EBITDA has limitations as an analytical tool and should not be considered as an alternative to, or as a substitute for, profit, profit from operations, earnings per share or any other measure of financial performance presented in accordance with IFRS. This non-GAAP financial measure excludes some, but not all, items that affect profit, and this measure may vary among companies. This non-GAAP financial measure may not be comparable to similarly titled measures of other companies in the shipping or other industries.
Projected EBITDA for the two new vessels ordered by GasLog for the first twelve months of operation is based on the following assumptions:
- Delivery in Q1 and Q2 2016, respectively, and timely receipt of charter hire specified in the charter contracts;
- Utilization of 363 days, no drydocking;
- Vessel operating and supervision costs per current internal estimates; and
- General and administrative expenses per current internal estimates.
We consider the above assumptions to be reasonable as of the date of this report, but if these assumptions prove to be incorrect, our actual EBITDA for the vessels could differ materially from the information included in this release.
1 EBITDA, which represents earnings before interest income and expense, taxes, depreciation and amortization, is a non-GAAP financial measure. Please refer to Exhibit I for guidance on the underlying assumptions used to derive EBITDA.