GasLog Ltd has reported a first quarter 2020 loss of $39.4 mill, compared to a $5.9 mill profit for the quarter ended 31st March, 2019.
The loss attributable to GasLog’s owners was $51.5 mill.
This decrease was mainly attributable to the unfavourable movement in non-cash marked-to-market valuations of the company’s derivative financial instruments in 1Q20, partially offset by the decrease in finance costs.
Adjusted profit was $26.8 mill for the quarter, compared to $28.1 mill for 1Q19, adjusted for the effects of the write-off of unamortised bond fees, net foreign exchange gains, net unrealised foreign exchange gains on cash and bonds, the restructuring costs and the non-cash loss on derivatives.
Adjusted EBITDA for the period was $114 mill, compared to $109.9 mill for 1Q19.
EPS represented a loss of $0.67 for the quarter, compared to a $0.17 loss for the same quarter of 2019.
As of 31st March, 2020, the total future firm contracted revenue stood at $3.8 bill, which included the 15 vessels currently owned by GasLog Partners.
At the same time, GasLog had $252.2 mill of cash and cash equivalents, of which $150.4 mill was restricted cash, in relation to the amount drawn for the delivery of the ‘GasLog Windsor’ until her delivery from the shipyard on 1st April, 2020, $52.6 mill was held in time deposits and the remaining balance in current accounts.
In addition, $81.2 mill was held as cash collateral with respect to the derivative instruments.
GasLog had $3.2 bill of debt outstanding under its credit facilities and bond agreements, of which $214.7 mill is repayable within a year and $203.1 mill of lease liabilities, of which $9.7 mill was also payable within 12 months.
As of 31st March, 2020, GasLog’s current assets totalled $320.6 mill, while current liabilities were $381.4 mill, resulting in negative working capital of $60.8 mill.
CEO Paul Wogan, said: “GasLog’s business model and strategy demonstrated its resilience in the first quarter of 2020, despite the challenges imposed by the COVID-19 outbreak. Our proactive approach to mitigating the impact of the outbreak on our seafarers and onshore staff allowed the company to deliver uninterrupted service for our customers with fleet availability of close to 100%.
“I have been deeply impressed with the dedication and hard work of our employees, and I am especially grateful to our seafarers for their commitment and professionalism while apart from their loved ones.
“In light of the uncertainties created by the current environment, we have taken actions to improve our liquidity, including drawing on our existing revolving capacity of $100 mill, as well as reducing our dividend for the first quarter of 2020 to $0.05 per share.
“We continue to expect to realise approximately $6 mill of general and administrative cost reductions in 2021, resulting from the personnel relocations and headcount reductions announced earlier this year. We also anticipate finding additional ways to reduce meaningfully our operating and overhead expenses.
“Although the COVID-19 outbreak creates an uncertain outlook for near term economic activity and LNG demand, underlying demand for LNG has held up well in 2020 to date and I have been pleased with the utilisation we have achieved with our vessels operating in the spot market. We have also had several positive commercial and operational developments in recent weeks, including the delivery of the ‘GasLog Windsor’, which delivered last month on time and on budget. The vessel is chartered for seven years to Centrica, providing added visibility for our future revenues and cash flows.
“In addition, the Alexandroupolis FSRU project in northern Greece successfully completed its second and binding market test, an important milestone toward the sanctioning of the project,” he said.