GasLog (GLOG) Tops Q3 EPS by 3c, Revenues Beat

GasLog (NYSE: GLOG) reported Q3 EPS of $0.11, $0.03 better than the analyst estimate of $0.08. Revenue for the quarter came in at $158.4 million versus the consensus estimate of $154.22 million.

Paul Wogan, Chief Executive Officer, stated: “The LNG shipping market tightened considerably in the third quarter, driving headline spot rates to multi-year highs and delivering a record result for our ships operating in the Cool Pool. This, together with the contribution of our three newbuild vessels delivered earlier in 2018, produced another set of record quarterly results for GasLog. With further strengthening of spot rates in October, we anticipate another significant increase in our spot earnings during the fourth quarter of 2018, despite the time lag for headline rates to manifest themselves in spot vessel earnings. Spot rate strength means our six open vessels are creating significant incremental cash flow which should allow us to consider increasing our returns to shareholders.

During the quarter, we announced two newbuild orders backed by seven-year charters with Cheniere, meaning we continue to be on track for our target to more than double consolidated run-rate EBITDA over the 2017-2022 period.

With the LNG carrier orderbook now essentially fixed until early 2021 and continuing strong growth in demand for LNG, our highly regarded LNG shipping platform means we are well positioned to benefit from the increased level of tender activity we are seeing from both new and existing customers. We are increasingly confident in the near-term outlook for LNG shipping markets and in our ability to secure new multi-year charters for our open ships on attractive terms.

I am also pleased to announce further progress on the Alexandroupolis Floating Storage Regasification Unit (“FSRU”) project. During the quarter, Gastrade S.A. (“Gastrade”) launched the tenders for the procurement of the FSRU vessel and associated pipeline infrastructure. Following regulatory approvals, the market test to solicit interest in committing to take throughput capacity in the project has also been launched. DEPA, the Greek state natural gas utility, and Bulgarian Energy Holding (“BEH”) continue to work towards formalisation of their respective shareholdings in Gastrade. These recent developments are encouraging and advance the project towards Final Investment Decision (“FID”), which is targeted for the first half of 2019.”

For earnings history and earnings-related data on GasLog (GLOG) click here.

You May Also Be Interested In

• Jefferies sees a buying opportunity in this S&P 500 sector
• Wolfe Research upgrades Biogen, AbbVie on pipeline strength and valuation
• SanDisk unveils long-term growth strategy at 2026 Investor Day; Shares surge 12%