GasLog Ltd. and its subsidiaries (“GasLog”, “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 June 30, 2020.
Highlights
• |
Post quarter-end, refinanced in
full the Group’s debt maturities due in 2021 with four new credit
facilities representing a total of approximately $1.1 billion,
strengthening the balance sheet and delivering $30.2 million of
incremental liquidity to the Group. |
• |
Completed the sale of 14,400,000
shares of common equity through a private placement, including
6,500,000 million shares purchased by Blenheim Holdings Ltd.,
wholly-owned by the Livanos family, and 4,000,000 shares purchased
by a wholly-owned affiliate of the Onassis Foundation, for total
gross proceeds of $36.0 million. |
• |
Delivery of the GasLog Windsor on
April 1, 2020, a 180,000 cubic meters (“cbm”) LNG carrier with dual
fuel medium speed propulsion (“X-DF”) and commencement of its
seven-year time charter agreement with a wholly-owned subsidiary of
Centrica plc. (“Centrica”). |
• |
Delivery of the GasLog Wales on
May 11, 2020, a 180,000 cbm LNG carrier with X-DF propulsion and
commencement of its 12-year time charter agreement with the
principal LNG shipping entity of Japan’s JERA Co., Inc.
(“JERA”). |
• |
Post quarter-end delivery of the
GasLog Westminster on July 15, 2020, a 180,000 cbm LNG carrier with
X-DF propulsion and commencement of its seven-year time charter
agreement with Centrica. |
• |
Published the inaugural
Sustainability Report for 2019 on June 11, 2020. |
• |
Materially concluded the
previously announced organizational changes in relation to our
London and Monaco offices. On further review have decided to expand
this plan to GasLog Partners and our Stamford office, aiming to
achieve further operational efficiencies and to reduce
overheads. |
• |
As of June 30, 2020, recognized a
non-cash impairment loss of $22.5 million in aggregate on certain
of our steam turbine propulsion (“Steam”) vessels. |
• |
Contracted time charter revenues
of approximately $294.9 million for the remainder of 2020,
representing 82.2% charter coverage. |
• |
Quarterly Revenues of $158.9
million, Loss of ($13.3) million and Loss per share of ($0.30)(1)
for the three-month period ended June 30, 2020. |
• |
Quarterly Adjusted EBITDA(2) of
$111.7 million, Adjusted Profit(2) of $24.6 million and Adjusted
Earnings per share(2) of $0.02(1) for the three-month period ended
June 30, 2020. |
• |
Quarterly dividend of $0.05 per
common share payable on August 27, 2020. |
|
|
(1) Earnings/(loss) per share (“EPS”) and Adjusted EPS are net
of the profit attributable to non-controlling interests of $8.0
million and the dividend on preferred stock of $2.5 million for the
quarter ended June 30, 2020 ($15.5 million and $2.5 million,
respectively, for the quarter ended June 30, 2019).
(2) 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”). For the definitions and reconciliations 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.
Chairman and CEO Statements
Peter G. Livanos, Chairman of GasLog, stated:
“The second quarter again demonstrated the resiliency of GasLog’s
platform despite the ongoing difficulties created by the COVID-19
pandemic. Our in-built and fully financed growth is delivering as
planned, we have made great progress in reducing our operating and
overhead expenses as well as our debt service costs following the
recent refinancings and we have significantly enhanced our
liquidity.”
Paul Wogan, Chief Executive Officer, stated:
“Despite the current challenges in our operating and commercial
environment we achieved stable year on year performance in the
second quarter of 2020 and delivered close to 100% uptime for our
fleet. During the second quarter, the GasLog Windsor and the GasLog
Wales, both delivered on time and on budget and into multi-year
fixed-rate charters with high quality counterparties, we increased
the Group’s available liquidity through a private placement,
raising $36.0 million, 75% of which was from insiders, including
our Founder and Chairman, Peter G. Livanos and the Onassis
Foundation. In addition, we published our inaugural Sustainability
Report for 2019.
Our strategic execution continued in the third
quarter where, together with GasLog Partners, we refinanced all of
the Group’s 2021 debt maturities with four new credit facilities,
improving the Group’s liquidity by $30.2 million. In addition, we
took delivery of the GasLog Westminster, on time and on budget and
she immediately began a 7-year charter with Centrica.
I continue to be impressed with the dedication
and professionalism of our employees during these uncertain times,
particularly our seafarers, many of whom have been away from their
families for an extended period. Although we have made progress in
crew changes since the COVID-19 outbreak began, progress is slower
than we hoped as many countries remain reluctant to allow crews to
embark and disembark through their ports. As our seafarers are
delivering vitally needed energy to the world I believe they should
be recognised as key workers with their health and wellbeing
acknowledged and respected by all maritime nations and with their
passage from and to their vessels recognised as a priority.”
COVID-19 Update
Given the current uncertainty in relation to
COVID-19, we have disclosed certain risks and uncertainties in our
Form 6-K for the three months ended June 30, 2020 (refer to Exhibit
99.2), which also updates the risk factors described in our Annual
Report on Form 20-F filed with the SEC on March 6, 2020 and in our
Quarterly Report on Form 6-K filed with the SEC on May 7, 2020.
Operational update
GasLog’s focus continues to be on ensuring the
health and safety of our employees while providing safe and
reliable operations for our customers.
- Beginning on June 1, 2020, employees at our Piraeus, Greece
location returned to the office on a rotational basis at a capacity
of approximately 50.0%. Piraeus office personnel have been provided
with the appropriate personal protective equipment and
modifications were made to the office’s floor plan to ensure social
distancing; plexiglass dividers were installed and enhanced
cleaning procedures have been enacted. All other onshore locations
continue under a “work from home” policy in accordance with local
guidelines and regulations;
- Crew changes continue to be planned at every opportunity and to
date GasLog has been able to rotate approximately 80.0% of the
officers and a smaller percentage of the other ranks. The majority
of the crew rotation difficulties we face, are due to continued
lockdowns in Singapore and the Philippines;
- The GasLog Savannah is expected to complete her scheduled
dry-docking by the end of August 2020. The vessel began its
dry-docking in Singapore on April 9, 2020; however, COVID-19
related lockdown measures were enacted soon thereafter and extended
through early July, preventing its scheduled completion and, as a
result, the GasLog Savannah was off-charter for a total of 90 days
and approximately 60 days during the second and third quarters of
2020, respectively; and
- As a result of these measures and the dedication of our
employees onshore and aboard our vessels, excluding the GasLog
Savannah approximately 100% of our fleet continues to be available
for commercial use.
Commercial update
COVID-19 placed downward pressure on economic
activity and energy demand during the second quarter and there
remains significant uncertainty regarding near-term LNG demand and,
therefore, LNG shipping requirements.
- The Group’s charter coverage for the remainder of 2020 is
82%;
- The combined impact of COVID-19 and normal seasonality has led
to greater volatility in spot rates;
- The utilization and earnings of our vessels trading in the spot
market may be materially lower than their earnings under their
initial multi-year charters; and
- On September 4, 2019, GasLog announced a new 10-year time
charter with Sinolam LNG Terminal, S.A. for the GasLog Singapore
for use as a floating storage unit (“FSU”) in support of a LNG
gas-fired power plant currently being developed near Colon, Panama,
by Sinolam Smarter Energy LNG Power Company, a subsidiary of
private Chinese investment group Shanghai Gorgeous Development
Company. The completion of the power plant was initially scheduled
for the second quarter of 2020 but has since been delayed by 6
months, the result of COVID-19 related impacts to the construction
schedule. GasLog has received approval to defer conversion of the
GasLog Singapore until the first quarter of 2021 to align more
closely with the project’s new expected start date. All other terms
of the charter party agreement remain in effect.
Financial update
COVID-19 has had a sustained impact on global
capital and bank credit markets, affecting access, timing and cost
of capital.
- Notwithstanding COVID-19, we have refinanced the Group’s debt
maturities due in 2021 with four new credit facilities representing
a total of approximately $1.1 billion, strengthening the balance
sheet and delivering $30.2 million of incremental liquidity to the
Group;
- Following recent amendments with several counterparties to our
interest rate swap agreements as well as a strengthening of the
Norwegian Kroner versus the U.S Dollar since late March, our cash
collateral with respect to our interest rate and cross-currency
swaps agreements was $44.8 million as of July 31, 2020, down from
$71.1 million as of June 30, 2020 and $81.2 million as of March 31,
2020; and
- As of June 30, 2020, we recognized a non-cash impairment loss
of $22.5 million in aggregate on certain of our Steam vessels due
to the uncertainty regarding the effects of COVID-19 in the
short-term spot market, as discussed in the Commercial update
above.
LNG Market Update and Outlook
LNG demand was 86 million tonnes (“mt”) in the second quarter of
2020, according to Poten, compared to 87 mt in the second quarter
of 2019, or a decrease of approximately 2%. More specifically,
Chinese LNG demand was 16 mt in the second quarter of 2020, an
increase of 20% year-over-year, while demand from the Middle East
was 5 mt, growing over 1 mt, or 39%. In contrast, demand from Asia,
excluding China, declined by 4 mt, or 8%, and demand from Europe
declined by approximately 1 mt, or 3%.
Global LNG supply was approximately 89 mt in the first quarter
of 2020, an increase of 2 mt over the second quarter of 2019, or
2%, according to Poten. Supply from the United States (“U.S.”)
increased over 3 mt, or 39%, the result of production increase from
new large projects including Cameron and Freeport, while re-exports
out of Europe increased by 2 mt, or over 140%. This growth was
offset by declines out of the Middle East and North Africa, where
supply decreased by over 2 mt, or 8%. Looking ahead, approximately
94 mt of new LNG capacity is expected to begin production during
2020-2025, according to estimates from Wood Mackenzie.
In the LNG shipping spot market, tri-fuel diesel electric vessel
(“TFDE”) headline rates, as reported by Clarksons, averaged $35,000
per day in the second quarter of 2020, a decrease from the averages
of $57,000 in the first quarter of 2020 and $49,000 in the second
quarter of 2019. Headline spot rates for Steam vessels averaged
$23,000 per day in the second quarter of 2020, a decrease from the
averages of $40,000 per day in the first quarter of 2020 and
$33,000 per day in the second quarter of 2019. Headline spot rates
in the second quarter were negatively impacted by declines in LNG
demand due, in part, to ongoing impacts from the COVID-19 outbreak
to the global economy as well as high inventories of natural gas
and LNG, particularly in Europe, which limited opportunities for
LNG arbitrage trading between Atlantic and Pacific basins.
Clarksons currently assesses headline spot rates for TFDE and Steam
LNG carriers at $36,500 per day and $23,000 per day,
respectively.
Although many economies around the world have begun to reopen in
various stages, the COVID-19 outbreak continues to create high
levels of uncertainty for LNG demand and therefore, LNG shipping,
at least through the near-term. In addition, global gas prices and
gas price differentials between the Atlantic and Pacific basins
remain near their historic lows, limiting the opportunities for
inter-basin trading, as evidenced by the reported cancellation of
over 100 cargoes out of the U.S. during the third quarter of 2020.
These factors, when combined with scheduled deliveries to the
global fleet and usual seasonal trading patterns, have the
potential to keep downward pressure on rates in the spot and
short-term shipping markets over the near-term. Further ahead,
futures curves for global natural gas prices indicate the potential
for higher LNG demand and the resumption of inter-basin trading
during the Northern Hemisphere winter, which if realized, would be
expected to translate into higher utilization for the global LNG
carrier fleet.
As of July 31, 2020, the orderbook totals 109 dedicated LNG
carriers (>100,000 cbm), according to estimates from Poten,
representing 20% of the on-the-water fleet. Of these, 70 vessels
(or 64%) have multi-year charters. Orders for newbuild LNG carriers
are on pace for their lowest annual total since 2017 as just 6
newbuildings have been ordered so far in 2020, all of which are
chartered under multi-year contracts.
Debt Refinancing
On July 16, 2020, GasLog Partners entered into a credit
agreement of $260.3 million with BNP Paribas, Credit Suisse AG and
Alpha Bank S.A., each an original lender, with BNP Paribas acting
as security agent and trustee for and on behalf of the other
finance parties mentioned above, in order to refinance the existing
indebtedness due in 2021 on three of its vessels. The facility will
amortize over ten equal semi-annual installments of $8.6 million
beginning in January 2021, with a final balloon amount of $174.3
million payable concurrently with the last installment in July
2025. Interest on the facility will be payable at a rate of U.S.
dollar (“USD”) London Interbank Offered Rate (“LIBOR”) plus a
margin. The relevant amount of $260.3 million was drawn on July 21,
2020, out of which $258.5 million was used to refinance the
outstanding indebtedness of GAS-twenty Ltd., GAS-seven Ltd. and
GAS-eight Ltd., the respective entities owning the Methane Shirley
Elisabeth, the GasLog Seattle and the Solaris.
Also, on July 16, 2020, GasLog Partners entered into a credit
agreement of $193.7 million with DNB Bank ASA, London Branch, and
ING Bank N.V., London Branch, each an original lender, with DNB
Bank ASA, London Branch acting as security agent and trustee for
and on behalf of the other finance parties mentioned above, in
order to refinance the existing indebtedness due in 2021 on three
of its vessels. The facility will amortize over ten equal
semi-annual installments of $8.6 million beginning in January 2021,
with a final balloon amount of $107.7 million payable concurrently
with the last installment in July 2025. Interest on the facility
will be payable at a rate of USD LIBOR plus a margin. DNB Bank ASA,
London Branch and ING Bank N.V., London Branch were also registered
as hedging providers under the facility. The relevant amount of
$193.7 million was drawn on July 21, 2020, out of which $174.9
million was used to refinance the outstanding indebtedness of
GAS-nineteen Ltd., GAS-twenty one Ltd. and GAS-twenty seven Ltd.,
the respective entities owning the Methane Alison Victoria, the
Methane Heather Sally and the Methane Becki Anne.
GasLog has concurrently refinanced the existing indebtedness due
in 2021 for the GasLog Savannah, the GasLog Singapore, the GasLog
Skagen, the GasLog Saratoga, the GasLog Salem, and the Methane
Lydon Volney by entering into a credit agreement of $576.9 million.
ABN AMRO Bank N.V., Citigroup Global Markets Limited and Nordea
Bank ABP, Filial I Norge acted as global co-coordinators and
bookrunners, while HSBC Bank plc acted as mandated lead arranger;
Credit Agricole Corporate and Investment Bank acted as lead
arranger and Unicredit Bank AG and National Bank of Australia
Limited acted as arrangers, each of those being an original lender.
ABN AMRO Bank N.V. was appointed by the other finance parties in
this syndicate as security agent and trustee. The facility
comprises of a $494.5 million Term Loan Facility which will
amortize on a quarterly basis (following an initial repayment six
months after initial drawdown equal to the sum of two quarterly
repayments), with a final balloon amount payable concurrently with
the last installment in June 2025; and a $82.4 million revolving
loan facility which also matures in June 2025. Interest on the
facility will be payable at a rate of USD LIBOR plus a margin. An
amount of $576.9 million was drawn on July 21, 2020, out of which
$557.0 million was used to refinance the outstanding indebtedness
of GAS-one Ltd., GAS-two Ltd., GAS-six Ltd., GAS-nine Ltd., GAS-ten
Ltd., and GAS-eighteen Ltd., the respective entities owning the
GasLog Savannah, the GasLog Singapore, the GasLog Skagen, the
GasLog Saratoga, the GasLog Salem and the Methane Lydon Volney. The
balance of the proceeds will be used for general corporate and
working capital purposes.
On July 30, 2020, GasLog entered into a credit agreement with
National Bank of Greece S.A. for the refinancing of
GAS-fifteen Ltd., the entity owning the GasLog Chelsea. Funded on
July 31, 2020, the facility provides $96.8 million of additional
financing, refinancing the $92.3 million of outstanding
indebtedness of GasLog Chelsea and contributing to the $30.2
million of incremental liquidity for general corporate and working
capital purposes referenced above. National Bank of Greece S.A. is
acting as the sole original lender. The facility will amortize on a
quarterly basis, with a final balloon amount payable concurrently
with the last instalment in July 2025.
The signing and closing of the four credit facilities described
above was completed during a time of unprecedented uncertainty in
credit and bank markets and saw participation from new and existing
lenders, which underscores the strength and scale of our platform
to attract new capital providers, refinancing in full our debt
maturities due in 2021, strengthen the balance sheet and create
additional liquidity.
Delivery of the GasLog Windsor
On April 1, 2020, GasLog took delivery of the GasLog Windsor, a
180,000 cbm LNG carrier with X-DF propulsion constructed by Samsung
Heavy Industries Co., Ltd. (“Samsung”). Despite the disruption in
South Korea caused by the COVID-19 outbreak, the vessel was
delivered on time and on budget. Upon delivery, the vessel
immediately commenced its seven-year charter with Centrica.
Delivery of the GasLog Wales
On May 11, 2020, GasLog took delivery of the GasLog Wales, a
180,000 cbm LNG carrier with X-DF propulsion constructed by
Samsung. Despite the disruption in South Korea caused by the
COVID-19 outbreak, the vessel was delivered on time and on budget.
Upon delivery, the vessel immediately commenced its 12-year charter
with JERA.
Private Placement of Common Shares
On June 29, 2020, GasLog completed the sale of 14,400,000 common
shares at a price of $2.50 per share for total gross proceeds of
$36.0 million through a private placement of unregistered common
shares (“the Private Placement”). The net proceeds were used for
general corporate purposes. Approximately 75% of shares issued in
the Private Placement were purchased by GasLog’s directors and
affiliates, including 6,500,000 common shares purchased by Blenheim
Holdings Ltd., wholly-owned by the Livanos family and 4,000,000
common shares purchased by a wholly-owned affiliate of the Onassis
Foundation. In addition, member of the Tung family, whose roots in
shipping date back over 70 years, purchased common shares in the
Private Placement.
Delivery of the GasLog Westminster
Post quarter-end, on July 15, 2020, GasLog took delivery of the
GasLog Westminster, a 180,000 cbm LNG carrier with X-DF propulsion
constructed by Samsung. Despite the disruption in South Korea
caused by the COVID-19 outbreak, the vessel was delivered on time
and on budget. Upon delivery, the vessel immediately commenced its
seven-year charter with Centrica.
Dividend Declarations
On May 14, 2020, the board of directors declared a dividend on
the Series A Preference Shares of $0.546875 per share, or $2.5
million in the aggregate, payable on July 1, 2020 to holders of
record as of June 30, 2020. GasLog paid the declared dividend to
the transfer agent on July 1, 2020.
On August 4, 2020, the board of directors declared a quarterly
cash dividend of $0.05 per common share, or $4.0 million in the
aggregate, payable on August 27, 2020 to shareholders of record as
of August 17, 2020.
Impairment Loss on Vessels
As of June 30, 2020, the Group recognized a non-cash impairment
loss of $22.5 million in aggregate on certain of its Steam vessels.
The COVID-19 pandemic placed downward pressure on economic activity
and energy demand, as well as significant uncertainty regarding
future near-term LNG demand and, therefore LNG shipping
requirements. This has reduced our expectations for the estimated
rates at which employment for our vessels could be secured over the
near-term in the spot market. The non-cash impairment loss of $22.5
million was recognized with respect to three Steam vessels owned by
the Partnership, the Methane Rita Andrea, the Methane Shirley
Elisabeth and the Methane Heather Sally, and one Steam vessel owned
by GasLog, the Methane Lydon Volney.
Inaugural Sustainability Report
On June 11, 2020 GasLog issued its inaugural 2019 Sustainability
Report. The report presents GasLog’ s strategy and commitment
toward environmental, social and governance (“ESG”) practices. In
addition, the report is transparent in its presentation of
operational data, detailing vessel-by-vessel CO2 emissions,
fleetwide methane emission and efficiency indices and presents the
numerous Key Performance Indicators underscoring our ESG
commitment. A copy of the report can be found on our website at
https://www.gaslogltd.com/investors/sustainability.
Organizational Update
In November 2019, GasLog announced plans to relocate more of its
employees, including several members of senior management, to our
main operating office in Piraeus, Greece, to enhance business
efficiency, operational excellence and to reduce overheads. By the
end of 2020, we will have concluded these organizational changes,
having closed the Monaco office and reduced the number of employees
in our London office. These measures will result in annualized
general and administrative (“G&A”) savings of $6.0 million with
effect from 2021. In the three months ended June 30, 2020,
additional restructuring costs of $1.1 million were recognized
($1.5 million for the six months ended June 30, 2020).
As the next phase in our strategy to enhance efficiency and
reduce costs, we have now decided to include GasLog Partners and
our Stamford office in this initiative. Andrew Orekar, CEO of
GasLog Partners, has informed the Company that, as a result of the
relocation of his role to Piraeus, Greece, he will step down from
his position on September 15, 2020. Paul Wogan, currently CEO of
GasLog, will assume the responsibilities of CEO of GasLog Partners
on September 16, 2020. Please see today’s separate press release on
this matter. In addition, we will reduce the size of the
Partnership’s board of directors from seven to five members and
will close our Stamford, Connecticut office. This plan is expected
to generate annualized G&A savings of $3.0 million per annum
starting in 2021.
When taken together with the organizational changes already
announced, we expect to reduce our G&A expenses by $9.0 million
in aggregate beginning in 2021.
Financial Summary
Amounts
in thousands of U.S. dollars except per share
data |
|
For the three months ended |
|
|
|
June 30, 2019 |
|
|
June 30, 2020 |
|
Revenues |
|
$ |
154,251 |
|
|
$ |
158,861 |
|
Loss for the period |
|
$ |
(10,512 |
) |
|
$ |
(13,338 |
) |
Adjusted Profit(1) |
|
$ |
20,485 |
|
|
$ |
24,596 |
|
Adjusted EBITDA(1) |
|
$ |
107,043 |
|
|
$ |
111,665 |
|
Loss attributable to the
owners of GasLog |
|
$ |
(25,998 |
) |
|
$ |
(21,348 |
) |
EPS, basic |
|
$ |
(0.35 |
) |
|
$ |
(0.30 |
) |
Adjusted EPS(1) |
|
$ |
0.03 |
|
|
$ |
0.02 |
|
(1) 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 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.
There were 2,458 revenue operating days for the quarter ended
June 30, 2020, as compared to 2,409 revenue operating days
(including 513 days in the LNG carrier pooling agreement (the “Cool
Pool”) for the quarter ended June 30, 2019). The increase in
revenue operating days was mainly driven by the increased operating
days from the deliveries of the GasLog Warsaw on July 31, 2019, the
GasLog Windsor on April 1, 2020 and the GasLog Wales on May 11,
2020, partially offset by unchartered days from the vessels
operating in the spot market (for the vessels whose time charters
expired), as well as the increased days for dry-dockings.
Management allocates vessel revenues to two categories: (a)
variable rate charters (“VR Revenues”) and (b) fixed rate charters
(“FR Revenues”). The variable rate charter category contains
vessels operating in the LNG carrier spot and short-term market or
those which have a variable rate of hire across the charter period.
The vessels in this category during the second quarter of 2020 were
the GasLog Savannah, the GasLog Singapore, the GasLog Shanghai, the
GasLog Sydney, the GasLog Skagen, the GasLog Saratoga, the GasLog
Salem, the GasLog Chelsea, the Methane Rita Andrea, the Methane
Alison Victoria and the Methane Shirley Elisabeth.
Revenues were $158.9 million for the quarter ended June 30, 2020
($154.3 million for the quarter ended June 30, 2019). The increase
was mainly driven by the deliveries of the GasLog Warsaw on July
31, 2019, the GasLog Windsor on April 1, 2020 and the GasLog Wales
on May 11, 2020, partially offset by the expiration of the time
charters of the Gaslog Saratoga, the Methane Alison Victoria, the
Methane Rita Andrea and the GasLog Sydney (which were all operating
in a weak and volatile spot market impacted by the COVID-19
pandemic during the three months ended June 30, 2020).
For the quarter ended June 30, 2020, an analysis of revenue
operating days, revenues and voyage expenses and commissions per
category of charter is presented below:
|
|
|
|
|
|
|
|
|
|
For the three months endedJune 30,
2020 |
|
Amounts in thousands
of U.S. dollars |
|
|
|
Variable rate charters |
|
|
Fixed rate charters |
|
Available days (*) |
|
|
|
797 |
|
|
1,794 |
|
Revenue operating
days(**) |
|
|
|
665 |
|
|
1,793 |
|
Revenues |
|
|
|
19,671 |
|
|
139,190 |
|
Voyage expenses and
commissions |
|
|
|
(3,293 |
) |
|
(2,149 |
) |
(*) Available days represent total calendar days in the period
after deducting off-hire days where vessels are undergoing
dry-dockings and unavailable days, i.e. days before and after a
dry-docking where the vessel has limited practical ability for
chartering opportunities. (**) Revenue operating days represent
total available days after deducting unchartered days.
In addition, GasLog recognized gross revenues and gross voyage
expenses and commissions of $12.8 million and $3.4 million,
respectively, from the operation of its vessels in the Cool Pool
during the quarter ended June 30, 2019. Net pool allocation was a
positive $2.7 million for the quarter ended June 30, 2019.
Voyage expenses and commissions were $5.4 million for the
quarter ended June 30, 2020 ($5.9 million for the quarter ended
June 30, 2019). The decrease resulted from the decreased bunkers’
consumption of our vessels operating in the spot market.
Vessel operating and supervision costs were $32.6 million for
the quarter ended June 30, 2020 ($33.4 million for the quarter
ended June 30, 2019). The decrease in absolute terms was mainly
attributable to the decrease in scheduled technical and maintenance
costs related to engine maintenance, as well as the favorable
movement of the Euro (“EUR”)/USD exchange rate in the second
quarter of 2020 as compared to the prior quarter, which was
partially offset by the increase of our fleet following the
delivery of two vessels in the first half of 2020 and one vessel in
the second half of 2019. Daily operating costs per vessel decreased
from $14,099 per ownership day (excluding the Solaris which is
managed by Shell) for the quarter ended June 30, 2019, to $12,550
per ownership day (excluding the Solaris which is managed by Shell)
for the three-month period ended June 30, 2020.
General and administrative expenses remained $11.2 million for
the quarter ended June 30, 2020 ($11.2 million for the quarter
ended June 30, 2019), before adjusting for restructuring costs in
2020. General and administrative expenses, excluding the effect of
the restructuring costs of $1.1 million, were $10.1 million for the
quarter ended June 30, 2020 and the running daily expenses
decreased from $4,547 per ownership day (as defined above) for the
quarter ended June 30, 2019, to $3,746 per ownership day (as
defined above) for the quarter ended June 30, 2020. The decrease is
mainly attributable to decreased travel and accommodation expenses
mainly due to the COVID-19 related travel restrictions imposed
during 2020 and to legal and other professional fees savings.
Depreciation was $43.6 million for the quarter ended June 30,
2020 ($41.4 million for the quarter ended June 30, 2019). The
increase in depreciation resulted mainly from the increase in the
average number of vessels in our fleet in the quarter ended June
30, 2020, compared to the same quarter in 2019, which was partially
offset by the impairment charges recognized in the fourth quarter
of 2019, which reduced the carrying value of our Steam vessels.
Financial costs were $43.6 million for the quarter ended June
30, 2020 ($46.9 million for the quarter ended June 30, 2019). The
decrease was mainly attributable to the decreased weighted average
interest rate deriving from the downward movement of the LIBOR
partially offset by increased other financial costs in relation to
the $3.3 million of fees paid for our comprehensive plan to manage
our cash collateral exposure placed with the swap banks as a result
of the negative marked to market valuations of our interest rate
and cross currency swaps. An analysis of the financial costs is
presented below:
(All amounts expressed
in thousands of U.S. dollars) |
|
|
|
For the three months ended |
|
|
|
|
|
|
|
June 30, 2019 |
|
June 30, 2020 |
|
|
Financial
costs |
|
|
|
|
|
|
|
|
|
|
|
Amortization and
write-off of deferred loan/bond issuance costs/premium |
|
|
$ |
(3,224 |
) |
$ |
(3,697 |
) |
|
Interest expense
on loans |
|
|
|
(32,383 |
) |
|
(25,147 |
) |
|
Interest expense
on bonds and realized loss on cross-currency swaps (“CCS”) |
|
|
|
(8,256 |
) |
|
(8,856 |
) |
|
Lease charge |
|
|
|
(2,635 |
) |
|
(2,526 |
) |
|
Other financial
costs, net |
|
|
|
(399 |
) |
|
(3,331 |
) |
|
Total |
|
|
|
|
$ |
(46,897 |
) |
$ |
(43,557 |
) |
|
Loss on derivatives was $13.5 million for the quarter ended June
30, 2020 ($30.8 million loss for the quarter ended June 30, 2019).
The decrease in loss on derivatives in the second quarter of 2020,
as compared to the second quarter of 2019, is mainly attributable
to a decrease of $21.6 million in loss from marked-to-market
valuation of our derivative financial instruments carried at fair
value through profit or loss, derived from changes in the LIBOR
curve. An analysis of loss on derivatives is presented below:
(All amounts expressed
in thousands of U.S. dollars) |
|
|
|
For the three months ended |
|
|
|
|
|
|
|
June 30, 2019 |
|
June 30, 2020 |
|
|
Loss on
derivatives |
|
|
|
|
|
|
|
|
|
|
|
Realized
gain/(loss) on derivatives held for trading |
|
|
$ |
1,226 |
|
$ |
(2,731 |
) |
|
Realized loss on
forward foreign exchange contracts held for trading |
|
|
|
(1,246 |
) |
|
(531 |
) |
|
Unrealized loss on
derivative financial instruments held for trading |
|
|
|
(30,781 |
) |
|
(9,140 |
) |
|
Ineffective
portion of cash flow hedges |
|
|
|
2 |
|
|
(1,065 |
) |
|
Total |
|
|
|
|
$ |
(30,799 |
) |
$ |
(13,467 |
) |
|
Loss for the period was $13.3 million for the quarter ended June
30, 2020 (loss of $10.5 million for the quarter ended June 30,
2019). This increase in loss is mainly attributable to the
impairment loss on vessels, partially offset by the favorable
movement in non-cash marked-to-market valuations of our derivative
financial instruments in the second quarter of 2020 and the
decrease in finance costs.
Adjusted Profit(1) was $24.6 million for the quarter ended June
30, 2020 ($20.5 million for the quarter ended June 30, 2019)
adjusted for the effects of the impairment loss on vessels, the
non-cash loss on derivatives, the swap amendment costs (with
respect to cash collateral requirements), the restructuring costs,
the loss on disposal of non-current assets, the foreign exchange
losses, net and the net unrealized foreign exchange gains on cash
and bonds.
Loss attributable to the owners of GasLog was $21.3 million for
the quarter ended June 30, 2020 ($26.0 million loss for the quarter
ended June 30, 2019). The decrease in loss attributable to the
owners of GasLog resulted mainly from the decrease in profit
attributable to the non-controlling interests (non-controlling
unitholders of GasLog Partners) following the decrease in the
Partnership’s profit, partially offset by the increase in loss for
the period mentioned above.
Adjusted EBITDA(1) was $111.7 million for the quarter ended June
30, 2020 ($107.0 million for the quarter ended June 30, 2019).
EPS was a loss of $0.30 for the quarter ended June 30, 2020
($0.35 loss for the quarter ended June 30, 2019). The decrease in
loss per share is mainly attributable to the respective movements
in loss attributable to the owners of GasLog discussed above.
Adjusted EPS(1) was a gain of $0.02 for the quarter ended June
30, 2020 ($0.03 gain for the quarter ended June 30, 2019), adjusted
for the effects of the impairment loss on vessels, the swap
amendment costs (with respect to cash collateral requirements), the
non-cash loss on derivatives, the restructuring costs, the loss on
disposal of non-current assets, the foreign exchange losses, net
and the net unrealized foreign exchange gains on cash and
bonds.
(1) Adjusted Profit, 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.
Contracted Charter Revenues
As of June 30, 2020, the total future firm contracted revenue
stood at $3.7 billion(1), including the 15 vessels currently owned
by GasLog Partners.
(1) Contracted revenue calculations assume: (a) 365 revenue days
per annum, with 30 off-hire days when the ship undergoes scheduled
dry-docking; (b) all LNG carriers on order are delivered on
schedule; (c) no exercise of any option to extend the terms of
charters; and (d) where charters are based on a variable rate of
hire within an agreed range during the charter period, the lower
end of the range.
Liquidity and Capital Resources
As of June 30, 2020, GasLog had $172.9 million of cash and cash
equivalents, of which $44.5 million was held in time deposits and
the remaining balance in current accounts. In addition, an amount
of $71.1 million was held as cash collateral with respect to our
derivative instruments and is included in Other non-current assets
and Prepayments and other current assets. This amount has been
further reduced to $44.8 million, following the novation of certain
swap agreements described below.
On January 13, 2020, GasLog completed the partial exchange of
$10.0 million of the outstanding 8.875% senior unsecured notes due
2022 (the “8.875% Senior Notes”) for new senior unsecured bonds due
in 2024 (the “NOK 2024 Bonds”). On January 31, 2020, GasLog
repurchased and cancelled NOK 434,000 of the outstanding senior
unsecured bonds due May 2021 (the “NOK 2021 Bonds”) at a price of
104.0% of par value, resulting in a loss of $1.9 million.
On February 13, 2020, on March 13, 2020 and on March 18, 2020,
GasLog drew down $23.3 million, $50.7 million and $26.0 million,
respectively under the revolving credit facility of up to $1.1
billion entered into on July 19, 2016 (the “Legacy Facility
Refinancing”). On March 26, 2020 and on May 4, 2020, GasLog drew
$152.5 million and $149.4 million, respectively, under the facility
signed on December 12, 2019 with an Export Credit Agency-backed
debt financing of $1.1 billion with 13 international banks to
provide the debt funding for its current newbuilding program (the
“Newbuilding Facility”), to partially finance the delivery of the
GasLog Windsor and the GasLog Wales.
On June 29, 2020, GasLog closed the sale of 14,400,000 common
shares at a price of $2.50 per share for total gross proceeds of
$36.0 million through the Private Placement. The net proceeds were
used for general corporate purposes. This transaction increased
liquidity and further strengthened the capital structure of
GasLog.
As of June 30, 2020, the total remaining balance of the contract
prices of the five LNG carriers on order was $788.3 million
(including the GasLog Westminster which was delivered on July 15,
2020), which GasLog expects to fund them with the Newbuilding
Facility, cash balances and cash from operations. As of June 30,
2020, there was undrawn available capacity of $750.9 million under
the Newbuilding Facility.
As of June 30, 2020, GasLog had an aggregate of $3.4 billion of
indebtedness outstanding under its credit facilities and bond
agreements, of which $465.2 million was repayable within one year,
and $200.7 million of lease liabilities, of which $9.8 million was
payable within one year
On July 21, 2020 and July 31, 2020, the respective subsidiaries
of GasLog drew down a total of $1,127.7 million under the new
facilities entered into on July 16, 2020 and July 30, 2020 and
prepaid in full their aggregate outstanding debt of $1,082.6
million, which would have been due in April and July 2021.
GasLog has hedged 42.7% of its expected floating interest rate
exposure on its outstanding debt (excluding the lease liability) as
of June 30, 2020.
Diversifying the list of hedging providers, GasLog has entered
into novation agreements with Nordea Bank Finland (“Nordea”) and
Standard Chartered Bank. Subsequently, two interest rate swaps
originally held with Nordea and due to mature in 2022, have now
been transferred to Standard Chartered Bank. The aggregate notional
of the trades is $166.6 million. Furthermore, as part of the
closing of the Partnership’s refinancing in July 2020, GasLog
Partners entered into four new interest rate swap agreements with
an aggregate notional amount of $133.3 million due in 2024 and 2025
with the facility lenders DNB Bank ASA, London Branch and ING Bank
N.V., London Branch, all secured under the GasLog Partners’ $193.7
million facility agreement signed on July 16, 2020 in relation to
the GAS-nineteen Ltd., the GAS-twenty Ltd. and the GAS-twenty seven
Ltd., the vessel owning entities of the Methane Alison Victoria,
the Methane Heather Sally and the Methane Becki Anne. Combined with
favorable movements in marked-to-market valuations, this resulted
in cash collateral with respect to our interest rate and
cross-currency swap agreements decreasing to $44.8 million as of
July 31, 2020.
As of June 30, 2020, GasLog’s current assets totaled $249.8
million, while current liabilities totaled $662.5 million
(including the $332.2 million of current debt refinanced in July
2020), resulting in a negative working capital position of $412.7
million. Management monitors the Company’s liquidity position
throughout the year to ensure that it has access to sufficient
funds to meet its forecast cash requirements, including newbuilding
and debt service commitments, and to monitor compliance with the
financial covenants within its loan and bond facilities. Taking
into account current and expected volatile commercial and financial
market conditions, we anticipate that our primary sources of funds
over the next twelve months will be available cash, cash from
operations and existing borrowings, including the credit agreements
entered into on July 16, 2020 and July 30, 2020, which refinanced
in full the debt maturities due in 2021. We believe that these
anticipated sources of funds will be sufficient to meet our
liquidity needs and to comply with our banking covenants for at
least 12 months from the end of the reporting period and therefore
it is appropriate to prepare the financial statements on a going
concern basis. Additionally, we may enter into new debt facilities
in the future, as well as public and/or private equity or debt
instruments, although there can be no assurance that we will be
able to obtain additional debt or equity financing on terms
acceptable to us, which will also depend on financial, commercial
and other factors, as well as a significant recovery in capital
market conditions, that are beyond our control.
Future Deliveries
As of August 5, 2020, GasLog has four newbuildings on order at
Samsung which are on schedule and within budget:
LNG Carrier |
|
Year Built(1) |
|
Shipyard |
|
Cargo Capacity (cbm) |
|
Charterer |
|
Propulsion |
|
Estimated Charter Expiration(2) |
|
|
Hull No. 2300 |
|
Q4 2020 |
|
Samsung |
|
174,000 |
|
Cheniere(3) |
|
X-DF |
|
2027 |
Hull No. 2301 |
|
Q1 2021 |
|
Samsung |
|
174,000 |
|
Cheniere(3) |
|
X-DF |
|
2028 |
Hull No. 2311 |
|
Q2 2021 |
|
Samsung |
|
180,000 |
|
Cheniere(3) |
|
X-DF |
|
2028 |
Hull No. 2312 |
|
Q3 2021 |
|
Samsung |
|
180,000 |
|
Cheniere(3) |
|
X-DF |
|
2028 |
____________(1)
Expected delivery quarters are presented.
(2) Charter expiration to be
determined based upon actual date of delivery.
(3) The vessel is chartered to a
wholly-owned subsidiary of Cheniere Energy, Inc. (“Cheniere”).
Conference Call
GasLog and GasLog Partners will host a joint conference call to
discuss their results for the second quarter of 2020 at 8.30 a.m.
EDT (3.30 p.m. EEST) on Wednesday, August 5, 2020. Senior
management of GasLog and GasLog Partners will review the
operational and financial performance of both companies. The
presentation will be followed by a Q&A session.
The dial-in numbers for the conference call are as follows:
+1 855 253 8928 (USA)+44 20 3107 0289 (United Kingdom)+33 1 70
80 71 53 (France)+852 5819 4851 (Hong Kong)+47 2396 4173 (Oslo)
Conference ID: 1796557
A live webcast of the conference call will also be available on
the Investor Relations page of both the GasLog
(http://www.gaslogltd.com/investors) and GasLog Partners
(http://www.gaslogmlp.com/investors) websites.
For those unable to participate in the conference call, a replay
of the webcast will be available on the Investor Relations pages of
the companies websites as referenced above.
About GasLog
GasLog is an international owner, operator and manager of LNG
carriers providing support to international energy companies as
part of their LNG logistics chain. GasLog’s consolidated fleet
consists of 35 LNG carriers. Of these vessels, 19 (15 on the water
and four on order) are owned by GasLog, one has been sold to a
subsidiary of Mitsui & Co. Ltd. and leased back by GasLog under
a long-term bareboat charter and the remaining 15 LNG carriers are
owned by the Company’s subsidiary, GasLog Partners. GasLog’s
principal executive offices are at 69 Akti Miaouli, 18537 Piraeus,
Greece. Visit GasLog’s website at http://www.gaslogltd.com.
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 multi-year charter rates, ship values, factors affecting
supply and demand of LNG and LNG shipping, including geopolitical
events, technological advancements and opportunities for the
profitable operations of LNG carriers;
- fluctuations in charter hire rates, vessel utilization and
vessel values;
- increased exposure to the spot market and fluctuations in spot
charter rates;
- changes in our operating expenses, including crew wages,
maintenance, dry-docking and insurance costs and bunker
prices;
- number of off-hire days and dry-docking requirements including
our ability to complete scheduled dry-dockings on time and within
budget;
- our ability to maintain long-term relationships and enter into
time charters with new and existing customers;
- disruption to the LNG, LNG shipping and financial markets
caused by global shutdown as a result of the COVID-19
pandemic;
- fluctuations in prices for crude oil, petroleum products and
natural gas;
- changes in the ownership of our charterers;
- our customers’ performance of their obligations under our time
charters and other contracts;
- our future operating performance and expenses, financial
condition, liquidity and cash available for dividends and
distributions;
- our ability to obtain debt and equity financing on acceptable
terms 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;
- the time that it may take to construct and deliver newbuildings
and the useful lives of our ships;
- fluctuations in currencies and interest rates;
- risks inherent in ship operation, including the discharge of
pollutants;
- the impact of environmental liabilities on us and the shipping
industry, including climate change;
- our ability to retain key employees and the availability of
skilled labour, ship crews and management;
- potential disruption of shipping routes due to accidents,
diseases, pandemics, 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 event; and
- other risks and uncertainties described in the Company’s Annual
Report on Form 20-F filed with the SEC on March 6, 2020 and
Quarterly Report on Form 6-K filed with the SEC on May 7, 2020 and
available at http://www.sec.gov.
• our ability to maximize the use of our vessels,
including the re-deployment or disposition of vessels which are not
under multi-year charters, including the risk that certain of our
vessels may no longer have the latest technology at such time which
may impact our ability to secure employment for such vessels as
well as the rate at which we can charter such vessels;•
planned capital expenditures and availability of capital resources
to fund capital expenditures;• the expected cost of and
our ability to comply with environmental and regulatory conditions,
including with respect to emissions of air pollutants and
greenhouse gases, as well as future changes in such requirements or
other actions taken by regulatory authorities, governmental
organizations, classification societies and standards imposed by
our charterers applicable to our business;
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.
Contacts:
Joseph NelsonHead of Investor RelationsPhone: +1
212-223-0643
Email: ir@gaslogltd.com
EXHIBIT I - Unaudited Interim Financial
Information
Unaudited condensed consolidated statements of financial
positionAs of December 31, 2019 and June 30,
2020(Amounts expressed in thousands of U.S.
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
June 30, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
9,511 |
|
|
9,511 |
|
Investment in associates |
|
|
|
21,620 |
|
|
21,273 |
|
Deferred financing costs |
|
|
|
11,592 |
|
|
10,217 |
|
Other non-current assets |
|
|
|
24,221 |
|
|
42,442 |
|
Derivative financial
instruments |
|
|
|
3,572 |
|
|
— |
|
Tangible fixed assets |
|
|
|
4,427,065 |
|
|
4,725,035 |
|
Vessels under
construction |
|
|
|
203,323 |
|
|
175,969 |
|
Right-of-use assets |
|
|
|
206,495 |
|
|
207,753 |
|
Total non-current
assets |
|
|
|
4,907,399 |
|
|
5,192,200 |
|
Current
assets |
|
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
|
24,900 |
|
|
26,702 |
|
Dividends receivable and other
amounts due from related parties |
|
|
|
573 |
|
|
3,342 |
|
Derivative financial
instruments |
|
|
|
429 |
|
|
— |
|
Inventories |
|
|
|
8,172 |
|
|
8,821 |
|
Prepayments and other current
assets |
|
|
|
13,475 |
|
|
37,982 |
|
Short-term investments |
|
|
|
4,500 |
|
|
— |
|
Cash and cash equivalents |
|
|
|
263,747 |
|
|
172,914 |
|
Total current
assets |
|
|
|
315,796 |
|
|
249,761 |
|
Total
assets |
|
|
|
5,223,195 |
|
|
5,441,961 |
|
Equity and
liabilities |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Preference shares |
|
|
|
46 |
|
|
46 |
|
Share capital |
|
|
|
810 |
|
|
954 |
|
Contributed surplus |
|
|
|
760,671 |
|
|
774,378 |
|
Reserves |
|
|
|
16,799 |
|
|
14,839 |
|
Treasury shares |
|
|
|
(2,159 |
) |
|
(1,718 |
) |
Accumulated deficit |
|
|
|
(87,832 |
) |
|
(160,659 |
) |
Equity attributable to
owners of the Group |
|
|
|
688,335 |
|
|
627,840 |
|
Non-controlling interests |
|
|
|
961,518 |
|
|
943,138 |
|
Total
equity |
|
|
|
1,649,853 |
|
|
1,570,978 |
|
Current
liabilities |
|
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
27,615 |
|
|
37,303 |
|
Ship management creditors |
|
|
|
601 |
|
|
784 |
|
Amounts due to related
parties |
|
|
|
200 |
|
|
78 |
|
Derivative financial
instruments |
|
|
|
8,095 |
|
|
34,616 |
|
Other payables and
accruals |
|
|
|
136,242 |
|
|
114,785 |
|
Borrowings, current
portion |
|
|
|
255,422 |
|
|
465,200 |
|
Lease liability, current
portion |
|
|
|
9,363 |
|
|
9,769 |
|
Total current
liabilities |
|
|
|
437,538 |
|
|
662,535 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
Derivative financial
instruments |
|
|
|
41,837 |
|
|
102,855 |
|
Borrowings, non-current
portion |
|
|
|
2,891,973 |
|
|
2,907,842 |
|
Lease liability, non-current
portion |
|
|
|
195,567 |
|
|
190,924 |
|
Other non-current
liabilities |
|
|
|
6,427 |
|
|
6,827 |
|
Total non-current
liabilities |
|
|
|
3,135,804 |
|
|
3,208,448 |
|
Total equity and
liabilities |
|
|
|
5,223,195 |
|
|
5,441,961 |
|
Unaudited condensed consolidated statements of profit or
lossFor the three and six months ended
June 30, 2019 and
2020(Amounts expressed in thousands of U.S.
Dollars, except per share data)
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
Revenues |
|
|
|
|
|
154,251 |
|
|
158,861 |
|
|
320,798 |
|
|
324,758 |
|
Net pool allocation |
|
|
|
|
|
2,658 |
|
|
— |
|
|
(4,080 |
) |
|
— |
|
Voyage expenses and
commissions |
|
|
|
|
|
(5,867 |
) |
|
(5,442 |
) |
|
(12,784 |
) |
|
(12,915 |
) |
Vessel operating and
supervision costs |
|
|
|
|
|
(33,358 |
) |
|
(32,605 |
) |
|
(66,328 |
) |
|
(67,657 |
) |
Depreciation |
|
|
|
|
|
(41,350 |
) |
|
(43,647 |
) |
|
(80,949 |
) |
|
(85,144 |
) |
Loss on disposal of
non-current assets |
|
|
|
|
|
— |
|
|
(572 |
) |
|
— |
|
|
(572 |
) |
Impairment loss on
vessels |
|
|
|
|
|
— |
|
|
(22,454 |
) |
|
— |
|
|
(22,454 |
) |
General and administrative
expenses |
|
|
|
|
|
(11,172 |
) |
|
(11,154 |
) |
|
(21,549 |
) |
|
(20,775 |
) |
Profit from
operations |
|
|
|
|
|
65,162 |
|
|
42,987 |
|
|
135,108 |
|
|
115,241 |
|
Financial costs |
|
|
|
|
|
(46,897 |
) |
|
(43,557 |
) |
|
(92,404 |
) |
|
(84,998 |
) |
Financial income |
|
|
|
|
|
1,709 |
|
|
177 |
|
|
3,168 |
|
|
645 |
|
Loss on derivatives |
|
|
|
|
|
(30,799 |
) |
|
(13,467 |
) |
|
(51,043 |
) |
|
(84,591 |
) |
Share of profit of
associates |
|
|
|
|
|
313 |
|
|
522 |
|
|
558 |
|
|
928 |
|
Total other expenses,
net |
|
|
|
|
|
(75,674 |
) |
|
(56,325 |
) |
|
(139,721 |
) |
|
(168,016 |
) |
Loss for the
period |
|
|
|
|
|
(10,512 |
) |
|
(13,338 |
) |
|
(4,613 |
) |
|
(52,775 |
) |
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Group |
|
|
|
|
|
(25,998 |
) |
|
(21,348 |
) |
|
(36,945 |
) |
|
(72,827 |
) |
Non-controlling interests |
|
|
|
|
|
15,486 |
|
|
8,010 |
|
|
32,332 |
|
|
20,052 |
|
|
|
|
|
|
|
(10,512 |
) |
|
(13,338 |
) |
|
(4,613 |
) |
|
(52,775 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share – basic
and diluted |
|
|
|
|
|
(0.35 |
) |
|
(0.30 |
) |
|
(0.52 |
) |
|
(0.96 |
) |
Unaudited condensed consolidated statements of cash
flowsFor the six months ended June
30, 2019 and
2020(Amounts expressed in thousands of U.S.
Dollars)
|
|
|
|
For the six months ended |
|
|
|
|
June 30, 2019 |
|
June 30, 2020 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
Loss for the period |
|
|
|
|
|
(4,613 |
) |
|
(52,775 |
) |
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
80,949 |
|
|
85,144 |
|
Impairment loss on
vessels |
|
|
|
|
|
— |
|
|
22,454 |
|
Loss on disposal of
non-current assets |
|
|
|
|
|
— |
|
|
572 |
|
Share of profit of
associates |
|
|
|
|
|
(558 |
) |
|
(928 |
) |
Financial income |
|
|
|
|
|
(3,168 |
) |
|
(645 |
) |
Financial costs |
|
|
|
|
|
92,404 |
|
|
84,998 |
|
Unrealized foreign exchange
(gains)/losses on cash and cash equivalents |
|
|
|
|
|
(122 |
) |
|
— |
|
Unrealized loss on derivative
financial instruments held for trading including ineffective
portion of cash flow hedges |
|
|
|
|
|
51,882 |
|
|
80,254 |
|
Share-based compensation |
|
|
|
|
|
2,587 |
|
|
2,992 |
|
|
|
|
|
|
|
219,361 |
|
|
222,066 |
|
Movements in working
capital |
|
|
|
|
|
(37,897 |
) |
|
(64,220 |
) |
Cash provided by
operations |
|
|
|
|
|
181,464 |
|
|
157,846 |
|
Interest paid |
|
|
|
|
|
(82,691 |
) |
|
(84,998 |
) |
Net cash provided by
operating activities |
|
|
|
|
|
98,773 |
|
|
72,848 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
Payments for tangible fixed
assets and vessels under construction |
|
|
|
|
|
(256,888 |
) |
|
(374,605 |
) |
Return of capital
expenditures |
|
|
|
|
|
5,629 |
|
|
— |
|
Other investments |
|
|
|
|
|
(158 |
) |
|
— |
|
Payments for right-of-use
assets |
|
|
|
|
|
(232 |
) |
|
(2,738 |
) |
Dividends received from
associate |
|
|
|
|
|
538 |
|
|
900 |
|
Purchase of short-term
investments |
|
|
|
|
|
(54,000 |
) |
|
— |
|
Maturity of short-term
investments |
|
|
|
|
|
35,000 |
|
|
4,500 |
|
Financial income received |
|
|
|
|
|
2,960 |
|
|
764 |
|
Net cash used in
investing activities |
|
|
|
|
|
(267,151 |
) |
|
(371,179 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
Proceeds from bank loans |
|
|
|
|
|
677,680 |
|
|
401,911 |
|
Bank loan and bond
repayments |
|
|
|
|
|
(445,604 |
) |
|
(150,508 |
) |
Payment for bond repurchase at
a premium |
|
|
|
|
|
— |
|
|
(1,937 |
) |
Payment for interest rate
swaps termination |
|
|
|
|
|
— |
|
|
(10,811 |
) |
Proceeds from entering into
interest rate swaps |
|
|
|
|
|
— |
|
|
10,770 |
|
Payment of loan issuance
costs |
|
|
|
|
|
(9,175 |
) |
|
(7,605 |
) |
Payment of equity raising
costs |
|
|
|
|
|
(894 |
) |
|
(15 |
) |
Proceeds from private
placement |
|
|
|
|
|
— |
|
|
36,000 |
|
Dividends paid |
|
|
|
|
|
(82,111 |
) |
|
(55,955 |
) |
Payment for CCS
termination |
|
|
|
|
|
— |
|
|
(4,051 |
) |
Purchase of treasury
shares |
|
|
|
|
|
(13,673 |
) |
|
(2,996 |
) |
Payments for lease
liability |
|
|
|
|
|
(4,770 |
) |
|
(5,182 |
) |
Net cash provided by
financing activities |
|
|
|
|
|
121,453 |
|
|
209,621 |
|
Effects of exchange rate
changes on cash and cash equivalents |
|
|
|
|
|
122 |
|
|
(2,123 |
) |
Decrease in cash and
cash equivalents |
|
|
|
|
|
(46,803 |
) |
|
(90,833 |
) |
Cash and cash equivalents,
beginning of the period |
|
|
|
|
|
342,594 |
|
|
263,747 |
|
Cash and cash
equivalents, end of the period |
|
|
|
|
|
295,791 |
|
|
172,914 |
|
EXHIBIT II
Non-GAAP Financial Measures:
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted
EPS
EBITDA is defined as earnings before depreciation, amortization,
financial income and costs, gain/loss on derivatives and taxes.
Adjusted EBITDA is defined as EBITDA before foreign exchange
gains/losses, impairment loss on vessels, gain/loss on disposal of
non-current assets and restructuring costs. Adjusted Profit
represents earnings before write-off and accelerated amortization
of unamortized loan fees/bond fees and premium, foreign exchange
gains/losses, unrealized foreign exchange losses on cash and bond,
impairment loss on vessels, gain/loss on disposal of non-current
assets, restructuring costs and non-cash gain/loss on derivatives
that includes (if any) (a) unrealized gain/loss on derivative
financial instruments held for trading, (b) recycled loss of cash
flow hedges reclassified to profit or loss and (c) ineffective
portion of cash flow hedges. Adjusted EPS represents earnings
attributable to owners of the Group before write-off and
accelerated amortization of unamortized loan/bond fees and premium,
foreign exchange gains/losses, unrealized foreign exchange losses
on cash and bond, impairment loss on vessels attributable to the
owners of the Group, the swap amendment costs (with respect to cash
collateral requirements), gain/loss on disposal of non-current
assets, restructuring costs and non-cash gain/loss on derivatives
as defined above, 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 purchase
and/or 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, financial costs, gain/loss
on derivatives, taxes, depreciation and amortization; in the case
of Adjusted EBITDA, foreign exchange gains/losses, impairment loss
on vessels, gain/loss on disposal of non-current assets and
restructuring costs; and in the case of Adjusted Profit and
Adjusted EPS, write-off and accelerated amortization of unamortized
loan/bond fees and premium, foreign exchange gains/losses,
unrealized foreign exchange losses on cash and bond, impairment
loss on vessels, swap amendment costs (with respect to cash
collateral requirements), gain/loss on disposal of non-current
assets, restructuring costs and non-cash gain/loss on derivatives,
which items are affected by various and possibly changing financing
methods, financial market conditions, capital structure and
historical cost basis, and which items may significantly affect
results of operations between periods. In the current period,
impairment loss on vessels, gain/loss on disposal of non-current
assets, swap amendment costs (with respect to cash collateral
requirements) and restructuring costs in particular are excluded
from Adjusted EBITDA, Adjusted Profit and Adjusted EPS because
impairments of long-lived assets and gain/loss on disposal of
non-current assets , which represent the excess of their carrying
amount over the amount that is expected to be recovered from them
in the future, and swap amendment costs (with respect to cash
collateral requirements) and restructuring costs, which reflect
specific actions taken by management to improve the Group’s future
liquidity and profitability, are non-cash charges and items not
considered to be reflective of the ongoing operations of the
company, respectively, that we believe reduce the comparability of
our operating and business performance across periods. In addition,
unrealized foreign exchange losses on cash and bond, are separately
adjusted in the current period, while in the past foreign exchange
losses on cash were included in foreign exchange gains/losses and
unrealized foreign exchange losses on bond did not exist.
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
operating 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 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 Loss to EBITDA
and Adjusted EBITDA:(Amounts
expressed in thousands of U.S. Dollars)
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
Loss for the period |
|
|
|
|
|
(10,512 |
) |
|
(13,338 |
) |
|
(4,613 |
) |
|
(52,775 |
) |
|
Depreciation |
|
|
|
|
|
41,350 |
|
|
43,647 |
|
|
80,949 |
|
|
85,144 |
|
|
Financial costs |
|
|
|
|
|
46,897 |
|
|
43,557 |
|
|
92,404 |
|
|
84,998 |
|
|
Financial income |
|
|
|
|
|
(1,709 |
) |
|
(177 |
) |
|
(3,168 |
) |
|
(645 |
) |
|
Loss on derivatives |
|
|
|
|
|
30,799 |
|
|
13,467 |
|
|
51,043 |
|
|
84,591 |
|
|
EBITDA |
|
|
|
|
|
106,825 |
|
|
87,156 |
|
|
216,615 |
|
|
201,313 |
|
|
Foreign exchange
losses/(gains), net |
|
|
|
|
|
218 |
|
|
402 |
|
|
368 |
|
|
(230 |
) |
|
Restructuring costs |
|
|
|
|
|
— |
|
|
1,081 |
|
|
— |
|
|
1,526 |
|
|
Loss on disposal of
non-current assets |
|
|
|
|
|
— |
|
|
572 |
|
|
— |
|
|
572 |
|
Impairment loss on
vessels |
|
|
|
|
|
— |
|
|
22,454 |
|
|
— |
|
|
22,454 |
|
|
Adjusted
EBITDA |
|
|
|
|
|
107,043 |
|
|
111,665 |
|
|
216,983 |
|
|
225,635 |
|
|
Reconciliation of Loss to Adjusted
Profit:(Amounts expressed in thousands of U.S.
Dollars)
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
Loss for the period |
|
|
|
|
|
(10,512 |
) |
|
(13,338 |
) |
|
(4,613 |
) |
|
(52,775 |
) |
|
Non-cash loss on
derivatives |
|
|
|
|
|
30,779 |
|
|
10,205 |
|
|
51,882 |
|
|
80,254 |
|
|
Write-off and accelerated
amortization of unamortized loan/bond fees |
|
|
|
|
|
— |
|
|
— |
|
|
988 |
|
|
316 |
|
|
Foreign exchange
losses/(gains), net |
|
|
|
|
|
218 |
|
|
402 |
|
|
368 |
|
|
(230 |
) |
|
Restructuring costs |
|
|
|
|
|
— |
|
|
1,081 |
|
|
— |
|
|
1,526 |
|
Unrealized foreign exchange
gains, net on cash and bonds |
|
|
|
|
|
— |
|
|
(99 |
) |
|
— |
|
|
(4,050 |
) |
|
Swap amendment costs (with
respect to cash collateral requirements) |
|
|
|
|
|
— |
|
|
3,319 |
|
|
— |
|
|
3,319 |
|
Loss on disposal of
non-current assets |
|
|
|
|
|
— |
|
|
572 |
|
|
— |
|
|
572 |
|
Impairment loss on
vessels |
|
|
|
|
|
— |
|
|
22,454 |
|
|
— |
|
|
22,454 |
|
|
Adjusted
Profit |
|
|
|
|
|
20,485 |
|
|
24,596 |
|
|
48,625 |
|
|
51,386 |
|
|
Reconciliation of Loss Per Share to Adjusted Earnings
Per Share:(Amounts expressed in thousands of U.S.
Dollars, except shares and per share data)
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
Loss for the period
attributable to owners of the Group |
|
|
|
|
|
(25,998 |
) |
|
(21,348 |
) |
|
(36,945 |
) |
|
(72,827 |
) |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend on preference
shares |
|
|
|
|
|
(2,516 |
) |
|
(2,516 |
) |
|
(5,031 |
) |
|
(5,032 |
) |
|
Loss for the period
attributable to owners of the Group used in EPS calculation |
|
|
|
|
|
(28,514 |
) |
|
(23,864 |
) |
|
(41,976 |
) |
|
(77,859 |
) |
|
Weighted average number of
shares outstanding, basic |
|
|
|
|
|
80,847,127 |
|
|
80,848,314 |
|
|
80,836,442 |
|
|
80,777,161 |
|
|
Loss per
share |
|
|
|
|
|
(0.35 |
) |
|
(0.30 |
) |
|
(0.52 |
) |
|
(0.96 |
) |
|
Loss for the period
attributable to owners of the Group used in EPS calculation |
|
|
|
|
|
(28,514 |
) |
|
(23,864 |
) |
|
(41,976 |
) |
|
(77,859 |
) |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash loss on
derivatives |
|
|
|
|
|
30,779 |
|
|
10,205 |
|
|
51,882 |
|
|
80,254 |
|
|
Write-off and accelerated
amortization of unamortized loan fees/bond fees |
|
|
|
|
|
— |
|
|
— |
|
|
988 |
|
|
316 |
|
|
Impairment loss on vessels
attributable to the owners of the Group |
|
|
|
|
|
— |
|
|
9,688 |
|
|
— |
|
|
9,688 |
|
|
Loss on disposal of
non-current assets |
|
|
|
|
|
— |
|
|
572 |
|
|
— |
|
|
572 |
|
Swap amendment costs (with
respect to cash collateral requirements) |
|
|
|
|
|
— |
|
|
3,319 |
|
|
— |
|
|
3,319 |
|
Foreign exchange
losses/(gains), net |
|
|
|
|
|
218 |
|
|
402 |
|
|
368 |
|
|
(230 |
) |
|
Unrealized foreign exchange
gains, net on cash and bonds |
|
|
|
|
|
— |
|
|
(99 |
) |
|
— |
|
|
(4,050 |
) |
|
Restructuring costs |
|
|
|
|
|
— |
|
|
1,081 |
|
|
— |
|
|
1,526 |
|
Adjusted profit attributable
to owners of the Group |
|
|
|
|
|
2,483 |
|
|
1,304 |
|
|
11,262 |
|
|
13,536 |
|
|
Weighted average number of
shares outstanding, basic |
|
|
|
|
|
80,847,127 |
|
|
80,848,314 |
|
|
80,836,442 |
|
|
80,777,161 |
|
|
Adjusted
earnings per share |
|
|
|
|
|
0.03 |
|
|
0.02 |
|
|
0.14 |
|
|
0.17 |
|
|
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