GasLog Partners posts highest ever quarter profit
GasLog Partners, the New York-listed spinoff of LNG shipper GasLog reported increased profits for the fourth quarter and the full year of 2016.
According to the company’s latest quarterly report, the net profit in the three months ended December 31, reached $24,8 million 22.3 percent up from $20.3 million during the corresponding period in 2015.
Net profit for the year 2016 increased to $77.3 million, 18.8 percent up from $65 million in 2015.
Speaking of the results, Andrew Orekar, GasLog Partners’ CEO said that the company delivered its highest-ever quarterly and annual results.
The report notes that with a significant forecast increase in LNG supply and a growing number of new demand centers, GasLog’s demand outlook for LNG carriers with long-term charters remains positive.
The company added that new LNG volumes will create demand for additional ships over and above those currently available in the market.
In the shorter-term shipping market in the fourth quarter, brokers reported that spot rates in the Atlantic Basin increased to approximately $45,000 per day, with one end of year fixture reported above $50,000.
The catalyst was greater ton-mile demand with many cargoes going from the US to Asia through the Panama Canal. Spot charter terms have also improved with round trip economics now seen on some short term voyages. In the Pacific Basin, reported rates were lower at around $38,000 per day than the Atlantic, largely due to the greater availability of vessels during the period.
During the quarter, U.S. natural gas prices increased 30 percent to $4 per million British thermal units. However, Northeast Asian LNG prices rose by 60 percent to approximately $10 per mmbtu due to a cold start to winter in key demand centers such as Japan, China and Korea.
Destination flexibility allowed offtakers to send more LNG cargos to Asia which increased ton-mile demand.
For 2016 in total, there were approximately 275 short-term fixtures, an increase of more than 50 percent over 2015.
Whilst it is too early to predict a sustained recovery, GasLog Partners said that fundamentals continue to point to a recovery through 2017 and beyond.