LNG Carriers GasLog Financial Results Q2 2014

By George Backwell August 21, 2014

GasLog Ltd. and its subsidiaries, an international owner, operator and manager of liquefied natural gas carriers, has reported its financial results for the quarter ended June 30, 2014, excerpted as follows:

Highlights

Completion of the initial public offering (“IPO”) of GasLog Partners LP (“GasLog Partners” or the “Partnership”) on May 12, 2014, raising gross proceeds of approximately $203 million.
Completed the acquisition of six on-the-water vessels from a subsidiary of BG Group plc (“BG Group”) for $936 million, with time charters back for an average of 6 years.
Successfully completed GasLog’s second follow-on equity offering, raising approximately $110 million (net of expenses).
Successfully closed a follow-on issue of the Norwegian bond raising NOK 500 million (approximately $84 million) at an effective interest cost of 5.99%.
Entered into contracts with Samsung Heavy Industries Co. Ltd. (“Samsung”) and Hyundai Heavy Industries Co., Ltd. (“Hyundai”) for the purchase of two 174,000 cbm newbuildings from each shipyard for delivery in 2017.
EBITDA(1) of $46.5 million (Q2 2013: $20.9 million). Earnings per share (“EPS”) of $0.02 (Q2 2013: $0.32) and Profit of $3.5 million (Q2 2013: $20.4 million) for the quarter ended June 30, 2014 primarily due to the impact of non-cash loss on swaps.
Adjusted EBITDA(1) of $46.6 million (Q2 2013: $20.4 million), Adjusted EPS(1) of $0.13 (Q2 2013: $0.11) and Adjusted Profit(1) of $10.4 million (Q2 2013: $7.1 million) for the quarter ended June 30, 2014.
Quarterly dividend of $0.12 per common share payable on September 8, 2014.
On August 14, 2014, GasLog agreed to sell two of the vessels acquired from BG Group to GasLog Partners for an aggregate purchase price of $328.0 million, subject to GasLog Partners obtaining the funds necessary to pay the purchase price and the satisfaction of certain other closing conditions.

(1) EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog’s financial results presented in accordance with International Financial Reporting Standards (“IFRS”).

CEO Statement
Paul Wogan, Chief Executive Officer, stated “I am very pleased with the achievements of GasLog in the second quarter of 2014. We executed on a large number of planned initiatives that have continued to drive the growth of the company.

During the three months to June 30, 2014, we almost doubled the size of our on-the-water fleet with the acquisition of six vessels from BG Group, all of which have six year contracts on average and the delivery of the Solaris, a newbuilding which immediately commenced a seven year charter to a subsidiary of Royal Dutch Shell plc.

We now have fifteen vessels on the water, compared with eight at the end of March. Of these fifteen vessels, and in line with GasLog’s strategy of being largely contracted, fourteen are currently on multiyear charters, with one on a short -term contract."

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