GasLog Q2 Results Beat View

(RTTNews) - GasLog Ltd. (GLOG), a Monaco-based operator of liquefied natural gas carriers, on Wednesday reported an 83 percent plunge in profit for the second quarter from last year as strong revenue growth was more than offset by loss on swaps and higher expenses. Nevertheless, both revenue and adjusted earnings per share for the quarter beat analysts' expectations.

The company's net income for the second quarter was $3.47 million or $0.02 per share, down from $20.43 million or $0.32 per share in the prior-year period.

Loss on swaps for the latest quarter was $9.6 million, compared to gain of $11.4 million in the same period last year. The latest quarter's results were also affected by increases in operating expenses, general and administrative expenses, depreciation expense, and financial costs.

Excluding the effects of the non-cash loss on swaps and foreign exchange gains or losses, adjusted net income for the quarter was $10.37 million or $0.13 per share, compared to $7.07 million or $0.11 per share in the year-ago period.

On average, 11 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.

Revenues for the quarter more than doubled to $73.24 million from $32.95 million in the same period last year, primarily due to an increase in operating days. Analysts had a consensus revenue estimate of $69.31 million.

As of June 30, 2014 GasLog has eight newbuildings on order at Samsung Heavy Industries Co. Ltd. and two newbuildings on order at Hyundai Heavy Industries Co., Ltd. The company noted that its vessels presently under construction are on schedule and within budget, with one vessel scheduled to be delivered in the fourth quarter of 2014.

Further, the company said its board of directors declared a quarterly cash dividend of $0.12 per share, payable on September 8 to shareholders of record as of September 2.

Looking ahead, GasLog estimates contracted charter revenues to increase from $145.4 million for fiscal year 2013 to $424.2 million for fiscal year 2017.

The outlook is based on contracts in effect as of June 30, 2014 for the eight LNG carriers delivered to the company in 2010, 2013 and through June 30, 2014, the six LNG carriers acquired from a subsidiary of BG Group in April 2014 as well as June 2014, and the four LNG carriers on order for which the company has secured time charters, but does not include any extension options.

GasLog said its 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, the U.S., Russia, Canada and East Africa.

GLOG closed Tuesday's trading at $26.07. In Wednesday's pre-market activity, the stock is up $0.43 or 1.65 percent to $26.50.