GasLog Partners says Q4 revenues up on strong spot market

LNG shipper GasLog Partners said its revenues increased 4 percent in the fourth quarter on the back of higher earnings from the company’s spot fleet.

Revenues rose to $88.2 million in the fourth quarter, up from $85 million in the same period last year, and also from $80.5 million in the prior quarter.

The NYSE-listed limited partnership controlled by Greece’s GasLog attributed the rise to the improved performance of its spot fleet, in line with the “ongoing improvement of the LNG shipping market observed in 2021 and the short-term charters we entered into.”

Headline spot rates for TFDE LNG carriers averaged $149,000 per day in the fourth quarter of 2021, a 38 percent increase year-on-year, while spot rates for steam vessels averaged $107,000 per day, up by 47 percent, according to Clarkson Research Services.

The partnership’s fleet consists of 15 LNG carriers with an average carrying capacity of about 158,000 cbm. This includes the 155,000-cbm TFDE GasLog Shanghai, chartered by Gubvor, which it sold and leased back from CDBL.

GasLog Partners has five steam LNG carriers chartered to Cheniere, Gunvor, Jovo, and CNTIC VPower. The firm owns nine TFDE vessels out of which six are on charter to Shell, two to TotalEnergies, and one to Trafigura.

Net loss

During the fourth quarter, the firm recognized a non-cash impairment loss of $104 million on the book values of the five steam vessels, built in 2006 and 2007.

GasLog Partners said the principal factors that led to the recognition of the non-cash impairment loss included the differences of the ship broker estimates of its steam vessels’ fair market values compared to their carrying values, as well as reduced expectations of the long-term rates for these older technology vessels.

Due to the impairment, the LNG shipper posted a loss of $70.8 million in the fourth quarter, compared to a profit of $22.6 million in the same period in 2020.

Chief executive Paolo Enoizi said the company’s continued cost optimization and rechartering activities helped improve its profitability, as well as the company’s overall liquidity position, with about $146.0 million of cash and cash equivalents at the end of the year.

“Furthermore, we repurchased an additional $6 million of preference units in the open market during the fourth quarter, bringing the total amount of preference units repurchased to $18.4 million during 2021 and further improving the fleet’s all-in free cash flows,” he said.

“As we look ahead to 2022, we expect to continue with our capital allocation strategy, which will enhance our competitiveness and position the partnership for continued success in the spot and short-term market for LNG shipping,” Enoizi said.

Most Popular

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Excelerate buys GasLog LNG carrier

US FSRU player Excelerate Energy has purchased a 2007-built steam liquefied natural gas (LNG) carrier from GasLog Partners, a part of Greek LNG shipping firm GasLog, according to brokers.

GasLog: 12 LNG carriers scheduled for drydocking this year

Greek LNG carrier owner GasLog expects 2025 to be its busiest year for repairs, with a total of 12 vessels scheduled for drydocking maintenance, spread in shipyards worldwide.

GasLog Partners reports lower profit in Q4

GasLog Partners, part of Greek LNG carrier owner GasLog, reported lower profit and revenues in the fourth quarter of the last year due to a weak market and a non-cash impairment loss.

CDB Leasing inks deal for another GasLog LNG carrier

The Hong-Kong listed firm revealed this in a stock exchange filling last week. CDB Leasing’s unit entered into a vessel...