GasLog Ltd. announces the acquisition of a new LNG carrier
MONACO -- September 6, 2013
GasLog Ltd. ("GasLog" or the "Company") (NYSE: GLOG) today announced that it
has signed a memorandum of agreement to acquire the STX Frontier, a
2010-built, 153,600 cubic meter LNG carrier from STX Pan Ocean LNG PTE. Ltd.
("STX Pan Ocean"), a Singapore based company. The intention is that GasLog
will take over the vessel from STX Pan Ocean early in the fourth quarter of
2013 in Spain, which makes her well positioned to take advantage of the
current tight supply of tonnage for this winter in the Atlantic.
Paul Wogan, CEO; said, "We are delighted to announce this acquisition. We
believe this modern asset will provide great value for our shareholders based
on the attractive purchase price and our expectations for the charter market
We are also extremely pleased that we have now demonstrated our ability to
execute on the two separate growth strategies that we have been articulating
to our investors since becoming a public company. Including this latest
purchase with the four ships we ordered earlier this year we have been able to
grow our owned fleet by 50%. We have accomplished this by adding the
previously announced medium to long term chartered newbuildings at attractive
rates and now with the opportunistic acquisition of a secondhand ship.
The acquisition cost of the vessel is in the vicinity of USD 160 million,
which we feel is a very attractive price. The opportunity to acquire the
vessel at this price was a consequence of the well-publicized difficulties,
which STX Pan Ocean has been encountering. The price reflected the ability of
GasLog to acquire the ship at short notice and without a committed charter,
hence enabling the vendor to use the funds positively as part of their own
reconstruction. This speaks to the strength of the operation and financial
platform, which the Company has created.
With this acquisition we are further building a strategic mix of potentially
more opportunistic vessels that complement our existing portfolio of medium-
to long term fixed vessels. We think this mixed portfolio is the best way to
maximize risk adjusted returns to our shareholders in what we believe will be
a very positive long-term LNG transportation market."
Simon Crowe, CFO; said, "Our current financial position and bank financing
commitments should allow us to complete our newbuilding program and to fund
this vessel without the need to issue additional GasLog common shares.
As our portfolio mix develops and grows, it will allow us to be more
innovative with our capital structure as we asses the different financial
alternatives we have available to us. This ensures that we maximize value for
The strength of the underlying business, with over $2.2 billion of contracted
revenue, combined with our operational platform mean that we are well placed
to take advantage of further opportunities and to optimize our charter
portfolio in what we currently see as a tight short term market."
The transaction has been approved by the Korean Courts and the Board of
Directors of GasLog, and remains subject to customary closing conditions,
including satisfactory documentation.
About GasLog Ltd.
GasLog is an international owner, operator and manager of LNG carriers.
Following this announcement, GasLog’s fleet consists of 15 wholly-owned LNG
carriers, including two ships delivered in 2010, four ships delivered in 2013
and eight LNG carriers on order. In addition, GasLog currently has 12 LNG
carriers operating under its technical management for third parties. GasLog’s
principal executive offices are located at Gildo Pastor Center, 7 Rue du
Gabian, MC 98000, Monaco. GasLog’s website ishttp://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. All statements, other than
statements of historical facts, that address activities, events or
developments that the Company expects, projects, believes or anticipates will
or may occur in the future, including, without limitation, future operating or
financial results and future revenues and expenses, future, pending or recent
acquisitions, general market conditions and shipping industry trends, the
financial condition and liquidity of the Company, cash available for dividends
payments, future capital expenditures and dry-docking costs and new build
vessels and expected delivery dates, are 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.
Paul Wogan (CEO), Phone: +377 97975120
Thor Knappe (SVP), Phone: +377 9797 5117
Ray Posadas, (Solebury Communications, NYC), Phone: +1 203-428-3231
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