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GasLog Ltd. Reports Financial Results for the Quarter Ended March 31, 2013

  GasLog Ltd. Reports Financial Results for the Quarter Ended March 31, 2013

Business Wire

MONACO -- May 15, 2013

GasLog Ltd. (“GasLog”) (NYSE: GLOG), an international owner, operator and
manager of liquefied natural gas (“LNG”) carriers, today reported its
financial results for the quarter ended March 31, 2013.

Highlights

•    Delivery of GasLog Shanghai and GasLog Santiago ahead of schedule with
        concurrent delivery to the charterer.
•       Quarterly dividend of $0.11 per common share is payable on June 11,
        2013.
•       For the first quarter, GasLog reports Profit of $5.9 million,
        EBITDA^(1) of $13.9 million and EPS of $0.09.
•       GasLog accepted an offer letter of $160 million for the refinancing of
        an existing loan facility and general corporate purposes.
        

CEO Statement

Mr. Paul Wogan, Chief Executive Officer, stated “This has been a good quarter
for GasLog. We continued to execute on the business plan that we outlined at
the time of our IPO with the delivery of two newbuildings on budget and ahead
of schedule. All four vessels in the fleet achieved 100% utilization. We
announced the further growth of our fleet with the order of two newbuildings
at Samsung for 10-year charter to a subsidiary of BG Group plc. We continue to
be excited about opportunities both to optimize our capital structure and
utilize our platform for further accretive growth.”

Dividend Declaration

On May 14, 2013, the Board of Directors declared a quarterly cash dividend of
$0.11 per common share payable on June 11, 2013 to stockholders of record as
of May 28, 2013.

Delivery of GasLog Shanghai and GasLog Santiago ahead of schedule

On January 28, 2013 and March 25, 2013, GasLog took delivery of the GasLog
Shanghai and the GasLog Santiago, respectively, two LNG carriers of 155,000
cubic meters capacity with tri-fuel diesel electric propulsion constructed by
Samsung Heavy Industries Co. Ltd. The vessels are chartered out to a
subsidiary of BG Group plc from delivery until 2018 with charterer’s option to
extend the terms of the charters at specified rates.

Financial Summary

Revenues were $21.8 million for the quarter ended March 31, 2013 ($16.6
million for the quarter ended March 31, 2012). The increase is mainly
attributable to the delivery of the two newbuildings.

Vessel operating and supervision costs were $4.9 million for the quarter ended
March 31, 2013 ($3.5 million for the quarter ended March 31, 2012). The
increase is mainly attributable to the vessel operating costs of the two
newbuildings and an increase in technical maintenance expenses due to the
planned intermediate surveys on the two vessels delivered in 2010.

Depreciation of fixed assets was $4.2 million for the quarter ended March 31,
2013 ($3.2 million for the quarter ended March 31, 2012). The increase is
mainly attributable to the depreciation of the two newbuildings.

General and administrative expenses were $6.6 million for the quarter ended
March 31, 2013 ($5.2 million for the quarter ended March 31, 2012). The
increase is mainly attributable to an increase in employee related expenses,
in line with GasLog’s planned growth and an increase in net foreign exchange
losses, partially offset by a decrease in equity-settled compensation expense.

Financial costs and gain on interest rate swaps, net were $0.7 million for the
quarter ended March 31, 2013 ($2.9 million for the quarter ended March 31,
2012). The decrease is attributable to an increase of $3.1 million in
unrealized gain on interest rate swaps partially offset by an increase of $0.9
million in other financial costs.

Profit was $5.9 million for the quarter ended March 31, 2013 ($2.2 million for
the quarter ended March 31, 2012). This increase is mainly attributable to the
delivery of the two newbuildings as well as the other factors mentioned above.

EPS was $0.09 for the quarter ended March 31, 2013 ($0.06 for the quarter
ended March 31, 2012). The increase in EPS is attributable to the increase in
profit partially offset by the increase in the weighted average number of
shares.

EBITDA^(1) was $13.9 million for the quarter ended March 31, 2013 ($8.4
million for the quarter ended March 31, 2012).

Adjusted Profit^(1) was $3.2 million for the quarter ended March 31, 2013
($2.1 million for the quarter ended March 31, 2012), after excluding the
effects of the unrealized gain on interest rate swaps and foreign exchange
losses.

Adjusted EPS^(1) was $0.05 for the quarter ended March 31, 2013 ($0.05 for the
quarter ended March 31, 2012).

Adjusted EBITDA^(1) was $11.3 million for the quarter ended March 31, 2013
($8.3 million for the quarter ended March 31, 2012).

^(1) EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP
financial measures, and should not be used in isolation or as a substitute for
GasLog’s financial results presented in accordance with International
Financial Reporting Standards (“IFRS”). For definitions and reconciliations of
these measurements to the most directly comparable financial measures
calculated and presented in accordance with IFRS, please refer to Exhibit II
at the end of this press release.

For a detailed discussion of GasLog’s financial results for the quarter ended
March 31, 2013, please refer to the Financial Report for the Three Months
Ended March 31, 2013, furnished on Form 6-K to the United States Securities
and Exchange Commission (the “Q1 6-K”).

http://www.gaslogltd.com/investor-relations/sec-filings

Contracted Charter Revenues

GasLog’s contracted charter revenues are estimated to increase from $56
million for the fiscal year 2012 to $234 million for the fiscal year 2016,
based on contracts in effect as of today for the ten ships in GasLog’s owned
fleet for which time charters have been secured, including contracts for six
newbuildings that are scheduled to be delivered on various dates in 2013, 2014
and 2016. For further details please refer to the Q1 6-K.

Liquidity and Financing

As of March 31, 2013, GasLog had cash and cash equivalents of $63 million and
short-term investments in time deposits of $72.3 million.

As of March 31, 2013, GasLog had an aggregate of $521.2 million of
indebtedness outstanding under three credit agreements, of which $130.7
million is repayable within one year. GasLog has accepted an offer letter for
a term loan facility of $110 million and a revolving credit facility of up to
$50 million for the purpose of refinancing an existing facility of an
outstanding amount of $105.6 million, presented under current debt, and for
general corporate purposes. In addition there are three loan facilities with
an aggregate undrawn amount of $856 million that will be used to partially
finance the delivery of six newbuildings.

GasLog’s current commitments for capital expenditures are related to the eight
LNG carriers on order, which have a gross aggregate contract price of
approximately $1.57 billion. As of March 31, 2013, the total remaining balance
of the contract prices of the eight newbuildings on order was $1.4 billion,
that will be funded with available cash, cash from operations, existing debt
and other financings.

GasLog’s expected floating interest rate exposure has been hedged at a
weighted average interest rate of approximately 4.3% (including margin) as of
March 31, 2013.

Business Update

As of March 31, 2013 GasLog has eight newbuildings on order at Samsung Heavy
Industries. The six vessels presently under construction were on schedule and
within budget.  Three of the vessels under construction are scheduled to be
delivered within 2013.

The four on-the-water ships in GasLog’s fleet as of March 31, 2013, currently
on multi-year charters to a subsidiary of BG Group plc, performed without any
off-hire during the quarter ended March 31, 2013, thereby achieving full
utilization for the period.

As of March 31, 2013 GasLog continued to hold priced options for four
additional LNG carriers at Samsung Heavy Industries Co. Ltd.

LNG Industry Update

GasLog believes the current supply and demand dynamics of the LNG industry are
positive for LNG shipping. There continues to be progress on new LNG
production projects, and the new volumes and potentially greater voyage
distances should create increased requirements for LNG carriers.

The first quarter of 2013 saw a decrease in the short term rates for LNG
ships. This has been attributed by observers to production disruption at a
small number of LNG plants, leading to a lack of available spot cargoes and an
availability of ships.

The long-term fundamentals for LNG production, continue to look strong. Two
export projects under construction, Sabine Pass in the USA and Australia
Pacific LNG in Australia, have both announced they are on track to start
producing either on, or slightly ahead of schedule. More companies have signed
up for prospective LNG supply volumes from the USA. We have seen further
progress offshore East Africa and a continued expectation that this region
will become a major LNG export hub in the next decade.

We have seen some older technology ships continue to experience idle time.
However, on a historical basis LNG shipping rates remain firm, and we expect
this firmness to be reflected in the longer-term charter market.

GasLog believes the robust development of new LNG supply projects and growing
global demand for natural gas is likely to drive the need for more LNG
carriers. LNG project developers are typically large multinational oil and gas
companies with exacting standards for safety and reliability. In addition, we
continue to expect a preference for the latest technology in ship design and
propulsion. GasLog believes first class charterers will continue to engage
experienced LNG shipowners to provide high quality LNG carriers for multi-year
charter requirements.

Outlook

GasLog believes the strong fundamentals of the LNG industry will provide
significant growth opportunities for GasLog’s high quality LNG shipping
operations. We will continue to focus on delivering the growth of the
business, through the on-time delivery of the newbuilding fleet, while
ensuring full utilization of the existing ships. GasLog expects that the
strategy of leveraging its established platform and customer relationships
will aid in qualifying for charter possibilities for the two uncommitted
newbuildings as well as the options it holds for four additional newbuildings.
GasLog’s experience and track record may also allow GasLog to explore
possibilities for industry consolidation.

Conference Call

GasLog will host a conference call at 8:30 a.m. Eastern Time (1:30 p.m. London
Time) on Wednesday, May 15, 2013 to discuss the first quarter 2013 results.
The dial-in number is 1-646-254-3363 (New York, NY) and +44 (0) 203 427 1914
(London, UK), passcode is 6771517. A live webcast of the conference call will
also be available on the investor relations page of GasLog’s website at
http://www.gaslogltd.com/investor-relations.

For those unable to participate in the conference call, a replay will be
available from 12:30 p.m. Eastern Time (5:30 p.m. London Time) on May 15, 2013
until 6:00 p.m. Eastern Time on Tuesday May 21, 2013 (11:00 p.m. London Time).
The replay dial-in number is 1-347-366-9565 (New York) and +44 (0) 203 427
0598 (London). The replay passcode is 6771517.

About GasLog Ltd.

GasLog is an international owner, operator and manager of LNG carriers.
GasLog’s fleet consists of 12 wholly-owned LNG carriers, including two ships
delivered in 2010, two ships delivered in 2013 and eight LNG carriers on
order. In addition, GasLog currently has 12 LNG carriers operating under its
technical management for external customers. GasLog’s principal executive
offices are at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco.
GasLog’s website is http://www.gaslogltd.com.

Forward Looking Statements

This press release contains “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. The reader is cautioned not
to rely on these forward-looking statements. These statements are based on
current expectations of future events. If underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual results could
vary materially from our expectations and projections. Risks and uncertainties
include, but are not limited to, general LNG and LNG shipping market
conditions and trends, including charter rates, ship values, factors affecting
supply and demand and opportunities for the profitable operations of LNG
carriers; our continued ability to enter into multi-year time charters with
our customers; our contracted charter revenue; our customers’ performance of
their obligations under our time charters and other contracts; the effect of
the worldwide economic slowdown; future operating or financial results and
future revenue and expenses; our future financial condition and liquidity; our
ability to obtain financing to fund capital expenditures, acquisitions and
other corporate activities, and funding by banks of their financial
commitments; future, pending or recent acquisitions of ships or other assets,
business strategy, areas of possible expansion and expected capital spending
or operating expenses; our ability to enter into shipbuilding contracts for
newbuilding ships and our expectations about the availability of existing LNG
carriers to purchase, as well as our ability to consummate any such
acquisitions; our expectations about the time that it may take to construct
and deliver newbuilding ships and the useful lives of our ships; number of
off-hire days, drydocking requirements and insurance costs; our anticipated
general and administrative expenses; fluctuations in currencies and interest
rates; our ability to maintain long-term relationships with major energy
companies; expiration dates and extensions of charters; our ability to
maximize the use of our ships, including the re-employment or disposal of
ships no longer under multi-year charter commitments; environmental and
regulatory conditions, including changes in laws and regulations or actions
taken by regulatory authorities; risks inherent in ship operation, including
the discharge of pollutants; availability of skilled labor, ship crews and
management; potential disruption of shipping routes due to accidents,
political events, piracy or acts by terrorists; and potential liability from
future litigation. A further list and description of these risks,
uncertainties and other factors can be found in our Annual Report filed March
28, 2013. Copies of the Annual Report, as well as subsequent filings, are
available online at www.sec.gov or on request from us. We do not undertake to
update any forward-looking statements as a result of new information or future
events or developments.

                                                                             
EXHIBIT I – Unaudited Interim Financial Information



Unaudited condensed consolidated statements of financial position

As of December 31, 2012 and March 31, 2013

(All amounts expressed in U.S. Dollars)
                                                      
                                                                             
                                      December 31, 2012       March 31, 2013
Assets                                (restated)^(1)
Non-current assets
Goodwill                              9,511,140               9,511,140
Investment in associate               6,856,144               6,854,378
Deferred financing costs              24,278,983              20,152,705
Other non-current assets              4,071,071               3,996,552
Tangible fixed assets                 426,879,545             799,643,238
Vessels under construction            217,321,572             180,650,572
Total non-current assets              688,918,455             1,020,808,585
Current assets
Trade and other receivables           2,431,852               2,762,175
Dividends receivable and due          859,121                 2,082,817
from related parties
Inventories                           480,554                 912,229
Prepayments and other current         425,385                 868,869
assets
Short-term investments                104,674,150             72,283,350
Cash and cash equivalents             110,978,315             63,006,246
Total current assets                  219,849,377             141,915,686
Total assets                          908,767,832             1,162,724,271
Equity and liabilities
Equity
Share capital                         628,632                 628,632
Contributed surplus                   621,879,379             614,964,431
Reserves                              (11,049,090       )     (8,779,073     )
Accumulated deficit                   (8,187,530        )     (2,294,086     )
Equity attributable to owners         603,271,391             604,519,904
of the Group
Current liabilities
Trade accounts payable                1,794,300               3,685,801
Ship management creditors             850,680                 563,360
Amounts due to related                121,663                 97,649
parties
Derivative financial                  7,144,738               7,686,087
instruments
Other payables and accruals           15,094,483              12,227,022
Loans—current portion                 25,753,343              128,550,259
Total current liabilities             50,759,207              152,810,178
Non-current liabilities
Derivative financial                  24,183,718              18,133,402
instruments
Loans—non-current portion             228,514,890             385,220,527
Other non-current liabilities         2,038,626               2,040,260
Total non-current liabilities         254,737,234             405,394,189
Total equity and liabilities          908,767,832             1,162,724,271
                                                                             

^(1) Restated to account for the retrospective application of IAS 19 Employee
Benefits.


Unaudited condensed consolidated statements of profit or loss

For the three months ended March 31, 2012 and 2013

(All amounts expressed in U.S. Dollars)
                                                       
                                                                             
                                         For the three months ended
                                         March 31, 2012       March 31, 2013
Revenues                                    16,602,387           21,776,858
Vessel operating and supervision            (3,488,188  )        (4,876,900  )
costs
Depreciation of fixed assets                (3,235,208  )        (4,240,496  )
General and administrative                 (5,184,767  )       (6,614,660  )
expenses
Profit from operations                     4,694,224           6,044,802
                                                                             
Financial costs and gain on                 (2,906,447  )        (718,400    )
interest rate swaps, net
Financial income                            —                    178,781
Share of profit of associate               383,287             388,261
Total other expense                        (2,523,160  )       (151,358    )
Profit for the period
attributable to owners of the              2,171,064           5,893,444
Group
                                                                             
Earnings per share – basic and              0.06                 0.09
diluted
                                                                             


Unaudited condensed consolidated statements of cash flow

For the three months ended March 31, 2012 and 2013

(All amounts expressed in U.S. Dollars)

                                                       
                                         For the three months ended
                                         March 31, 2012       March 31, 2013
Cash flows from operating
activities:
Profit for the period                       2,171,064           5,893,444
Adjustments for:
Depreciation of fixed assets                3,235,208           4,240,496
Share of profit of associate                (383,287    )       (388,261     )
Financial income                            —                   (178,781     )
Financial costs and gain on                 2,906,447           718,400
interest rate swaps, net
Unrealized foreign exchange
losses on cash and cash                     —                   939,181
equivalents and short-term
investments
Expense recognized in respect of
equity-settled share based                 1,424,404          —
payments
                                            9,353,836           11,224,479
Movements in working capital               (3,409,648  )      (5,518,459   )
Cash provided by operations                 5,944,188           5,706,020
Interest paid                              (2,922,981  )      (2,573,813   )
Net cash from operating                    3,021,207          3,132,207
activities
Cash flows from investing
activities:
Dividends received from                     950,000             750,000
associate
Payments for tangible fixed
assets and vessels under                    (21,225,860 )       (339,736,540 )
construction
Purchase of short-term                      —                   (1,469,200   )
investments
Maturity of short-term                      —                   33,600,000
investments
Financial income received                  —                  114,602
Net cash used in investing                 (20,275,860 )      (306,741,138 )
activities
Cash flows from financing
activities:
Bank loan drawdown                          —                   272,500,000
Bank loan repayments                        (6,850,114  )       (6,957,682   )
Increase in advances from                   3,350,050           —
related parties
Payment of loan issuance costs              (8,980,335  )       (2,311,327   )
Payment of initial public                   (728,526    )       —
offering (“IPO”) costs
Dividends paid                              —                   (6,914,948   )
Capital contributions                      18,662,935         —
Net cash from financing                    5,454,010          256,316,043
activities
Effects of exchange rate changes            —                   (679,181     )
on cash and cash equivalents
Decrease in cash and cash                   (11,800,643 )       (47,972,069  )
equivalents
Cash and cash equivalents,                 20,092,909         110,978,315
beginning of the period
Cash and cash equivalents, end             8,292,266          63,006,246
of the period
                                                                             

EXHIBIT II

Non-GAAP Financial Measures:

EBITDA represents earnings before interest income and expense, taxes,
depreciation and amortization. Adjusted EBITDA represents EBITDA before
unrealized gain on interest rate swaps and foreign exchange losses. Adjusted
Profit and Adjusted EPS represent earnings and earnings per share,
respectively, before unrealized gain on interest rate swaps and foreign
exchange losses. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS,
which are non-GAAP financial measures, are used as supplemental financial
measures by management and external users of financial statements, such as
investors, to assess our financial and operating performance. We believe that
these non-GAAP financial measures assist our management and investors by
increasing the comparability of our performance from period to period. We
believe that including EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted
EPS assists our management and investors in (i) understanding and analyzing
the results of our operating and business performance, (ii) selecting between
investing in us and other investment alternatives and (iii) monitoring our
ongoing financial and operational strength in assessing whether to continue to
hold our common shares. This increased comparability is achieved by excluding
the potentially disparate effects between periods of, in the case of EBITDA
and Adjusted EBITDA, interest, taxes, depreciation and amortization and, and
in the case of Adjusted EBITDA, Adjusted Profit and Adjusted EPS, unrealized
gain on interest rate swaps and foreign exchange losses, which items are
affected by various and possibly changing financing methods, capital structure
and historical cost basis and which items may significantly affect results of
operations between periods.

EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS have limitations as
analytical tools and should not be considered as alternatives to, or as
substitutes for, profit, profit from operations, earnings per share or any
other measure of financial performance presented in accordance with IFRS.
These non-GAAP financial measures exclude some, but not all, items that affect
profit, and these measures may vary among companies. In evaluating Adjusted
EBITDA, Adjusted Profit and Adjusted EPS, you should be aware that in the
future we may incur expenses that are the same as or similar to some of the
adjustments in this presentation. Our presentation of Adjusted EBITDA,
Adjusted Profit and Adjusted EPS should not be construed as an inference that
our future results will be unaffected by the excluded items. Therefore, the
non-GAAP financial measures as presented below may not be comparable to
similarly titled measures of other companies in the shipping or other
industries.

Reconciliation of EBITDA and Adjusted EBITDA to Profit:

(All amounts expressed in U.S. Dollars)
                                   
                                         
                                         For the three months ended
                                         March 31, 2012     March 31, 2013
Profit for the period                       2,171,064          5,893,444
Depreciation of fixed assets                 3,235,208           4,240,496
Financial costs excluding gain               3,008,430           3,957,350
on interest rate swaps
Financial income                            —                  (178,781    )
EBITDA                                      8,414,702          13,912,509
Unrealized gain on interest                  (101,983   )        (3,238,950  )
rate swaps, net
Foreign exchange losses, net                17,996             590,299
Adjusted EBITDA                             8,330,715          11,263,858
                                                                             

                                    
Reconciliation of Adjusted Profit to Profit:

(All amounts expressed in U.S. Dollars)
                                         
                                         
                                         For the three months ended
                                         March 31, 2012     March 31, 2013
Profit for the period                       2,171,064          5,893,444
Unrealized gain on interest rate             (101,983   )        (3,238,950  )
swaps, net
Foreign exchange losses, net                17,996             590,299
Adjusted Profit for the period              2,087,077          3,244,793
                                                                             


Reconciliation of Adjusted Earnings Per Share to Earnings Per Share:

(All amounts expressed in U.S. Dollars)


                                         Three months ended
                                             March 31, 2012   March 31, 2013
Profit for the period attributable             2,171,064         5,893,444
to owners of the Group
Less: Earnings allocated to manager            128,988           —
shares and subsidiary manager shares
Earnings attributable to the owners
of common shares used in the                    2,042,076          5,893,444
calculation of basic EPS
Weighted average number of shares              36,778,378        62,863,166
outstanding, basic
EPS                                            0.06              0.09
                                                                   
Adjusted profit for the period                  2,087,077          3,244,793
attributable to owners of the Group
Less: Adjusted earnings allocated to
manager shares and subsidiary                  123,998           —
manager shares
Adjusted earnings attributable to
the owners of common shares used in             1,963,079          3,244,793
the calculation of basic EPS
Weighted average number of shares              36,778,378        62,863,166
outstanding
Adjusted EPS                                   0.05              0.05


Contact:

GasLog, Monaco
Simon Crowe, +377 9797 5115
CFO
or
GasLog, Monaco
Thor Knappe, +377 9797 5117
or
Solebury Communications, NYC
Ray Posadas, +1 203-428-3231
ir@gaslogltd.com
 
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