GasLog LNG Partners increases profits ahead of merger and sees seasonal downturn now hitting charter market
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”.
Belgian-Dutch LNG
April 17 (LNGJ) - Belgium and the Netherlands are scheduled to receive a combined seven cargoes in the coming week. They include one delivered to Zeebrugge on April 19 from Russia onboard the 172,600 cubic metres capacity carrier “Vladimir Vize”. The cargo was lifted from the Sabetta terminal in Siberia on April 12. A second shipment is headed for Zeebrugge from Angola. The carrier “Cubal” with 154,950 cubic metres of capacity is scheduled to berth on April 22.
The Dutch Gate terminal in Rotterdam will receive a US cargo on April 18 discharged from the 176,300 cubic metres capacity “Rioja Knutsen” and lifted on April 4 from Sabine Pass in Louisiana. The “Gaslog Glasgow” with 174,000 cubic metres capacity will deliver another Sabine Pass cargo to the Netherlands on April 19 when it berths at the new Dutch facility at Eemshaven.
Greek shipping company GasLog builds LNG fleet with backing of US BlackRock's infrastructure fund
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.
Monaco-based LNG fleet owner gives more details of newbuild charters to Cheniere of US
GasLog Ltd, the Monaco-based LNG fleet owner with 25 ships operating and nine others on order, has given more details of its terms for the latest time charters for vessels to US LNG producer Cheniere Energy, owner of the Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas.
LNG exports to India will rise as latest US monthly data lists 26 cargoes for 12 countries
US LNG exports data showed that in the latest month of shipments a total of 26 cargoes were delivered to 12 different nations, including six in Central America, the Caribbean and South America, four in Asia and one in the Middle East and one in Europe.
LNG cargoes for China
Jan 17 (LNGJ) - The 172,000 cubic metres capacity “Beidou Star” is scheduled to deliver a cargo on January 27 to the Chinese Dalian import terminal, owned by PetroChina, from the Gorgon LNG plant on Barrow Island in Western Australia. The 174,000 cubic metres capacity “Gaslog Glasgow” will deliver a shipment on January 29 to the Chinese Tianjin North import terminal, owned by Sinopec, from the Australia Pacific LNG plant In Queensland, operated by ConocoPhillips. The 155,000 cubic metres capacity “Gaslog Sydney” is heading for South America’s only LNG export plant at Pampa Melchorita in Peru to lift a cargo on January 29 for Asia.
LNG cargoes for China
Nov 23 (LNGJ) - Two cargoes are heading for China to be unloaded for the December winter season demand surge. The 174,000 cubic metres capacity carrier “Gaslog Glasgow” is expected to deliver a cargo on December 4 to the Ningbo terminal in the eastern province of Zheijang, operated by China National Offshore Oil Corp., and lifted on November 5 from the US Sabine Pass plant. The 148,300 cubic metres capacity vessel “LNG Imo” is scheduled to deliver a Nigerian shipment on December 21 to the Tangshan import terminal in northern Hebei province, operated by PetroChina.
