GasLog Post Robust 2Q Results

GasLog Ltd. and its subsidiaries, an international owner, operator and manager of liquefied natural gas carriers, today reported its financial results for the quarter ended June 30, 2015.

Highlights

Agreement with BG Group plc (BRGXF) to charter three newbuildings for approximately 10-year charters at attractive rates with an option to charter an additional six newbuildings.

Announced the completion of the dropdown of three vessels to GasLog Partners LP (GLOP) (“GasLog Partners”) for $483.0 million – the recommended increase by GasLog Partners’ management in the Partnership’s distribution exceeds the 25% incentive distribution rights (“IDR”) threshold.

Completed public offering of 8.75% Series A Preference Shares including full exercise of underwriters “greenshoe” option, raising net proceeds of $110.7 million.

Further increased customer portfolio through short-term charters.
Quarterly dividend of $0.14 per common share payable on August 20, 2015.

Earnings per share of $0.07 (Q2 2014: $0.02), EBITDA(1) of $66.5 million (Q2 2014: $46.5 million) and Profit of $16.7 million (Q2 2014: $3.5 million) for the quarter ended June 30, 2015. Adjusted EPS(1) of $0.00(2) (Q2 2014: $0.15), Adjusted EBITDA(1) of $64.5 million (Q2 2014: $46.6 million) and Adjusted Profit(1) of $10.9 million (Q2 2014: $13.6 million) for the quarter ended June 30, 2015.

(1) EBITDA, 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 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.

(2) For the calculation of Adjusted EPS, the Profit for the period of $16.7 million was offset by the Profit attributable to the non-controlling interest of $8.5 million, the dividend on preferred stock of $2.3 million and the adjustments of $5.8 million related to non-cash gain on swaps and foreign exchange gains.

CEO Statement

Paul Wogan, Chief Executive Officer, commented “GasLog continued to execute on its long-term business strategy in the second quarter. We added $845.0 million of long-term contracted revenue from the transaction we announced with a subsidiary of BG Group in April 2015. This agreement places three of our four open newbuildings on approximately ten-year charters at attractive rates. We also dropped down three vessels into GasLog Partners for an aggregate price of $483.0 million. At the recommended distribution increase by GasLog Partners management, the distribution will move into the 25% IDR split less than 18 months after GasLog Partners’ initial public offering (“IPO”). This results in greater incremental cashflow for the GP holding, enhancing GasLog’s sum of the parts valuation.

Despite a challenging short-term market, we have been active during the quarter and have placed our vessels on a number of short-term fixtures adding a number of excellent new customers. We believe that GasLog remains well positioned to continue growing into attractive future markets for LNG shipping and with seven of its eight undelivered vessels on long-term contracts of between seven and ten years, we have a solid financial and operational platform on which we can continue to build.”

Dividend Declaration

On August 5, 2015, the board of directors declared a quarterly cash dividend of $0.14 per common share payable on August 20, 2015 to shareholders of record as of August 17, 2015.

Agreement with BG Group

On April 21, 2015, GasLog and GasLog Partners announced the agreement to charter to Methane Services Limited (“MSL”), a subsidiary of BG Group, three newbuildings and an option for MSL to elect, within 2015 to charter an additional six newbuildings. The details of that transaction are set out in the Press Release dated April 21, 2015, which was attached as an exhibit to our report on Form 6-K/A furnished to the SEC on April 24, 2015.

Completion of GasLog Partners Dropdown Transaction

On July 1, 2015, GasLog completed the sale of three LNG carriers, the Methane Alison Victoria, the Methane Shirley Elisabeth and the Methane Heather Sally to GasLog Partners for $483.0 million including $3.0 million of positive net working capital. To partially fund the acquisition, GasLog Partners launched and completed an equity offering of 7,500,000 common units and issued 153,061 general partner units to GasLog. The proceeds were used to partially finance the acquisition from GasLog of 100% of the ownership interests in GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd., the entities that each own one of the three 145,000 cbm LNG carriers mentioned above.

As part of the transaction, GasLog Partners will recommend to its Board an increase in distribution of approximately 10%. This takes the distribution through the 25% incentive distribution right (“IDR”) threshold, resulting in GasLog receiving a greater amount of future incremental cashflows at GasLog Partners.