GasLog plunges to first-quarter loss

Monaco-based LNG shipper GasLog reported a $10.9 million loss for the first quarter of 2019, on a relatively weak LNG commodity and shipping markets. 

The company noted in its report the loss, which compares to a $19.3 million profit, is mainly due to the unfavorable movement in mark-to-market valuations of its derivative financial instruments in the first quarter of 2019 and the increase in finance costs, partially offset by the increased profit from operations.

Speaking of the results, GasLog’s CEO Paul Wogan said, “the first quarter saw spot LNG carrier rates fall from the historic highs of the fourth quarter of 2018 as unseasonal weather conditions led to low LNG prices and disincentivized long-haul LNG trade.”

He added that spot vessel earnings were roughly in line with those seen in the first quarter of 2018.

Looking forward, Wogan said the company believes the fundamentals of the LNG shipping market are tighter than the evidence that the first quarter implies.

The company believes the rates will improve in the second half of the year and through 2020.

The shipper also added that the newbuild ordering may be slowing somewhat compared to newbuild ordering in 2018, calling it a positive development necessary to avoid an overbuilt market in 2021 and 2022, a period when LNG supply additions are forecast to slow before increasing again in 2023 and 2024.