GasLog Q2 Profit Falls - Quick Facts

(RTTNews) - GasLog Ltd.(GLOG) reported that its second-quarter profit fell to $3.5 million from $20.4 million in the year ago quarter. The decrease was mainly attributable to the increase in non-cash loss from swaps. The decrease was also affected by the increase in operating expenses, general and administrative expenses, depreciation expense, and financial costs, partially offset by the increase in revenues. Earnings per share were $0.02 lower than last year's $0.32.

Loss on swaps was $9.6 million, compared to gain of $11.4 million last year. The increase in loss was attributable to an increase of $18.7 million in loss from mark-to-market valuation of its interest rate swaps which were carried at fair value through profit or loss, an increase of $1.2 million in loss that was reclassified from equity to profit or loss statement related to the interest rate swaps for which hedge accounting was discontinued and an increase of $1.2 million in realized loss from interest rate swaps held for trading.

But, adjusted profit rose to $10.4 million from $7.1 million in the prior year. Adjusted earnings per share were $0.13 up from $0.11 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items. The increase in Adjusted earnings per share was attributable to the increase in Adjusted Profit, partially offset by the increase in the weighted average number of shares resulting from the equity offerings and the private placement completed in 2014.

Revenues were $73.2 million up from $32.9 million in the previous year. The increase was mainly attributable to the increase in operating days. Wall Street expected revenues of $69.31 million.

On August 19, 2014, the board of directors declared a quarterly cash dividend of $0.12 per common share payable on September 8, 2014 to shareholders of record as of September 2, 2014.

The company believes that the long-term outlook for LNG shipping remains very positive as, over the coming years, a steady stream of large LNG projects are expected to come online in places such as Australia, South East Asia, USA, Russia, Canada and East Africa.