Monaco-based LNG shipper GasLog on Thursday reported a net loss of $7.5 million for the second quarter of 2017, narrowing from a $7.9 million net loss in the corresponding quarter of 2016.
The shipping company posted revenue of $129.9 million in the quarter as compared to $114.5 million the year before.
Speaking about the results, GasLog’s CEO, Paul Wogan, said the revenue for the quarter increased as a result of high uptime across the company’s chartered fleet and improving earnings on its spot vessels.
The company continued to make progress on its FSRU strategy being actively involved in a number of projects.
“The FEED study for the Alexandroupolis project in Greece, should be completed later in the third quarter,” Wogan said, adding that as a shareholder in Gastrade, the company is advancing discussions with potential off-takers, with both the Greek and Bulgarian national energy companies expected to play a major role.
“We expect Gastrade to take a final investment decision in early 2018,” he said.
LNG shipping market
Speaking of the LNG shipping market, Wogan said that in the short-term market, spot rates continue to be low, however, a return to a more seasonal market pattern as well as round-trip economics on many spot charters, both of which suggest a tightening shipping market are returning.
“With five vessels currently trading in the spot market through the Cool Pool, we continue to have significant upside to an improvement in this market,” he said.
GasLog expects the increased LNG supply and demand, coupled with historically low new vessel orders, to lead to an upturn in the LNG shipping market.
GasLog’s contracted charter revenues are estimated to increase from $444.5 million for the fiscal year 2016 to $486.8 million for the fiscal year 2019.
The company currently has three newbuildings on order at Samsung Heavy Industries and two newbuildings on order at Hyundai Heavy Industries, with deliveries scheduled in in 2018 and 2019.