The profit jump was attributed to the increased profit from operations mainly due to the higher number of operating days, as well as a positive movement in mark-to-market valuations of the company’s derivative financial instruments.
Revenues for the quarter reached USD 128.3 million also up from USD 104.4 million booked in 2016.
The increase was mainly driven by the deliveries of the GasLog Glasgow, the GasLog Geneva and the GasLog Gibraltar, and the full operation of the GasLog Greece, increased revenues from vessels operating in the spot market and fewer off-hire days due to dry-docking, the company added.
Furthermore, GasLog’s contracted charter revenues are estimated to increase from USD 444.5 million for the fiscal year 2016 to USD 486.5 million for the fiscal year 2019, based on contracts in effect at the end of Q1, without including the recently signed amendment of the GasLog Skagen seasonal charter and excluding any extension options.
As of March 31, 2017, the total future firm contracted revenue stood at USD 3.5 billion, including the vessels owned by GasLog Partners but excluding the vessels operating in the spot market.
As informed, 2016 saw significant increases in LNG demand from a number of new markets such as Pakistan, Poland, Lithuania and Jordan as well as major energy growth markets such as China and India. This trend has continued into the first quarter of 2017 with further strong increases in demand from China (+23% year-on-year to end March 2017) as well as in Japan (+13% year-on-year) and South Korea (+18% year-on-year) following the cold winter and slow progress with nuclear re-starts.
In addition, many markets that don’t import LNG are looking into FSRU opportunities, such as Ivory Coast, South Africa, Bangladesh and Myanmar, while those with FSRUs already in place are looking at expanding their use of FSRUs.
” In the 2017-2020 period, Wood Mackenzie expects approximately 120 mtpa of new nameplate capacity to come online around the world. We believe that this new supply will create significant demand for LNG carriers over and above those available in the market and on order today,” GasLog said.
“While the recovery in charter rates and utilization in the LNG shipping market is taking longer than we had anticipated, we are seeing some initial signs of increased short-term and long-term activity, and we continue to believe that the longer term fundamentals point to a strengthening market in 2017 and beyond,” the company pointed out.
GasLog’s consolidated fleet consists of 27 LNG carriers, 22 ships on the water and five on order. The company also has an additional LNG carrier which was sold to a subsidiary of Mitsui & Co. Ltd. and leased back under a long-term bareboat charter.