GasLog Ltd. (NYSE:GLOG) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 08:30 am ET


GasLog Ltd. (NYSE:GLOG) Q3 2019 Earnings Conference Call - Final Transcript


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Paul Wogan

liquefaction facilities, particularly in the US Slide 18 shows how periods of strength and weakness in the spot markets have historically influenced activity for multiyear charters. Most recently, 14 charters between six months and three years in duration were reported in the third quarter of 2019, the highest number since Q2 of '18.

Of these 14 charters, six TFDEs and six steamships were fixed on charters greater than six months. Poten currently assesses the one-year time charter rate at $84,000 per day for TFDE and 50,000 per day for steam vessel, which are helpful benchmarks when discussing term charter opportunities, although we would note there is presently limited liquidity for charters of one year or greater.

Turning to slide 19, let me finish on why GasLog represents a compelling investment proposition. Our almost 20 years of experience in LNG shipping has allowed us to build a leading operating capability founded up on an uncompromising approach to the high standards of safety. GasLog is continually recognized by our customers and industry bodies as best in class.

We continue to modernize our fleet. When our seven XDF new buildings deliver in 2021, we will have one of the largest fleets of latest generation vessels, all backed by long-term contracts to high-quality counterparties. Our seven newbuilds alone represent a 144 million of annualized EBITDA growth on a fully delivered basis.

We continue to work with our customers to develop [Indecipherable] commercial structures that meet the needs and optimize the earnings of our fleet. The Panama FSU award is yet another example of this capability, in turn pushing our fixed charter backlog to an all-time high of $4.1 billion.

We have a strong balance sheet with scheduled amortization leading to deleveraging over time. We remain confident that increasing demand for LNG will lead to structural tightness in the LNG shipping market, potentially increasing spot market earnings and providing opportunities to reach out to vessels operating in the spot market.

And finally, we remain proud of our track record of paying a progressive dividend which has grown at a compound rate of 4% since our IPO, not including the special dividend we paid in the fourth quarter of 2018, and we continue to explore opportunities to enhance shareholder returns against the backdrop of a strong LNG shipping market.

With that, I'd like to open up for Q&A. Operator, could you please now open the call for any questions.