GasLog Ltd. Reports Financial Results for the Three-Month Period Ended March 31, 2023
Hamilton, Bermuda, May 11, 2023, GasLog Ltd. and its subsidiaries (“GasLog”, “Group” or “Company”) (NYSE: GLOG-PA), an international owner, operator and manager of liquefied natural gas (“LNG”) carriers, today reported its financial results for the quarter ended March 31, 2023.
Recent Developments
Agreement for Sale of GasLog Athens
On January 17, 2023, GasLog Hellas-2 Special Maritime Enterprise, the vessel-owning entity of the GasLog Athens, a 145,000 cubic meter (“cbm”) steam turbine propulsion (“Steam”) LNG carrier, entered into a Memorandum of Agreement with respect to the sale of its vessel to an unrelated third party, resulting in the reclassification of the vessel as held for sale and the recognition of a non-cash impairment loss of $9.3 million as of March 31, 2023. The transaction is expected to be completed upon redelivery of the vessel from its current charterer.
Sale and Lease-Back Arrangements
On March 30, 2023, GasLog Partners LP (“GasLog Partners” or the “Partnership”) completed the sale and lease-back of the GasLog Sydney, a 155,000 cbm tri-fuel diesel electric (“TFDE”) LNG carrier, built in 2013, with a wholly owned subsidiary of China Development Bank Leasing (“CDBL”). The vessel was sold and leased back under a bareboat charter with CDBL for a period of five years with no repurchase option or obligation, at a price of $140.0 million. The completion of the transaction resulted in the recognition of a non-cash impairment loss of $0.1 million and a loss on disposal of $0.7 million.
On March 30, 2023, GasLog completed the sale and lease-back of the GasLog Saratoga, a 155,000 cbm TFDE LNG carrier, built in 2014, with CDBL. The vessel was sold and leased back under a bareboat charter with CDBL for a period of five years with no repurchase option or obligation, at a price of $144.0 million. The completion of the transaction resulted in the recognition of a non-cash impairment loss of $6.1 million and of a loss on disposal of $0.6 million.
Merger Agreement with GasLog Partners
On April 6, 2023, GasLog and subsidiaries of GasLog entered into an Agreement and Plan of Merger (the “Merger Agreement”) with the Partnership. Pursuant to the Merger Agreement, GasLog will acquire the outstanding common units of the Partnership not beneficially owned by GasLog (the “Transaction”) for overall consideration of $8.65 per common unit in cash, consisting in part of a special distribution by the Partnership of $3.28 per common unit in cash that will be distributed to the Partnership’s unitholders in connection with the closing of the Transaction and the remainder to be paid by GasLog as merger consideration at the closing of the Transaction.
The conflicts committee (the “Conflicts Committee”) of the Partnership’s board of directors, comprised solely of independent directors and advised by its own independent legal and financial advisors, unanimously recommended that the Partnership’s board of directors approve the Merger Agreement and determined that the Transaction was in the best interests of the Partnership and the holders of its common units unaffiliated with GasLog. Acting upon the recommendation and approval of the Conflicts Committee, the Partnership’s board of directors unanimously approved the Merger Agreement and the Transaction and recommended that the common unitholders of the Partnership vote in favor of the Transaction.
The Transaction is expected to close by the end of the third quarter of 2023, subject to approval of the Transaction by holders of a majority of the common units of the Partnership and the satisfaction of certain closing conditions. GasLog owns 30.2% of the common units of the Partnership and has entered into a support agreement with the Partnership committing to vote its common units in favor of the Transaction. Upon closing of the Transaction, the Partnership’s preference units will continue to trade on the New York Stock Exchange.
New Charter Agreements
During the first quarter of 2023, GasLog signed a time charter agreement for the GasLog Singapore, a TFDE LNG carrier, with New Fortress Energy Transport Partners LLC (“NFE Transport Partners LLC”) for approximately two years and the time charter agreement of the GasLog Geneva, a TFDE LNG carrier, with a wholly owned subsidiary of Shell plc (“Shell”) was extended by five years, following the exercise of their extension option, with the contract now due to expire in 2028. Post-quarter end the time charter agreement of the GasLog Gibraltar, a TFDE LNG carrier, with Shell was extended by five years, following the exercise of their extension option, with the contract now to expire in 2028.
Dividend Declarations
On May 10, 2023, the board of directors declared a quarterly cash dividend of $0.15 per common share, or $14.3 million in the aggregate, payable on May 12, 2023, to shareholders of record as of May 11, 2023.
On May 10, 2023, the board of directors declared a dividend on the Series A Preference Shares of $0.546875 per share, or $2.5 million in the aggregate, payable on July 3, 2023, to holders of record as of June 30, 2023.
Financial Summary
| Amounts in thousands of U.S. Dollars | For the three months ended | |||||||
| March 31, 2022 | March 31, 2023 | |||||||
| Revenues | $ | 213,723 | $ | 231,299 | ||||
| Profit for the period | $ | 71,052 | $ | 45,024 | ||||
| Adjusted EBITDA1 | $ | 157,533 | $ | 180,088 | ||||
| Adjusted Profit1 | $ | 58,034 | $ | 69,959 |
1Adjusted EBITDA and Adjusted Profit are non-GAAP financial measures and should not be used in isolation or as substitutes for GasLog’s financial results presented in accordance with International Financial Reporting Standards (“IFRS”). For the definitions and reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release.
There were 2,908 available days for the quarter ended March 31, 2023, as compared to 3,150 available days for the quarter ended March 31, 2022. Available days represent total calendar days in the period after deducting off-hire days where vessels are undergoing dry-dockings and unavailable days (for example, days before and after a dry-docking where the vessel has limited practical ability for chartering opportunities). The decrease in available days was attributable to the sale of the Methane Shirley Elisabeth in September 2022, the increase in off-hire days for scheduled dry-dockings (nil dry-docking off-hire days in the three-month period ended March 31, 2022, compared to 65 dry-docking off-hire days in the three-month period ended March 31, 2023) and to the Floating Storage Regasification Unit (“FSRU”) conversion of the Alexandroupoli that started in February 2023.
Revenues were $231.3 million for the quarter ended March 31, 2023 ($213.7 million for the quarter ended March 31, 2022). The increase in revenues is mainly attributable to a net increase in revenues from our vessels operating in the spot and short-term markets in the first quarter of 2023, under time charters that were executed in 2022. This net increase was partially offset by a decrease in revenues from the off-hire days due to the scheduled dry-docking of our vessels in the first quarter of 2023 (nil dry-dockings in the same period in 2022) and the sale of the Methane Shirley Elisabeth in the third quarter of 2022.
Profit for the period was $45.0 million for the quarter ended March 31, 2023 (profit of $71.1 million for the quarter ended March 31, 2022). The decrease in profit is mainly attributable to the decrease in gain from marked-to-market valuation of our derivative financial instruments carried at fair value through profit or loss due to changes in the forward yield curve and the increase in financial costs, mainly attributable to the increase in interest expense on loans, partially offset by the decrease in realized loss from derivatives held for trading, both as a result of the increased interest rates in the first quarter of 2023 as compared to the same period in 2022, the increase in revenues, as discussed above, and the decrease in non-cash impairment loss recognized in the first quarter of 2023 compared to the same quarter in 2022.
Adjusted EBITDA was $180.1 million for the quarter ended March 31, 2023 ($157.5 million for the quarter ended March 31, 2022). The increase in Adjusted EBITDA is mainly attributable to the increase in revenues of $17.6 million, as discussed above and a decrease of $3.6 million in vessel operating and supervision costs, largely related to cost savings in 2023 following the relaxation of our COVID-19 enhanced protocols and a more favorable Euro/United States Dollar exchange rate in the first quarter of 2023 compared to the same period in 2022.
Adjusted Profit was $70.0 million for the quarter ended March 31, 2023 ($58.0 million for the quarter ended March 31, 2022). The increase in Adjusted Profit is mainly attributable to the increase in Adjusted EBITDA, the decrease in realized loss from derivatives held for trading and the increase in financial income, partially offset by the increase in financial costs, all as a result of the increase in interest rates in the first quarter of 2023 as compared to the same period in 2022.
As of March 31, 2023, GasLog had $413.1 million of cash and cash equivalents. An additional amount of $91.5 million of time deposits with an original duration greater than three months was classified under short-term cash deposits.
As of March 31, 2023, GasLog had an aggregate of $3.0 billion of indebtedness outstanding under its credit facilities and bond agreements, of which $372.3 million is repayable within one year. Current bank borrowings include an amount of a) $156.7 million with respect to the credit facility of up to $450.0 million of GAS-four Ltd., GAS-sixteen Ltd. and GAS-seventeen Ltd. with Credit Suisse AG, Nordea Bank Abp, filial I Norge, Iyo Bank Ltd., Singapore Branch and the Development Bank of Japan, Inc. which matures in February 2024 and b) $32.5 million with respect to the associated debt of the vessel classified as held for sale as of March 31, 2023. Furthermore, as of March 31, 2023, we also had an aggregate of $435.7 million of lease liabilities, of which $69.6 million is payable within one year.
As of March 31, 2023, the total remaining balance of the contract prices of the four LNG carriers on order was $639.0 million, of which $82.8 million is due within 12 months and will be funded by the four sale and leaseback agreements entered into on July 6, 2022 with CMB Financial Leasing Co., Ltd. (“CMBFL”).
As of March 31, 2023, GasLog’s current assets totaled $625.2 million, while current liabilities totaled $625.3 million, resulting in a negative working capital position of $0.1 million. Current liabilities include $66.5 million of unearned revenue in relation to hires received in advance of March 31, 2023 (which represents a non-cash liability that will be recognized as revenue in April 2023 as the services are rendered).
GasLog Partners Preference Unit Repurchase Programme
In the quarter ended March 31, 2023, there were no repurchases of preference units, due to an extended blackout period in relation to the Transaction.
Since inception of the GasLog Partners’ preference unit repurchase programme in March 2021, and up to March 31, 2023, GasLog Partners has repurchased and cancelled 665,016 8.625% Series A Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units, 1,103,618
8.200% Series B Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units and 938,955 8.500% Series C Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units, at a weighted average price of $24.64, $25.01 and $25.03 per preference unit for Series A, Series B and Series C, respectively, for an aggregate amount of $67.6 million, including commissions.
Fleet Update
Owned Fleet
As of May 11, 2023, our wholly owned fleet consisted of the following vessels:
| Vessel Name |
Year Built |
Cargo Capacity (cbm) |
Charterer (for contracts of more than six months) |
Propulsion |
Charter Expiration(1) |
Optional Period(2) |
|||||||
| 1 | Alexandroupoli (3) | 2010 | 153,600 | n/a | TFDE | n/a | n/a | ||||||
| 2 | GasLog Athens | 2006 | 145,000 | DESFA (4) | Steam | June 2023 | – | ||||||
| 3 | GasLog Savannah | 2010 | 155,000 | Multinational Oil and Gas Company | TFDE | July 2024 | 2025 (5) | ||||||
| 4 | GasLog Singapore | 2010 | 155,000 | NFE Transport Partners LLC | TFDE | March 2025 | June 2025 (6) | ||||||
| 5 | GasLog Genoa | 2018 | 174,000 | Shell | Dual-fuel medium speed propulsion (“X-DF”) | March 2027 | 2030-2033 (7) | ||||||
| 6 | GasLog Windsor | 2020 | 180,000 | Centrica (8) | X-DF | April 2027 | 2029-2033 (8) | ||||||
| 7 | GasLog Westminster | 2020 | 180,000 | Centrica | X-DF | July 2027 | 2029-2033 (8) | ||||||
| 8 | GasLog Georgetown | 2020 | 174,000 | Cheniere (9) | X-DF | November 2027 | 2030-2034 (9) | ||||||
| 9 | GasLog Galveston | 2021 | 174,000 | Cheniere | X-DF | January 2028 | 2031-2035 (9) | ||||||
| 10 | GasLog Wellington | 2021 | 180,000 | Cheniere | X-DF | June 2028 | 2031-2035 (9) | ||||||
| 11 | GasLog Winchester | 2021 | 180,000 | Cheniere | X-DF | August 2028 | 2031-2035 (9) | ||||||
| 12 | GasLog Gladstone | 2019 | 174,000 | Shell | X-DF | January 2029 | 2032-2035 (7) | ||||||
| 13 | GasLog Warsaw | 2019 | 180,000 | Endesa (10) | X-DF | May 2029 | 2035-2041 (10) | ||||||
| 14 | GasLog Wales | 2020 | 180,000 | Jera (11) | X-DF | March 2032 | 2035-2038 (11) |
As of May 11, 2023, the Partnership’s owned fleet consisted of the following vessels:
| Vessel Name |
Year Built |
Cargo Capacity (cbm) |
Charterer (for contracts of more than six months) |
Propulsion | CharterExpiration(1) |
Optional Period(2) |
|||||||
| 1 | Methane Rita Andrea | 2006 | 145,000 | Energy Major | Steam | October 2023 | – | ||||||
| 2 | Methane Alison Victoria | 2007 | 145,000 | CNTIC VPower (12) | Steam | October 2023 | 2024-2025 (12) | ||||||
| 3 | Solaris | 2014 | 155,000 | Energy Major | TFDE | October 2023 | – | ||||||
| 4 | GasLog Santiago | 2013 | 155,000 | Trafigura (13) | TFDE | December 2023 | 2028 (13) | ||||||
| 5 | GasLog Seattle | 2013 | 155,000 | Energy Trading Company (14) | TFDE | March 2024 | – | ||||||
| 6 | Methane Jane Elizabeth | 2006 | 145,000 | Cheniere | Steam | March 2024 | 2025 (9) | ||||||
| 7 | GasLog Greece | 2016 | 174,000 | Shell | TFDE | March 2026 | 2031 (7) | ||||||
| 8 | GasLog Glasgow | 2016 | 174,000 | Shell | TFDE | June 2026 | 2031 (7) | ||||||
| 9 | GasLog Geneva | 2016 | 174,000 | Shell | TFDE | September 2028 | 2031 (7) | ||||||
| 10 | GasLog Gibraltar | 2016 | 174,000 | Shell | TFDE | October 2028 | 2031 (7) | ||||||
| 11 | Methane Becki Anne | 2010 | 170,000 | Shell | TFDE | March 2029 | – |
Bareboat Vessels
As of May 11, 2023, our bareboat fleet consisted of the following vessels:
|
Vessel Name |
Year |
Cargo |
Charterer (for |
Propulsion |
Charter |
Optional |
|||||||
| 1 | GasLog Skagen | 2013 | 155,000 | Tokyo LNG (15) | TFDE | September 2024 | – | ||||||
| 2 | GasLog Saratoga (16) | 2014 | 155,000 | Mitsui (17) | TFDE | September 2024 | – | ||||||
| 3 | GasLog Hong Kong | 2018 | 174,000 | TotalEnergies (18) | X-DF | December 2025 | 2028 (18) | ||||||
| 4 | GasLog Salem | 2015 | 155,000 | Gunvor (19) | TFDE | March 2026 | – | ||||||
| 5 | Methane Julia Louise | 2010 | 170,000 | Shell | TFDE | March 2026 | 2029-2031 (7) | ||||||
| 6 | GasLog Houston | 2018 | 174,000 | Shell | X-DF | May 2028 | 2031-2034 (7) |
As of May 11, 2023, the Partnership’s bareboat fleet consisted of the following vessels:
|
Vessel Name |
Year |
Cargo |
Charterer (for |
Propulsion |
Charter |
Optional |
|||||||
| 1 | GasLog Sydney (16) | 2013 | 155,000 | Spot market | TFDE | – | – | ||||||
| 2 | GasLog Shanghai | 2013 | 155,000 | Woodside (20) | TFDE | February 2025 | 2026 (20) | ||||||
| 3 | Methane Heather Sally | 2007 | 145,000 | SEA Charterer (21) | Steam | July 2025 | – |
| (1) | Indicates the expiration of the initial term. |
| (2) | The period shown reflects the expiration of the minimum optional period and the maximum optional period. |
| (3) | The vessel GasLog Chelsea was renamed to Alexandroupoli in February 2023. The vessel is currently undergoing conversion into an FSRU. |
| (4) | The vessel is chartered to the Hellenic Gas Transmission System Operator (DESFA) S.A. (“DESFA”) for a period of one year. Upon redelivery from DESFA, the vessel will be sold to an unrelated third party. |
| (5) | The charterer has the right to extend the charter by one additional period of one year, provided that the charterer gives us advance notice of the declaration. |
| (6) | The vessel is chartered to NFE Transport Partners LLC. The charterer has the right to extend the charter by an additional period of 90 days, provided that the charterer gives us advance notice of the declaration. |
| (7) | Shell has the right to extend the charters of (a) the GasLog Genoa, the GasLog Houston and the GasLog Gladstone by two additional periods of three years, (b) the Methane Julia Louise for a period of either three or five years, (c) the GasLog Greece and the GasLog Glasgow for a period of five years and (d) the GasLog Geneva and the GasLog Gibraltar for a period of three years, provided that Shell gives us advance notice of the declarations. |
| (8) | The vessels are chartered to Pioneer Shipping Limited, a wholly owned subsidiary of Centrica Plc (“Centrica”). Centrica has the right to extend the charters by three additional periods of two years, provided that Centrica gives us advance notice of declaration. |
| (9) | The vessel is chartered to Cheniere Marketing International LLP, a wholly owned subsidiary of Cheniere Energy, Inc. (“Cheniere”). Cheniere has the right to extend the charters of (a) the GasLog Georgetown, the GasLog Galveston, the GasLog Wellington and the GasLog Winchester by three consecutive periods of three years, two years and two years, respectively and (b) the Methane Jane Elizabeth by an additional period of one year, provided that Cheniere gives us advance notice of the declarations. |
| (10) | “Endesa” refers to Endesa S.A. Endesa has the right to extend the charter of the GasLog Warsaw by two additional periods of six years, provided that Endesa gives us advance notice of declaration. |
| (11) | “Jera” refers to LNG Marine Transport Limited, the principal LNG shipping entity of Japan’s Jera Co., Inc. Jera has the right to extend the charter by two additional periods of three years, provided that Jera gives us advance notice of declaration. |
| (12) | The vessel is chartered to CNTIC VPower Energy Ltd. (“CNTIC VPower”), an independent Chinese energy company. CNTIC VPower may extend the term of the related charter by two additional periods of one year, provided that the charterer gives us advance notice of declaration. |
| (13) | The vessel is chartered to Trafigura Maritime Logistics PTE Ltd. (“Trafigura”). Trafigura may extend the term of this time charter for a five-year period, provided that the charterer gives us advance notice of declaration. |
| (14) | The vessel is chartered to a Swiss-headquartered energy trading company. |
| (15) | The vessel is chartered to Tokyo LNG Tanker Co. Ltd. (“Tokyo LNG”). |
| (16) | On March 30, 2023 GAS-five Ltd. and GAS-nine Ltd. sold the GasLog Sydney and the GasLog Saratoga respectively, to CDBL and leased them back for a period of five years, with no repurchase option or obligation. |
| (17) | The vessel is chartered to Mitsui & Co., Ltd. (“Mitsui”). |
| (18) | The vessel is chartered to TotalEnergies Gas & Power Limited, a wholly owned subsidiary of TotalEnergies SE (“TotalEnergies”). TotalEnergies has the right to extend the charter for a period of three years, provided that TotalEnergies provides us with advance notice of declaration. |
| (19) | The vessel is chartered to Clearlake Shipping Pte. Ltd., a wholly owned subsidiary of Gunvor Group Ltd. (“Gunvor”). |
| (20) | The vessel is chartered to Woodside Energy Shipping Singapore Pte. Ltd. (“Woodside”). The charterer has the right to extend the charter by one additional period of one year, provided that the charterer gives us advance notice of declaration. |
| (21) | The vessel is chartered to a Southeast Asian charterer (“SEA Charterer”). |
Under the omnibus agreement entered into with GasLog Partners and certain of its subsidiaries in connection with the Partnership’s initial public offering, as amended, GasLog has agreed, and has caused our controlled affiliates (other than GasLog Partners, its general partner and its subsidiaries) to agree, not to acquire, own, operate or charter any LNG carrier with a cargo capacity greater than 75,000 cbm engaged in oceangoing LNG transportation under a charter for five full years or more without, within 30 calendar days after the consummation of the acquisition or the commencement of the operations or charter of such a vessel, notifying and offering GasLog Partners the opportunity to purchase such a vessel at fair market value.
Future Deliveries
As of May 11, 2023, GasLog has four newbuildings on order at Daewoo Shipbuilding and Marine Engineering Co., Ltd.:
| LNG Carrier | Expected Delivery |
Cargo Capacity (cbm) |
Charterer |
Propulsion(1) |
Estimated Charter |
||||||
| Hull No. 2532 | Q3 2024 | 174,000 | Multinational Oil and Gas Company | MEGI | 2031 | ||||||
| Hull No. 2533 | Q3 2024 | 174,000 | Mitsui | MEGI | 2033 | ||||||
| Hull No. 2534 | Q3 2025 | 174,000 | Woodside | MEGI | 2035 | ||||||
| Hull No. 2535 | Q4 2025 | 174,000 | Woodside | MEGI | 2035 |
| (1) | M-type, Electronically controlled Gas Injection (“MEGI”) engine. |
| (2) | Charter expiration to be determined based upon actual date of delivery. |
EXHIBIT I – Unaudited Interim Financial Information
Unaudited condensed consolidated statements of financial position
As of December 31, 2022 and March 31, 2023
(Amounts expressed in thousands of U.S. Dollars)
| December 31, 2022 | March 31, 2023 | |||
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 9,511 | 9,511 | ||
| Investment in associates | 28,823 | 35,461 | ||
| Deferred financing costs | 8,778 | 8,292 | ||
| Other non-current assets | 2,092 | 2,297 | ||
| Derivative financial instruments, non-current portion | 13,225 | 6,307 | ||
| Tangible fixed assets | 4,514,663 | 3,995,938 | ||
| Vessels under construction | 210,099 | 398,779 | ||
| Right-of-use assets | 416,485 | 533,265 | ||
| Total non-current assets | 5,203,676 | 4,989,850 | ||
| Current assets | ||||
| Vessel held for sale | – | 54,450 | ||
| Trade and other receivables | 22,897 | 28,235 | ||
| Dividends receivable and other amounts due from related parties | 61 | 607 | ||
| Derivative financial instruments, current portion | 25,383 | 19,200 | ||
| Inventories | 8,483 | 9,156 | ||
| Prepayments and other current assets | 7,262 | 8,876 | ||
| Short-term cash deposits | 36,000 | 91,500 | ||
| Cash and cash equivalents | 368,286 | 413,126 | ||
| Total current assets | 468,372 | 625,150 | ||
| Total assets | 5,672,048 | 5,615,000 | ||
| Equity and liabilities | ||||
| Equity | ||||
| Preference shares | 46 | 46 | ||
| Share capital | 954 | 954 | ||
| Contributed surplus | 658,888 | 658,888 | ||
| Reserves | 16,464 | 14,567 | ||
| Retained earnings | 108,685 | 109,896 | ||
| Equity attributable to owners of the Group | 785,037 | 784,351 | ||
| Non-controlling interests | 936,741 | 957,210 | ||
| Total equity | 1,721,778 | 1,741,561 | ||
| Current liabilities | ||||
| Trade accounts payable | 19,725 | 15,487 | ||
| Ship management creditors | 14 | 72 | ||
| Amounts due to related parties | 26 | 185 | ||
| Derivative financial instruments, current portion | 2,834 | 2,884 | ||
| Other payables and accruals | 166,932 | 164,781 | ||
| Borrowings, current portion | 294,977 | 372,299 | ||
| Lease liabilities, current portion | 48,548 | 69,633 | ||
| Total current liabilities | 533,056 | 625,341 | ||
| Non-current liabilities | ||||
| Derivative financial instruments, non-current portion | 5,498 | 11,762 | ||
| Borrowings, non-current portion | 3,004,767 | 2,657,868 | ||
| Lease liabilities, non-current portion | 287,828 | 366,052 | ||
| Other non-current liabilities | 119,121 | 212,416 | ||
| Total non-current liabilities | 3,417,214 | 3,248,098 | ||
| Total equity and liabilities | 5,672,048 | 5,615,000 |
Unaudited condensed consolidated statements of profit or loss
For the three months ended March 31, 2022 and 2023
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | |||||
|
March 31, 2022 |
March 31, 2023 |
||||
| Revenues | 213,723 | 231,299 | |||
| Voyage expenses and commissions | (5,332 | ) | (4,715 | ) | |
| Vessel operating and supervision costs | (43,637 | ) | (40,021 | ) | |
| Depreciation | (54,833 | ) | (56,234 | ) | |
| Impairment loss | (28,884 | ) | (11,740 | ) | |
| Loss on disposal of non-current assets | (577 | ) | (1,309 | ) | |
| General and administrative expenses | (10,018 | ) | (8,561 | ) | |
| Profit from operations | 70,442 | 108,719 | |||
| Financial costs | (37,369 | ) | (64,497 | ) | |
| Financial income | 59 | 4,039 | |||
| Gain/(loss) on derivatives | 37,401 | (3,670 | ) | ||
| Share of profit of associates | 519 | 433 | |||
| Total other income/(expenses), net | 610 | (63,695 | ) | ||
| Profit for the period | 71,052 | 45,024 | |||
| Attributable to: | |||||
| Owners of the Group | 44,795 | 18,035 | |||
| Non-controlling interests | 26,257 | 26,989 | |||
| 71,052 | 45,024 |
Unaudited condensed consolidated statements of cash flows
For the three months ended March 31, 2022 and 2023
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | |||||
| March 31, 2022 | March 31, 2023 | ||||
| Cash flows from operating activities: | |||||
| Profit for the period | 71,052 | 45,024 | |||
| Adjustments for: | |||||
| Depreciation | 54,833 | 56,234 | |||
| Impairment loss | 28,884 | 11,740 | |||
| Loss on disposal of non-current assets | 577 | 1,309 | |||
| Share of profit of associates | (519 | ) | (433 | ) | |
| Financial income | (59 | ) | (4,039 | ) | |
| Financial costs | 37,369 | 64,497 | |||
| (Gain)/loss on derivatives (excluding realized loss/gain on forward foreign exchange contracts held for trading) | (38,036 | ) | 5,178 | ||
| Share-based compensation | 256 | 146 | |||
| 154,357 | 179,656 | ||||
| Movements in working capital | (5,048 | ) | (6,251 | ) | |
| Net cash provided by operating activities | 149,309 | 173,405 | |||
| Cash flows from investing activities: | |||||
| Payments for tangible fixed assets and vessels under construction | (98,971 | ) | (86,787 | ) | |
| Proceeds from sale and leaseback, net of commissions | 125,968 | 284,000 | |||
| Proceeds from FSRU forthcoming sale | 79,526 | 92,825 | |||
| Other investments | – | (6,630 | ) | ||
| Payments for right-of-use assets | – | (760 | ) | ||
| Purchase of short-term cash deposits | – | (72,500 | ) | ||
| Maturity of short-term cash deposits | – | 17,000 | |||
| Financial income received | 30 | 3,095 | |||
| Net cash provided by investing activities | 106,553 | 230,243 | |||
| Cash flows from financing activities: | |||||
| Proceeds from loans and bonds | 315,000 | 61,549 | |||
| Loan and bond repayments | (492,099 | ) | (330,807 | ) | |
| Principal elements of lease payments | (7,824 | ) | (10,297 | ) | |
| Interest paid | (45,409 | ) | (62,510 | ) | |
| Release of cash collaterals for swaps | 990 | – | |||
| Payment of loan and bond issuance costs | (3,637 | ) | (285 | ) | |
| Proceeds from interest rate swaps termination | – | 3,706 | |||
| Payment of equity raising costs | (20 | ) | – | ||
| Dividends paid (common and preference) | (31,318 | ) | (20,828 | ) | |
| Repurchase of GasLog Partners’ preference units | (10,002 | ) | – | ||
| Net cash used in financing activities | (274,319 | ) | (359,472 | ) | |
| Effects of exchange rate changes on cash and cash equivalents | (305 | ) | 664 | ||
| (Decrease)/increase in cash and cash equivalents | (18,762 | ) | 44,840 | ||
| Cash and cash equivalents, beginning of the period | 282,246 | 368,286 | |||
| Cash and cash equivalents, end of the period | 263,484 | 413,126 |
EXHIBIT II
Non-GAAP Financial Measures:
EBITDA, Adjusted EBITDA and Adjusted Profit
EBITDA is defined as earnings before depreciation, amortization, financial income and costs, gain/loss on derivatives and taxes. Adjusted EBITDA is defined as EBITDA before foreign exchange gains/losses, impairment loss, gain/loss on disposal of non-current assets, restructuring costs and the costs relating to the 2022 take-private transaction with BlackRock’s Global Energy & Power Infrastructure team and the Transaction (collectively such costs, the “Transaction Costs”). Adjusted Profit represents earnings before write-off and accelerated amortization of unamortized loan fees/bond fees and premium, foreign exchange gains/losses, unrealized foreign exchange losses on cash and bond, impairment loss, swap optimization costs (with respect to cash collateral amendments), gain/loss on disposal of non-current assets, restructuring costs, Transaction Costs and non-cash gain/loss on derivatives that includes (if any) (a) unrealized gain/loss on derivative financial instruments held for trading, (b) recycled loss of cash flow hedges reclassified to profit or loss and (c) ineffective portion of cash flow hedges. EBITDA, Adjusted EBITDA and Adjusted Profit are non-GAAP financial measures that 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 and Adjusted Profit 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 purchase and/or to continue to hold our common shares. This is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, financial costs, gain/loss on derivatives, taxes, depreciation and amortization; in the case of Adjusted EBITDA, foreign exchange gains/losses, impairment loss, gain/loss on disposal of non-current assets, restructuring costs and Transaction Costs; and in the case of Adjusted Profit, write-off and accelerated amortization of unamortized loan/bond fees and premium, foreign exchange gains/losses, unrealized foreign exchange losses on cash and bond, impairment loss, swap optimization costs (with respect to cash collateral amendments), gain/loss on disposal of non-current assets, restructuring costs, Transaction Costs and non-cash gain/loss on derivatives, which items are affected by various and possibly changing financing methods, financial market conditions, capital structure and historical cost basis, and which items may significantly affect results of operations between periods.
EBITDA, Adjusted EBITDA and Adjusted Profit have limitations as analytical tools and should not be considered as alternatives to, or as substitutes for, or superior to, profit, profit from operations, or any other measure of operating performance presented in accordance with IFRS. Some of these limitations include the fact that they do not reflect (i) our cash expenditures or future requirements for capital expenditures or contractual commitments, (ii) changes in, or cash requirements for, our working capital needs and (iii) the cash requirements necessary to service interest or principal payments on our debt. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. EBITDA, Adjusted EBITDA and Adjusted Profit are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows and other companies in our industry may calculate these measures differently than we do, limiting their usefulness as a comparative measure.
In evaluating Adjusted EBITDA and Adjusted Profit, you should be aware that in the future we may incur expenses that are the same as, or similar to, some of the adjustments in this presentation. Our presentation of Adjusted EBITDA and Adjusted Profit should not be construed as an inference that our future results will be unaffected by the excluded items. Therefore, the non-GAAP financial measures as presented below may not be comparable to similarly titled measures of other companies in the shipping or other industries.
Reconciliation of Profit to EBITDA and Adjusted EBITDA:
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | |||||
| March 31, 2022 | March 31, 2023 | ||||
| Profit for the period | 71,052 | 45,024 | |||
| Depreciation | 54,833 | 56,234 | |||
| Financial costs | 37,369 | 64,497 | |||
| Financial income | (59 | ) | (4,039 | ) | |
| (Gain)/loss on derivatives | (37,401 | ) | 3,670 | ||
| EBITDA | 125,794 | 165,386 | |||
| Foreign exchange losses, net | 279 | 693 | |||
| Restructuring costs | 1,478 | 136 | |||
| Transaction Costs | 521 | 824 | |||
| Impairment loss | 28,884 | 11,740 | |||
| Loss on disposal of non-current assets | 577 | 1,309 | |||
| Adjusted EBITDA | 157,533 | 180,088 |
Reconciliation of Profit to Adjusted Profit:
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | |||||
| March 31, 2022 | March 31, 2023 | ||||
| Profit for the period | 71,052 | 45,024 | |||
| Non-cash (gain)/loss on derivatives | (46,212 | ) | 9,221 | ||
| Write-off of unamortized loan fees | 1,150 | 1,676 | |||
| Foreign exchange losses, net | 279 | 693 | |||
| Restructuring costs | 1,478 | 136 | |||
| Transaction Costs | 521 | 824 | |||
| Impairment loss | 28,884 | 11,740 | |||
| Loss on disposal of non-current assets | 577 | 1,309 | |||
| Unrealized foreign exchange losses/(gains), net on cash | 305 | (664 | ) | ||
| Adjusted Profit | 58,034 | 69,959 |