GasLog Unit Sees Profits Dip

GasLog Partners, a New York-listed subsidiary of Monaco-based LNG vessel operator GasLog, saw profits slump in the second quarter to $19.1mn from $29.6mn a year earlier, according to its financial report published on July 25.

The company blamed a decreased gain from mark-to-market valuation of derivatives for the dip in income. Revenues, in contrast, soared to an all-time quarterly high of $91.8mn, from $74.9mn in the corresponding period of 2018. Pre-tax (Ebitda) earnings were up slightly at $67.5mn, compared with $66.9mn a year earlier.

GasLog Partners owns 15 LNG carriers, the bulk of which serve Anglo-Dutch Shell, Cheniere Energy and Trafigura under long-term charter contracts. It successfully re-chartered the GasLog Shanghai in the second quarter to Gunvor for three and a half more years, helping the company raise its contracted revenue days to 99% during the second half of 2019 and 81% next year.

The shipowner said it expected the chartering market to grow more bullish during the second half of this year and into 2020.

“In 2021 and beyond, we continue to see a balanced market for LNG shipping relative to supply and demand for the LNG commodity, but caution that additional ordering of new LNGCs beyond those in the orderbook could dampen shipping rates, particularly from 2022 onwards,” it said.

Parent GasLog is currently vying for a contract to supply a floating storage and regasification unit (FSRU) to Cyprus.