Monaco-based LNG shipper GasLog slipped to a loss in the third quarter of the year.
The company reported a $13.5 million loss which compares to an $18.2 million profit in the corresponding quarter last year.
The drop was mainly attributable to the unfavorable movement in mark-to-market valuations of its derivative financial instruments in the third quarter of 2019 and an increase in financial costs, combined with decreased profit from operations.
Revenues for the period reached $165.6 million which rose compared to the $158.4 million in the corresponding quarter last year.
Speaking of the results, GasLog’s CEO Paul Wogan said, “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 revenue.”
He added that based on the tightening spot LNG shipping market since the end of the third quarter and the accompanying rise in freight rates, GasLog expects to deliver a further uplift in its financial performance during the fourth quarter.
“We have been predicting a tighter LNG shipping market, as increasing United States LNG output combines with a seasonal uptick in demand for gas, resulting in rising demand for shipping and higher utilization of the global fleet. These underlying trends in the LNG commodity and shipping markets point towards a structurally tighter market through 2020 and into 2021,” he said.
The company believes this all will positively impact its efforts to secure term business for several of its on-the-water vessels.