B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
GasLog Q2 2013 earnings presentation
1.
GASLOG
LTD.
Second
Quarter
Earnings
Presenta9on
2013
20
August
2013
2.
Forward
Looking
Statements
2
This
presenta6on
contains
“forward-‐looking
statements”
as
defined
in
the
Private
Securi6es
Li6ga6on
Reform
Act
of
1995.
The
reader
is
cau6oned
not
to
rely
on
these
forward-‐looking
statements.
All
statements,
other
than
statements
of
historical
facts,
that
address
ac6vi6es,
events
or
developments
that
the
Company
expects,
projects,
believes
or
an6cipates
will
or
may
occur
in
the
future,
including,
without
limita6on,
future
opera6ng
or
financial
results
and
future
revenues
and
expenses,
future,
pending
or
recent
acquisi6ons,
general
market
condi6ons
and
shipping
industry
trends,
the
financial
condi6on
and
liquidity
of
the
Company,
cash
available
for
dividend
payments,
future
capital
expenditures
and
drydocking
costs
and
newbuild
vessels
and
expected
delivery
dates,
are
forward-‐looking
statements.
These
statements
are
based
on
current
expecta6ons
of
future
events.
If
underlying
assump6ons
prove
inaccurate
or
unknown
risks
or
uncertain6es
materialize,
actual
results
could
vary
materially
from
our
expecta6ons
and
projec6ons.
Risks
and
uncertain6es
include,
but
are
not
limited
to,
general
LNG
and
LNG
shipping
market
condi6ons
and
trends;
our
con6nued
ability
to
enter
into
mul6-‐year
6me
charters
with
our
customers;
our
contracted
charter
revenue;
our
customers’
performance
of
their
obliga6ons
under
our
6me
charters
and
other
contracts;
the
effect
of
the
worldwide
economic
slowdown;
our
ability
to
obtain
financing
to
fund
capital
expenditures,
and
funding
by
banks
of
their
financial
commitments;
business
strategy,
areas
of
possible
expansion
and
expected
capital
spending
or
opera6ng
expenses;
our
ability
to
enter
into
shipbuilding
contracts
for
newbuildings
and
our
expecta6ons
about
the
availability
of
exis6ng
LNG
carriers
to
purchase,
as
well
as
our
ability
to
consummate
any
such
acquisi6ons;
our
expecta6ons
about
the
6me
that
it
may
take
to
construct
and
deliver
newbuildings
and
the
useful
lives
of
our
ships;
number
of
off-‐hire
days
and
insurance
costs;
our
an6cipated
general
and
administra6ve
expenses;
fluctua6ons
in
currencies
and
interest
rates;
our
ability
to
maintain
long-‐term
rela6onships
with
major
energy
companies;
our
ability
to
maximize
the
use
of
our
ships;
environmental
and
regulatory
condi6ons,
including
changes
in
laws
and
regula6ons
or
ac6ons
taken
by
regulatory
authori6es;
risks
inherent
in
ship
opera6on,
including
the
discharge
of
pollutants;
availability
of
skilled
labor,
ship
crews
and
management;
poten6al
disrup6on
of
shipping
routes
due
to
accidents,
poli6cal
events,
piracy
or
acts
by
terrorists;
and
poten6al
liability
from
future
li6ga6on.
A
further
list
and
descrip6on
of
these
risks,
uncertain6es
and
other
factors
can
be
found
in
our
Annual
Report
filed
with
the
SEC
on
March
28,
2013.
Copies
of
the
Annual
Report,
as
well
as
subsequent
filings,
are
available
online
at
www.sec.gov
or
upon
request
from
us.
We
do
not
undertake
to
update
any
forward-‐looking
statements
as
a
result
of
new
informa6on
or
future
events
or
developments
except
as
may
be
required
by
law.
The
declara6on
and
payment
of
dividends
is
at
all
6mes
subject
to
the
discre6on
of
our
Board
of
Directors
and
will
depend
on,
among
other
things,
risks
and
uncertain6es
described
above,
restric6ons
in
our
credit
facili6es
and
the
provisions
of
Bermuda
law
and
such
other
factors
as
the
Board
of
Directors
may
deem
relevant.
4.
Highlights
4
(1)
See
Annex
1
for
reconcilia6on
of
EBITDA,
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS.
• Contracted
2
LNG
newbuildings
at
Samsung
Heavy
Industries
for
delivery
in
2016.
Vessels
chartered
out
to
BG
Group
for
minimum
7
years
with
charterer’s
op6on
to
extend.
• Delivery
of
GasLog
Sydney
in
May
and
GasLog
Skagen
in
July
ahead
of
schedule
with
concurrent
delivery
to
the
charterer.
• For
the
second
quarter,
GasLog
reports
Profit
of
$20.4
million,
EBITDA(1)
of
$33.8
million
and
EPS
of
$0.32.
• Adjusted
Profit
of
$7.1
million,
Adjusted
EBITDA
of
$20.4
million
and
Adjusted
EPS
was
$0.11
for
the
second
quarter.
• Quarterly
dividend
of
$0.11
per
common
share
is
payable
on
September
13,
2013.
• GasLog
issued
a
senior
unsecured
bond
of
NOK
500,000,000
($83.2
million)
that
will
mature
on
June
27,
2018.
• Strong
industry
fundamentals,
supported
by
recent
posi6ve
developments
for
LNG
exports
from
USA.
5.
Financial
Highlights
5
1. See
Annex
1
for
reconcilia6on
of
EBITDA,
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS.
In
2013,
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS
exclude
the
non-‐cash
gain
primarily
caused
by
mark-‐to-‐
market
valua6on
of
interest
rate
swaps
($16.1
million
and
$12.9
million
for
the
6
and
3
months,
respec6vely).
2. Net
Financials
represents
financial
costs,
financial
income,
and
gain/(loss)
on
interest
rate
swaps,
net.
1
1
1
1
2
(USD%'000) Q2%2013 Q2%2012 Q2%2013 Q2%2012
Revenues 54,725 33,309 32,948 16,707
EBITDA 47,719 10,614 33,806 2,199
Adjusted%EBITDA 31,711 16,651 20,447 8,321
Share%of%Profit%of%Associate 743 758 355 375
Net%Financials% 5,358 (10,757) 5,897 (7,850)
Profit/(loss) 26,323 (1,381) 20,429 (3,552)
Adjusted%Profit% 10,315 4,657 7,070 2,570
EPS,%diluted%($/share) 0.42 (0.03) 0.32 (0.06)
Adjusted%EPS,%diluted%($/share) 0.16 0.09 0.11 0.04
Average%Number%of%Vessels:
Owned 3.6 2.0 4.3 2.0
Managed 15.6 14.0 16.3 14.0
Ownership%Segment:
Time%Charter%Equivalent%rates%pr.%day%
($/day)
76,729 76,885 76,596 76,890
Utilisation 100% 100% 100% 100%
6 months 3 months
9.
Financial
Highlights
–
Debt
Facili6es
9
1. Outstanding balance as of June 30, 2013.
2. Lenders have a put option that gives them the right to request repayment of the facility in full on the fifth anniversary of the delivery of the first ship serving as collateral under the facility.
3. Represents the portion of the loan bearing interest at a floating rate that has been hedged to a fixed rate by way of an interest rate swap.
4. The loan facility is split in two tranches, a) a $110 Mill. fully drawn term loan and b) a revolving credit facility of up to $50 Mill. which is currently undrawn.
5. USD value of the NOK 500 Mill. unsecured bond at the balance sheet date is $82.5 Mill.
Ship Built Bank
Loan
(USD millions)
Expected
Drawdown
Date
Maturity
GasLog Savannah 2010 DSF $140¹ N / A 2020
GasLog Singapore 2010 DnB, NBG, UBS, CBA, SEB $160¹,4 N / A 2018
GasLog Shanghai 2013 DnB, KEXIM $1341 N / A 20252
GasLog Santiago 2013 DnB, KEXIM $1341 N / A 20252
GasLog Sydney 2013 Nordea, ABN, Citi $139 2019
GasLog Skagen 2013 Nordea, ABN, Citi $139 Q3 2013 2019
Hull 2041 2013 Credit Suisse $144 Q4 2013 2020
Hull 2042 2014 DnB, SEB, CBA, ING, DSF $143 Q2 2014 2021 / 2022
Hedged pct.3
100%
Hull 2043 2014 DnB, SEB, CBA, ING, DSF $146 Q4 2014 2021 / 2022
Hull 2044 2015 DnB, SEB, CBA, ING, DSF $146 Q1 2015 2021 / 2022
75.0%
98.7%
32.9%
In total ~62.1%
covered at 4.6%
all-in fixed
interest
70.2%
70.2%
3
N/A
N / A
NOK 500 Mill. Bond N / A N / A $835 N / A 2018 100%
10.
Financial
Highlights
–
Looking
Forward
10
The
following
table
summarizes
GasLog’s
contracted
full
year
revenues
and
vessel
u6liza6on
within
the
Vessel
Ownership
segment
un6l
the
end
of
2026.
These
include
the
recently
announced
2
newbuildings
and
charter
party
agreements,
signed
in
Q3-‐2013.
1
Revenue
calcula6ons
assume
365
revenue
days
per
annum,
with
30
off-‐hire
days
when
the
ship
undergoes
scheduled
drydocking.
Two
of
our
ships
are
scheduled
to
be
drydocked
in
2015,
none
are
scheduled
to
be
drydocked
in
2016,
and
thereaner
each
ship
is
expected
to
con6nue
their
5
year
drydocking
cycle.
1
PROJECTED
REVENUE
2
Contracted
revenue
for
the
full
year
ending
December
31,
2013
is
$
133
million.
2
On#and#after#
July#1st
2013 2014 2015 2016 2017)2026 Total
Percentage)of)total)contracted)days/total)
available)days)for)the)twelve)ships 100% 100% 78% 73% 34% 43%
Total)contracted)days (days) 1,106 2,740 2,768 3,141 17,119 26,874
Total)available)days (days) 1,106 2,741 3,532 4,331 50,279 61,989
Total)unfixed)days (days) F 1 764 1,190 33,160 35,115
Contracted5time5charter5revenues (USD%mill.) 555555555555555555845 555555555555555552085 555555555555555552115 555555555555555552475 555555555555551,4085 555555555555552,1585
For#the#years
11.
Market
Update
11
USA
Canada
Strong
LNG
industry
fundamentals
con6nue
to
support
op6mism
for
mul6-‐year
forward-‐rates.
Spot
market
rates
increased
and
remain
high
compared
to
historical
levels.
Further
developments
in
Q2-‐2013
support
the
growth
in
liquefac6on
capacity
in
this
decade:
• Cheniere
took
FID
on
liquefac6on
trains
3&4
at
its
Sabine
Pass
facility.
• Freeport
LNG
became
the
second
project
to
receive
US
Dept.
of
Energy
approval
to
export
to
non-‐FTA
countries.
• Dominion
announced
the
sale
of
their
full
5.25mtpa
planned
export
capacity
from
Cove
Point,
to
buyers
Sumitomo
of
Japan
and
GAIL
of
India.
• E.ON
signed
an
agreement
with
Pieridae
Energy
to
acquire
5mtpa
for
20
years
from
a
planned
liquefac6on
facility
on
the
Canadian
East
Coast.
• BG
and
ExxonMobil
have
filed
applica6ons
for
large
projects
on
the
west
coast.
• Rosnen
has
signed
Heads
of
Agreement
with
Marubeni,
Vitol
and
SODECO
for
a
total
of
4mtpa.
Russia
12.
Business
Overview
-‐
GasLog’s
recently
announced
orders
&
charters
12
On
August
15th
2013,
GasLog
announced:
• 2
firm
orders
for
LNG
carriers
to
be
built
by
Samsung
Heavy
Industries
Co.
Ltd.,
South
Korea.
• On
delivery
in
H2-‐2016
each
ship
will
commence
7
year
6me
charters
to
a
subsidiary
of
BG.
• Lower
delivered
cost
per
vessel
than
for
the
2
ships
ordered
earlier
this
year
–
the
advantage
of
building
a
series.
• EBITDA
of
$46-‐47
million
expected
in
the
first
twelve
months
of
opera6on.
• GasLog
subsequently
holds
op6ons
for
6
LNG
carriers
at
Samsung,
4
of
which
are
priced.
• Given
the
very
aqrac6ve
terms
with
shipyard,
and
given
also
our
recent
Norwegian
Bond,
we
do
not
see
the
need
to
raise
new
equity
within
the
next
couple
of
years.
• The
LNG
carriers
are
state
of
the
art,
with
a
low
cargo
boil-‐off
and
fuel
saving
devices,
and
with
the
proven
efficiency
of
tri-‐fuel
diesel
electric
propulsion.
13. Owned Built
Capacity
(mcbm) Propulsion Charterer
Methane Nile Eagle 25% 2007 145,000 Steam
GasLog Savannah 100% 2010 155,000 TFDE1
GasLog Singapore 100% 2010 155,000 TFDE
GasLog Shanghai 100% 2013 155,000 TFDE
GasLog Santiago 100% 2013 155,000 TFDE
GasLog Sydney 100% 2013 155,000 TFDE
GasLog Skagen2
100% 2013 155,000 TFDE
Hull 2041 100% 2013 155,000 TFDE
Hull 2042 100% 2014 155,000 TFDE
Hull 2043 100% 2014 155,000 TFDE
Hull 2044 100% 2015 155,000 TFDE
Hull 2072 100% 2016 174,000 TFDE
Hull 2073 100% 2016 174,000 TFDE
Hull 2102 100% 2016 174,000 TFDE
Hull 2103 100% 2016 174,000 TFDE
Firm Charter Charterer Optional Period Under Discussions/Available
2021 2022 2023 2024 20252018 2019 2020Ship 2013 2014 2015 2016 2017
Business
Overview
–
incl.
the
2
vessels
announced
in
August
2013
13
n In addition, GasLog has options for 6 additional LNG carrier newbuildings, 4 of which are priced, with expiration Q4-2013.
1. Tri -fuel Diesel Electric.
2. GasLog Skagen has a seasonal charter for the last 5 years of its firm period
(each year: 7 months on hire, and 5 months opportunity for GasLog to employ)
14.
Summary
14
• GasLog
is
paying
a
quarterly
dividend
of
$0.11
per
share
on
September
13,
2013.
• Our
performance
in
Q2-‐2013
reflects
the
ongoing
execu6on
of
the
growth
model
that
is
expected
to
con6nue
through
2013
and
beyond.
o GasLog
Sydney
delivered
in
Q2-‐2013,
and
subsequent
delivery
of
GasLog
Skagen
in
Q3-‐2013:
4
ships
successfully
delivered
so
far
in
2013
with
one
more
to
come.
o 2
newbuildings
at
Samsung
Heavy
Industries,
with
7
year
charters
to
BG
group,
announced
in
August
2013.
• Con6nued
strong
fundamentals
for
the
LNG
industry.
• GasLog
has
the
proven
ability
to
leverage
our
plasorm
to
deliver
growth
for
our
shareholders.
15.
Annex
1
-‐
Reconcilia6on
/
Non-‐GAAP
Measures
15
Non-‐GAAP
Financial
Measures
EBITDA
represents
earnings
before
interest
income
and
expense,
taxes,
deprecia6on
and
amor6za6on.
Adjusted
EBITDA
represents
EBITDA
before
unrealized
gain/loss
on
swaps
and
foreign
exchange
gains/losses.
Adjusted
Profit
and
Adjusted
EPS
represent
earnings
and
earnings
per
share,
respec6vely,
before
unrealized
gain/loss
on
swaps
and
foreign
exchange
gains/losses.
EBITDA,
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS,
which
are
non-‐GAAP
financial
measures,
are
used
as
supplemental
financial
measures
by
management
and
external
users
of
financial
statements,
such
as
investors,
to
assess
our
financial
and
opera6ng
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,
Adjusted
Profit
and
Adjusted
EPS
assists
our
management
and
investors
in
(i)
understanding
and
analyzing
the
results
of
our
opera6ng
and
business
performance,
(ii)
selec6ng
between
inves6ng
in
us
and
other
investment
alterna6ves
and
(iii)
monitoring
our
ongoing
financial
and
opera6onal
strength
in
assessing
whether
to
con6nue
to
hold
our
common
shares.
This
increased
comparability
is
achieved
by
excluding
the
poten6ally
disparate
effects
between
periods
of,
in
the
case
of
EBITDA
and
Adjusted
EBITDA,
interest,
taxes,
deprecia6on
and
amor6za6on
and,
and
in
the
case
of
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS,
unrealized
gain/loss
on
swaps
and
foreign
exchange
gains/losses,
which
items
are
affected
by
various
and
possibly
changing
financing
methods,
capital
structure
and
historical
cost
basis
and
which
items
may
significantly
affect
results
of
opera6ons
between
periods.
EBITDA,
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS
have
limita6ons
as
analy6cal
tools
and
should
not
be
considered
as
alterna6ves
to,
or
as
subs6tutes
for,
profit,
profit
from
opera6ons,
earnings
per
share
or
any
other
measure
of
financial
performance
presented
in
accordance
with
IFRS.
These
non-‐GAAP
financial
measures
exclude
some,
but
not
all,
items
that
affect
profit,
and
these
measures
may
vary
among
companies.
In
evalua6ng
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS,
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
presenta6on.
Our
presenta6on
of
Adjusted
EBITDA,
Adjusted
Profit
and
Adjusted
EPS
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
6tled
measures
of
other
companies
in
the
shipping
or
other
industries.
16.
Annex
1
-‐
Reconcilia6on
(cont.)
16
Reconciliation of EBITDA and Adjusted EBITDA to Profit/(Loss):
(All amounts expressed in U.S. Dollars)
30-Jun-12 30-Jun-13
(Loss)/Profit for the period (3,552,127) 20,429,474
Depreciation of fixed assets 3,249,623 6,383,872
Financial costs excluding gain/(loss) on swaps 2,945,650 7,062,618
Financial income (443,859) (69,511)
EBITDA 2,199,287 33,806,453
Unrealized loss/(gain) on swaps, net 5,348,349 (12,890,391)
Foreign exchange losses/(gains), net 773,545 (468,858)
Adjusted EBITDA 8,321,181 20,447,204
For the three months ended
17.
Annex
1
-‐
Reconcilia6on
(cont.)
17
Reconciliation of Adjusted Profit to Profit/(Loss):
(All amounts expressed in U.S. Dollars)
30-Jun-12 30-Jun-13
(Loss)/Profit for the period (3,552,127) 20,429,474
Unrealized loss/(gain) on swaps, net 5,348,349 (12,890,391)
Foreign exchange losses/(gains), net 773,545 (468,858)
Adjusted Profit for the period 2,569,767 7,070,225
For the three months ended
18.
Annex
1
-‐
Reconcilia6on
(cont.)
18
Reconciliation of Adjusted Earnings Per Share to Earnings/(Loss) Per Share:
(All amounts expressed in U.S. Dollars)
30-Jun-12 30-Jun-13
(3,552,127) 20,429,474
(5,578) —
(3,546,549) 20,429,474
61,721,614 62,863,166
(0.06) 0.32
2,569,767 7,070,225
4,036 —
2,565,731 7,070,225
61,721,614 62,863,166
0.04 0.11
Adjusted earnings attributable to the owners of common shares used in the calculation of basic EPS
Weighted average number of shares outstanding
Adjusted profit for the period attributable to owners of the Group
Less: Adjusted earnings allocated to manager shares and subsidiary manager shares
EPS
(Loss)/Profit attributable to the owners of common shares used in the calculation of basic EPS
Weighted average number of shares outstanding, basic
(Loss)/Profit for the period attributable to owners of the Group
Less: Loss allocated to manager shares and subsidiary manager shares
For the three months ended
Adjusted EPS
