GasLog Ltd. ("GasLog" or the "Company") (NYSE: GLOG) today announced that it has signed a memorandum of agreement to acquire the STX Frontier, a 2010-built, 153,600 cubic meter LNG carrier from STX Pan Ocean LNG PTE. Ltd. ("STX Pan Ocean"), a Singapore based company. The intention is that GasLog will take over the vessel from STX Pan Ocean early in the fourth quarter of 2013 in Spain, which makes her well positioned to take advantage of the current tight supply of tonnage for this winter in the Atlantic.
Paul Wogan, CEO; said, "We are delighted to announce this acquisition. We believe this modern asset will provide great value for our shareholders based on the attractive purchase price and our expectations for the charter market going forward.
We are also extremely pleased that we have now demonstrated our ability to execute on the two separate growth strategies that we have been articulating to our investors since becoming a public company. Including this latest purchase with the four ships we ordered earlier this year we have been able to grow our owned fleet by 50%. We have accomplished this by adding the previously announced medium to long term chartered newbuildings at attractive rates and now with the opportunistic acquisition of a secondhand ship.
The acquisition cost of the vessel is in the vicinity of USD 160 million, which we feel is a very attractive price. The opportunity to acquire the vessel at this price was a consequence of the well-publicized difficulties, which STX Pan Ocean has been encountering. The price reflected the ability of GasLog to acquire the ship at short notice and without a committed charter, hence enabling the vendor to use the funds positively as part of their own reconstruction. This speaks to the strength of the operation and financial platform, which the Company has created.