Seeking Alpha

GasLog -3.6% on purchase of LNG carriers, 4.25M-share offering

  • GasLog (GLOG) agrees to purchase an additional three liquified natural gas carriers from BG Group for ~$468M, which will be chartered back to BG for six-year initial terms on average, after completing an earlier purchase of three ships.
  • To pay for part of the purchase, GLOG plans a public offering of 4.25M common shares.
  • Shares -3.6% AH.
Comments (3)
  • Racca
    , contributor
    Comments (2) | Send Message
     
    My opinion: If Putin takes back Ukraine, there will be serious sanctions against Russia by the U.S. More than likely those sanctions will include sending US shipments of LNG to Europe in order to take away business from Russia, currently the largest exporter of natural gas to Europe. That gas will need to be transported to Europe, and GasLog appears to be well positioned to do that. Even if the Ukraine takeover by Russia doesn't occur, I believe the growing demand for cleaner natural gas due to global warming will insure more than enough business for GasLog. I see GasLog as a strong buy.
    10 Apr, 09:29 PM Reply Like
  • Biological
    , contributor
    Comments (78) | Send Message
     
    US shipments of LNG to Europe are not likely..., in fact, it is today impossible to send LNG from US to anywhere as the LNG export terminals, except the 1st one built in the late 60's or 70's in Alaska (owned by COP but operating at 25% capacity due to lack of gas feed), are not yet built. First, of the new generation (Cheniere, LNG symbol), of LNG export terminals will be exporting from only 2015 and probably is contracted to Asia already. However, Putin's shenanigans DO HELP GLOG in another ways: (1) more LNG will be imported before winter into Europe from Qatar, Indonesia, Angola, whatever - these cargoes will need to be shipped thus spot rates will stay good or move up (note that GLOG's ships are mostly rented out to BG and Shell under long term charters so GLOG only benefits SOME, as rates go up and its one LNG spot ship, Chelsea, gathers higher rates); (2) Putin's gas may not get piped to Europe but presumably it will go somewhere else - I am not sure if Putin has pipes all the way across Russia to East where, I believe in Sakhalin, there are LNG export projects. If so, this additional gas will need to be shipped. But, the news on GLOG is good.
    11 Apr, 05:20 AM Reply Like
  • 11146471
    , contributor
    Comments (453) | Send Message
     
    Way to go GLOG!!

     

    Excellent news! Keep increasing the fleet with sustained long term business.

     

    This company is a winner!
    11 Apr, 01:04 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|