GasLog Ltd. (NYSE:GLOG) Q4 2018 Earnings Conference Call Transcript
Jan 30, 2019 • 08:30 am ET
Good morning. My name is Gigi, and I'll be your conference operator today. At this time, I would like to welcome everyone to GasLog Limited's Fourth Quarter 2018 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. As a reminder, this conference call is being recorded. Today's speakers are Paul Wogan, Chief Executive Officer; Alastair Maxwell, Chief Financial Officer; and to commence the call, Phil Corbett, Head of Investor Relations.
Mr. Corbett, you may begin your conference.
Good morning or good afternoon to everyone, and thank you for joining GasLog Limited's Fourth Quarter 2018 Earnings Conference Call. For your convenience, this webcast and presentation are available on the Investor Relations section of our website, www.gaslogltd.com, where a replay will also be available.
Please now turn to Slide 2 of the presentation. Many of our remarks contain forward-looking statements. For factors that could cause actual results to differ materially from these forward-looking statements, please refer to our fourth quarter earnings press release. In addition, some of these remarks contain non-GAAP financial measures as defined by the SEC. A reconciliation of these is included in the appendix of the presentation.
I will now hand over to Paul Wogan, CEO of GasLog Limited.
Thank you, Phil. Good morning or afternoon and thank you for joining our fourth quarter earnings call. I'll begin with the highlights of 2018 and update you on our strategic progress. Alastair will take you through the financial review and an update on project Alex. I will then review the current trends in the LNG and LNG shipping markets before opening the call for questions.
But before we review the past quarter and year, I would like to share with you the key reasons why we believe that the outlook for GasLog's business is so positive. Firstly, the macro backdrop for gas and LNG consumption continues to improve. Secondly, we are confident that the recent fall in spot LNG shipping rates is seasonal in nature and that the market will recover, particularly given the significant US LNG supply expected to come on stream during 2019 and 2020. And finally, GasLog is delivering on its strategy. Our nine new buildings underpin a visible growth runway through at least 2022 and represents substantial progress toward our target of more than doubling consolidated annualized EBITDA by 2022.
Turning now to our results from Slide 3. During the fourth quarter, we delivered record revenues and EBITDA driven by very strong earnings from our spot ships and a reduction in unit operating costs. These factors allied to the fleet growth in 2018, also delivered record annual financial results demonstrating how our platform can translate market tightness into impressive earnings and cash flow.
In December we announced that we had agreed two multi-year contracts with Cheniere and to service these contracts we ordered two new buildings at Samsung for delivery in 2021. Our relationship with Cheniere has grown significantly having secured