GasLog Ltd. and its subsidiaries (“GasLog” or “Group” or
“Company”) (NYSE:GLOG), an international owner, operator
and manager of liquefied natural gas (“LNG”) carriers, today
reported its financial results for the quarter ended March 31,
2016.
Highlights
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Signed a $575.2 million refinancing
for all of GasLog’s 2016 and 2017 debt maturities that was
completed in April 2016. |
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• |
Completed the sale and leaseback of
the Methane Julia Louise with a subsidiary of Mitsui Co. Ltd.
(“Mitsui”), thereby entering the Japanese financing market. |
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Successful delivery of the GasLog
Greece on March 29, 2016 and the commencement of its 10-year
charter to a subsidiary of BG Group plc. (“BG Group”), now owned by
Royal Dutch Shell plc (“Shell”). |
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Initiated a front-end engineering
design study with Keppel Offshore and Marine Ltd. (“Keppel”) for
the conversion of LNG carriers into floating LNG storage and
regasification units (“FSRU”). |
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• |
Quarterly dividend of $0.14 per
common share payable on May 26, 2016. |
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EBITDA(1) of $62.2 million (Q1
2015: $62.0 million), loss of $5.4 million (Q1 2015: profit of
$13.9 million) and Loss per share of $0.23(2) (Q1 2015: Earnings
per share of $0.05), for the quarter ended March 31, 2016. |
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• |
Adjusted EBITDA(1) of $62.2 million
(Q1 2015: $63.6 million), Adjusted Profit(1) of $6.1 million (Q1
2015: $20.2 million) and Adjusted Loss per share(1) of $0.09(2) (Q1
2015: Adjusted Earnings per share of $0.13) for the quarter ended
March 31, 2016. |
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(1 |
) |
EBITDA, Adjusted EBITDA, Adjusted
Profit and Adjusted Earnings/Loss per share (“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”). For
definition and reconciliation of these measures to the most
directly comparable financial measures calculated and presented in
accordance with IFRS, please refer to Exhibit II at the end of this
press release. |
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(2 |
) |
EPS and Adjusted EPS are negatively
affected by the profit attributable to the non-controlling interest
of $10.6 million and the dividend on preferred stock of $2.5
million for the quarter ended March 31, 2016 ($9.5 million and $0,
respectively, for the quarter ended March 31, 2015). |
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CEO Statement
Paul Wogan, Chief Executive Officer, stated: “GasLog completed
two major financing transactions in recent weeks, meaning we have
no debt maturities until 2018 and we are now focusing on extending
our 2018 debt maturities.
During the quarter, we took delivery of the GasLog Greece, the
first of the eight newbuilding vessels we have on order. This
vessel has a ten-year contract with a subsidiary of Shell and is
one of seven vessels with multi-year contracts due to be delivered
between now and 2019. All eight vessels have committed bank
financing. Through these long-term charters with Shell, GasLog has
contracted revenue for 74% of the available days through to the end
of 2018 giving significant revenue and cash flow visibility.
The short-term LNG shipping market continues to be challenging,
with a number of vessels waiting to service projects that have
either been delayed or out of action in recent months. The presence
of these vessels in the spot market has resulted in low levels of
overall fleet utilization and low rates, a situation which we
believe will start to improve as additional production from
Australia and the US ramps up through the rest of the year. The
long-term supply and demand outlook for LNG shipping remains
positive, especially given the lack of new orders, which reinforces
our view that we will see a future shortfall of vessels required to
transport the new volumes.
GasLog’s master limited partnership (“MLP”), GasLog Partners LP
(“GasLog Partners” or the “Partnership”), last week reported
quarterly results with strong distributable cash flow, coverage
well in excess of its target and expressed confidence in paying its
distribution for a multi-year period. At GasLog, we have 12
vessels with multi-year charters all of which are future drop-down
candidates. This significant and differentiated pipeline of assets
not only provides GasLog Partners with a number of years of future
distribution growth but also, if required, allows GasLog to support
GasLog Partners’ existing cash flows. GasLog Partners is a
cost-efficient source of equity for GasLog providing liquidity to
grow and enhances the valuation through the general partner/limited
partner (“GP/LP”) distributions and incentive distribution rights
(“IDRs”).”
Dividend Declaration
On March 11, 2016, the board of directors declared a dividend on
the Series A Preference Shares of $0.546875 per share, or $2.52
million in the aggregate, payable on April 1, 2016 to holders of
record as of March 31, 2016. GasLog paid the declared dividend to
the transfer agent on March 30, 2016.
On May 5, 2016, the board of directors declared a quarterly cash
dividend of $0.14 per common share payable on May 26, 2016 to
shareholders of record as of May 16, 2016.
Debt Refinancing
On February 18, 2016, subsidiaries of GasLog and GasLog Partners
entered into credit agreements (the “Credit Agreements”) to
refinance debt maturities that were scheduled to become due in 2016
and 2017. The Credit Agreements are comprised of a five-year senior
tranche facility of up to $396.50 million and a two-year bullet
junior tranche of up to $180.0 million. The vessels covered by the
Credit Agreements are the Partnership-owned Methane Alison
Victoria, Methane Shirley Elisabeth and Methane Heather Sally and
the GasLog-owned Methane Lydon Volney and Methane Becki Anne. On
April 5, 2016, $575.2 million was drawn under the Credit Agreements
and used to partially refinance $644.0 million of outstanding
debt.
Sale and Leaseback of the Methane Julia
Louise with a subsidiary of Mitsui
On February 24, 2016, GasLog’s subsidiary, GAS-twenty six Ltd.,
completed the ship sale and leaseback transaction with a subsidiary
of Mitsui, for the sale and leaseback of the Methane Julia Louise.
Mitsui has the right to on-sell and lease back the vessel. The
vessel was sold to Mitsui for a cash consideration of $217.0
million. GasLog has leased back the vessel under a bareboat charter
from Mitsui for a period of up to 20 years, having a payment
holiday for the first 210 days. GasLog has the option to
re-purchase the vessel on pre-agreed terms no earlier than the end
of year ten and no later than the end of year 17 of the bareboat
charter. Following the completion of this transaction, the
outstanding debt of GAS-twenty six Ltd. of $230.0 million was
prepaid. This leaseback meets the definition of a finance lease
under IFRS.
Delivery of the GasLog
Greece
On March 29, 2016, GasLog took delivery of the GasLog Greece, an
LNG carrier of 174,000 cubic meters capacity with tri-fuel diesel
electric propulsion constructed by Samsung Heavy Industries Co.
Ltd. (“Samsung”). The vessel is chartered out to Methane Services
Limited (“MSL”), a subsidiary of BG Group, now owned by Shell, from
its delivery until 2026, with an option for the charterer to extend
the terms of the charter at specified rates.
FSRU market
We have recently begun to investigate entering the FSRU market
and signed two pre-engineering studies with Keppel for the
potential conversion of both a Steam and TFDE vessel from our
existing fleet. We also appointed Bruno Larsen as Head of FSRU
Development. Mr. Larsen has extensive experience in the LNG and
FSRU sectors and will be responsible for leading GasLog’s
commercial FSRU activities.
Financial Summary
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In millions of U.S. dollars except per share
data |
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For the three months ended |
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|
March 31, 2015 |
|
March 31, 2016 |
Revenues |
|
$ |
97.3 |
|
|
$ |
104.4 |
|
Profit/(loss) |
|
$ |
13.9 |
|
|
$ |
(5.3 |
) |
Adjusted Profit(1) |
|
$ |
20.2 |
|
|
$ |
6.2 |
|
Profit/(loss)
attributable to the owners of GasLog |
|
$ |
4.3 |
|
|
$ |
(15.9 |
) |
EBITDA(1) |
|
$ |
62.0 |
|
|
$ |
62.3 |
|
Adjusted EBITDA(1) |
|
$ |
63.6 |
|
|
$ |
62.2 |
|
EPS |
|
$ |
0.05 |
|
|
$ |
(0.23 |
) |
Adjusted EPS(1) |
|
$ |
0.13 |
|
|
$ |
(0.09 |
) |
|
(1 |
) |
Adjusted
Profit, EBITDA, Adjusted EBITDA 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 IFRS. For definitions and reconciliations of these
measurements to the most directly comparable financial measures
calculated and presented in accordance with IFRS, please refer to
Exhibit II at the end of this press release. |
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There were 1,643 operating days for the quarter ended March 31,
2016, as compared to 1,354 operating days for the quarter ended
March 31, 2015. The increase in operating days resulted from the
new vessel deliveries and on-the-water vessel acquisitions during
the previous periods. Specifically, we acquired the Methane Becki
Anne and the Methane Julia Louise on March 31, 2015 and we took
delivery of the GasLog Salem on April 30, 2015 and the GasLog
Greece on March 29, 2016.
Loss was $5.3 million for the quarter ended March 31, 2016
($13.9 million profit for the quarter ended March 31, 2015). This
decrease in profit is mainly attributable to decreased revenues
from certain of our vessels operating in the current weak spot
market, increased financial costs derived mainly from higher
average outstanding debt and increased amortization of deferred
loan fees, increased unrealized losses on interest rate swaps and
increased depreciation and operating expenses due to the increased
fleet and scheduled repairs and maintenance expenditures.
Adjusted Profit(1) was $6.2 million for the quarter ended March
31, 2016 ($20.2 million for the quarter ended March 31, 2015)
adjusted for the effects of the non-cash loss on swaps, the
write-off and accelerated amortization of unamortized loan fees and
the foreign exchange gains/losses.
Loss attributable to the owners of GasLog was $15.9 million
($4.3 million profit for the quarter ended March 31, 2015). The
decrease in profit attributable to the owners of GasLog resulted
from the decrease in profit mentioned above and the increase in
profit attributable to the non-controlling interest (GasLog
Partners’ third party owners) following the dropdown of three
vessels to GasLog Partners on July 1, 2015.
EBITDA(1) was $62.3 million for the quarter ended March 31, 2016
($62.0 million for the quarter ended March 31, 2015).
Adjusted EBITDA(1) was $62.2 million for the quarter ended March
31, 2016 ($63.6 million for the quarter ended March 31, 2015).
EPS was a $0.23 loss for the quarter ended March
31, 2016 ($0.05 earnings for the quarter ended March 31, 2015). The
decrease in EPS is attributable to the decrease in profit, the
dividend on preferred stock (no dividend on preferred stock was
declared in the quarter ended March 31, 2015) and the increase in
profit attributable to non-controlling unitholders of GasLog
Partners following the dropdown of three vessels on July 1,
2015.
Adjusted EPS(1) was a $0.09 loss for the quarter
ended March 31, 2016 ($0.13 earnings for the quarter ended March
31, 2015). The decrease in Adjusted EPS is attributable to the
decrease in Adjusted Profit, the increase in profit attributable to
non-controlling interest and the dividend on preferred stock in the
quarter ended March 31, 2016.
Revenues were $104.4 million for the quarter ended March 31,
2016 ($97.3 million for the quarter ended March 31, 2015). The
increase was mainly driven by the new acquisitions and deliveries
in our fleet, which was partially offset by the adverse impact of
the current weak spot market for certain of our vessels.
Vessel operating and supervision costs were $28.5 million for
the quarter ended March 31, 2016 ($21.9 million for the quarter
ended March 31, 2015).
Voyage expenses and commissions were $5.3 million for the
quarter ended March 31, 2016 ($2.7 million for the quarter ended
March 31, 2015).
Depreciation of fixed assets was $28.2 million for the quarter
ended March 31, 2016 ($22.7 million for the quarter ended March 31,
2015).
The increase in revenues, vessel operating and supervision
costs, voyage expenses and commissions and depreciation of fixed
assets was mainly attributable to the increase in operating days
from our increased fleet discussed above. The vessel operating and
supervision costs were further increased due to increased scheduled
technical maintenance expenditures, while the voyage expenses and
commissions also increased due to the net allocation of pool
results in accordance with profit sharing terms specified in the
Pool Agreement with Dynagas Ltd. and Golar LNG Ltd.
General and administrative expenses were $8.7 million for the
quarter ended March 31, 2016 ($11.2 million for the quarter ended
March 31, 2015).
Financial costs were $29.2 million for the quarter ended March
31, 2016 ($18.5 million for the quarter ended March 31, 2015). The
increase is mainly attributable to an increase of $4.8 million in
interest expense deriving from higher weighted average outstanding
debt and realized loss on cash flow hedges, an increase in the
amortization of deferred loan fees of $4.1 million resulting mainly
from the write off and accelerated amortization of unamortized
fees, and a finance lease charge of $1.1 million in 2016. An
analysis of financial costs is set forth below.
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(All amounts
expressed in thousands of U.S. dollars) |
|
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For the three months ended |
|
|
|
|
|
|
|
March 31, 2015 |
|
March 31, 2016 |
|
|
Financial
costs |
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred loan issuance costs and premium |
|
|
$ |
1,946 |
|
$ |
6,027 |
|
|
Interest
expense on loans and realized loss on cash flow hedges |
|
|
|
13,558 |
|
|
18,313 |
|
|
Interest
expense on bond and realized loss on cross-currency swaps |
|
|
|
2,794 |
|
|
2,825 |
|
|
Finance
lease charge |
|
|
|
— |
|
|
1,067 |
|
|
Other
financial costs |
|
|
|
230 |
|
|
947 |
|
|
Total |
|
|
|
|
$ |
18,528 |
|
$ |
29,179 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Loss on swaps was $10.4 million for the quarter ended March 31,
2016 ($7.0 million loss for the quarter ended March 31, 2015). An
analysis of loss on swaps is set forth below.
|
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(All amounts
expressed in thousands of U.S. dollars) |
|
|
|
For the three months ended |
|
|
|
|
|
|
|
March 31, 2015 |
|
March 31, 2016 |
|
|
Loss on
swaps |
|
|
|
|
|
|
|
|
|
|
|
Realized
loss on interest rate swaps held for trading |
|
|
$ |
2,197 |
|
$ |
1,928 |
|
|
Unrealized
loss on interest rate swaps held for trading |
|
|
|
4,509 |
|
|
8,137 |
|
|
Recycled
loss of cash flow hedges reclassified to profit or loss in relation
to derivatives no longer designated as hedges |
|
|
|
284 |
|
|
349 |
|
|
Ineffective
portion on cash flow hedges |
|
|
|
(11 |
) |
|
— |
|
|
Total |
|
|
|
|
$ |
6,979 |
|
$ |
10,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted Charter Revenues
GasLog’s contracted charter revenues are estimated to increase
from $412.5 million for the fiscal year 2015 to $482.9 million for
the fiscal year 2017, based on contracts in effect as of March 31,
2016 (including six of the seven LNG carriers on order for which we
have secured time charters), but without including any extension
options. As of March 31, 2016, the total future firm contracted
revenue stood at $3.6 billion (1), including the eight vessels
owned by GasLog Partners and excluding the vessels operating in the
spot market.
BG Group was acquired by Shell on February 15, 2016. This
acquisition does not impact the contractual obligations under the
existing charter party agreements.
(1) Contracted revenue calculations assume: (a) 365
revenue days per annum, with 30 off-hire days when the ship
undergoes scheduled drydocking; (b) all LNG carriers on order are
delivered on schedule; and (c) no exercise of any option to extend
the terms of charters.
Liquidity and Capital Resources
As of March 31, 2016, GasLog had $284.0 million of cash and cash
equivalents, of which $32.3 million was held in time deposits and
the remaining balance in current accounts. Moreover, as of March
31, 2016, GasLog had $1.5 million held in time deposits with an
initial duration of more than three months but less than a year
that have been classified as short-term investments. As of March
31, 2016, GasLog had $23.6 million in restricted cash in relation
to cash held in blocked accounts mainly in order to comply with the
covenants under two of its credit facilities.
On February 25, 2016, a supplemental deed was signed with the
lenders of the GAS-eight Ltd., GAS-nine Ltd. and GAS-ten Ltd. loan
facility, permitting GasLog to withdraw the $21.0 million
maintained in blocked accounts for each of GAS-nine Ltd. and
GAS-ten Ltd., provided GasLog has an executed guarantee or letter
of credit with a minimum duration of six months. In connection with
this, on February 26, 2016, GasLog entered into two bank
guarantees, issued by BNP Paribas S.A. for GAS-nine Ltd. and
GAS-ten Ltd. of $21.0 million each. The bank guarantees bear
interest at a margin and are available for a period of up to two
years.
As of March 31, 2016, GasLog had an aggregate of $2.2 billion of
indebtedness outstanding under twelve credit facilities, of which
$785.5 million was repayable within one year, including $42.2
million under its revolving credit facility. As of March 31, 2016,
GasLog had $120.1 million outstanding under the NOK bond agreement
that is payable in June 2018 and had a $218.1 million finance lease
liability related to the sale and leaseback of the Methane Julia
Louise.
As of March 31, 2016, there was undrawn availability of $1.15
billion under the debt financing agreement entered into on October
16, 2015 with 14 international banks to partially finance the
delivery of our seven remaining newbuildings expected to be
delivered in 2016, 2018 and 2019. Also, there was an undrawn amount
of $7.8 million from the revolving facility of GAS-two Ltd. which
was available to be drawn under certain conditions.
As of March 31, 2016, GasLog’s current assets totalled $327.6
million while current liabilities totalled $870.4 million,
resulting in a negative working capital position of $542.8 million.
As discussed above, on April 5, 2016, $575.2 million was drawn
under the Credit Agreements and used to partially refinance $644.0
million of outstanding debt. Following the completion of the
refinancing, as of April 5, 2016, current indebtedness outstanding
under nine credit facilities totalled $168.0 million.
As of March 31, 2016, GasLog’s commitments for capital
expenditures are related to the seven LNG carriers on order, which
have a gross aggregate contract price of approximately $1.43
billion. As of March 31, 2016, the total remaining balance of the
contract prices of the seven newbuildings was $1.28 billion that
GasLog expects to be funded with the $1.15 billion undrawn amount
under the financing agreement entered into on October 16, 2015, as
well as cash balances and cash from operations.
GasLog has hedged 40.8% of its expected floating interest rate
exposure on its outstanding debt (including the finance lease
liability) at a weighted average interest rate of approximately
4.6% (including margin) as of March 31, 2016.
Future Deliveries
GasLog has five newbuildings on order at Samsung and two
newbuildings on order at Hyundai Heavy Industries Co., Ltd. Our
vessels presently under construction are on schedule and within
budget. The expected delivery dates are as follows:
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Hulls |
|
Delivery date |
Hull No. 2073 |
|
Q2 2016 |
Hull No. 2102 |
|
Q3 2016 |
Hull No. 2103 |
|
Q4 2016 |
Hull No. 2130 |
|
Q1 2018 |
Hull No. 2800 |
|
Q1 2018 |
Hull No. 2801 |
|
Q1 2018 |
Hull No. 2131 |
|
Q1 2019 |
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|
Our subsidiaries that own the vessels expected to be delivered
in 2016 have signed seven to ten year time charters with MSL, a
subsidiary of BG Group, now owned by Shell, at attractive rates.
Our subsidiaries that own two of the vessels expected to be
delivered in 2018 and one vessel expected to be delivered in 2019
have entered into 9.5 year time charters with MSL at similar rates.
GasLog currently has one newbuilding on order that is not currently
fixed on a long-term contract.
LNG Market Update and Outlook
Following the start-up of projects such as Queensland Curtis,
Gladstone and Australia Pacific in 2015, we have seen continued
momentum in new LNG liquefaction capacity in early 2016. In
February 2016, Cheniere’s 22.5 million tons per annum (“mtpa”)
Sabine Pass facility, the first of many new U.S. LNG liquefaction
projects, began exporting LNG. A GasLog-owned vessel, the GasLog
Salem, was the third vessel to ship LNG from the project,
delivering cargo to Brazil.
In March, Chevron’s Gorgon project (15 mtpa) shipped its maiden
LNG cargo. The plant has experienced some technical issues and
currently plans to restart production by early June. Australia
Pacific Train 2 (4.5 mtpa) and Angola LNG (5.2 mtpa) are also due
to start this year, with Chevron’s Wheatstone project (8.9 mtpa)
and Shell’s Prelude (3.6 mtpa) due to deliver first cargoes in
2017. Chevron’s Angola LNG project is also expected to re-start in
the near future after almost two years of downtime for maintenance.
In 2016, we expect LNG producing trains with a total annualized
capacity of approximately 40 mtpa of new production to come online
as the projects described above ramp up to their nameplate
capacity.
With such projects coming onstream, we are seeing encouraging
levels of tendering activity for vessels to transport these
increased LNG volumes, with charterers considering on-the-water and
newbuilding vessels for medium and long-term employment.
Our long-term supply and demand outlook for LNG shipping remains
positive. We continue to see a future shortfall of vessels required
for the new projects coming online.
Conference Call
GasLog will host a conference call to discuss its results for
the first quarter of 2016 at 8:30 a.m. ET (1:30 p.m. London Time)
on Friday, May 6, 2016. Paul Wogan, Chief Executive Officer and
Simon Crowe, Chief Financial Officer, will review the Company’s
operational and financial performance for the period. Management's
presentation will be followed by a Q&A session.
The dial-in numbers for the conference call are as follows:
+ 1 855 537 5839 (USA)+ 44(0) 20 3107 0289 (United Kingdom)+
33(0) 1 70 80 71 53 (France)+ 852 3011 4522 (Hong Kong)
Passcode for the call is: 86788817
A live webcast of the conference call will also be available on
the investor relations page of the Company’s website at
http://www.gaslogltd.com/investor-relations.
For those unable to participate in the conference call, a replay
will also be available from 2:00 p.m. EDT (7:00 p.m. London Time)
on Friday, May 6, 2016, until 11:59 p.m. EDT (5:59 a.m. London
Time) on Friday, May 13, 2016.
The replay dial-in numbers are as follows:
+1 855 859 2056 (USA)+44(0) 20 3107 0235 (United Kingdom)+33(0)
1 70 80 71 79 (France)+852 3011 4522 (Hong Kong)
Replay passcode: 86788817
Forward Looking Statements
All statements in this press release that are not statements of
historical fact are “forward-looking statements” within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements that address
activities, events or developments that the Company expects,
projects, believes or anticipates will or may occur in the future,
particularly in relation to our operations, cash flows, financial
position, liquidity and cash available for dividends or
distributions, plans, strategies, business prospects and changes
and trends in our business and the markets in which we operate. We
caution that these forward-looking statements represent our
estimates and assumptions only as of the date of this press
release, about factors that are beyond our ability to control or
predict, and are not intended to give any assurance as to future
results. Any of these factors or a combination of these factors
could materially affect future results of operations and the
ultimate accuracy of the forward-looking statements. Accordingly,
you should not unduly rely on any forward-looking statements.
Factors that might cause future results and outcomes to differ
include, but are not limited to the following:
- general LNG shipping market conditions and trends, including
spot and long-term charter rates, ship values, factors affecting
supply and demand of LNG and LNG shipping and technological
advancements;
- continued low prices for crude oil and petroleum products;
- our ability to enter into time charters with new and existing
customers;
- changes in the ownership of our charterers;
- our customers’ performance of their obligations under our time
charters;
- our future operating performance, financial condition,
liquidity and cash available for dividends and distributions;
- our ability to obtain financing to fund capital expenditures,
acquisitions and other corporate activities, funding by banks of
their financial commitments, and our ability to meet our
restrictive covenants and other obligations under our credit
facilities;
- future, pending or recent acquisitions of or orders for ships
or other assets, business strategy, areas of possible expansion and
expected capital spending or operating expenses;
- the time that it may take to construct and deliver newbuildings
and the useful lives of our ships;
- number of off-hire days, drydocking requirements and insurance
costs;
- fluctuations in currencies and interest rates;
- our ability to maintain long-term relationships with major
energy companies;
- our ability to maximize the use of our ships, including the
re-employment or disposal of ships not under time charter
commitments;
- environmental and regulatory conditions, including changes in
laws and regulations or actions taken by regulatory
authorities;
- the expected cost of, and our ability to comply with,
governmental regulations and maritime self-regulatory organization
standards, requirements imposed by classification societies and
standards imposed by our charterers applicable to our
business;
- risks inherent in ship operation, including the discharge of
pollutants;
- availability of skilled labor, ship crews and management;
- potential disruption of shipping routes due to accidents,
political events, piracy or acts by terrorists;
- potential liability from future litigation;
- any malfunction or disruption of information technology systems
and networks that our operations rely on or any impact of a
possible cybersecurity breach; and
- other risks and uncertainties described in the Company’s Annual
Report on Form 20-F filed with the SEC on March 14, 2016 and
available at http://www.sec.gov.
We undertake no obligation to update or revise any
forward-looking statements contained in this press release, whether
as a result of new information, future events, a change in our
views or expectations or otherwise, except as required by
applicable law. New factors emerge from time to time, and it is not
possible for us to predict all of these factors. Further, we cannot
assess the impact of each such factor on our business or the extent
to which any factor, or combination of factors, may cause actual
results to be materially different from those contained in any
forward-looking statement.
The declaration and payment of dividends are at all times
subject to the discretion of our board of directors and will depend
on, amongst other things, risks and uncertainties described above,
restrictions in our credit facilities, the provisions of Bermuda
law and such other factors as our board of directors may deem
relevant.
|
|
|
|
|
|
|
|
|
EXHIBIT I -
Unaudited Interim Financial Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
condensed consolidated statements of financial
position |
|
|
|
|
|
|
|
|
As of December
31, 2015 and March 31, 2016 |
|
|
|
|
|
|
|
|
(Amounts
expressed in thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
March 31, 2016 |
|
Assets |
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
9,511 |
|
|
9,511 |
|
Investment in associate
and joint venture |
|
|
|
6,274 |
|
|
6,358 |
|
Deferred financing
costs |
|
|
|
17,998 |
|
|
28,937 |
|
Other non-current
assets |
|
|
|
28,957 |
|
|
28,572 |
|
Derivative financial
instruments |
|
|
|
61 |
|
|
— |
|
Tangible fixed
assets |
|
|
|
3,400,270 |
|
|
3,357,228 |
|
Vessels under
construction |
|
|
|
178,405 |
|
|
156,619 |
|
Vessel held under
finance lease |
|
|
|
— |
|
|
227,768 |
|
Total
non-current assets |
|
|
|
3,641,476 |
|
|
3,814,993 |
|
Current
assets |
|
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
|
16,079 |
|
|
9,129 |
|
Dividends receivable
and due from related parties |
|
|
|
1,345 |
|
|
677 |
|
Inventories |
|
|
|
6,496 |
|
|
4,210 |
|
Prepayments and other
current assets |
|
|
|
2,519 |
|
|
4,408 |
|
Short-term
investments |
|
|
|
6,000 |
|
|
1,500 |
|
Restricted cash |
|
|
|
62,718 |
|
|
23,623 |
|
Cash and cash
equivalents |
|
|
|
302,988 |
|
|
284,028 |
|
Total current
assets |
|
|
|
398,145 |
|
|
327,575 |
|
Total
assets |
|
|
|
4,039,621 |
|
|
4,142,568 |
|
Equity and
liabilities |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Preferred stock |
|
|
|
46 |
|
|
46 |
|
Share capital |
|
|
|
810 |
|
|
810 |
|
Contributed
surplus |
|
|
|
1,020,292 |
|
|
1,008,353 |
|
Reserves |
|
|
|
(8,829 |
) |
|
(12,183 |
) |
Treasury shares |
|
|
|
(12,491 |
) |
|
(12,491 |
) |
Retained
earnings/(accumulated deficit) |
|
|
|
1,846 |
|
|
(15,898 |
) |
Equity
attributable to owners of the Group |
|
|
|
1,001,674 |
|
|
968,637 |
|
Non-controlling
interest |
|
|
|
506,246 |
|
|
506,493 |
|
Total
equity |
|
|
|
1,507,920 |
|
|
1,475,130 |
|
Current
liabilities |
|
|
|
|
|
|
|
|
Trade accounts
payable |
|
|
|
12,391 |
|
|
8,919 |
|
Ship management
creditors |
|
|
|
3,524 |
|
|
883 |
|
Amounts due to related
parties |
|
|
|
163 |
|
|
147 |
|
Derivative financial
instruments |
|
|
|
14,243 |
|
|
14,875 |
|
Other payables and
accruals |
|
|
|
67,084 |
|
|
67,655 |
|
Borrowings, current
portion |
|
|
|
636,987 |
|
|
777,885 |
|
Total current
liabilities |
|
|
|
734,392 |
|
|
870,364 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
Derivative financial
instruments |
|
|
|
58,531 |
|
|
64,042 |
|
Borrowings, non-current
portion |
|
|
|
1,737,500 |
|
|
1,513,540 |
|
Finance lease
liability, non-current portion |
|
|
|
— |
|
|
218,067 |
|
Other non-current
liabilities |
|
|
|
1,278 |
|
|
1,425 |
|
Total
non-current liabilities |
|
|
|
1,797,309 |
|
|
1,797,074 |
|
Total equity
and liabilities |
|
|
|
4,039,621 |
|
|
4,142,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
condensed consolidated statements of profit or loss |
|
|
|
|
|
For the three
months ended March 31, 2015 and
2016 |
|
|
|
|
|
(Amounts
expressed in thousands of U.S. Dollars, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
March
31, 2015 |
|
March
31, 2016 |
|
Revenues |
|
|
|
|
|
97,326 |
|
|
104,377 |
|
Vessel operating and
supervision costs |
|
|
|
|
|
(21,894 |
) |
|
(28,457 |
) |
Voyage expenses and
commissions |
|
|
|
|
|
(2,729 |
) |
|
(5,263 |
) |
Depreciation of fixed
assets |
|
|
|
|
|
(22,695 |
) |
|
(28,164 |
) |
General and
administrative expenses |
|
|
|
|
|
(11,159 |
) |
|
(8,734 |
) |
Profit from
operations |
|
|
|
|
|
38,849 |
|
|
33,759 |
|
Financial costs |
|
|
|
|
|
(18,528 |
) |
|
(29,179 |
) |
Financial income |
|
|
|
|
|
63 |
|
|
202 |
|
Loss on swaps |
|
|
|
|
|
(6,979 |
) |
|
(10,414 |
) |
Share of profit of
associate |
|
|
|
|
|
447 |
|
|
334 |
|
Total other
expenses, net |
|
|
|
|
|
(24,997 |
) |
|
(39,057 |
) |
Profit/(loss)
for the period |
|
|
|
|
|
13,852 |
|
|
(5,298 |
) |
Attributable to: |
|
|
|
|
|
|
|
|
|
|
Owners of the
Group |
|
|
|
|
|
4,342 |
|
|
(15,898 |
) |
Non-controlling
interest |
|
|
|
|
|
9,510 |
|
|
10,600 |
|
|
|
|
|
|
|
13,852 |
|
|
(5,298 |
) |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share – basic and diluted |
|
|
|
|
|
0.05 |
|
|
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
condensed consolidated statements of cash flows |
|
|
|
|
|
|
|
|
|
|
For the three
months ended March 31, 2015 and
2016 |
|
|
|
|
|
|
|
|
|
|
(Amounts
expressed in thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
March 31, 2015 |
|
March 31, 2016 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the
period |
|
|
|
|
|
13,852 |
|
|
(5,298 |
) |
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation of fixed
assets |
|
|
|
|
|
22,695 |
|
|
28,164 |
|
Share of profit of
associate |
|
|
|
|
|
(447 |
) |
|
(334 |
) |
Financial income |
|
|
|
|
|
(63 |
) |
|
(202 |
) |
Financial costs |
|
|
|
|
|
18,528 |
|
|
29,179 |
|
Unrealized foreign
exchange losses on cash and cash equivalents and short-term
investments |
|
|
|
|
|
1,068 |
|
|
(203 |
) |
Unrealized loss on
interest rate swaps held for trading including ineffective portion
of cash flow hedges |
|
|
|
|
|
4,498 |
|
|
8,137 |
|
Recycled loss of cash
flow hedges reclassified to profit or loss |
|
|
|
|
|
284 |
|
|
349 |
|
Share-based
compensation |
|
|
|
|
|
498 |
|
|
763 |
|
|
|
|
|
|
|
60,913 |
|
|
60,555 |
|
Movements in working
capital |
|
|
|
|
|
(8,805 |
) |
|
7,687 |
|
Cash provided
by operations |
|
|
|
|
|
52,108 |
|
|
68,242 |
|
Interest paid |
|
|
|
|
|
(14,850 |
) |
|
(23,953 |
) |
Net cash
provided by operating activities |
|
|
|
|
|
37,258 |
|
|
44,289 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
Payments for tangible
fixed assets and vessels under construction |
|
|
|
|
|
(500,537 |
) |
|
(197,797 |
) |
Dividends received from
associate |
|
|
|
|
|
1,000 |
|
|
925 |
|
Purchase of short-term
investments |
|
|
|
|
|
(18,592 |
) |
|
(1,500 |
) |
Maturity of short-term
investments |
|
|
|
|
|
26,603 |
|
|
6,000 |
|
Financial income
received |
|
|
|
|
|
53 |
|
|
218 |
|
Net cash used
in investing activities |
|
|
|
|
|
(491,473 |
) |
|
(192,154 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
Proceeds from bank
loans |
|
|
|
|
|
460,000 |
|
|
162,967 |
|
Proceeds from sale and
finance leaseback |
|
|
|
|
|
— |
|
|
217,000 |
|
Bank loan
repayments |
|
|
|
|
|
(21,580 |
) |
|
(253,610 |
) |
Payment of loan
issuance costs |
|
|
|
|
|
(4,171 |
) |
|
(12,328 |
) |
Payment of equity
raising costs |
|
|
|
|
|
(87 |
) |
|
— |
|
(Increase)/decrease in
restricted cash |
|
|
|
|
|
(1,807 |
) |
|
39,095 |
|
Dividends paid |
|
|
|
|
|
(17,424 |
) |
|
(24,138 |
) |
Payments for vessel
held under finance lease |
|
|
|
|
|
— |
|
|
(284 |
) |
Net cash
provided by financing activities |
|
|
|
|
|
414,931 |
|
|
128,702 |
|
Effects of exchange
rate changes on cash and cash equivalents |
|
|
|
|
|
(1,077 |
) |
|
203 |
|
Decrease in
cash and cash equivalents |
|
|
|
|
|
(40,361 |
) |
|
(18,960 |
) |
Cash and cash
equivalents, beginning of the period |
|
|
|
|
|
211,974 |
|
|
302,988 |
|
Cash and cash
equivalents, end of the period |
|
|
|
|
|
171,613 |
|
|
284,028 |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT II
Non-GAAP Financial Measures:
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted
EPS
EBITDA is defined as earnings before depreciation, amortization,
interest income and expense, gain/loss on swaps and taxes. Adjusted
EBITDA is defined as EBITDA before foreign exchange gains/losses.
Adjusted Profit represents earnings before write-off and
accelerated amortization of unamortized loan fees, foreign exchange
gains/losses and non-cash gain/loss on swaps that includes (if any)
(a) unrealized gain/loss on swaps held for trading, (b) recycled
loss of cash flow hedges reclassified to profit or loss in relation
to derivatives no longer designated as hedges and (c) ineffective
portion of cash flow hedges. Adjusted EPS represents earnings
attributable to owners of the Group before non-cash gain/loss on
swaps as defined above, foreign exchange gains/losses and write-off
and accelerated amortization of unamortized loan fees, divided by
the weighted average number of shares outstanding. EBITDA, Adjusted
EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP financial
measures that are used as supplemental financial measures by
management and external users of financial statements, such as
investors, to assess our financial and operating performance. We
believe that these non-GAAP financial measures assist our
management and investors by increasing the comparability of our
performance from period to period. We believe that including
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS assists
our management and investors in (i) understanding and analyzing the
results of our operating and business performance, (ii) selecting
between investing in us and other investment alternatives and (iii)
monitoring our ongoing financial and operational strength in
assessing whether to continue to hold our common shares. This is
achieved by excluding the potentially disparate effects between
periods of, in the case of EBITDA and Adjusted EBITDA, interest,
gain/loss on swaps, taxes, depreciation and amortization, in the
case of Adjusted EBITDA, foreign exchange gains/losses and in the
case of Adjusted Profit and Adjusted EPS, non-cash gain/loss on
swaps, foreign exchange gains/losses and write-off and accelerated
amortization of unamortized loan fees, which items are affected by
various and possibly changing financing methods, capital structure
and historical cost basis and which items may significantly affect
results of operations between periods.
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS have
limitations as analytical tools and should not be considered as
alternatives to, or as substitutes for, or superior to profit,
profit from operations, earnings per share or any other measure of
financial performance presented in accordance with IFRS. Some of
these limitations include the fact that they do not reflect (i) our
cash expenditures or future requirements for capital expenditures
or contractual commitments, (ii) changes in, or cash requirements
for our working capital needs and (iii) the significant interest
expense, or the cash requirements necessary to service interest or
principal payments, on our debt. Although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized will have to be replaced in the future, and EBITDA and
Adjusted EBITDA do not reflect any cash requirements for such
replacements. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted
EPS are not adjusted for all non-cash income or expense items that
are reflected in our statements of cash flows and other companies
in our industry may calculate these measures differently than we
do, limiting their usefulness as a comparative measure.
In evaluating Adjusted EBITDA, Adjusted Profit and Adjusted EPS,
you should be aware that in the future we may incur expenses that
are the same as or similar to some of the adjustments in this
presentation. Our presentation of Adjusted EBITDA, Adjusted Profit
and Adjusted EPS should not be construed as an inference that our
future results will be unaffected by the excluded items. Therefore,
the non-GAAP financial measures as presented below may not be
comparable to similarly titled measures of other companies in the
shipping or other industries.
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted EBITDA to
Profit/(Loss): |
|
|
|
|
|
(Amounts expressed in thousands of U.S.
Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
March 31, 2015 |
|
March 31, 2016 |
|
Profit/(loss) for the period |
|
|
|
|
|
13,852 |
|
|
(5,298 |
) |
Depreciation of fixed assets |
|
|
|
|
|
22,695 |
|
|
28,164 |
|
Financial costs |
|
|
|
|
|
18,528 |
|
|
29,179 |
|
Financial income |
|
|
|
|
|
(63 |
) |
|
(202 |
) |
Loss on swaps |
|
|
|
|
|
6,979 |
|
|
10,414 |
|
EBITDA |
|
|
|
|
|
61,991 |
|
|
62,257 |
|
Foreign exchange losses/(gains),
net |
|
|
|
|
|
1,588 |
|
|
(44 |
) |
Adjusted
EBITDA |
|
|
|
|
|
63,579 |
|
|
62,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Adjusted Profit to Profit/(Loss): |
|
|
|
|
|
(Amounts
expressed in thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
March 31, 2015 |
|
March 31, 2016 |
|
Profit/(loss) for the period |
|
|
|
|
|
13,852 |
|
|
(5,298 |
) |
Non-cash loss on swaps |
|
|
|
|
|
4,782 |
|
|
8,486 |
|
Write-off and accelerated
amortization of unamortized loan fees |
|
|
|
|
|
— |
|
|
3,046 |
|
Foreign exchange losses/(gains),
net |
|
|
|
|
|
1,588 |
|
|
(44 |
) |
Adjusted
Profit |
|
|
|
|
|
20,222 |
|
|
6,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Adjusted Earnings/(Losses) Per Share to Earnings/(Losses) Per
Share: |
|
|
|
|
|
(Amounts
expressed in thousands of U.S. Dollars, except shares and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
March 31, 2015 |
|
March 31, 2016 |
|
Profit/(loss) for the period
attributable to owners of the Group |
|
|
|
|
|
4,342 |
|
|
(15,898 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
Dividend on preferred stock |
|
|
|
|
|
— |
|
|
(2,515 |
) |
Profit/(loss) for the period
available to owners of the Group used in EPS calculation |
|
|
|
|
|
4,342 |
|
|
(18,413 |
) |
Weighted average number of shares
outstanding, basic |
|
|
|
|
|
80,495,749 |
|
|
80,496,499 |
|
Earnings/(losses) per
share |
|
|
|
|
|
0.05 |
|
|
(0.23 |
) |
Profit/(loss) for the period
available to owners of the Group used in EPS calculation |
|
|
|
|
|
4,342 |
|
|
(18,413 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
|
Non-cash loss on swaps |
|
|
|
|
|
4,782 |
|
|
8,486 |
|
Write-off and accelerated
amortization of unamortized loan fees |
|
|
|
|
|
— |
|
|
3,046 |
|
Foreign exchange losses/(gains),
net |
|
|
|
|
|
1,588 |
|
|
(44 |
) |
Adjusted Profit/(loss) attributable
to owners of the Group |
|
|
|
|
|
10,712 |
|
|
(6,925 |
) |
Weighted average number of shares
outstanding, basic |
|
|
|
|
|
80,495,749 |
|
|
80,496,499 |
|
Adjusted earnings/(losses)
per share |
|
|
|
|
|
0.13 |
|
|
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
Contacts:
Simon Crowe
Chief Financial Officer
Phone: +44-203-388-3108
Jamie Buckland
Head of Investor Relations
Phone: +44-203-388-3116
Email: ir@gaslogltd.com
GasLog (NYSE:GLOG)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
GasLog (NYSE:GLOG)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024