GasLog Ltd. ("GasLog" or the "Company") (NYSE:GLOG) today announced that it has ordered two new 174,000 cbm Tri-Fuel Diesel Electric LNG carriers from Samsung Heavy Industries Co., Ltd. ("Samsung") in South Korea. The vessels are expected to be delivered in Q1 and Q2 2016, respectively, and upon delivery will commence firm ten-year charters with a subsidiary of BG Group plc ("BG Group"). The two vessels are expected to have a combined fully delivered cost of approximately US$410-$420million and are expected to generate a combined annualized EBITDA 1 of approximately US$47–$48million over the first twelve months of operation. In addition, GasLog has secured a total of four options from Samsung at similar prices and terms until the end of July 2013.
GasLog has also agreed to modify and extend the charter currently in place for its Hull Number 2017, chartered to a subsidiary of BG Group and scheduled for delivery in Q3 2013. Under the new arrangement the ship will deliver into an eight year charter in which the first three years remain as previously contracted. The subsequent five years are a seasonal charter under which the ship is committed to BG Group for seven consecutive months for which it will pay a fixed monthly charter hire and available to accept other charters for the remaining five months. This seasonal charter is expected to generate approximately US$14-16 million of EBITDA 1 during the seven months on hire and will provide GasLog with the opportunity to secure additional upside in a period of potentially strong demand.
Following the successful delivery of the GasLog Shanghai into a BG Group charter on January 29, 2013, GasLog now has a twelve-ship fully owned fleet, of which three ships have been delivered and are on charter and nine ships are either under construction or to be constructed through Q2 2016. The strength of GasLog’s existing fleet commitments and the addition of these new long term charters allow GasLog to look at a range of charter periods for its two open vessels, scheduled for delivery at the end of 2014 and beginning of 2015. In particular, these factors allow GasLog to be opportunistic in placing these vessels into shorter-term charters if the Company determines such charters would be beneficial to the overall earnings of the fleet.
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