Monaco: GasLog 2Q Revenue at USD 16.7 Mln

GasLog, an international owner, operator and manager of LNG carriers, today reported its financial results for the quarter ended June 30.

Revenues were $16.7 million (which eliminates $1.1 million of intercompany revenue) for the quarter ended June 30, 2012 ($16.5 million for the quarter ended June 30, 2011). The increase is mainly attributable to an increase in revenues in the vessel ownership segment, with GasLog’s existing fleet performing at 100% utilization.

Vessel operating and supervision costs were $3.2 million for the quarter ended June 30, 2012 ($3.1 million for the quarter ended June 30, 2011). The increase is mainly attributable to organizational growth in GasLog’s vessel management segment.

General and administrative expenses were $6.3 million for the quarter ended June 30, 2012 ($3.7 million for the quarter ended June 30, 2011). The increase is primarily attributable to increases in personnel expenses, directors’ fees, travel expenses, legal and professional expenses and foreign exchange rate movements, as well as equity-settled compensation expense related to the accelerated vesting of all remaining outstanding manager shares and subsidiary manager shares prior to and in connection with the initial public offering (“IPO”) and staff bonuses. This increase is generally in line with GasLog’s planned growth and the reporting and compliance requirements of being a public company.

Financial costs were $2.9 million for the quarter ended June 30, 2012 ($2.4 million for the quarter ended June 30, 2011). The increase is primarily a result of increased interest expense as a result of swapping floating rate interest for fixed rate interest in connection with the outstanding indebtedness related to the vessel GasLog Savannah.

Adjusted EBITDA was $8.4 million for the quarter ended June 30, 2012 ($10.0 million for the quarter ended June 30, 2011). The decrease in Adjusted EBITDA is mainly attributable to higher general and administrative expenses.

Adjusted Profit was $2.6 million for the quarter ended June 30, 2012 ($4.4 million for the quarter ended June 30, 2011). This is mainly attributable to higher general and administrative expenses. Loss for the period was $3.6 million for the quarter ended June 30, 2012 ($4.5 million Profit for the quarter ended June 30, 2011). This is mainly attributable to a $5.3 million non-cash loss on interest rate swaps during the quarter ended June 30, 2012, mainly resulting from mark-to-market valuations. Moreover, it takes into account a year-on-year increase of $2.6 million in general and administrative expenses.

Adjusted EPS was $0.04 for the quarter ended June 30, 2012 ($0.12 for the quarter ended June 30, 2011). EPS was $(0.06) for the quarter ended June 30, 2012 ($0.12 for the quarter ended June 30, 2011). The decrease in Adjusted EPS and EPS is mainly attributable to higher general and administrative expenses and, in the case of EPS, non-cash loss on interest rate swaps during the quarter ended June 30, 2012. Moreover, Adjusted EPS and EPS are significantly affected by the increase in the weighted average number of shares following the completion of the IPO and the concurrent private placement.

As GasLog stated in the final prospectus filed April 2, 2012 for its IPO, the ramp-up of general and administrative expenses is expected to exceed revenue growth in 2012, as GasLog’s newbuildings will only commence delivery in 2013. Accordingly, GasLog expects 2012 profit will be lower than in 2011.

Chairman & CEO Statement

Mr. Peter G. Livanos, Chairman and Chief Executive Officer, stated “We are pleased to report our second quarter results including Adjusted EBITDA which is better than expected. We remain on track to pay a dividend of 11 cents per share in the fourth quarter. A non-cash loss from interest rate swaps, and unrealized foreign exchange differences has impacted our bottom line results. These non-cash items are a consequence of our continuing actions to eliminate risk from our business. Our all-in fixed interest expense remains significantly below our long-term budget.

The strong revenue reflects the continued 100% utilization of our existing fleet. Our construction program at Samsung Heavy Industries is on time and on budget, with the first ship currently undergoing outfitting for delivery in January 2013. We are optimistic about the prospects for our two open vessels as well as additional growth opportunities we see going forward from ongoing project developments and increasing demand for LNG. We believe that GasLog, with its technical platform and customer relations, is well placed to take advantage of the projected growth in the LNG trade. ”

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LNG World News Staff, August 21, 2012