Monaco-based LNG shipper GasLog’s profit in the first quarter more than doubled during the first quarter of 2018 compared to the first quarter of 2017.
Profit attributable to the owners of GasLog was $19.3 million for the quarter ended March 31, 2018, compared to $8.8 million in the corresponding period of 2017.
The increase was attributed to the rise in profit from operations which was boosted the higher number of operating days due to the vessels’ deliveries in the first quarter of 2018 and the increased contribution of the company’s vessels operating in the spot market.
During the quarter, the company took delivery of three newbuilds, the GasLog Houston, the GasLog Genoa and the GasLog Hong Kong
The company noted in its report its quarterly revenues reached record figures at $138.5 million
Paul Wogan, CEO of GasLog added that the figures were boosted by the stronger performance of the vessels operating in the Cool Pool.
GasLog added that during the quarter global LNG supply continued to increase, with Wood Mackenzie forecasting 9 percent growth in volumes during 2018.
“As expected, LNG carrier spot rates experienced a seasonal decline from the multi-year highs of the fourth quarter 2017,” Wogan said.
“However, headline spot rates remain higher year-on-year, and there are signs that rates have bottomed out as buyers now look to source supply for cooling demand in the Northern Hemisphere summer and heating demand in the Southern Hemisphere winter,” he said adding the company expects rates to strengthen in the second half of this year.
This positive outlook and the perceived requirement for new ships have resulted in 18 firm newbuild LNG carrier orders so far in 2018, of which two are GasLog vessels.
GasLog added it expects between 35 and 62 additional LNG carriers will be needed by the end of 2022 and potentially as many as 117 vessels by 2025 to satisfy projected market growth