GasLog’s 2015 profit rises

Monaco-based LNG shipper GasLog posted a US$53.7 million profit for the year 2015, 5.7 percent up on $50.8 million in 2015. 

The fourth quarter net profit also saw a rise from $9.9 million in 2014 to $18.2 an 83.8 percent jump, GasLog revealed in its financial report on Thursday.

GasLog’s EBITDA of $68 million in the fourth quarter was slightly down from $68.1 million in the same period a year before. Earnings per share of $0.04 also dropped as compared to $0.11 for the quarter ended December 31, 2014.

Paul Wogan, Chief Executive Officer said, “Despite the current downturn in the energy markets, GasLog has continued to perform strongly with all of its contracted vessels operating at 100 percent utilization through the quarter.”

He added that financing transactions carried out during the quarter and post-quarter have enabled the company to manage the prolonged downturn in the LNG shipping markets.

The company completed the $1.3 billion financing for its eight newbuilds, seven of which are already contracted for a period of 7 to 10 years. Four of the vessels are scheduled for delivery through 2016, three in the first quarter of 2018 and one newbuild in the first quarter 2019.

While the rates paid for LNG vessels in the short-term market remain at low levels, in 2016, GasLog expects projects coming on stream, in both Australia and the US will add approximately 40 mtpa of new liquefaction nameplate capacity (annualized).

With the projects coming on stream, levels of tendering activity for vessels to transport the increased LNG volumes is on the up and GasLog believes more carriers will be needed for the projects that have taken final investment decision and are currently under construction in Australia and the United States.

Sale and leaseback of Methane Julia Louise

On February 24, GasLog’s subsidiary, GAS-twenty six Ltd. completed the ship sale and leaseback transaction of the Methane Julia Louise with a subsidiary of Mitsui. Japan’s Mitsui has the right to on-sell and lease back the 170,000 cbm LNG tanker.

The LNG shipping company did not reveal the value of the transaction saying the total consideration was “approximately equivalent to its current book value“.

GasLog said it has leased back the vessel under a bareboat charter from Mitsui for a period of up to 20 years. The LNG shipper added it has the option to re-purchase the vessel on pre-agreed terms no earlier than the end of year 10 and no later than the end of year 17 of the bareboat charter.

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LNG World News Staff

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