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Rapid fleet expansion in Q2 for GasLog

Rapid fleet expansion in Q2 for GasLog
GasLog's profits fell to $3.5m for the second quarter from $20.4m in Q2 2013 as an $18.7m non-cash loss in the valuation of its swaps hit the bottom line.

Adjusted profit rose 46% from $7.1m in Q2 2013 to $10.4m in the second quarter 2014, as revenues more than doubled from $20.9m to $46.5m.

The increase in revenues and underlying profit is down to the expansion of GasLog's fleet; the company bought six vessels from BG Group in April and June for $936m, securing time charters for an average of six years with the seller. GasLog had a fleet of 15 vessels on the water as of 30 June 2014, compared to five at the same time last year.

Operating days increased from 395 in the second quarter 2013 to 958 in Q2 this year.

Gaslog signed contracts during the quarter at Samsung Heavy Industries and Hyundai Heavy Industries for two 174,00 cu m LNG carriers from each shipbuilder, slated for delivery in 2017. The additions bring GasLog's orderbook to a total of eight vessels, six at Samsung plus the pair at Hyundai.

A public offering of GasLog shares raised $110m in April, followed closely by an offering of senior secured notes that grossed NOK500m ($84m) in early May.

Gaslog Partners, a master limited partnership (MLP), completed its IPO in May, raising $203m. Outside of the period, GasLog agreed to sell two of its vessels to the partnership for $328m.

Paul Wogan, ceo, commented: "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 Shell.

"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.

"In May, we successfully launched the GasLog Partners Master Limited Partnership. GasLog Partners will provide GasLog with an alternative funding source for our ambitious growth plans as we look to take advantage of what we believe will be attractive markets for LNG shipping."