NYSE-listed LNG shipping firm GasLog Partners has extended charter deals for its vessels with LNG giant Shell and US exporter Cheniere.
GasLog Partners, which recently received a buyout offer from Peter Livanos-led GasLog, revealed these charter deals and also one deal with a Swiss-headquartered energy trading company in its fourth-quarter report.
Under the first deal, a unit of Shell exercised its five-year option to extend the contract for the 170,000-cbm Methane Becki Anne.
With this move, Shell will use this 2010-buit TFDE carrier to ship LNG until March 2029.
This vessel recently took the first cargo from Shell’s 3.6 mtpa Prelude floating LNG producer offshore Western Australia following a fire on the giant unit in December.
As per the contract with Cheniere, GasLog Partners said that a unit of the US LNG exporting giant had extended the time charter agreement for the 2006-built Methane Jane Elizabeth for another year.
This charter will end in March 2024.
Back in February 2021, Cheniere Marketing International took this LNG carrier with a steam turbine propulsion on a two-year charter.
Besides these two carriers, GasLog Partners entered into a one-year time charter agreement for the TFDE LNG carrier GasLog Seattle with a Swiss-headquartered energy trading company.
This deal for this 2013-buit 155,000-cbm LNG carrier will also last until March 2024.
According to a fourth-quarter earnings presentation posted on the company’s website, GasLog Partners expects Ebitda for the Methane Becki Anne deal of $121 million and $37 million for the the GasLog Seattle deal.
The firm expects Ebitda of $9 million for the Methane Jane Elizabeth charter contract.
“Strong” results
One-year time charter rates for TFDE LNG carriers averaged $189,231 per day in the fourth quarter of 2022, an 81 percent increase over the $104,643 per day average in the fourth quarter of 2021, according to GasLog Partners.
One-year time charter rates for steam LNG carriers averaged $82,308 per day in the fourth quarter of 2022, 20 percent higher than the $68,250 daily average in the fourth quarter of 2021.
GasLog Partners’ CEO Paolo Enoizi said that the firm “delivered strong financial results in the fourth quarter of 2022, taking advantage of market conditions to secure a series of term charters at attractive rates during the course of the year.”
The company has a fleet of 12 wholly-owned LNG carriers as well as two vessels on bareboat charters.
It reported quarterly revenues, profit, adjusted profit, and adjusted Ebitda of $105 million, $40.6 million, $44.8 million, and $81.1 million, respectively
“The Partnership enters 2023 with a charter backlog of approximately $729 million of contracted time charter revenues and fixed charter coverage of about 87 percent of its total days in 2023, with the majority of our open days in the seasonally stronger fourth quarter, further enhancing our cash flow visibility in 2023,” Enoizi said.