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GasLog Ltd. Reports Financial Results For The Quarter Ended June 30, 2012

Outlook

GasLog believes the strong fundamentals of the LNG industry will provide significant growth opportunities for GasLog’s high quality LNG shipping operations. Focus in the near term will be on delivering the growth of the business, through the on-time delivery of the newbuilding fleet while ensuring full utilization of the existing ships. GasLog expects that its strategy of leveraging its established platform and customer relationships will aid in qualification for charter possibilities for the two uncommitted newbuildings and the options it holds for two additional newbuildings. GasLog’s experience and track record may also allow GasLog to explore possibilities for industry consolidation of new entrants and to be flexible to adjust to market developments.

Conference Call

GasLog will host a conference call at 8:30 a.m. Eastern Time (1:30 p.m. London Time) on Tuesday, August 21, 2012 to discuss the second quarter 2012 results. The dial-in number is 1-646-254-3360 (New York, NY) and +44 (0)203 140 8286 (London, UK), passcode is 8255427. A live webcast of the conference call will also be available on the investor relations page of GasLog’s website at http://www.gaslogltd.com/investor-relations.

For those unable to participate in the conference call, a replay will be available from 12:30 p.m. Eastern Time (5:30 p.m. London Time) on August 21, 2012 until 12:30 p.m. Eastern Time on Wednesday August 29, 2012 (5:30 p.m. London Time). The replay dial-in number is 1-347-366-9565 (New York) and +44 (0) 203 427 0598 (London). The replay passcode is 8255427.

About GasLog Ltd.

GasLog is an international owner, operator and manager of LNG carriers. GasLog’s fleet consists of 10 wholly-owned LNG carriers, including two ships delivered in 2010 and eight LNG carriers on order. In addition, GasLog currently has 12 LNG carriers operating under its technical management for third parties. GasLog’s principal executive offices are at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. GasLog’s website is http://www.gaslogltd.com.

Forward Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Risks and uncertainties include, but are not limited to, general LNG and LNG shipping market conditions and trends, including charter rates, ship values, factors affecting supply and demand and opportunities for the profitable operations of LNG carriers; our continued ability to enter into multi-year time charters with our customers; our contracted charter revenue; our customers’ performance of their obligations under our time charters and other contracts; the effect of the worldwide economic slowdown; future operating or financial results and future revenue and expenses; our future financial condition and liquidity; our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, and funding by banks of their financial commitments; future, pending or recent acquisitions of ships or other assets, business strategy, areas of possible expansion and expected capital spending or operating expenses; our expectations relating to dividend payments and our ability to make such payments; our ability to enter into shipbuilding contracts for newbuilding ships and our expectations about the availability of existing LNG carriers to purchase, as well as our ability to consummate any such acquisitions; our expectations about the time that it may take to construct and deliver newbuilding ships and the useful lives of our ships; number of off-hire days, drydocking requirements and insurance costs; our anticipated general and administrative expenses; fluctuations in currencies and interest rates; our ability to maintain long-term relationships with major energy companies; expiration dates and extensions of charters; our ability to maximize the use of our ships, including the re-employment or disposal of ships no longer under multi-year charter commitments; environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities; 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; and potential liability from future litigation. A further list and description of these risks, uncertainties and other factors can be found in our Prospectus filed April 2, 2012. Copies of this Prospectus, as well as subsequent filings, are available online at www.sec.gov or on request from us. We do not undertake to update any forward-looking statements as a result of new information or future events or developments.

       

EXHIBIT I – Unaudited Interim Financial Information

Unaudited condensed consolidated statements of financial position

As of December 31, 2011 and June 30, 2012

(All amounts expressed in U.S. Dollars)

 
December 31, 2011 June 30, 2012

 

 

Assets
Non-current assets
Goodwill 9,511,140 9,511,140
Investment in associate 6,528,087 7,286,102
Deferred financing costs 14,289,327 19,538,150
Other non-current assets 871,769 1,384,900
Tangible fixed assets 438,902,029 433,354,672
Vessels under construction 109,069,864 147,588,578

 

 

Total non-current assets 579,172,216 618,663,542

 

 

 
Current assets
Trade and other receivables 2,682,820 2,250,213
Dividends receivable and due from related parties 1,273,796 154,275
Inventories 425,266 496,086
Prepayments and other current assets 3,365,697 515,200
Short term investments 201,330,241
Cash and cash equivalents 20,092,909 90,856,437

 

 

Total current assets 27,840,488 295,602,452

 

 

Total assets 607,012,704 914,265,994

 

 

 
Equity and liabilities
Equity
Share capital 391,015 628,632
Contributed surplus 300,715,852 628,918,944
Reserves 1,744,417 (5,054,215)
Accumulated deficit (12,437,763

)

(13,818,826)

 

 

Equity attributable to owners of the Group 290,413,521 610,674,535

 

 

 
Current liabilities
Trade accounts payable 1,704,915 1,774,658
Ship management creditors 1,102,272 15,910
Amounts due to related parties 114,069 5,245
Derivative financial instruments 3,451,080 4,339,773
Other payables and accruals 18,541,023 6,986,205
Loans—current portion

24,276,813

24,579,822

 

 

Total current liabilities 49,190,172 37,701,613

 

 

 
Non-current liabilities
Derivative financial instruments 5,101,234 19,425,191
Loans—non-current portion 256,788,206 243,129,658
Other non-current liabilities 5,519,571 3,334,997

 

 

Total non-current liabilities 267,409,011 265,889,846

 

 

Total equity and liabilities 607,012,704 914,265,994
 

                       

Unaudited condensed consolidated statements of income

For the three months and six months ended June 30, 2011 and 2012

(All amounts expressed in U.S. Dollars)

 
  For the three months ended For the six months ended
June 30, 2011   June 30, 2012 June 30, 2011   June 30, 2012

 

 

 

 

 
Revenues 16,470,838 16,707,015 32,756,533 33,309,402
Vessel operating and supervision costs (3,065,671 ) (3,225,029 ) (6,111,955 ) (6,713,217 )
Depreciation of fixed assets (3,203,330 ) (3,249,623 ) (6,405,780 ) (6,484,831 )
General and administrative expenses (3,733,605 ) (6,309,078 ) (6,754,469 ) (11,493,845 )

 

 

 

 

Profit from operations 6,468,232   3,923,285   13,484,329   8,617,509  

 

 

 

 

 
Financial costs (2,350,280 ) (2,945,650 ) (4,685,500 ) (5,954,080 )
Financial income 5,802 443,859 28,905 443,859
Loss on interest rate swaps, net (5,348,349

)

 

(5,246,366 )
Share of profit of associate 349,888   374,728   657,349   758,015  

 

 

 

 

Total other expense (1,994,590 ) (7,475,412 ) (3,999,246 ) (9,998,572 )

 

 

 

 

Profit/(loss) for the period 4,473,642   (3,552,127 ) 9,485,083   (1,381,063 )

 

 

 

 

 
Attributable to:
Owners of the Group 4,652,132 (3,552,127 ) 9,802,056 (1,381,063 )
Non-controlling interest (178,490 )   (316,973 )  

 

 

 

 

4,473,642   (3,552,127 ) 9,485,083   (1,381,063 )

 

 

 

 

 
Earnings/(loss) per share – basic and diluted 0.12 (0.06 ) 0.25 (0.03 )
 

     

Unaudited condensed consolidated statements of cash flow

For the six months ended June 30, 2011 and 2012

(All amounts expressed in U.S. Dollars)

 
For the six months ended
June 30, 2011 June 30, 2012

 

 

 
Cash flows from operating activities:
Profit/(loss) for the period 9,485,083 (1,381,063 )
Adjustments for:
Depreciation of fixed assets 6,405,780 6,484,831
Share of profit of associate (657,349 ) (758,015 )
Financial income (28,905 ) (443,859 )
Financial costs 4,685,500 5,954,080
Unrealized exchange differences on cash and cash equivalents and short term investments 823,587
Loss on interest rate swaps, net 5,246,366
Non-cash employee benefits 1,789,842   3,481,090  

 

 

21,679,951 19,407,017
Movements in working capital (8,024,674 ) (5,170,631 )

 

 

 
Cash provided by operations 13,655,277 14,236,386
Interest paid (4,350,905 ) (5,739,386 )

 

 

Net cash from operating activities 9,304,372   8,497,000  

 

 

 
Cash flows from investing activities:
Dividends received from associate 786,787 950,000
Return of investment from associate 500,000
Payments for tangible fixed assets and vessels under construction (18,843,538 ) (41,106,316 )
Increase in short term investments

(201,562,992 )
Financial income received 28,905   99,332  

 

 

Net cash used in investing activities (17,527,846 ) (241,619,976 )

 

 

 
Cash flows from financing activities:
Bank loan repayment (16,079,229 ) (13,678,893 )
Payment of loan issuance costs (11,396,867 )
Proceeds from sale of common shares (net of expenses) 310,890,165
Dividend paid (772,000 )
Capital contributions 11,951,000   18,662,935  

 

 

Net cash (used in)/from financing activities (4,900,229 ) 304,477,340  

 

 

 
Effects of exchange rate changes on cash and cash equivalents (590,836 )
 
(Decrease)/increase in cash and cash equivalents (13,123,703 ) 70,763,528
Cash and cash equivalents, beginning of the period 23,270,100   20,092,909  

 

 

 
Cash and cash equivalents, end of the period 10,146,397   90,856,437  
 

EXHIBIT II

Non-GAAP Financial Measures:

EBITDA represents earnings before interest income and expense, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA before loss on interest rate swaps and foreign exchange differences. Adjusted Profit/(loss) and Adjusted EPS represent earnings and earnings per share, respectively, before loss on interest rate swaps and foreign exchange differences. EBITDA, Adjusted EBITDA, Adjusted Profit/(loss) and Adjusted EPS, which are non-GAAP financial measures, 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/(loss) 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 increased comparability is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, interest, taxes, depreciation and amortization and, and in the case of Adjusted EBITDA, Adjusted Profit/(loss) and Adjusted EPS, loss on interest rate swaps and foreign exchange differences, 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.

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