Monaco-based LNG shipper GasLog reported a profit for the third quarter of 2017 as the contribution from its spot vessels improved.
The company’s net profit for the quarter was $5.3 million compared to a $29 million net loss in the corresponding quarter a year ago.
GasLog’s CEO, Paul Wogan said that the company hit record revenues during the quarter, reaching $131.2 million, compared to $120.7 million in the third quarter of 2016.
The increase was mainly driven by the new deliveries to its fleet, the GasLog Geneva and the GasLog Gibraltar, and increased revenues from vessels operating in the spot market in both periods.
Wogan noted that the LNG shipping market fundamentals are improving.
“The increase in LNG supply from both the United States and Australia is creating greater shipping activity, as the additional supply is being matched by rising demand, particularly in Asia and Europe,” he said.
The company further expects the re-emergence of significant gas price differentials between the U.S., Europe and Asia will stimulate more inter-basin trade and will result in longer average voyage distances, which is positive for LNG shipping.
In the short-term LNG shipping market, spot rates have been consistently higher in 2017 than in 2016 as an increasing number of fixtures have led to higher utilization, a return of round-trip economics and an increase in customers looking for multi-month charters.
Commenting on the Alexandroupolis LNG project in Greece, where DEPA has signed a cooperation agreement for its participation in the project, which is being developed by Gastrade, Wogan said that progress is being made.
GasLog has three newbuilds on order at Samsung Heavy Industries and two newbuilds on order at Hyundai Heavy Industries, all on schedule for delivery from the first quarter of 2018 through to the second quarter of 2019.