EX-99.1 2 tm2230003d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Press Release

 

GasLog Ltd. Reports Financial Results for the Three-Month Period Ended September 30, 2022

 

Hamilton, Bermuda, November 10, 2022, GasLog Ltd. and its subsidiaries (“GasLog”, “Group” or “Company”) (NYSE: GLOG-PA), an international owner, operator and manager of liquefied natural gas (“LNG”) carriers, today reported its financial results for the quarter ended September 30, 2022.

 

Recent Developments

 

Steam Vessel Transactions

 

In September 2022, GasLog Partners LP (“GasLog Partners” or the “Partnership”) completed the previously announced sale of the Methane Shirley Elisabeth, a 145,000 cubic meter (“cbm”) steam turbine propulsion (“Steam”) LNG carrier built in 2007, to an unrelated third party for a gross sale price of approximately $54.0 million. The sale resulted in the recognition of a loss on disposal of $0.2 million. The outstanding indebtedness of $32.2 million associated with the vessel was prepaid pursuant to its sale.

 

Οn October 31, 2022, GasLog Partners completed the sale and lease-back of the Methane Heather Sally, a 145,000 cbm Steam LNG carrier built in 2007, for $50.0 million. The vessel was sold to an unrelated third party and leased back under a bareboat charter until the middle of 2025 with no repurchase option or obligation. The completion of the transaction released approximately $17.0 million of incremental net liquidity (net sale proceeds less debt prepayment) to the Partnership, while the vessel remains on its new three-year charter with a Southeast Asian charterer (“SEA Charterer”).

 

New Charter Agreements

 

During the third quarter of 2022, GasLog signed a two-year agreement with Tokyo LNG Tanker Co. Ltd. (“Tokyo LNG”) for the GasLog Skagen, a tri-fuel diesel electric (“TFDE”) LNG carrier. In addition, GasLog extended its current charter with Clearlake Shipping Pte Ltd., a wholly owned subsidiary of Gunvor Group Ltd. (“Gunvor”) for a period of three years for the GasLog Salem, a TFDE LNG carrier.

 

The Partnership also entered into three additional charter agreements, including: (1) a two-year time charter agreement for the GasLog Shanghai, a TFDE LNG carrier, with Woodside Energy Shipping Singapore Pte. Ltd. (“Woodside”), (2) a one-year time charter agreement for the Solaris, a TFDE LNG carrier, with an energy major and (3) a one-year time charter agreement for the GasLog Seattle, a TFDE LNG carrier, with a Swiss-headquartered energy trading company.

 

Dividend Declarations

 

On November 9, 2022, the board of directors declared a quarterly cash dividend of $0.15 per common share, or $14.3 million in the aggregate, payable on November 11, 2022, to shareholders of record as of November 10, 2022.

 

Financial Summary

 

Amounts in thousands of U.S. dollars  For the three months ended 
   September 30,
2021		   September 30,
2022		 
Revenues  $208,162   $241,918 
Profit for the period  $48,542   $109,123 
Adjusted EBITDA1   $157,722   $192,861 
Adjusted Profit1   $60,183   $84,762 

 1 Adjusted EBITDA and Adjusted Profit are non-GAAP financial measures and should not be used in isolation or as substitutes for GasLog’s financial results presented in accordance with International Financial Reporting Standards (“IFRS”). For the definitions and reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release.

 

There were 3,199 available days for the quarter ended September 30, 2022, as compared to 3,096 available days for the quarter ended September 30, 2021. Available days represent total calendar days in the period after deducting off-hire days where vessels are undergoing dry-dockings and unavailable days (for example, days before and after a dry-docking where the vessel has limited practical ability for chartering opportunities). The increase in available days was mainly driven by the decrease in off-hire days for scheduled dry-dockings (65 dry-docking off-hire days in the three-month period ended September 30, 2021 compared to nil dry-docking off-hire days in the three-month period ended September 30, 2022) and the delivery of the GasLog wholly owned vessel, the GasLog Winchester on August 24, 2021, partially offset by a decrease of available days due to the sale of the Methane Shirley Elizabeth in September 2022.

 

Revenues were $241.9 million for the quarter ended September 30, 2022 ($208.2 million for the quarter ended September 30, 2021). The increase in revenues is mainly attributable to our vessels operating in the spot market in the third quarter of 2022, in line with the improvement of the LNG shipping spot and term market. There was also an increase from the aforementioned delivery of the GasLog Winchester, combined with 65 fewer off-hire days due to the scheduled dry-dockings of four of our vessels in the third quarter of 2021 (compared to nil in the same period in 2022).

 

Profit for the period was $109.1 million for the quarter ended September 30, 2022 ($48.5 million for the quarter ended September 30, 2021). The increase in profit is mainly attributable to the increase in revenues, as discussed above, the increase in gain on derivatives, mainly due to the

 

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increase in the mark-to-market valuation of derivatives held for trading which were carried at fair value through profit or loss and the impairment loss recognized in September 2021, partially offset by an increase in financial costs which is mainly attributable to the increase in interest expense on loans, mainly due to an increase in the London Interbank Offered Rate (“LIBOR”) rates in the third quarter of 2022 as compared to the same period in 2021.

 

Adjusted EBITDA was $192.9 million for the quarter ended September 30, 2022 ($157.7 million for the quarter ended September 30, 2021). The increase in Adjusted EBITDA is mainly attributable to the increase in revenues of $33.7 million, as discussed above and the decrease of $2.8 million in vessel operating and supervision costs, partially offset by an increase of $0.6 million in voyage expenses mainly due to the increased utilization of the Group’s vessels. The decrease in vessel operating and supervision costs is mainly attributable to a decrease in technical maintenance expenses and crew costs. Both decreases were largely related to the favorable movement of the Euro (“EUR”)/U.S. Dollar (“USD”) exchange rate in the third quarter of 2022 compared to the same period in 2021, partially offset by an increase in operating costs due to inflationary pressures, as well as due to the in-house management of the Solaris (after its redelivery into our managed fleet on April 6, 2022).

 

Adjusted Profit was $84.8 million for the quarter ended September 30, 2022 ($60.2 million for the quarter ended September 30, 2021). The increase in Adjusted Profit is mainly attributable to the increase in Adjusted EBITDA partially offset by the increase in financial costs, as discussed above.

 

As of September 30, 2022, GasLog had $284.0 million of cash and cash equivalents. An amount of $25.0 million of time deposits with an original duration greater than three months was classified under short-term cash deposits.

 

As of September 30, 2022, GasLog had an aggregate of $3.3 billion of indebtedness outstanding under its credit facilities and bond agreements, of which $329.2 million is repayable within one year. Current bank borrowings include an amount of $32.6 million with respect to the associated debt of the Steam vessel Methane Heather Sally, classified as held for sale as of September 30, 2022 and $80.9 million with respect to the associated debt of the GasLog Chelsea, which GasLog agreed to sell following its conversion to a Floating Storage Regasification Unit (“FSRU”). The sale is expected to be completed by the fourth quarter of 2023. Furthermore, as of September 30, 2022, we also had an aggregate of $330.0 million of lease liabilities mainly related to the sale and leaseback of the Methane Julia Louise, the GasLog Shanghai, the GasLog Salem and the GasLog Skagen, of which $41.5 million is payable within one year.

 

As of September 30, 2022, the total remaining balance of the contract prices of the four LNG carriers on order was $742.0 million, of which $144.4 million is due within 12 months and will be funded by the four sale and lease-back agreements entered into on July 6, 2022 with CMB Financial Leasing Co., Ltd. (“CMBFL”).

 

As of September 30, 2022, GasLog’s current assets totaled $452.4 million, while current liabilities totaled $540.4 million, resulting in a negative working capital position of $88.0 million. Current liabilities include $68.8 million of unearned revenue in relation to hires received in advance of September 30, 2022 (which represents a non-cash liability that will be recognized as revenue in October 2022 as the services are rendered).

 

Management monitors the Company’s liquidity position throughout the year to ensure that it has access to sufficient funds to meet its forecast cash requirements, including newbuilding and debt service commitments, and to monitor compliance with the financial covenants within its loan and bond facilities. We anticipate that our primary sources of funds for at least twelve months from the date of this report will be available cash, cash from operations, existing and future borrowings and future sale and lease-back transactions. We believe that these anticipated sources of funds will be sufficient to meet our liquidity needs and to comply with our financial covenants for at least twelve months from the date of this report and therefore it is appropriate to prepare the financial statements on a going concern basis.

 

GasLog Partners Preference Unit Repurchase Programme

 

In the quarter ended September 30, 2022, under the GasLog Partners’ preference unit repurchase programme (the “Repurchase Programme”) established in March 2021, GasLog Partners repurchased and cancelled 233,179 8.625% Series A Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units (the “Series A Preference Units”), 198,746 8.200% Series B Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units (the “Series B Preference Units”) and 178,544 8.500% Series C Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units (the “Series C Preference Units”). The aggregate amount paid under the Repurchase Programme in the third quarter of 2022 was $20.0 million, including commissions and an amount of $4.7 million relating to 90,841 Series A Preference Units, 70,000 Series B Preference Units and 27,000 Series C Preference Units, which were repurchased during the third quarter of 2022 and cancelled post quarter-end, on October 3, 2022.

 

Since inception of the Repurchase Programme in March 2021, and up to September 30, 2022, GasLog Partners has repurchased and cancelled 313,779 Series A Preference Units, 975,966 Series B Preference Units and 794,143 Series C Preference Units, for an aggregate amount of $57.1 million, including commissions.

 

Fleet Update

 

Owned Fleet

 

As of November 10, 2022, our wholly owned fleet consisted of the following vessels:

 

Vessel Name  Year
Built		  Cargo
Capacity
(cbm)		  Charterer (for
contracts of more
than six months)		  Propulsion  Charter
Expiration(1)		  Optional
Period(2)
1  GasLog Chelsea (3)   2010  153,600  Spot Market  TFDE  —  —
2  GasLog Singapore (4)   2010  155,000  Singapore LNG
Corporation		  TFDE  March 2023  —

 

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3  GasLog Athens (5)  2006  145,000  DESFA (5)   Steam  June 2023  2023 (5) 
4  GasLog Savannah  2010  155,000  Multinational Oil and
Gas Company (6) 		  TFDE  July 2024  2025 (6) 
5  GasLog Saratoga  2014  155,000  Mitsui (7)   TFDE   September 2024  —
6  GasLog Genoa  2018  174,000  Shell (8)   Dual-fuel medium
speed propulsion
(“X-DF”)		  March 2027  2030-2033 (8) 
7  GasLog Windsor  2020  180,000  Centrica (9)   X-DF  April 2027  2029-2033 (9) 
8  GasLog Westminster  2020  180,000  Centrica  X-DF  July 2027  2029-2033 (9) 
9  GasLog Georgetown  2020  174,000  Cheniere (10)   X-DF  November 2027  2030-2034 (10) 
10  GasLog Galveston  2021  174,000  Cheniere  X-DF  January 2028  2031-2035 (10) 
11  GasLog Wellington  2021  180,000  Cheniere  X-DF  June 2028  2031-2035 (10) 
12  GasLog Winchester  2021  180,000  Cheniere  X-DF  August 2028  2031-2035 (10) 
13  GasLog Gladstone  2019  174,000  Shell  X-DF   January 2029  2032-2035 (8) 
14  GasLog Warsaw  2019  180,000  Endesa (11)   X-DF  May 2029  2035-2041 (11) 
15  GasLog Wales  2020  180,000  Jera (12)   X-DF  March 2032  2035-2038 (12) 
                      

As of November 10, 2022, the Partnership’s owned fleet consisted of the following vessels:

 

Vessel Name  Year
Built		  Cargo
Capacity
(cbm)		  Charterer (for
contracts of more
than six months)		  Propulsion  Charter Expiration(1)  Optional
Period(2)
1  Methane Jane Elizabeth  2006  145,000  Cheniere  Steam  March 2023  2024-2025 (10) 
2  GasLog Seattle  2013  155,000  Major Trading
House		  TFDE  March 2023  —
            Energy Trading
Company (13) 		     March 2024  —
3  GasLog Sydney  2013  155,000  Naturgy (14)   TFDE  April 2023  —
4  GasLog Geneva  2016  174,000  Shell  TFDE  September 2023  2028-2031 (8) 
5  Methane Rita Andrea  2006  145,000  Energy Major  Steam  October 2023  —
6  Methane Alison Victoria  2007  145,000  CNTIC VPower (15)   Steam  October 2023  2024-2025 (15) 
7  GasLog Gibraltar  2016  174,000  Shell  TFDE  October 2023  2028-2031 (8) 
8  Solaris  2014  155,000  Energy Major  TFDE  October 2023  —
9  GasLog Santiago  2013  155,000  Trafigura (16)   TFDE  December 2023  2024–2028 (16) 
10  Methane Becki Anne  2010  170,000  Shell  TFDE  March 2024  2027-2029 (8) 
11  GasLog Greece  2016  174,000  Shell  TFDE  March 2026  2031 (8) 
12  GasLog Glasgow  2016  174,000  Shell  TFDE  June 2026  2031 (8) 

 

Bareboat Vessels

 

As of November 10, 2022, our bareboat fleet consisted of the following vessels:

 

Vessel Name  Year
Built		  Cargo
Capacity
(cbm)		  Charterer (for
contracts of more
than six months)		  Propulsion 

Charter
Expiration(1)

 

Optional
Period(2)

1  GasLog Salem (17)  2015  155,000  Gunvor  TFDE  March 2026  —
2  GasLog Skagen (17)   2013  155,000  Tokyo LNG  TFDE  September 2024  —
3  GasLog Hong Kong (17)  2018  174,000  TotalEnergies (18)   X-DF  December 2025  2028 (18) 
4  Methane Julia Louise (17)  2010  170,000  Shell  TFDE  March 2026  2029-2031 (8) 
5  GasLog Houston (17)  2018  174,000  Shell  X-DF  May 2028  2031-2034 (8) 

 

As of November 10, 2022, the Partnership’s bareboat fleet consisted of the following vessel:

 

Vessel Name  Year
Built		  Cargo
Capacity
(cbm)		  Charterer (for
contracts of more
than six months)		  Propulsion 

Charter
Expiration(1)

 

Optional
Period(2)

1  GasLog Shanghai (17)  2013  155,000  Gunvor
Woodside (19) 		  TFDE  January 2023
February 2025 (19) 		  —
2026 (19) 
2  Methane Heather Sally (17)   2007  145,000  SEA Charterer  Steam  July 2025  —

 

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(1) Indicates the expiration of the initial term.

 

(2) The period shown reflects the expiration of the minimum optional period and the maximum optional period.

 

(3) The GasLog Chelsea is scheduled to be converted into an FSRU in 2023.

 

(4) The vessel is chartered to Singapore LNG Corporation. Subject to receipt of firm notice by the end of 2023, the vessel is expected to be delivered to Sinolam LNG Terminal, S.A. (“Sinolam LNG”) no later than twelve months thereafter for use as a floating storage unit (“FSU”) in support of an LNG gas-fired power plant currently being developed near Colon, Panama, by Sinolam Smarter Energy LNG Power Company, a subsidiary of private Chinese investment group Shanghai Gorgeous Development Company. The completion of the power plant was initially scheduled for the second quarter of 2020 but has since been significantly delayed as a result of COVID-19 related impacts to the construction schedule. In the meantime, the vessel has undergone FSU conversion for the Sinolam LNG charter during its scheduled dry-dock in the second quarter of 2021.

 

(5) The vessel Methane Lydon Volney was renamed to GasLog Athens in August 2022. The vessel is chartered to the Hellenic Gas Transmission System Operator (DESFA) S.A. (“DESFA”) for a period of one year. DESFA has the right to extend the charter by six additional months provided that DESFA gives us advance notice of declaration.

 

(6) The vessel is chartered to a multinational oil and gas company. The charterer has the right to extend the charter by one additional period of one year, provided that the charterer gives us advance notice of the declaration.

 

(7) The vessel is chartered to Mitsui & Co., Ltd. (“Mitsui”).

 

(8) The vessel is chartered to Shell plc (“Shell”). Shell has the right to extend the charters of (a) the GasLog Genoa, the GasLog Houston and the GasLog Gladstone by two additional periods of three years, (b) the GasLog Geneva and the GasLog Gibraltar by two additional periods of five and three years, respectively, (c) the Methane Becki Anne and the Methane Julia Louise for a period of either three or five years, (d) the GasLog Greece and the GasLog Glasgow for a period of five years, provided that Shell gives us advance notice of the declarations.

 

(9) The vessels are chartered to Pioneer Shipping Limited, a wholly owned subsidiary of Centrica Plc (“Centrica”). Centrica has the right to extend the charters by three additional periods of two years, provided that Centrica gives us advance notice of declaration.

 

(10) The vessels are chartered to Cheniere Marketing International LLP, a subsidiary of Cheniere Energy Inc. (“Cheniere”). Cheniere has the right to extend the charters of (a) the GasLog Georgetown, the GasLog Galveston, the GasLog Wellington and the GasLog Winchester by three consecutive periods of three years, two years and two years, respectively and (b) the Methane Jane Elizabeth by two additional periods of one year, provided that Cheniere gives us advance notice of the declarations.

 

(11) “Endesa” refers to Endesa S.A. Endesa has the right to extend the charter of the GasLog Warsaw by two additional periods of six years, provided that Endesa gives us advance notice of declaration.

 

(12) “Jera” refers to LNG Marine Transport Limited, the principal LNG shipping entity of Japan’s Jera Co., Inc. Jera has the right to extend the charter by two additional periods of three years, provided that Jera gives us advance notice of declaration.

 

(13) The vessel is expected to commence its time charter with a Swiss-headquartered energy trading company following expiration of its current charter with a major trading house.

 

(14) The vessel is chartered to Naturgy Aprovisionamientos S.A. (“Naturgy”).

 

(15) The vessel is chartered to CNTIC VPower Energy Ltd. (“CNTIC VPower”), an independent Chinese energy company. CNTIC VPower may extend the term of the related charter by two additional periods of one year, provided that the charterer gives us advance notice of declaration.

 

(16) Trafigura Maritime Logistics PTE Ltd. (“Trafigura”) may extend the term of this time charter for a period ranging from one to six years, provided that the charterer gives us advance notice of declaration.

 

(17) Gas-six Ltd., GAS-ten Ltd. and GAS-three Ltd. have sold the GasLog Skagen, the GasLog Salem and the GasLog Shanghai, respectively, to a wholly owned subsidiary of China Development Bank Leasing and leased it back for a period of five years, with no repurchase option or obligation. GAS-twenty one Ltd. has sold the Methane Heather Sally to an unrelated party and leased back under a bareboat charter until the middle of 2025 with no repurchase option or obligation. GAS-twenty five Ltd., GAS-twenty six Ltd. and GAS-twenty four Ltd. have sold the GasLog Hong Kong to Sea 190 Leasing Co. Limited, the Methane Julia Louise to Lepta Shipping Co. Ltd. and the GasLog Houston to Hai Kuo Shipping 2051G Limited, respectively, and leased them back for a period of up to twelve, 17 and eight years, respectively. GAS-twenty five Ltd. and GAS-twenty six Ltd. have the option and GAS-twenty four Ltd. has the option and the obligation to re-purchase the vessels on pre-agreed terms.

 

(18) The vessel is chartered to TotalEnergies Gas & Power Limited, a wholly owned subsidiary of TotalEnergies SE (“TotalEnergies”). TotalEnergies has the right to extend the charter for a period of three years, provided that TotalEnergies provides us with advance notice of declaration.

 

(19) The vessel is expected to commence its time charter with Woodside after completing its scheduled dry-docking. The charterer has the right to extend the charter by one additional period of one year, provided that the charterer gives us advance notice of declaration.

 

Under the omnibus agreement entered into with GasLog Partners and certain of its subsidiaries in connection with the Partnership’s initial public offering, as amended, GasLog has agreed, and has caused our controlled affiliates (other than GasLog Partners, its general partner and its subsidiaries) to agree, not to acquire, own, operate or charter any LNG carrier with a cargo capacity greater than 75,000 cbm engaged in oceangoing LNG transportation under a charter for five full years or more without, within 30 calendar days after the consummation of the acquisition or the commencement of the operations or charter of such a vessel, notifying and offering GasLog Partners the opportunity to purchase such a vessel at fair market value.

 

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Future Deliveries

 

As of November 10, 2022, GasLog has four newbuildings on order at Daewoo Shipbuilding and Marine Engineering Co., Ltd.:

 

LNG Carrier  Expected Delivery  Cargo
Capacity
(cbm)		 

Charterer

  Propulsion(1) 

Estimated Charter

Expiration(2)

Hull No. 2532  Q3 2024  174,000  Multinational Oil and Gas
Company		  MEGI  2031
Hull No. 2533  Q3 2024  174,000  Mitsui  MEGI  2033
Hull No. 2534  Q3 2025  174,000  Woodside  MEGI  2035
Hull No. 2535  Q4 2025  174,000  Woodside  MEGI  2035

 

 

(1)   M-type, Electronically controlled Gas Injection (“MEGI”) engine.

(2)   Charter expiration to be determined based upon actual date of delivery.

 

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EXHIBIT I - Unaudited Interim Financial Information

 

Unaudited condensed consolidated statements of financial position

As of December 31, 2021 and September 30, 2022

(Amounts expressed in thousands of U.S. Dollars)

 

   December 31, 2021   September 30, 2022 
Assets          
Non-current assets          
Goodwill   9,511    9,511 
Investment in associates   23,508    24,827 
Deferred financing costs   5,564    9,079 
Other non-current assets   4,866    3,217 
Derivative financial instruments, non-current portion   1,913    20,949 
Tangible fixed assets   5,002,829    4,560,538 
Vessels under construction   22,939    145,372 
Right-of-use assets   363,035    403,612 
Total non-current assets   5,434,165    5,177,105 
Current assets          
Vessel held for sale   —    60,760 
Trade and other receivables   28,595    53,142 
Dividends receivable and other amounts due from related parties   18    19 
Derivative financial instruments, current portion   596    15,249 
Inventories   8,327    9,005 
Prepayments and other current assets   5,798    5,225 
Short-term cash deposits   —    25,000 
Cash and cash equivalents   282,246    283,997 
Total current assets   325,580    452,397 
Total assets   5,759,745    5,629,502 
Equity and liabilities          
Equity          
Preference shares   46    46 
Share capital   954    954 
Contributed surplus   692,536    658,888 
Reserves   15,322    12,587 
(Accumulated deficit)/Retained earnings   (65,117)   86,500 
Equity attributable to owners of the Group   643,741    758,975 
Non-controlling interests   924,630    924,126 
Total equity   1,568,371    1,683,101 
Current liabilities          
Trade accounts payable   15,892    17,910 
Ship management creditors   119    1,569 
Amounts due to related parties   27    203 
Derivative financial instruments, current portion   25,518    7,786 
Other payables and accruals   153,501    142,286 
Borrowings, current portion   553,161    329,169 
Lease liabilities, current portion   30,905    41,523 
Total current liabilities   779,123    540,446 
Non-current liabilities          
Derivative financial instruments, non-current portion   28,694    15,946 
Borrowings, non-current portion   3,105,059    3,000,496 
Lease liabilities, non-current portion   271,945    288,515 
Other non-current liabilities   6,553    100,998 
Total non-current liabilities   3,412,251    3,405,955 
Total equity and liabilities   5,759,745    5,629,502 

 

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Unaudited condensed consolidated statements of profit or loss

For the three and nine months ended September 30, 2021 and 2022

(Amounts expressed in thousands of U.S. Dollars)

 

   For the three months ended   For the nine months ended 
   September
30, 2021		   September
30, 2022		   September
30, 2021		   September
30, 2022		 
Revenues   208,162    241,918    586,499    671,737 
Voyage expenses and commissions   (3,158)   (3,757)   (12,751)   (11,084)
Vessel operating and supervision costs   (41,929)   (39,091)   (121,870)   (125,174)
Depreciation   (51,384)   (57,233)   (147,567)   (170,074)
Impairment loss   (16,853)   —    (16,853)   (56,911)
Loss on disposal of non-current assets   —    (167)   —    (744)
General and administrative expenses   (7,043)   (5,706)   (32,283)   (22,608)
Profit from operations   87,795    135,964    255,175    285,142 
Financial costs   (38,193)   (49,338)   (128,797)   (126,173)
Financial income   30    1,081    116    1,493 
(Loss)/gain on derivatives   (1,737)   21,611    12,236    67,342 
Share of profit/(loss) of associates   647    (195)   1,767    740 
Total other expenses, net   (39,253)   (26,841)   (114,678)   (56,598)
Profit for the period   48,542    109,123    140,497    228,544 
Attributable to:                    
Owners of the Group   28,031    77,917    81,181    168,441 
Non-controlling interests   20,511    31,206    59,316    60,103 
    48,542    109,123    140,497    228,544 

 

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Unaudited condensed consolidated statements of cash flows

For the nine months ended September 30, 2021 and 2022

(Amounts expressed in thousands of U.S. Dollars)

 

   For the nine months ended 
   September 30,
2021		   September 30,
2022		 
Cash flows from operating activities:          
Profit for the period   140,497    228,544 
Adjustments for:          
Depreciation   147,567    170,074 
Impairment loss   16,853    56,911 
Loss on disposal of non-current assets   —    744 
Share of profit of associates   (1,767)   (740)
Financial income   (116)   (1,493)
Financial costs   128,797    126,173 
Gain on derivatives (excluding realized gain/loss on forward foreign exchange contracts held for trading)   (12,417)   (71,218)
Share-based compensation   3,337    612 
    422,751    509,607 
Movements in working capital   1,350    (37,361)
Net cash provided by operating activities   424,101    472,246 
Cash flows from investing activities:          
Payments for tangible fixed assets and vessels under construction   (492,287)   (125,847)
Proceeds from sale and sale and leaseback, net of commissions   —    177,032 
Proceeds from FSRU forthcoming sale   —    92,780 
Other investments   —    (579)
Dividends received from associate   1,250    — 
Purchase of short-term cash deposits   (2,500)   (25,000)
Maturity of short-term cash deposits   2,500    — 
Financial income received   116    1,004 
Net cash (used in)/provided by investing activities   (490,921)   119,390 
Cash flows from financing activities:          
Proceeds from loans and bonds, net of discount   471,867    333,248 
Loan and bond repayments   (340,592)   (648,553)
Principal elements of lease payments   (8,293)   (29,835)
Interest paid   (133,850)   (122,105)
Loan/bond modification costs related to the take-private transaction with BlackRock’s Global Energy & Power Infrastructure team (the “Transaction”)   (15,718)   — 
Payment of cash collaterals for swaps   (7,100)   — 
Release of cash collaterals for swaps   25,427    990 
Payment of loan and bond issuance costs   (10,274)   (4,652)
Loan issuance costs received   379    — 
Payment of equity raising costs   (334)   (20)
Proceeds from GasLog Partners’ common unit offerings (net of underwriting discounts and commissions)   10,000    — 
Dividends paid (common and preference)   (54,974)   (79,362)
Repurchase of GasLog Partners’ preference units   (12,361)   (38,740)
Net cash used in financing activities   (75,823)   (589,029)
Effects of exchange rate changes on cash and cash equivalents   (337)   (856)
(Decrease)/increase in cash and cash equivalents   (142,980)   1,751 
Cash and cash equivalents, beginning of the period   367,269    282,246 
Cash and cash equivalents, end of the period   224,289    283,997 

 

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EXHIBIT II

 

Non-GAAP Financial Measures:

 

EBITDA, Adjusted EBITDA and Adjusted Profit

 

EBITDA is defined as earnings before depreciation, amortization, financial income and costs, gain/loss on derivatives and taxes. Adjusted EBITDA is defined as EBITDA before foreign exchange gains/losses, impairment loss, gain/loss on disposal of non-current assets, restructuring costs and the costs relating to the Transaction (such costs, the “Transaction Costs”). Adjusted Profit represents earnings before write-off and accelerated amortization of unamortized loan fees/bond fees and premium, foreign exchange gains/losses, unrealized foreign exchange losses on cash and bond, impairment loss, swap optimization costs (with respect to cash collateral amendments), gain/loss on disposal of non-current assets, restructuring costs, Transaction Costs and non-cash gain/loss on derivatives that includes (if any) (a) unrealized gain/loss on derivative financial instruments held for trading, (b) recycled loss of cash flow hedges reclassified to profit or loss and (c) ineffective portion of cash flow hedges. EBITDA, Adjusted EBITDA and Adjusted Profit are non-GAAP financial measures that are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. We believe that including EBITDA, Adjusted EBITDA and Adjusted Profit assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our ongoing financial and operational strength in assessing whether to purchase and/or to continue to hold our common shares. This is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, financial costs, gain/loss on derivatives, taxes, depreciation and amortization; in the case of Adjusted EBITDA, foreign exchange gains/losses, impairment loss, gain/loss on disposal of non-current assets, restructuring costs and Transaction Costs; and in the case of Adjusted Profit, write-off and accelerated amortization of unamortized loan/bond fees and premium, foreign exchange gains/losses, unrealized foreign exchange losses on cash and bond, impairment loss, swap optimization costs (with respect to cash collateral amendments), gain/loss on disposal of non-current assets, restructuring costs, Transaction Costs and non-cash gain/loss on derivatives, which items are affected by various and possibly changing financing methods, financial market conditions, capital structure and historical cost basis, and which items may significantly affect results of operations between periods.

 

EBITDA, Adjusted EBITDA and Adjusted Profit have limitations as analytical tools and should not be considered as alternatives to, or as substitutes for, or superior to, profit, profit from operations, earnings per share or any other measure of operating performance presented in accordance with IFRS. Some of these limitations include the fact that they do not reflect (i) our cash expenditures or future requirements for capital expenditures or contractual commitments, (ii) changes in, or cash requirements for, our working capital needs and (iii) the cash requirements necessary to service interest or principal payments on our debt. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. EBITDA, Adjusted EBITDA and Adjusted Profit are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows and other companies in our industry may calculate these measures differently than we do, limiting their usefulness as a comparative measure.

 

In evaluating Adjusted EBITDA and Adjusted Profit, you should be aware that in the future we may incur expenses that are the same as, or similar to, some of the adjustments in this presentation. Our presentation of Adjusted EBITDA and Adjusted Profit should not be construed as an inference that our future results will be unaffected by the excluded items. Therefore, the non-GAAP financial measures as presented below may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 

Reconciliation of Profit to EBITDA and Adjusted EBITDA:

(Amounts expressed in thousands of U.S. Dollars)

 

   For the three months ended   For the nine months ended 
   September 30,
2021		   September 30,
2022		   September 30,
2021		   September 30,
2022		 
Profit for the period   48,542    109,123    140,497    228,544 
Depreciation   51,384    57,233    147,567    170,074 
Financial costs   38,193    49,338    128,797    126,173 
Financial income   (30)   (1,081)   (116)   (1,493)
Loss/(gain) on derivatives   1,737    (21,611)   (12,236)   (67,342)
EBITDA   139,826    193,002    404,509    455,956 
Foreign exchange gains, net   (325)   (304)   (714)   (232)
Restructuring costs   660    (4)   804    1,685 
Transaction Costs   708    —    9,666    840 
Impairment loss   16,853    —    16,853    56,911 
Loss on disposal of non-current assets   —    167    —    744 
Adjusted EBITDA   157,722    192,861    431,118    515,904 

 

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Reconciliation of Profit to Adjusted Profit:

(Amounts expressed in thousands of U.S. Dollars)

 

   For the three months ended   For the nine months ended 
   September 30,
2021		   September 30,
2022		   September 30,
2021		   September 30,
2022		 
Profit for the period   48,542    109,123    140,497    228,544 
Non-cash gain on derivatives   (7,448)   (24,890)   (39,019)   (85,544)
Write-off of unamortized loan fees   841    294    4,369    1,444 
Foreign exchange gains, net   (325)   (304)   (714)   (232)
Restructuring costs   660    (4)   804    1,685 
Transaction Costs   775    —    25,385    840 
Impairment loss   16,853    —    16,853    56,911 
Loss on disposal of non-current assets   —    167    —    744 
Unrealized foreign exchange losses, net on cash   285    376    337    856 
Adjusted Profit   60,183    84,762    148,512    205,248 

 

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