GasLog with an alternative funding source for our ambitious growth plans as we look to take advantage of what we believe will be attractive markets for LNG shipping. We expect to benefit from the MLP by recycling capital back up to the parent creating the opportunity for further investment, and also through our holdings of both the limited and general partner interests, which should increase in value over time as more vessels are dropped down.
“Also in the quarter, we placed our first order with Hyundai, for two modern, tri-fuel diesel electric propulsion vessels with the option to change to two stroke diesel engines with low-pressure gas injection. Including newbuildings on order, we now have a total of 25 vessels in the consolidated GasLog fleet. With these vessels and the two orders we recently placed with Samsung we feel we have a good level of market exposure in the 2017/2018 timeframe and our focus now is to find attractive contracts for these newbuildings.
“We remain very optimistic about the long-term outlook of the LNG shipping market with LNG capacity already showing positive signs of growth ahead of a significant ramp-up in activity expected over the next few years. At GasLog, we have a strong balance sheet, a high level of contract coverage and a long track record of owning and operating LNG vessels for some of the world’s leading LNG players. We have significant built-in growth, but will continue to look at further consolidation opportunities that are attractive and accretive to expand the business further.”
The full Q2 2014 financial results can be accessed on the GasLog website.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/lng-shipping/20082014/gaslog-q2-2014-results-1252/