GasLog Partners report drop in profit

New York-listed GasLog Partners, the master limited partnership formed by GasLog, reported a decrease in its quarterly profit. 

According to the partnership’s statement, the profit for the quarter reached US$18.9 million, 2 percent below the $19.2 million in the corresponding quarter in 2015.

In comparison to the previous quarter, partnership’s profit rose nine percent, which is mainly attributable to increase in calendar days and the reduced off-hire days from scheduled drydockings, partially offset by higher technical and maintenance expenses related to new technical equipment, various repairs and technical certifications.

In regards to the LNG carriers demand outlook, the partnership said it remain positive.

“We continue to see a number of tenders for multi-year charters for vessels, which we expect will be used to transport volumes from new liquefaction facilities coming online over the coming years. We believe that these new LNG volumes will create demand for additional ships over and above those available in the market today,” the statement reads.

The LNG supply and demand growth as well as increased demand for LNG carriers with new volumes coming on the market. Cheniere’s Sabine Pass Train 2 reached substantial completion while Angola LNG and Chevron’s Gorgon LNG plants restarted production.

Additionally, Petronas-led Pacific NorthWest LNG project received conditional approval and BP reached a final investment decision for the Tangguh’s Train 3.

On the demand side, Pakistan booked a second FSRU and Bangladesh  signed agreements for the construction and operation of the country’s first LNG import terminal.

GasLog Partners expects the FSRU segment to create additional demand in both new and existing markets.

LNG shipping market

In the shorter-term shipping market, spot rates increased from multi-year lows due to new LNG supply coming online and the restarts of the Gorgon and Angola LNG projects, which removed vessel re-lets from the market.

The partnership added that from January to September 2016, there were approximately 210 spot fixtures completed compared to approximately 130 for the same period last year, an increase of around 60 percent.

Although it is too early to predict a sustained recovery, GasLog Partners said that fundamentals continue to point to a recovery in 2017 and beyond.