GasLog LNG reports rise in ship income amid Greek FLNG terminal progress and multiple new charters

Friday, 13 May 2022
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GasLog LNG Ltd., the operator with a fleet 35 LNG carriers under its control and with four others under construction, reported a rise in revenues but a decline in first-quarter profits to $71.05 million compared with $84.24M in the prior-year quarter.

“The decrease in profit is mainly attributable to the decrease in profit from operations, which is mainly affected by an impairment loss,” said the company.

GasLog posted an increase in quarterly revenues to $213.72M compared with 205.32M in the same three months of 2021.

“The increase in revenues is mainly attributable to an increase from the deliveries of wholly-owned GasLog vessels. This increase was partially offset by decreased revenues mainly from GasLog Partners’ vessels operating in the spot market in the first quarter of 2022,” explained the Piraeus, Greece-based company.

Among the GasLog fleet of 39 LNG ships, 19 are owned by GasLog, five have been sold and leased back by GasLog under long-term and of the remaining 15 LNG carriers, 14 are owned by the company’s subsidiary, GasLog Partners, and one has been sold and leased back by GasLog Partners.

GasLog completed a merger in June 2021 with BlackRock’s Global Energy and Power Infrastructure (GEPIF) fund and de-listed its common shares from the New York Stock Exchange.

Ownership structure

GasLog’s ownership structure has three main shareholders in both companies, parent GasLog Ltd and subsidiary GasLog Partners LP.

They are the Greek Livanos family with 55 percent, the Monaco-based Onassis Foundation with 12 percent and BlackRock’s GEPIF, holder of 45 percent of the equity.

As of the end of March 2022, GasLog had $3.5 billion of debts outstanding under its credit facilities and bond agreements, of which $234.9M is repayable within one year.

Among first-quarter highlights, the Greek floating LNG terminal project including GasLog and led by the company Gastrade SA to deploy two Floating Storage and Regasification Units (FSRUs) off Greece, was making progress after a final investment decision.

Alexandroupolis

“GasLog, through its subsidiary GAS-fifteen Ltd., issued a final notice to proceed to Keppel Shipyard (Singapore) to convert the ‘GasLog Chelsea’, a 153,600 cubic metres tri-fuel, diesel-electric propulsion (TFDE) LNG carrier built in 2010, into an FSRU in connection with the FID taken by Gastrade for the construction of a regasification terminal in Alexandroupolis,” explained the company.

GasLog has entered into an agreement for the sale of the “GasLog Chelsea” to Gastrade for $265.1M, payable in instalments following its conversion to an FSRU expected to be completed by the fourth quarter of 2023.

GasLog noted that it also completed a sale and lease-back deal on the “GasLog Skagen”, a 155,000 cubic metres capacity TFDE LNG carrier built in 2013, with a wholly owned subsidiary of China Development Bank Leasing (CDBL).

This released $21.5M of incremental net liquidity to the Group. The vessel was sold and leased back under a charter with CDBL for a period of five years with no repurchase option or obligation.

“The vessel remains on its charter with Chevron Asia Pacific Shipping,” said GasLog.

Among new charter agreements in the first quarter, GasLog extended the time charter of the “GasLog Salem” with a wholly owned subsidiary of commodities firm Gunvor for an additional 12 months.

The company also signed a new one-year time charter party agreement for the “GasLog Singapore” with Singapore LNG Corp.

In another deal, subsidiary GasLog Partners LP signed a new multi-month time charter agreement for the “GasLog Sydney” with Spain-based utility Naturgy Energy.

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