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London, United Kingdom - 3 November 2016 Monaco, November 3, 2016, GasLog Ltd. and its subsidiaries ("GasLog" or "Group" or "Company") (NYSE: GLOG), an international owner, operator and manager of liquefied natural gas ("LNG") carriers, today reported its financial results for the quarter ended September 30, 2016. Highlights • Post quarter-end, GasLog was awarded a seven-year charter by a subsidiary of Centrica plc ("Centrica"), commencing in 2019 and entered into a contract with Samsung Heavy Industries Co. Ltd. ("Samsung") for the purchase of one 180,000 cubic meters capacity ("cbm") newbuilding from the shipyard for delivery in the second quarter of 2019. • Successfully chartered GasLog's only open newbuilding to Total Gas & Power Chartering Limited ("Total") for a period of seven years, commencing in 2018. • Delivery of the GasLog Geneva and the GasLog Gibraltar on September 30, 2016 and October 31, 2016, respectively, on time and on budget. Both vessels have commenced their seven-year charters to a subsidiary of Royal Dutch Shell plc ("Shell"). • Post quarter-end, completed the dropdown of GasLog Seattle to GasLog Partners LP ("GasLog Partners") for $189.0 million. In August, GasLog Partners launched and completed an equity offering of 2,750,000 common units raising net proceeds of $52.3 million, which have been used to partially fund the dropdown of GasLog Seattle. • Completed debt refinancing of $1.05 billion with a number of international banks, extending the maturity of six existing credit facilities to 2021. • Revenues of $120.7 million (Q3 2015: $105.8 million), Loss of $16.4 million (Q3 2015: profit of $4.9 million) and Loss per share of $0.39(1) (Q3 2015: a loss of $0.12), for the quarter ended September 30, 2016. • Adjusted Profit(2) of $19.5 million (Q3 2015: $10.8 million), EBITDA(2) of $80.8 million (Q3 2015: $65.7 million), Adjusted EBITDA(2) of $81.1 million (Q3 2015: $65.7 million) and Adjusted Earnings per share(2) of $0.05(1) (Q3 2015: Adjusted Loss per share of $0.05) for the quarter ended September 30, 2016. • Quarterly dividend of $0.14 per common share payable on November 24, 2016. (1) Earnings/Loss per share ("EPS") and Adjusted EPS are negatively affected by the profit attributable to the non-controlling interest of $12.6 million and the dividend on preferred stock of $2.5 million for the quarter ended September 30, 2016 ($12.2 million and $2.5 million, respectively, for the quarter ended September 30, 2015). (2) EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog's financial results presented in accordance with International Financial Reporting Standards ("IFRS"). For definition and reconciliation 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. CEO Statement Paul Wogan, Chief Executive Officer, stated: "In recent weeks, GasLog added Total and Centrica as long-term customers. We are delighted to broaden our customer base with two leaders in the global energy sector and we look forward to building these relationships as they develop their own LNG businesses. In September and October, we took delivery of two newbuildings, the GasLog Geneva and the GasLog Gibraltar, both of which have now commenced seven year charters with Shell. GasLog has a further five newbuildings on order, all of which have firm contracts of between seven and ten years. In August, GasLog Partners successfully raised $53.6 million of common equity, which has been used to partially fund the dropdown of GasLog Seattle. With the Total and Centrica charters, GasLog now has 13 eligible vessels for dropdown, providing a strong pipeline of growth for GasLog Partners and the opportunity to continue to recycle capital into GasLog." Charter Party Agreement with Centrica and Newbuilding Order Post quarter-end, GasLog entered into a time charter party agreement with a subsidiary of Centrica for a period of seven years, commencing in 2019. In conjunction with this new charter award, GAS-twenty eight Ltd. entered into a shipbuilding contract with Samsung for the construction of one LNG carrier (180,000 cbm). The vessel is expected to be delivered in the second quarter of 2019. Charter Party Agreement with Total On July 11, 2016, GasLog entered into a time charter party agreement with Total to charter Hull No. 2801 for a period of seven years, commencing in mid-2018 at a date to be finalized ahead of the commencement of the charter. The vessel is currently under construction at Hyundai Heavy Industries Co., Ltd. ("Hyundai") in South Korea and is due to be delivered in 2018. Delivery of the GasLog Geneva and the GasLog Gibraltar On September 30, 2016 and October 31, 2016, GasLog took delivery of the GasLog Geneva and the GasLog Gibraltar, respectively, two LNG carriers of 174,000 cbm each with tri-fuel diesel electric propulsion constructed by Samsung. The vessels are chartered out to Methane Services Limited ("MSL"), a subsidiary of Shell, from their delivery until 2023. Completion of GasLog Partners' Equity Offering and Dropdown of GasLog Seattle On August 5, 2016, GasLog Partners completed an equity offering of 2,750,000 common units and issued 56,122 general partner units to its general partner (in order for GasLog to retain its 2.0% general partner interest in GasLog Partners) at a public offering price of $19.50 per unit, raising net proceeds of $52.3 million (after excluding $1.1 million from the sale of the general partner units to GasLog). Proceeds from the public offering were subsequently used to partially finance the acquisition from GasLog of 100% of the ownership interest in GAS-seven Ltd., the entity that owns GasLog Seattle, for an aggregate purchase price of $189.0 million, including $1.0 million of positive net working capital. The acquisition closed on November 1, 2016. Debt Refinancing On July 19, 2016, GasLog entered into a credit agreement to refinance the existing indebtedness on eight of its on-the-water vessels of up to $1.05 billion (the "Legacy Facility Re-financing") with a number of international banks. It is comprised of a five-year facility of up to $950.0 million and a revolving credit facility of up to $100.0 million. The vessels covered by the Legacy Facility Re-financing are the GasLog Savannah, the GasLog Singapore, the GasLog Skagen, the GasLog Seattle, the Solaris, the GasLog Saratoga, the GasLog Salem and the GasLog Chelsea. Citibank N.A, Credit Suisse AG and Nordea Bank AB were mandated lead arrangers to the transaction. On July 25, 2016, $950.0 million and $11.6 million under the term loan facility and the revolving credit facility, respectively, of the Legacy Facility Re-financing were drawn to refinance the aggregate existing indebtedness of $959.9 million of GAS-one Ltd., GAS-two Ltd., GAS-six Ltd., GAS-seven Ltd., GAS-eight Ltd., GAS-nine Ltd., GAS-ten Ltd. and GAS-fifteen Ltd. Swaps' Termination and New Swap Agreements In July 2016, the Group terminated interest rate swap agreements with an aggregate notional value of $874.9 million, associated with the six legacy facilities that were re-financed by the Legacy Facility Re-financing. Concurrently, GasLog entered into new interest rate swap agreements with a notional value of $870.0 million in aggregate, maturing between 2020 and 2022. Dividend Declaration On September 14, 2016, the board of directors declared a dividend on the Series A Preference Shares of $0.546875 per share, or $2.5 million in aggregate, payable on October 3, 2016 to holders of record as of September 30, 2016. GasLog paid the declared dividend to the transfer agent on September 30, 2016. On November 2, 2016, the board of directors declared a quarterly cash dividend of $0.14 per common share payable on November 24, 2016 to shareholders of record as of November 14, 2016. Full report at www.gaslogltd.com GasLog Ltd. press release |
