GasLog and GasLog Partners Announce the Time Charter of up to 9 Newbuildings to BG Group plc
Apr 23 15
GasLog Ltd. and GasLog Partners LP announced that GasLog has agreed to charter to Methane Services Ltd., a subsidiary of BG Group plc (“BG”), three of GasLog’s uncontracted newbuilds that are currently under construction. MSL also has an option to elect to charter an additional six newbuilds provided it makes that election within 2015. The highlights of this transaction are as follows: MSL will charter three newbuildings commencing mid-2018 and early 2019 for average initial terms of approximately 9.5 years at attractive rates; These charters will add approximately $845 million of fixed rate revenue to GasLog’s existing contracted revenue backlog; MSL has an option exercisable within 2015 to charter an additional six newbuildings for average initial terms of approximately 10 years; The six option vessels would add approximately $1.8 billion of fixed rate contracted revenue(1) should MSL exercise its option; The three firm ships to be chartered by MSL will be modern 174,000 cubic meter LNG carriers with low-pressure, two-stroke propulsion technology. Two of the vessels will be delivered from Hyundai Heavy Industries. One vessel will be delivered from Samsung Heavy Industries. Together with MSL’s entry into the 9.5 year average charters on the three GasLog newbuild vessels, and as part of MSL’s overall portfolio management, the three existing charters on the GasLog Shanghai, GasLog Santiago and GasLog Sydney (all owned by GasLog Partners) will be adjusted. MSL will lengthen two of the existing charters by approximately 4 months and shorten one charter by 8 months. MSL retains the existing extension options of two consecutive periods of three or four years on all three vessels. MSL also has an option to elect to charter an additional six newbuilds from GasLog, with average initial terms of ten years at rates consistent with the three firm charters, provided it makes that election within 2015. If MSL makes that election, MSL would take earlier delivery of the three firm newbuilds described above immediately upon their delivery from the shipyards in 2017. If MSL exercises the options, the three charters of the GasLog Shanghai, GasLog Santiago and GasLog Sydney would be further adjusted by a potential shortening of a maximum 31 months in total, with the aim of redelivering these ships to coincide with the newbuild deliveries in 2017. This would be at a time when management believes there will be a tightening of the supply-demand balance for LNG carriers, as currently indicated by new vessel orders and prospective LNG projects. This option is currently exercisable only within 2015 and the parties are discussing a possible extension of such option beyond the end of 2015. If MSL does not exercise the extension options referenced above on the GasLog Shanghai, GasLog Santiago and GasLog Sydney and GasLog Partners does not enter into a third-party charter on such vessels, GasLog and GasLog Partners intend to enter into a bareboat arrangement that is designed to guarantee the total cash distribution from each vessel. However, if they are unable to agree on such bareboat arrangement, GasLog will enter into a time charter with GasLog Partners on equivalent terms to the existing MSL time charters for any period of shortening.
GasLog Ltd. Declares Quarterly Cash Dividend, Payable on March 13, 2015
Feb 27 15
On February 26, 2015, the board of directors of GasLog Ltd. declared a quarterly cash dividend of $0.14 per common share payable on March 13, 2015 to shareholders of record as of March 10, 2015.
GasLog Ltd. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2014
Feb 27 15
GasLog Ltd. reported unaudited consolidated financial results for the fourth quarter and year ended December 31, 2014. For the quarter, revenue was $98,961,000 compared to $59,338,000 a year ago. Profit from operations was $45,621,000 compared to $29,184,000 a year ago. Profit attributable to owners of the Group was $8,837,000 or $0.11 per basic and diluted share compared to $21,445,000 or $0.34 per basic and diluted share a year ago. Adjusted EBITDA was $67,535,000 compared to $39,722,000 a year ago. Adjusted profit was $23,974,000 or $0.28 per share compared to $17,379,000 or $0.28 per share a year ago. The decrease in EPS is attributable to the decrease in Profit and the increase in the weighted average number of shares following the equity offerings and the private placement completed in the first half of 2014. The increase in Adjusted Profit was mainly attributable to the significant growth in fleet in 2014. The decrease in Profit was affected by the non-cash write-off of unamortized loan fees of $5.8 million and $9.0 million for the quarter and the year ended December 31, 2014, respectively, related to the refinancing of the GasLog Partners' loan facilities, as well as an increase of non-cash loss on swaps by $12.8 million and $31.7 million for the quarter and the year ended December 31, 2014, respectively. The increase in Adjusted EPS was attributable to the increase in adjusted profit, partially offset by the increase in the weighted average number of shares following the equity offerings and the private placement completed in the first half of 2014. The increase in revenues, vessels operating and supervision costs and depreciation of fixed assets was mainly attributable to the increase in operating days from an increased fleet.
For the year, revenue was $328,679,000 compared to $157,240,000 a year ago. Profit from operations was $145,360,000 compared to $71,401,000 a year ago. Profit attributable to owners of the Group was $42,161,000 or $0.54 per basic and diluted share compared to $56,929,000 or $0.91 per basic and diluted share a year ago. Net cash from operating activities was $148,288,000 compared to $86,745,000 a year ago. Payments for tangible fixed assets and vessels under construction were $1,364,283,000 compared to $1,038,153,000 a year ago. Adjusted EBITDA was $217,172,000 compared to $101,617,000 a year ago. Adjusted profit was $73,881,000 or $0.83 per share compared to $39,668,000 or $0.63 per share a year ago.