The LNG spot market is expected to start improving on the back of an anticipated increase in new LNG supply, LNG carrier owner and operator GasLog Partners said.
“Despite seasonal weakness in spot LNG shipping markets due to warmer than normal winter temperatures combined with high inventory levels, we expect the spot market to strengthen as we move through 2019,” Andrew Orekar, Chief Executive Officer, commented.
The rise would mainly be fueled by U.S. projects, the company explained in its first quarter of 2019 financial report.
GasLog Partners’ profit dropped by 45 percent to USD 20.3 million in the first quarter of 2019, compared to USD 37.3 million from the same period in 2018.
Revenues for the quarter were down by 6 percent, standing at USD 86.3 million in 2019, compared to USD 91.7 million in 2018.
The drop in profit in the first quarter of 2019 is mainly attributable to a USD 12 million decrease in gain from the mark-to-market valuation of the derivatives and a USD 5.5 million decrease in revenues due to the expirations of the initial time charters of the GasLog Shanghai, the GasLog Santiago and the GasLog Sydney in May, June and September 2018, respectively.
“In the first quarter, GasLog Partners continued to execute our strategy, announcing the accretive acquisition of the GasLog Glasgow and expanding our fleet to 15 LNG carriers,” Orekar said.
GasLog Partners completed the acquisition of the GasLog Glasgow from GasLog for USD 214 million, with attached multi-year charter to a subsidiary of Royal Dutch Shell plc.
“With the GasLog Glasgow acquisition now closed, we are reiterating our year-on-year distribution growth guidance of 2% to 4% in 2019. Our guidance reflects the positive outlook for the LNG shipping market and our recently completed accretive acquisitions, while also considering our two scheduled dry-dockings and one vessel coming off charter in late 2019.”