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”.

April 13 (LNGJ) - Two LNG cargoes are headed for the UK next week. The 216,000 cubic metres capacity Qatari Q-Flex carrier “Al Gashamiya” is scheduled to deliver a cargo on April 16 to the South Hook import terminal at the Port of Milford Haven.

   Another shipment is due to arrive on April 19 onboard the “GasLog Seattle” with 155,000 cubic metres of capacity. The vessel will discharge an Algerian cargo at the Dragon terminal at the Welsh port. The shipment was lifted on April 5 from the Arzew plant in Algeria.

Sept 27 (LNGJ) - The 155,000 cubic metres capacity carrier “GasLog Seattle” was discharging a cargo from Algeria on September 27 at the UK Isle of Grain import terminal located southeast of London on the Medway River estuary, according to the port authorities. The shipment was lifted on August 18 from the Arzew liquefaction plant on the North African nation’s Mediterranean coast.

   The UK is then scheduled to receive its first October cargo from the US. The 162,000 cubic metres capacity vessel “Golar Glacier” will arrive at the UK South Hook terminal at Milford Haven on October 3 with a US shipment lifted on September 1 from the Cameron LNG export plant in Louisiana.

GasLog, the Greek LNG shipping company, is expanding its fleet by ordering four newbuild 174,000 cubic metres-capacity for delivery in 2024 and 2025.

GasLog Ltd is ordering 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.

The 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.

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

GasLog Partners in November 2021 reported a third-quarter increase in revenues and profits as global demand gathered pace.

The partnership said income jumped 11 percent to $80.53M from $72.8M in the same quarter to the end of September in 2020.

At the end of October GasLog Partners said it completed the sale and lease-back of the “GasLog Shanghai”, with 155,000 cubic metres capacity, to China Development Bank Leasing.

GasLog noted that headline spot rates in the third quarter benefited from LNG demand growth from Asia as well as longer than average wait times at the Panama Canal.

GasLog Partners, the Greek LNG shipping company with a fleet of 15 vessels, reported a third-quarter increase in revenues and profits as global demand gathered pace.

The US Department of Energy has just published its latest liquefied natural gas monthly export data showing rising prices for the six plants and with China being the top monthly destination, while India overtook the UK into sixth place for overall total shipments received.

June 15 (LNGJ) - The Peru LNG plant at Pampa Melchorita directed most of its five cargoes to North Asia in May with only one being delivered to the Manzanillo terminal on the Pacific Coast of Mexico. The ships that lifted cargoes included the 155,000 cubic metres capacity carrier “Solaris”, the 155,000 cubic metres capacity vessel “Gaslog Seattle” and the 173,400 cubic metres capacity carrier “Valencia Knutsen”. They headed for China or South Korea. PeruPetro said the cargoes were priced on the Japan-Korea Marker at between $2.063 per million British thermal units and $2.068 per MMBtu.

March 2 (LNGJ) - The 155,000 cubic metres capacity carrier “Gaslog Seattle” delivered a cargo on March 2 to the Jordanian port of Aqaba from the US Sabine Pass export plant in Louisiana, according to shipping data. The 160,000 cubic metres capacity vessel “Asia Excellence”, owned by Chevron, was unloading a cargo on March 2 at the Chinese Yangshan import terminal at Shanghai port, from Gorgon LNG in Western Australia. The 155,900 cubic metres capacity carrier “Woodside Rogers” was unloading a shipment on March 2 at Taiwan’s Yung-An terminal from Woodside Petroleum’s export facility at Dampier in Western Australia.

Oct 27 (LNGJ) - GasLog Partners and affiliate GasLog Ltd have entered into an agreement for the partnership to purchase the “GasLog Seattle” carrier for $189 million, which includes “$1M for positive net working capital balances” to be transferred with the vessel. This is the third such vessel transfer between the companies. GasLog Partners expects to finance the acquisition with cash on hand, including proceeds from its recent equity offering and the assumption of the existing debt of “GasLog Seattle”. The ship has tri-fuel diesel-electric vessel has 155,000 cubic metres of capacity and was built in 2013. It is currently on a multi-year time charter with a subsidiary of Royal Dutch Shell through December 2020 with two consecutive five-year extension options.