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GasLog Ltd. Reports Financial Results For The Quarter Ended September 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 qualifying 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 Wednesday, November 21, 2012 to discuss the third quarter 2012 results. The dial-in number is 1-212-444-0895 (New York, NY) and +44 (0)207 136 6283 (London, UK), passcode is 9524315. 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 November 21, 2012 until 12:30 p.m. Eastern Time on Wednesday November 28, 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 9524315.

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 external customers. 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 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 the 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 September 30, 2012

(All amounts expressed in U.S. Dollars)

 
December 31, 2011 September 30, 2012

 

 

 
Assets
Non-current assets
Goodwill 9,511,140 9,511,140
Investment in associate 6,528,087 7,289,240
Deferred financing costs 14,289,327 21,850,352
Other non-current assets 871,769 3,845,765
Tangible fixed assets 438,902,029 430,150,396
Vessels under construction   109,069,864   196,072,310
 
Total non-current assets   579,172,216   668,719,203

 

 

 

 

 
Current assets
Trade and other receivables 2,682,820 2,192,364
Dividends receivable and due from related parties 1,273,796 391,916
Inventories 425,266 493,441
Prepayments and other current assets 3,365,697 588,390
Short-term investments 211,799,320
Cash and cash equivalents   20,092,909   26,736,619
 
Total current assets   27,840,488   242,202,050
 
Total assets   607,012,704   910,921,253

 

 

 

 

 
Equity and liabilities
Equity
Share capital 391,015 628,632
Contributed surplus 300,715,852 628,918,944
Reserves 1,744,417 (12,217,449 )
Accumulated deficit   (12,437,763 )   (10,894,832 )
 
Equity attributable to owners of the Group   290,413,521   606,435,295

 

 

 

 

 
Current liabilities
Trade accounts payable 1,704,915 1,011,813
Ship management creditors 1,102,272 12,510
Amounts due to related parties 114,069 98,112
Derivative financial instruments 3,451,080 5,900,068
Other payables and accruals 18,541,023 7,186,825
Loans—current portion   24,276,813   23,999,339
 
Total current liabilities   49,190,172   38,208,667

 

 

 

 

 
Non-current liabilities
Derivative financial instruments 5,101,234 26,774,911
Loans—non-current portion 256,788,206 236,985,432
Other non-current liabilities   5,519,571   2,516,948
 
Total non-current liabilities   267,409,011   266,277,291
 
Total equity and liabilities   607,012,704   910,921,253
 
                                           

Unaudited condensed consolidated statements of income

For the three months and nine months ended September 30, 2011 and 2012

(All amounts expressed in U.S. Dollars)

 
For the three months ended For the nine months ended

September 30,

2011

September 30,

2012

September 30,

2011

September 30,

2012

 

 

 

 

 
Revenues 15,918,352 16,935,004 48,674,885 50,244,406
Vessel operating and supervision costs (3,069,622 ) (3,629,299 ) (9,181,577 ) (10,342,516 )
Depreciation of fixed assets (3,206,858 ) (3,288,480 ) (9,612,638 ) (9,773,311 )
General and administrative expenses   (2,974,548 )   (2,938,036 )   (9,729,017 )   (14,431,881 )

 

 

 

 

 

 

 

 

Profit from operations   6,667,324   7,079,189   20,151,653   15,696,698

 

 

 

 

 

 

 

 

 
Financial costs (2,262,006 ) (2,892,817 ) (6,947,506 ) (8,846,897 )
Financial income 12,265 481,265 41,170 925,124
Loss on interest rate swaps, net (232,639 ) (1,746,781 ) (232,639 ) (6,993,147 )
Share of profit of associate 361,845 3,138 1,019,194 761,153
Gain on disposal of subsidiaries   24,786     24,786  

 

 

 

 

 

 

 

 

Total other expense   (2,095,749 )   (4,155,195 )   (6,094,995 )   (14,153,767 )

 

 

 

 

 

 

 

 

Profit for the period   4,571,575   2,923,994   14,056,658   1,542,931

 

 

 

 

 

 

 

 

 
Attributable to:
Owners of the Group 4,571,575 2,923,994 14,373,631 1,542,931
Non-controlling interest       (316,973 )  

 

 

 

 

 

 

 

 

  4,571,575   2,923,994   14,056,658   1,542,931

 

 

 

 

 

 

 

 

 
Earnings per share – basic and diluted 0.12 0.05 0.37 0.03
 
                         

Unaudited condensed consolidated statements of cash flow

For the nine months ended September 30, 2011 and 2012

(All amounts expressed in U.S. Dollars)

 
For the nine months ended

September 30,

2011

September 30,

2012

 

 

 
Cash flows from operating activities:
Profit for the period 14,056,658 1,542,931
Adjustments for:
Depreciation of fixed assets 9,612,638 9,773,311
Share of profit of associate (1,019,194 ) (761,153 )
Financial income (41,170 ) (925,124 )
Financial costs 6,947,506 8,846,897
Unrealized foreign exchange losses on cash and cash equivalents and short-term investments 176,657
Loss on interest rate swaps, net 232,639 6,993,147
Gain on disposal of subsidiaries (24,786 )
Non-cash employee benefits   3,199,782   3,481,090

 

 

 

 

32,964,073 29,127,756
Movements in working capital   (4,378,318)   (8,260,438 )

 

 

 

 

 
Cash provided by operations 28,585,755 20,867,318
Interest paid   (6,439,928 )   (8,466,013 )

 

 

 

 

Net cash from operating activities   22,145,827   12,401,305

 

 

 

 

 
Cash flows from investing activities:
Dividends received from associate 1,086,787 950,000
Return of investment from associate 500,000
Payments for tangible fixed assets and vessels under construction (68,536,992 ) (89,933,799 )
Increase in short-term investments (211,347,592 )
Cash transferred on deconsolidation (56,426 )
Financial income received   41,170   181,109

 

 

 

 

Net cash used in investing activities   (66,965,461 )   (300,150,282 )

 

 

 

 

 
Cash flows from financing activities:
Bank loan repayment (22,947,202 ) (20,554,071 )
Payment of loan issuance costs (840,000 ) (13,827,574 )
Payments of IPO costs (42,239 ) (3,515,267 )
Proceeds from sale of common shares (net of underwriting discounts and commissions) 314,255,049
Dividend paid (772,000 )
Capital contributions   60,926,075   18,662,935

 

 

 

 

Net cash from financing activities   36,324,634   295,021,072

 

 

 

 

 
Effects of exchange rate changes on cash and cash equivalents (628,385 )
 
(Decrease)/increase in cash and cash equivalents (8,495,000 ) 6,643,710
Cash and cash equivalents, beginning of the period   23,270,100   20,092,909

 

 

 

 

 
Cash and cash equivalents, end of the period   14,775,100   26,736,619
 

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 gains/losses. Adjusted Profit/(loss) and Adjusted EPS represent earnings and earnings per share, respectively, before loss on interest rate swaps and foreign exchange gains/losses. 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 gains/losses, 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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