LNG

GasLog LNG Partners, with an operational fleet of 12 vessels, reported increased revenues and profits as it proceeded with the merger process with affiliate GasLog Ltd.

The company’s quarterly revenues increased 16 percent to $99.07 million from $85.45m in the same three months of 2022.

Net profits rose 4 percent to $36.37M from $34.98M in the prior-year first quarter.

The Partnership’s market overview and outlook said headline spot rates in the first quarter of 2023 for the most modern vessels fell to an average of about $71,560 per day, a fall of 78 percent compared with the average of the fourth quarter of 2022.

Fall in rates

“This fall in rates is mainly due to the seasonal downturn, high inventories, continuing strong flows from the US to Europe and bearish sentiments. This has been compounded by increased availability of relets,” said the Partnership, citing various sources.

One-year time charter rates for tri-fuel diesel-electric propulsion (TFDE) carriers averaged $155,000 per day in the first quarter of 2023, about 18 percent lower than rates in the fourth quarter of 2022, reflecting the seasonal downturn.

Earnings highlights during the first quarter included the Partnership’s sale and bareboat lease-back of the 155,000 cubic metres capacity TFDE vessel “GasLog Sydney”.

The deal was with a wholly-owned subsidiary of China Development Bank Leasing and with no repurchase option or obligation.

The company said a time-charter agreement for the TFDE carrier “GasLog Geneva with a wholly-owned subsidiary of Shell was extended by five years after the exercise of their extension option.

The merger transaction with GasLog Ltd is expected to close by the end of the third quarter of 2023, subject to approval of the holders of a majority of the common units of the Partnership and the satisfaction of certain closing conditions.

GasLog Ltd owns 30.2 percent of the common units of the Partnership and has entered into a support agreement with the Partnership.

“The entering into an Agreement and Plan of Merger with GasLog is a transformative transaction for the Partnership that will enable its unitholders to take advantage of a significant premium to the unit trading price,” said Paolo Enoizi, Chief Executive.

The Partnership’s owned and bareboat fleet comprises the following vessels: “GasLog Sydney”, “GasLog Geneva”, “Methane Rita Andrea”, “Methane Alison Victoria”, “GasLog Gibraltar”, “Solaris”, “GasLog Santiago”, “GasLog Seattle”, “Methane Jane Elizabeth”, “Gaslog Greece”, “GasLog Glasgow” and “Methane Becki Anne”.

GasLog LNG Partners with an operational fleet of 12 vessels reported annual profit of $119 million on revenues of $379M amid a strong charter market with signs pointing to very positive prospects for the rest of 2023.

GasLog Ltd, the Greek LNG shipping company, has announced executive changes at the top with the decision of Chief Executive Paul Wogan to retire from his position on March 9, 2022.

“He will remain, in an advisory role until June 30, 2022 to ensure a smooth transition,” said GasLog.

The GasLog board named Paolo Enoizi, currently Chief Operating Officer of GasLog Ltd and CEO of US affiliate GasLog Partners LP. As the new CEO of GasLog Ltd, effective March 10, 2022.

GasLog is currently expanding its fleet and has ordered four newbuild 174,000 cubic metres capacity vessels for delivery in 2024 and 2025.

GasLog Ltd ordered the vessels from South Korea shipyard Daewoo Shipbuilding and Marine Engineering.

The four newbuilds will have latest generation M-type Electronically Controlled, Gas Injection (MEGI) propulsion system.

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

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 Global Energy and Power infrastructure fund (GEPIF), holder of 45 percent of the equity.

GasLog Ltd, whose Chairman remains Peter G. Livanos, has an LNG fleet comprising 20 vessels, 12 dual-fuel, seven tri-fuel, diesel electric (TFDE) and one steam-turbine carrier.

Subsidiary GasLog Partners LP owns 15 LNG carriers, including 10 tri-fuel-diesel-electric (TFDE) ships and five steam-turbine vessels.

The GasLog business has undergone a substantial overhaul in recent years to improve efficiency and to reduce overheads.

This followed its decision in November 2019 to move its headquarters from Monaco to the Greek port of Piraeus, home of its operational platform.

GasLog Ltd, which controls an LNG carrier fleet of 35 vessels, has made its first major foray into the debt securities market to lower interest on financing since the merger in mid-2021 with a unit of giant US investment US fund BlackRock.

GasLog Ltd entered into a Note Purchase Agreement with the US investment funds, the Carlyle Group and EIG Global Energy Partners, for a $325 million credit facility.

The Notes carry an interest rate of 7.75 percent and are due in 2029.

Carlyle’s global credit platform made the investment with capital primarily from its Infrastructure Credit Fund.

EIG extended its funding through various funds and accounts in the investment group’s direct lending division.

“GasLog anticipates drawing down the Facility in March 2022. The proceeds of the facility will be used to refinance the company’s 8.875 percent Senior Notes due in March 2022,” said GasLog.

“Any remaining proceeds may be used to pay transaction costs and expenses incurred in connection with the private placement and/or general corporate purposes,” added the company, whose corporate headquarters are in Hamilton, Bermuda and operational base is in the Greek port of Piraeus.

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

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

The Greek Livanos family owns 55 percent, the Monaco-based Onassis Foundation holds 12 percent and BlackRock Global Energy and Power infrastructure fund (GEPIF) owns 45 percent.

The GasLog Ltd, whose Chairman remains Peter G. Livanos, has an LNG fleet comprising 20 vessels, 12 dual-fuel, seven tri-fuel, diesel electric (TFDE) and one steam-turbine carrier.

GasLog Ltd subsidiary, GasLog Partners LP and whose Chief Executive since August 2021 has been Paolo Enoizi, owns 15 LNG carriers, including 10 TFDE ships and five steam-turbine vessels.

The contracted revenue backlog at the end of June 2021 for the Partnership’s fleet was more than $660M and the average age of the vessels was nine years.

GasLog Ltd, the Greek LNG fleet owner with 35 carriers split with its US affiliate GasLog Partners, reported an increase in third-quarter profits of more than 13 percent as overall revenues slipped because of the expiry of several charters, offset by new agreements in US and UK.

GasLog Ltd, the LNG carrier fleet owner with 36 ships split with its US affiliate GasLog Partners, posted a first-quarter 2020 loss as LNG demand faced multiple headwinds.

GasLog Ltd., the LNG fleet owner based in the Greek port of Piraeus with a total fleet of 35 vessels split with its US affiliate, has taken delivery of its latest carrier built in South Korea and chartered to UK utility Centrica plc.

The 180,000 cubic metres capacity vessel, named “GasLog Windsor”, was constructed at Samsung Heavy Industries.  It has X-DF propulsion, a combination of gas and diesel. and a Mark III Flex containment system from French technology firm GTT.

“Despite the industrial disruption in South Korea caused by the Covid-19 outbreak, the vessel was delivered on time and on budget,” said GasLog.

Centrica has US volumes from the US Gulf Coast and regasification capacity at the UK Isle of Grain terminal, located southeast of London. The UK utility also has cargoes booked from the Mozambique LNG project.

The company gave an operational update and said they remained focused on securing the health and safety of their employees, while also ensuring safe and reliable operations for their customers and the global natural gas supply chain.

As regards its fleet numbers, 19 carriers are owned by GasLog, 13 on the water and six on order, while one has been sold to a subsidiary of Mitsui & Co. of Japan and leased back to GasLog under a long-term charter.

The remaining 15 LNG carriers are owned by Nasdaq-listed GasLog Partners.

During the past two month or so, GasLog said its operational activity has been 100 percent.

GasLog and GasLog Partners have also accelerate opportunistically their dry-docking schedules during the slowdown of LNG trade in February and March.

“Four dry-dockings will have been completed by mid-April, all of which are expected to be on time and within budget, including the installation of ballast water treatment systems,” said GasLog.

The charter parties for all of the Group’s term-chartered vessels remain in effect with revenues as per the contract terms.

“During the first quarter of 2020, the Group’s tri-fuel diesel electric vessels operating in the spot and short-term market delivered time charter equivalent earnings of around $44,000 per day,” said GasLog.
“Presently, all of the Group’s vessels operating in the spot and short-term market that are not undergoing dry-dockings are on charters through to at least May,” it added.

Gaslog noted that there has been a marked increase in activity in the spot and short-term market in recent weeks, primarily driven by a resumption in industrial activity in China.

“Against a backdrop of unprecedented global uncertainty, I am very proud of the dedication of all our employees, whose health and safety remains our first priority,” said Paul Wogan, Chief Executive.

“I especially thank our seafarers for their commitment and professionalism while apart from their families and friends,” stated Wogan.

The “GasLog Windsor” is immediately delivered into an attractive seven-year charter to Centrica.

“This vessel is the first of seven newbuildings due to be delivered by the third quarter of 2021,” said GasLog.

“On a fully delivered basis, 60 percent of GasLog’s directly owned fleet will be modern X-DF vessels on multi-year term charters,” it added.

The liquefied natural gas shipping sector expects a steady improvement after spot charter day rates dropped to a low of $40,000 per day in the first quarter after winter peaks of more than $180,000 per day as companies now focus on filling new US project shipment demands and forthcoming cargo tenders for Argentina in the Southern Hemisphere winter.