GasLog third-quarter profit up on tight LNG shipping market

GasLog third-quarter profit up on tight LNG shipping marketImage courtesy of GasLog

Monaco-based LNG shipper GasLog reported a rise in profit during the third quarter of the year as the LNG shipping market tightened. 

The company posted an $18.2 million profit for the period under review, compared to the $5.3 million in the corresponding quarter last year.

GasLog’s CEO Paul Wogan, said, “the LNG shipping market tightened considerably in the third quarter, driving headline spot rates to multi-year highs and delivering a record result for our ships operating in the Cool Pool.”

He further noted that together with three newbuilds delivered earlier this year, the fleet delivered record quarterly results.

“With further strengthening of spot rates in October, we anticipate another significant increase in our spot earnings during the fourth quarter of 2018, despite the time lag for headline rates to manifest themselves in spot vessel earnings,” Wogan said.

GasLog further noted in its quarterly report that LNG demand growth was strong and broad-based during the first nine months of 2018, growing 7 percent over the same period of 2017, citing data from Poten.

LNG supply grew by 8 percent year-over-year during the third quarter of 2018 and increased by 5% from the second quarter of 2018, according to estimates from Wood Mackenzie.

“Looking ahead, in our view, strong LNG demand, new sources of supply coming onstream and limited availability of shipping capacity over the near-term are combining to create the potential for the recent strength in LNG shipping spot rates to be sustained through at least early 2019,” the statement reads.

While a seasonal moderation in spot rates during the first half of 2019 might occur, this is not expected to be as pronounced as was the case in early 2018.

GasLog believes the LNG shipping fleet is set to experience very high levels of utilization in the near-term based on the current supply and demand projections and the build time of approximately two and a half years for new LNG carriers.

The company stressed that further shipping capacity will be needed over and above the current order book to satisfy projected demand from 2021 onwards.

Share this article

Follow LNG World News

Posted on November 1, 2018 with tags .

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

Offshore Energy Exhibition and Conference 2019

The three-day event includes an exhibition where an expected 600+ supply chain companies will showcase their products and services.

read more >

LNGgc London

LNGgc is a fantastic way of raising attendees’ company profile within this market and creating greater awareness of their brand…

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >