True opinion can leave the lasting mark: GasLog Ltd. (NYSE: GLOG)

On 08 Jan 2020, GasLog Ltd. (NYSE: GLOG) spotted trading -49.89% off 52-week high price. On the other end, the stock has been noted 9.52% away from the low price over the last 52-weeks. The stock changed -6.44% to recent value of $9.15. The stock transacted 940921 shares during most recent day however it has an average volume of 530.83K shares. The company has 83.33M of outstanding shares and 70.73M shares were floated in the market.

GasLog Ltd. and its subsidiaries (GLOG) recently stated its financial results for the three-month period ended September 30, 2019.

Paul Wogan, Chief Executive Officer, stated: “A recovery in the LNG shipping spot market during the third quarter of 2019, as well as the continued contribution of our newbuild vessels with long-term contracts, allowed GasLog to generate solid year-on-year growth in Revenues and EBITDA for 2019 year-to-date. Our two ships on charter to Gunvor Group Ltd. (“Gunvor”) have delivered strong performances under their market-linked charters, underpinned by their 100% utilization. Based on the tightening spot LNG shipping market since the end of the third quarter and the accompanying rise in freight rates, we expect to deliver a further uplift in our financial performance during the fourth quarter. Elsewhere, we are making good progress towards the financing of our newbuild programme.

LNG Market Update and Outlook

According to Wood Mackenzie, global LNG supply totaled 90M tonnes (“mt”) in the third quarter of 2019, a 2% increase from the second quarter and 11% growth year-on-year. During the third quarter, growth from new U.S. projects (Cameron, Corpus Christi Train 2 and Freeport) and the ramp-up of the Prelude project in Australia offset continued underperformance from plants in Indonesia and Malaysia and maintenance activities at PNG LNG, Sakhalin-2, Peru LNG and Sabine Pass. Contrast to the third quarter, supply is predictable to grow by 6%, to 95 mt, in the fourth quarter of 2019, principally reflecting a full quarter of production from the U.S. projects mentioned above, as well as initial production from the Elba Island facility. For 2019, Wood Mackenzie estimates yearly LNG supply at 364 mt, which represents 12% growth over 2018. Supply is predictable to grow by a further 7% in 2020 with the addition of further trains at the Cameron, Freeport and Yamal LNG (Russia) projects.

During the third quarter, the Calcasieu Pass project (10M tonnes per annum, or “mtpa”) in the U.S. and Arctic LNG-2 reached a Final Investment Decision (“FID”). Arctic LNG-2, at 19.8 mtpa of nameplate capacity, is the single largest project sanction in the history of the LNG industry. Combined with projects accepted earlier in the year, 2019 has set a record for LNG FIDs, totaling 63 mtpa year-to-date and surpassing the 2005 record of 46 mtpa. In addition, the 2.1 mtpa Woodfibre LNG project in Canada is predictable to reach FID by the end of 2019, while ExxonMobil recently awarded engineering contracts for the 15.2 mtpa Rovuma LNG project ahead of an predictable FID in 2020. In total, Wood Mackenzie expects 115 mtpa of new capacity to commence production between 2020 and 2024.

FSU Panama Power Project

On August 27, 2019, GasLog signed a 10-year time charter with Sinolam LNG Terminal, S.A. (“Sinolam LNG”) for the provision of an LNG FSU to a gas-fired power project being developed in Panama.

The time charter is predictable to be fulfilled through the conversion of the GasLog Singapore, a 155,000 cbm TFDE LNG carrier built in 2010. The required modifications are such that, as well as being FSU ready, the vessel will still be able to trade as an LNG carrier following the conversion work. The conversion will take place in conjunction with the vessel’s planned5-year dry-docking and special survey in the third quarter of 2020, enabling both time and cost synergies. The charter commences on delivery of the FSU in Panama, which is planned for late 2020.

Since September 2016, the GasLog Singapore has been trading in the LNG carrier spot market. The FSU contract is for a fixed period, thereby delivering 100% utilization for the duration of the charter. The FSU will also incur lower operating expenses than if the vessel was trading as an LNG carrier, with GasLog estimating that the charter will generate about $20M of EBITDA per annum over its 10-year life.

Its earnings per share (EPS) expected to touch remained 589.80% for this year while earning per share for the next 5-years is expected to reach at 30.54%. GLOG has a gross margin of 80.90% and an operating margin of 46.00% while its profit margin remained -6.90% for the last 12 months. According to the most recent quarter its current ratio was 0.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of -4.61% from the mean of 20 days, -9.81% from mean of 50 days SMA and performed -28.73% from mean of 200 days price. Company’s performance for the week was -6.54%, 2.11% for month and YTD performance remained -6.54%.

 

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