Gaslog profits rise in busy first quarter

The increase in profit at the LNG carrier outfit is attributable to fleet expansion during the year, and was slightly dampened by an increase in expenses for maintenance, finance expenses and depreciation.

The longer-term nature of Gaslog's charter means that market fluctuations have little impact on its results, although the Gaslog Chelsea did well on two short charters before being found a seven month charter which started in May.

At the start of the second quarter, Gaslog took delivery of three ships from BG Group. The acquisition of the vessels, which came with charters averaging six years, was announced in the first quarter at a price of $468m.

On delivery of the first three vessels on 10 April, the company announced the purchase of a further three ships from BG Group for $468m, with similar charters in place.

As well as over $300m the company has brought in through follow-on offerings in January and April, Gaslog has signed two $325.5m credit agreements with Citibank and a pair of $100m bridge loans to finance the acquisition of the sextet from BG Group.

Once all of the BG Group ships are delivered, the company's backlog will top $3bn. Gaslog expects its charter revenues to increase from 2013's $145.4m to $417.4m by 2017, accounting for its current eight-strong fleet, the three ships it has agreed to purchase and its orderbook of five newbuildings.

The company completed the initial public offering of units in its MLP Gaslog Partners with proceeds of $189m. The MLP now owns three vessels and has options to purchase a further 12 from Gaslog, which controls the MLP.

Paul Wogan, ceo, commented, "Our two follow-on equity offerings raised in excess of $300 million. These accretive transactions will increase the size of our fully delivered fleet to 23 ships (including the three vessels contributed to the MLP). It also takes our backlog of contracted revenue to almost $3 billion. These two BG transactions alongside the acquisition of the GasLog Chelsea in 2013 demonstrate our ongoing desire and ability to acquire high quality assets with attractive return profiles as we continue to pursue our consolidation strategy.

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