2019 a “year of excellent execution” for GasLog

gasLog

GasLog reported its financial results for the three-month period and the year ended December 31, 2019.

Key Events and Financial Performance

• Quarterly Revenues, Loss, Adjusted Profit(2), Adjusted EBITDA(2), Loss per share(1) and Adjusted Earnings per share(1)(2) of $182.3 million, ($119.9) million, $38.5 million, $129.2 million, ($0.65) and $0.14, respectively.
• Record annual Revenues of $668.6 million. Loss, Adjusted Profit(2), record Adjusted EBITDA(2), Loss per share(1) and Adjusted Earnings per share(1)(2) of ($115.6) million, $113.0 million, $461.2 million, ($1.37) and $0.29, respectively.
• Special dividend of $0.38 per common share paid on December 31, 2019.
• In December 2019 signed an Export Credit Agency-backed debt financing of $1.1 billion with 13 international banks to provide the debt funding for its current newbuilding program (the “Newbuilding Facility”).
• In December 2019, amended the covenants on its existing bank facilities to align them with the improved terms of the Newbuilding Facility and the GasLog Warsaw facility concluded earlier in 2019.
• In November 2019, successfully issued NOK 900.0 million of senior unsecured bonds due November 2024 (“NOK 2024 Bonds”), in part through exchanging NOK 316.0 million of the existing NOK 750.0 million of senior unsecured bonds due May 2021 (“NOK 2021 Bonds”) and, in December 2019, announced a call of the remaining NOK 2021 Bonds, subsequently completed in January 2020.
• Implemented a plan to relocate GasLog’s senior management and more of its employees to the Piraeus, Greece office, to enhance execution and efficiency and to reduce overheads.
• As of December 31, 2019, recognized an impairment loss of $162.1 million on its six steam turbine propulsion (“Steam”) vessels built in 2006 and 2007, including five GasLog Partners LP (“GasLog Partners” or the “Partnership”) vessels and one GasLog directly owned vessel, due to negative market conditions.
• Quarterly dividend of $0.15 per common share payable on March 12, 2020.

(1) Earnings/(loss) per share (“EPS”) and Adjusted EPS are net of the profit/(loss) attributable to the non-controlling interests of ($69.7) million and the dividend on preferred stock of $2.5 million for the quarter ended December 31, 2019 ($16.6 million and $2.5 million, respectively, for the quarter ended December 31, 2018) and net of the profit/(loss) attributable to the non-controlling interests of ($15.0) million and the dividend on preferred stock of $10.1 million for the year ended December 31, 2019 ($78.7 million and $10.1 million, respectively, for the year ended December 31, 2018).

(2) Adjusted EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP financial measures and should not be used in isolation or as a substitute 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.

CEO Statement

Paul Wogan, Chief Executive Officer, stated: “2019 represented another year of excellent execution for GasLog. We took delivery of two newbuild LNG carriers and signed long-term charters with the principal LNG shipping entity of JERA Co., Inc (“JERA”) and a subsidiary of Endesa S.A. (“Endesa”), both new customers for GasLog. We also chartered two on-the-water vessels to Gunvor Group Ltd. (“Gunvor”) and secured up to 10 years employment for one of our vessels as a floating storage unit. Record revenues and continued cost control delivered record annual Adjusted EBITDA. We also successfully completed a new debt facility for our newbuildings delivering in 2020 and 2021, refinanced existing debt, tapped our USD bonds at a premium to par and secured significant improvements to our debt covenants. These successes and our positive business outlook allowed us to declare a $0.38 per common share special dividend in the fourth quarter of 2019.

However, while spot rates for LNG carriers improved in 2018 and 2019 compared to prior years, the term charter market for on-the-water vessels has not developed as anticipated, resulting in reduced expectations for future vessel utilization and earnings, for the five Steam vessels owned by GasLog Partners and our one GasLog directly owned Steam vessel after the expiry of their current term charters. This led us to recognize an impairment loss of $162.1 million with respect to the Group’s six Steam vessels, five of which are owned by the Partnership.

In light of the reduced expectations for Steam vessel utilization and earnings, GasLog Partners will focus its capital allocation on debt repayment, prioritizing balance sheet strength for 2020. As such, the Partnership expects to reduce its quarterly common distribution to $0.125 per unit for the first quarter of 2020 from $0.561 per unit for the fourth quarter of 2019. The reduced distribution will lower the Partnership’s cash flow break-even rates across its fleets and improve its competitive positioning. While our commitment to the Partnership remains strong, no further drop-downs are required to fund GasLog’s committed newbuilding program delivering in 2020 and 2021.

Our charter-backed newbuilding program is on time and budget. The seven vessels due to deliver by the third quarter of 2021 are expected to contribute an additional $145.0 million of annualized EBITDA(3) to GasLog on a fully delivered basis. As a result, we have high visibility on the growth in contracted revenues through 2022 from the vessels directly owned by GasLog. As we continue to execute on our efficiency improvements and cost reductions, we will continue to look for further opportunities to enhance shareholder returns, on top of the special dividends paid in 2018 and 2019.”

(3) EBITDA, which represents earnings before depreciation, amortization, financial income and costs, gain/loss on derivatives and taxes, is a non-GAAP financial measure. Please refer to Exhibit II for guidance on the underlying assumptions used to derive EBITDA.

LNG Market Update and Outlook

LNG demand, as estimated by Wood Mackenzie, is expected to have increased by 11% to 351 million tonnes (“mt”), in 2019, from 316 mt in 2018. European demand accounted for most of the growth, increasing over 31 mt (61%) year-over-year. European demand was driven by a combination of declining domestic production, continued coal-to-gas switching for power generation, and inventory restocking. In North Asia, demand from Japan, South Korea and Taiwan declined by approximately 8 mt or 6%, while demand from China increased by 7 mt or 13%. Wood Mackenzie forecasts global LNG demand growth of over 90 mt between 2019 and 2025, a compound annual growth of approximately 4%. This growth is expected to be broad-based, with South East Asia (excluding India) accounting for approximately 46% and China, Latin America and India expected to account for 27%, 11% and 10%, respectively.

Wood Mackenzie estimates 2019 LNG supply of 364 mt, a 38 mt increase (12%) over 2018. During the year, new production started in the United States (Cameron Train 1, Corpus Christi LNG Train 2 and Freeport LNG Train 1) and Australia (Prelude). Supply from existing liquefaction facilities in Australia, Russia, Nigeria and Abu Dhabi also increased while downtime and/or underperformance at existing facilities in Equatorial Guinea, Indonesia and Malaysia partially offset these gains. Based on Wood Mackenzie’s current forecasts, 2020 is anticipated to be another strong year for LNG production growth, with supply expected to increase by 26 mt to 390 mt, a 7% increase on 2019. This includes new production from Elba Island, Cameron and Freeport LNG in the United States, Yamal in Russia and the continued ramp-up of projects which were brought onstream in 2019.

During 2019, six new LNG liquefaction projects with a combined capacity of approximately 79 million tonnes per annum (“mtpa”) reached Final Investment Decision (“FID”), a record year for the sanctioning of new LNG projects and underpinning further LNG supply growth during the next decade. Projects which reached FID include Golden Pass (16 mtpa), Calcasieu Pass (10 mtpa) and Sabine Pass Train 6 (4.5 mtpa) in the United States, Mozambique LNG (12.9 mtpa) in Mozambique, Arctic LNG-2 in Russia (19.8 mtpa) and Nigeria LNG Train 7 (8 mtpa including debottlenecking of existing trains) in Nigeria. Wood Mackenzie anticipates at least another 50 mtpa of new LNG capacity will reach FID during 2020.

In the LNG shipping spot market, tri-fuel diesel electric vessel (“TFDE”) headline rates, as reported by Clarksons, averaged $70,000 per day in 2019, a 23% decrease on 2018 levels. Low gas prices during much of 2019 limited the arbitrage opportunities for transporting LNG between the Atlantic and Pacific basins. However, the market balance remains tight, as evidenced by the quick run up in TFDE rates in the fourth quarter of 2019 when they reached a peak of $140,000 per day in November, following a marked decrease in spot ship availability. While headline spot rates in the first quarter of 2020 to date have fallen from their peaks in the fourth quarter of 2019, current headline rates are in line with or above the comparable dates of recent years. According to Poten, 57 term charters between 6 months and 7 years were reported in 2019, a decrease of 22% over 2018, of which 25 were for TFDE vessels and 12 were for Steam vessels. The term charter market for Steam vessels continues to be significantly less liquid than that for TFDEs.

Clarksons currently assesses headline spot rates for TFDE and Steam LNG carriers at $65,000 per day and $43,500 per day, respectively. While the short-term outlook for TFDE vessel demand through the second half of 2020 and into early 2021 is supportive, given continued growth in LNG supply, the very weak current prices and forward curves for natural gas in the key markets of North Asia and Europe are likely to result in shorter average voyage distances and lower shipping requirements, as there is limited scope for inter-basin arbitrage trading. The recent coronavirus outbreak has also introduced uncertainty regarding demand for LNG over the near-term, particularly in China. In addition, spot rates are likely to be prone to further periods of seasonality and volatility similar to those seen during 2019.

As of February 4, 2020, the orderbook totals 118 dedicated LNG carriers (>100,000 cbm), following 48 newbuilding orders in 2019, according to estimates from Poten. This represents 22% of the on the water fleet, approximately in line with the beginning of 2019. Of these, 74 vessels (or 63%) have multi-year charters.

Dividend Declaration

On November 14, 2019, the board of directors declared a dividend on the Series A Preference Shares of $0.546875 per share, or $2.5 million in the aggregate, payable on January 2, 2020 to holders of record as of December 31, 2019. GasLog paid the declared dividend to the transfer agent on December 30, 2019.

On December 14, 2019, the board of directors declared a special dividend of $0.38 per common share, or $30.7 million in the aggregate, which was paid on December 31, 2019.

On February 5, 2020, the board of directors declared a quarterly cash dividend of $0.15 per common share, or $12.1 million in the aggregate, payable on March 12, 2020 to shareholders of record as of March 2, 2020.

Impairment Loss on Vessels

As of December 31, 2019, a number of increasingly strong negative indicators caused the Group to recognize a non-cash impairment loss on its six Steam vessels, five of which are owned by GasLog Partners. Such indicators include the difference between ship broker estimates of the fair market values and the carrying values of the Steam vessels, the lack of liquidity in the market for term employment for Steam vessels and reduced expectations for the estimated rates at which such term employment could be secured over the remaining economic life of these vessels, which may be at materially lower levels than the rates earned prior to the expiry of their multi-year charters with Shell. The redelivery of the Methane Alison Victoria in January 2020, which is currently trading in the spot market, and the scheduled redeliveries of the other five Steam vessels prior to the end of 2020, which may also operate in the spot market rather than under term charters, together with the continued addition of larger and more fuel efficient LNG carriers to the global fleet, are the principal factors which caused the Group to recognize a non-cash impairment loss of $162.1 million in aggregate in the three and twelve months ended December 31, 2019 for the five Steam vessels owned by the Partnership, the Methane Rita Andrea, the Methane Jane Elizabeth, the Methane Alison Victoria, the Methane Shirley Elisabeth and the Methane Heather Sally, and the one Steam vessel owned by GasLog, the Methane Lydon Volney.

New Financing

On December 12, 2019, GasLog entered into a loan agreement for an amount of $1,052.8 million with 13 international banks, with Citibank N.A. London Branch and DNB Bank ASA, London Branch acting as agents on behalf of the other finance parties, to finance the delivery of the seven newbuildings scheduled to be delivered in 2020 and 2021. The financing is backed by the Export Import Bank of Korea (“KEXIM”) and the Korea Trade Insurance Corporation (“K-Sure”), who are either directly lending or providing cover for over 60% of the facility.

Covenant Amendments

In December 2019, GasLog achieved improvements to the financial and non-financial covenants across the entirety of its bank debt, most notably decreasing minimum liquidity requirements from 3.0% of total indebtedness, or 4% if dividends are paid, to a flat amount of $75.0 million which will be applicable upon repayment of our U.S. dollar bonds maturing in March 2022, which have a minimum liquidity requirement of 2.5% of total indebtedness. The covenants are now aligned with the terms of the Newbuilding Facility and the GasLog Warsaw facility concluded earlier in 2019.

NOK Bonds

On November 21, 2019, GasLog completed the issuance of NOK 900.0 million (equivalent to $98.6 million) of NOK 2024 Bonds in the Norwegian bond market. The NOK 2024 Bonds mature in November 2024 and have a coupon of 6.25% over the three-month Norwegian Interbank Offered Rate (“NIBOR”). The proceeds from the issuance were used in part to repurchase and cancel NOK 316.0 million (or $34.6 million) of the outstanding NOK 2021 Bonds at a price of 104.75% of par value. The outstanding balance of the NOK 2021 Bonds, after the partial repurchase, amounted to NOK 434.0 million (equivalent to $49.2 million). On January 31, 2020, GasLog completed the repurchase of the outstanding balance of the NOK 2021 Bonds at a price of 104.0% of par value plus accrued interest, for a total consideration of NOK 451.4 million ($54.4 million).

Restructuring Costs

In November 2019, GasLog announced plans to relocate more of its employees including several members of senior management to the Piraeus, Greece office, home of our operational platform, in order to enhance execution, efficiency and operational excellence and to reduce overheads. As a result, the Monaco office will reduce the already limited number of employees, whilst the London office will focus primarily on chartering activities and company secretarial duties. The offices in Singapore, Korea and the U.S. will be unaffected by the changes. For the quarter and the year ended December 31, 2019, the Group has recognized total restructuring costs of $4.7 million, the majority of which will be paid in 2020.

There were 2,465 revenue operating days and 9,518 revenue operating days (including 1,063 days in the LNG carrier pooling agreement (the “Cool Pool”) for the quarter and the year ended December 31, 2019, respectively, as compared to 2,317 revenue operating days (including 552 days in the Cool Pool) and 9,030 revenue operating days (including 2,046 days in the Cool Pool) for the quarter and year ended December 31, 2018. The quarterly increase in revenue operating days was mainly driven by the increased operating days from the delivery of the GasLog Gladstone on March 15, 2019 and the delivery of the GasLog Warsaw on July 31, 2019, and the decreased unchartered days from the vessels operating in the spot market, partially offset by the increased off-hire days for dry-dockings. The year-on-year increase in revenue operating days was mainly driven by the increased operating days from the delivery of the GasLog Gladstone on March 15, 2019 and the delivery of the GasLog Warsaw on July 31, 2019, and the full operation in the year ending December 31, 2019 of the GasLog Houston, the GasLog Hong Kong and the GasLog Genoa, which were delivered on January 8, 2018, March 20, 2018 and March 29, 2018, respectively. The above increases were partially offset by the increased unavailable days (i.e. days before and after a dry-docking where the vessel has limited ability for chartering opportunities) and increased unchartered days from the vessels operating in the spot market.

Following the exit from the Cool Pool, management allocates vessel revenues to two categories: (a) variable rate charters (“VR Revenues”) and (b) fixed rate charters (“FR Revenues”). The variable rate charter category contains vessels operating in the LNG carrier spot and short-term market or those which have a variable rate of hire across the charter period. The vessels in this category during 2019 were the GasLog Savannah, the GasLog Singapore, the GasLog Shanghai, the GasLog Skagen, the GasLog Saratoga, the GasLog Salem and the GasLog Chelsea.

Revenues were $182.3 million and $668.6 million for the quarter and the year ended December 31, 2019, respectively ($188.6 million and $618.3 million for the quarter and the year ended December 31, 2018, respectively). The decrease for the quarter ended December 31, 2019 as compared to the quarter ended December 31, 2018 was mainly driven by a decrease from our vessels operating in the spot and short-term market, including the impact of the unscheduled dry-dockings of the GasLog Savannah, the GasLog Singapore and the GasLog Chelsea and from the expiration of the initial time charters of the GasLog Sydney, the GasLog Saratoga and the Methane Jane Elizabeth, partially offset by the delivery of the GasLog Gladstone on March 15, 2019 and the delivery of the GasLog Warsaw on July 31, 2019. The year-on-year increase resulted mainly from the full operation of the GasLog Houston, the GasLog Hong Kong and the GasLog Genoa (which were delivered on January 8, 2018, March 20, 2018 and March 29, 2018, respectively) and the deliveries of the GasLog Gladstone on March 15, 2019 and the GasLog Warsaw on July 31, 2019. In addition, there was an increase from our vessels operating in the spot and short-term market including the impact of the unscheduled dry-dockings of the GasLog Savannah, the GasLog Singapore and the GasLog Chelsea which was partially offset by a decrease from the expiration of the initial time charters of the GasLog Shanghai, the GasLog Santiago, the GasLog Sydney, the GasLog Skagen, the GasLog Saratoga and the Methane Jane Elizabeth.

For the quarter and year ended December 31, 2019, an analysis of revenue operating days, revenues and voyage expenses and commissions per category of charter is presented below:

In addition, GasLog recognized gross revenues and gross voyage expenses and commissions of $45.3 million and $8.1 million, respectively, from the operation of its vessels in the Cool Pool during the year ended December 31, 2019 (December 31, 2018: $102.3 million and $10.2 million, respectively). Net pool performance decreased due to all of GasLog’s vessels exiting the Cool Pool by July 8, 2019.

Voyage expenses and commissions were $4.3 million and $23.8 million for the quarter and the year ended December 31, 2019, respectively ($3.6 million and $20.4 million for the quarter and the year ended December 31, 2018, respectively). The increase for the quarter and year ended December 31, 2019 as compared to the quarter and year ended December 31, 2018 was primarily attributable to the increase in bunkers’ consumption of the vessels operating in the spot market.

Vessel operating and supervision costs were $39.5 million and $139.7 million for the quarter and the year ended December 31, 2019, respectively ($29.1 million and $128.1 million for the quarter and the year ended December 31, 2018, respectively). The increase in vessel operating and supervision costs for the quarter ended December 31, 2019 as compared to the quarter ended December 31, 2018 is mainly attributable to the deliveries of the GasLog Gladstone and the GasLog Warsaw on March 15, 2019 and July 31, 2019, respectively, the increase in scheduled technical maintenance costs related to engine maintenance and costs during dry-dockings, including expenses associated with the preparation for compliance with the International Maritime Organization (“IMO”) 2020 regulations, as well as one-off returns in vessel taxes in the fourth quarter of 2018 (which did not occur in the fourth quarter of 2019) and increased insurance costs. The year-on-year increase was mainly attributable to the 2018 and 2019 vessel deliveries, increased scheduled technical and maintenance costs related to engine maintenance and costs related to dry-dockings, including expenses associated with the preparation for compliance with the IMO 2020 regulations, the increase in insurance costs, partially offset by the favorable movement of the EUR/USD exchange rate. Daily operating costs per vessel increased from $12,661 per ownership day (excluding the Solaris which is managed by Shell) for the quarter ended December 31, 2018 to $15,917 per ownership day (excluding the Solaris which is managed by Shell) for the three-month period ended December 31, 2019. Daily operating cost per vessel was affected by the increases described above. Daily operating costs per vessel increased from $14,306 per ownership day (as defined below) for the year ended December 31, 2018 to $14,595 per ownership day (as defined below) for the year ended December 31, 2019. Ownership days represent total calendar days for our owned and bareboat fleet.

General and administrative expenses were $14.5 million and $47.4 million for the quarter and the year ended December 31, 2019, respectively ($9.7 million and $42.0 million for the quarter and the year ended December 31, 2018, respectively). The quarterly and year-on year increase was mainly affected by the restructuring costs of $4.7 million that occurred in the fourth quarter of 2019. Excluding the effect of the abovementioned restructuring costs, general and administrative expenses did not materially change for the quarter ending December 31, 2019 as compared to the quarter ending December 31, 2018, whereas there was a slight increase of $0.6 million for the year ending December 31, 2019 as compared to the year ending December 31, 2018. Daily general and administrative expenses per vessel, excluding the effect of the restructuring costs, decreased from $4,060 per ownership day (as defined above) for the quarter ended December 31, 2018 to $3,809 per ownership day (as defined above) for the quarter ended December 31, 2019. Daily general and administrative expenses per vessel excluding the effect of the restructuring costs decreased from $4,507 per ownership day (as defined above) for the year ended December 31, 2018 to $4,297 per ownership day (as defined above) for the year ended December 31, 2019.

Depreciation was $43.9 million and $168.0 million for the quarter and the year ended December 31, 2019, respectively ($39.5 million and $153.2 million for the quarter and the year ended December 31, 2018, respectively). The quarterly and year-on-year increase resulted mainly from the delivery of the GasLog Gladstone on March 15, 2019 and the GasLog Warsaw on July 31, 2019, and an increase from the depreciation of the right-of-use assets deriving from the implementation of IFRS 16 Leases. The year-on-year increase resulted mainly from the delivery of the GasLog Gladstone on March 15, 2019 and the GasLog Warsaw on July 31, 2019, the full operation in the year ending December 31, 2019 of the GasLog Houston, the GasLog Hong Kong and the GasLog Genoa following their delivery on January 8, 2018, March 20, 2018 and March 29, 2018, respectively, and the increase from the depreciation of the right-of-use assets deriving from the implementation of IFRS 16 Leases.

Financial costs were $51.6 million and $190.5 million for the quarter and the year ended December 31, 2019, respectively ($44.1 million and $166.6 million for the quarter and the year ended December 31, 2018, respectively). The quarterly increase was mainly attributable to the $3.9 million unrealized foreign exchange losses on cash and bond included in other financial costs and the $2.1 million loss arising from the bond repurchases at premium to par. The year-on-year increase was mainly attributable to an increase of $15.8 million in interest expense on loans, bonds and cash flow hedges, due to the increased weighted average outstanding indebtedness, the $4.2 million unrealized foreign exchange losses on cash and bond included in other financial costs and the $2.1 million loss arising from the bond repurchases at premium to par. An analysis of the financial costs is set out below:

Gain on derivatives was $12.4 million for the quarter ended December 31, 2019 and loss on derivatives was $55.4 million for the year ended December 31, 2019 ($32.4 million and $6.1 million loss for the quarter and the year ended December 31, 2018, respectively). The gain on derivatives in the quarter ending December 31, 2019, as compared to the loss in the quarter ending December 31, 2018, was mainly attributable to a decrease of $45.9 million in loss from mark-to-market valuation of our derivative financial instruments carried at fair value through profit or loss. The gain on derivatives in the quarter ending December 31, 2019 derived mainly from increases in the London Interbank Offered Rate (“LIBOR”) curve. The year-on-year increase in loss on derivatives is mainly attributable to an increase of $46.1 million in loss from mark-to-market valuation of our derivative financial instruments carried at fair value through profit or loss derived mainly from decreases in the LIBOR curve. An analysis of (loss)/gain on derivatives is set out below:

Loss was $119.9 million and $115.6 million for the quarter and the year ended December 31, 2019, respectively ($30.4 million and $126.4 million profit for the quarter and the year ended December 31, 2018, respectively). The quarterly decrease in profit to a loss was mainly attributable to an impairment loss on Steam vessels of $162.1 million recognized in the fourth quarter of 2019 and due to the factors mentioned above, partially offset by the mark-to-market gains on derivatives in the quarter ending December 31, 2019 as compared to losses in the quarter ending December 31, 2018. The year-on-year decrease in profit was mainly attributable to an impairment loss on vessels of $162.1 million recognized in the fourth quarter of 2019 and due to the factors mentioned above, the increase in mark-to-market losses on derivatives and the increase in financial costs (as described above).

Adjusted Profit(1) was $38.5 million and $113.0 million for the quarter and the year ended December 31, 2019, respectively ($62.5 million and $134.8 million for the quarter and the year ended December 31, 2018, respectively) adjusted for the effects of the write-off and accelerated amortization of unamortized loan and bond fees and premium, foreign exchange losses, unrealized foreign exchange losses on cash and bond, impairment loss on vessels, restructuring costs and non-cash gain/loss on derivatives.

Loss attributable to the owners of GasLog was $50.2 million and $100.7 million for the quarter and the year ended December 31, 2019, respectively ($13.8 million and $47.7 million profit for the quarter and the year ended December 31, 2018, respectively). The decrease in profit to loss attributable to the owners of GasLog resulted mainly from the respective movements in profit mentioned above.

Adjusted EBITDA(1) was $129.2 million and $461.2 million for the quarter and the year ended December 31, 2019, respectively ($145.0 million and $447.7 million for the quarter and the year ended December 31, 2018, respectively).

EPS was a loss of $0.65 and $1.37 for the quarter and the year ended December 31, 2019, respectively (earnings of $0.14 and $0.47 for the quarter and the year ended December 31, 2018, respectively). The decrease in earnings per share to loss per share is mainly attributable to the respective movements in profit attributable to the owners of GasLog discussed above.

Adjusted Earnings per share(1) was $0.14 and $0.29 for the quarter and the year ended December 31, 2019, respectively (earnings of $0.54 and $0.57 for the quarter and the year ended December 31, 2018, respectively), adjusted for the effects of the write-off and accelerated amortization of unamortized loan and bond fees and premium, foreign exchange losses, unrealized foreign exchange losses on cash and bond, impairment loss on vessels, restructuring costs and non-cash gain/loss on derivatives.

(1) Adjusted Profit, Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and should not be used in isolation or as a substitute for GasLog’s financial results presented in accordance with IFRS. For definitions and reconciliations of these measurements 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.

Contracted Charter Revenues

The following table summarizes GasLog’s (including the vessels contributed or sold to GasLog Partners) contracted charter revenues and contract cover after December 31, 2019:

Other than the assumptions reflected in the footnotes to the table, including our assumption that our newbuildings are delivered on schedule, the table does not reflect events occurring after December 31, 2019. The table reflects only our contracted charter revenues for the ships in our owned fleet and bareboat fleet for which we have secured time charters, and it does not reflect the costs or expenses we will incur in fulfilling our obligations under the charters, nor does it include other revenues we may earn, such as revenues for technical management of customer-owned ships. In particular, the table does not reflect any revenues from any additional ships we may acquire in the future, nor does it reflect the options under our time charters that permit our charterers to extend the time charter terms for successive multi-year periods. The entry into new time charter contracts for the vessels that are operating in the spot term market and any additional ships we may acquire, or the exercise of options extending the terms of our existing charters, would result in an increase in the number of contracted days and the contracted revenue for our fleet in the future. Although the contracted charter revenues are based on contracted charter hire rate provisions, they reflect certain assumptions, including assumptions relating to future ship operating costs. We consider the assumptions to be reasonable as of the date of this report, but if these assumptions prove to be incorrect, our actual time charter revenues could differ from those reflected in the table. Furthermore, any contract is subject to various risks, including performance by the counterparties or an early termination of the contract pursuant to its terms. If the charterers are unable or unwilling to make charter payments to us, or if we agree to renegotiate charter terms at the request of a charterer or if contracts are prematurely terminated for any reason, we would be exposed to prevailing market conditions at the time and our results of operations and financial condition may be materially adversely affected. Please see the disclosure under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on March 5, 2019. For these reasons, the contracted charter revenue information presented above is not fact and should not be relied upon as being necessarily indicative of future results and readers are cautioned not to place undue reliance on this information. Neither the Company’s independent auditors, nor any other independent accountants, have compiled, examined or performed any procedures with respect to the information presented in the table, nor have they expressed any opinion or any other form of assurance on such information or its achievability and assume no responsibility for, and disclaim any association with, the information in the table.

Liquidity and Capital Resources

As of December 31, 2019, GasLog had $263.8 million of cash and cash equivalents, of which $149.5 million was held in time deposits and the remaining balance in current accounts. Moreover, as of December 31, 2019, GasLog had $4.5 million held in time deposits with an initial duration of more than three months but less than a year that have been classified as short-term investments.

On March 6, 2019, the respective subsidiaries of GasLog Partners drew down $360.0 million under a new five-year amortizing revolving credit facility entered into on February 20, 2019 (the “2019 Partnership Facility”) and prepaid in full their aggregate outstanding debt of $354.4 million, which would have been due in November 2019. On April 1, 2019, the Partnership drew down an additional $75.0 million under the 2019 Partnership Facility.

In March 2019 and July 2019, GasLog drew down $165.8 million and $129.5 million to partially finance the deliveries of the GasLog Gladstone and the GasLog Warsaw, respectively.

On May 16, 2019, GasLog closed a follow-on issue of the 8.875% senior unsecured notes due 2022 (the “8.875% Senior Notes”) with net proceeds of $75.4 million.

On November 21, 2019, GasLog completed the issuance of NOK 900.0 million (equivalent to $98.6 million) of NOK 2024 Bonds in the Norwegian bond market. The NOK 2024 Bonds mature in November 2024 and have a coupon of 6.25% over three-month NIBOR. The proceeds from the issuance were used in part to repurchase and cancel NOK 316.0 million (or $34.6 million) of the outstanding NOK 2021 Bonds at a price of 104.75% of par value. The outstanding balance of the NOK 2021 Bonds after the partial repurchase amounted to NOK 434.0 million (equivalent to $49.2 million). On January 31, 2020, GasLog completed the repurchase of the outstanding balance of the NOK 2021 Bonds at a price of 104.0% of par value plus accrued interest, for a total consideration of NOK 451.4 million ($54.4 million at the swapped rate under the associated cross currency swaps). In addition, GasLog paid $10.5 million for the partial exchange of the outstanding 8.875% Senior Notes at a price of 104.75% of par value. The exchange was completed in January 2020.

As of December 31, 2019, GasLog had an aggregate of $3.1 billion of indebtedness outstanding under its credit facilities and bond agreements, of which $255.4 million was repayable within one year, and $204.9 million of lease liabilities, of which $9.4 million was repayable within one year.

As of December 31, 2019, in addition to the $1.1 billion under the Newbuilding Facility, there was undrawn available capacity of $100.0 million under the revolving credit facility of the credit agreement of up to $1.1 billion entered into on July 19, 2016 (the “Legacy Facility Refinancing”). In addition, there was unused availability of $2.0 million under the 2019 Partnership Facility.

As of December 31, 2019, the total remaining balance of the contract prices of the seven LNG carriers on order was $1.1 billion, which GasLog expects to be funded with the Newbuilding Facility, cash balances and cash from operations.

As of December 31, 2019, GasLog’s current assets total $315.8 million, while current liabilities total $437.5 million, resulting in a negative working capital position of $121.7 million. We anticipate that available cash and cash flow generated from operations will be sufficient to fund our operations, including our working capital requirements, and to make all other required principal and interest payments on our indebtedness during the next 12 months.

GasLog has hedged 44.2% of its expected floating interest rate exposure on its outstanding debt (excluding the lease liability) as of December 31, 2019.

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