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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. Due to the support of Samsung Heavy Industries and the consequently attractive terms achieved, GasLog does not currently foresee the need to raise new equity within the next few years to fund these two new orders. In addition, as previously announced, we are currently reviewing our capital structure to ensure that we are able to finance these vessels in a way that maximizes shareholder value. Paul Wogan, CEO, said “It is very pleasing to be able to conclude these significant contracts with our largest customer. These contracts reinforce our strategy of building high quality ships at competitive prices for charter to strong, creditworthy customers. The seasonal charter also demonstrates our flexibility in meeting customer needs whilst also being able to capitalize on opportunities in the LNG spot market during a period where we expect increased demand for shipping from planned liquefaction projects. We are very pleased to be building the new vessels at Samsung as they have a solid track record for delivering vessels on time and on budget for GasLog and the options we have secured show a strong commitment between GasLog and Samsung to continue to support each other’s growth ambitions. We believe that these new orders further enhance our position as one of the worlds leading LNG ship owners.” About GasLog Ltd. GasLog is an international owner, operator and manager of LNG carriers. Following this announcement, GasLog’s fleet consists of 12 wholly-owned LNG carriers, including two ships delivered in 2010, one delivered in January 2013 and nine LNG carriers on order. In addition, GasLog currently has 12 LNG carriers operating under its technical management for third parties. GasLog’s principal executive offices are located at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. GasLog’s website is http://www.gaslogltd.com. EXHIBIT I Non-GAAP Financial Measures: EBITDA represents earnings before interest income and expense, taxes, depreciation and amortization. EBITDA, which is a non-GAAP financial measure, is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period. We believe that including EBITDA 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 continue to hold our common shares. 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. GasLog Ltd. press release |
Gaslog Ltd. Announces New Orders and Charters