GasLog Proft Doubles, But Misses Forecast
Monaco-based liquefied natural gas carrier owner GasLog has reported a sharp increase in profits in 1Q15, saying the sector's medium- to long-term outlook remains encouraging.
Group net profits jumped to $13.8 million in 1Q15 from $6.4 million in the same period last year, as revenues rose to $97.3 million from $57 million.
“Against a back drop of weak overall energy markets, the first quarter of 2015 saw us take delivery of the Methane Becki Anne and the Methane Julia Louise, bringing our consolidated fleet to 27 vessels,” Paul Wogan, Chief Executive Officer of GasLog said.
The company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by $0.01.
During the same quarter in the previous year, the company posted $0.13 earnings per share. The company’s revenue for the quarter was up 70.4% on a year-over-year basis.
GasLog continued to make further positive progress in the weeks after quarter end, announcing a transaction with BG to charter up to nine new buildings, three of which are firm and will be satisfied by the company’s currently uncontracted newbuilds, Wogan said.
Looking ahead, GasLog said it believes the medium- to long-term outlook for LNG shipping demand will remain positive, despite the decline in prices and spot charter rates over the last six months.
"There are a number of new projects in progress that have firm off-take agreements, secured financing, or are under construction, and we expect a number of these to come online in 2015, which will materially increase global LNG production capacity," the company said.
GasLog manages business in two segments: vessel ownership and vessel management. The vessel ownership segment pays fees to GasLog LNG Services in connection with own new buildings on order for plan approval and construction supervision services provided by GasLog LNG Services The vessel management segment, operations are carried out through wholly owned subsidiary Gas Log LNG Services.
The Company’s six owned ships include the GasLog Savannah, the GasLog Singapore, the GasLog Shanghai, the GasLog Santiago, the GasLog Sydney and the GasLog Skagen.
