Tue, Apr. 21, 12:55 PM
- GasLog (GLOG +7.5%) is surging after agreeing to charter three uncontracted newbuilds currently under construction to BG Group unit Methane Services, which also has an option to charter an additional six newbuilds provided a decision is reached in 2015.
- GLOG says the three charters will add ~$845M of fixed rate revenue to its existing contracted revenue backlog, and will commence in mid-2018 and early 2019 for average initial terms of ~9.5 years at "attractive rates."
- GLOP +6.6%.
Thu, Apr. 9, 2:59 PM
- Royal Dutch Shell's (RDS.A, RDS.B) planned acquisition of BG Group (OTCPK:BRGXF, OTCQX:BRGYY) would create a giant operator of liquefied natural gas ships, offering owners that charter the ships more opportunities for lucrative, long-term contracts in an otherwise depressed shipping industry.
- Energy producers such as Shell and BG lease rather than own most of the ships moving their products, and the leases go to a handful of trusted owners, generating ~$75K/day for a ship that carries 160K cm of LNG; the break-even point for such a ship is $50K at most.
- A main beneficiary is GasLog (GLOG, GLOP), which has chartered its vessels to Shell, BG and other energy producers for nearly 15 years; GLOG, whose shares gained 4% yesterday on news of the merger, charters 15 LNG carriers to BG and two to Shell from a total fleet of 27 carriers.
- The deal is "a strong signal from Shell that they see their future in LNG... [it] shows their desire to grow the business and puts us in a good place to grow with them," says GLOG CEO Paul Wogan.
- Teekay LNG Partners (NYSE:TGP) is another LNG vessel operator expected to benefit from LNG demand.
Mon, Apr. 6, 6:28 PM
- GasLog Partners (NYSE:GLOP) jumped 8.1% in today's trade following a favorable analysis from Liam Denning in a Heard On The Street column over the weekend, citing GLOP's limited exposure to commodity prices in the near term and strong growth outlook for the years beyond its current contracts.
- As China’s recent decision to shut down its major coal-fired power plants around Beijing shows, there are structural forces pushing natural gas to take market share from higher-carbon fossil fuels, Denning writes.
- The column notes that the consensus forecast is for GLOP's earnings to rise by 46% this year, almost 10x the growth rate predicted for the MLP sector overall, yet while the Alerian MLP index’s forward dividend yield is 6.44%, GLOG yields almost 8%.
Fri, Feb. 27, 7:02 AM
Thu, Feb. 26, 5:30 PM
Fri, Feb. 20, 10:23 AM
- Canada's government is planning tax breaks for developers of liquefied natural gas export projects in an effort to kick-start investment amid a low energy price environment.
- The government says the changes will allow LNG companies to deduct a higher share of capital costs, and expects the move to reduce corporate tax revenue by ~C$50M over the next five years.
- British Columbia, which is counting on LNG development and shipments to stimulate future growth, had lobbied for such tax breaks, as did the LNG industry.
- Potential LNG stocks include LNG, GLNG, SRE, GTLS, TGP, GMLP, GLOG, CQP, GLOP, DLNG.
Dec. 22, 2014, 8:58 AM
- GasLog (NYSE:GLOG) agrees to acquire two modern tri-fuel diesel electric liquefied natural gas carriers from BG Group (OTCPK:BRGXF, OTCQX:BRGYY) affiliate Methane Services for $460M.
- The two vessels will be chartered back to BG for periods of nine and eleven years, which GLOG says will add $580M of contracted revenue over the charter period and should to provide a combined annual EBITDA of $46M.
- Upon completion of the acquisition, the GasLog group, including GasLog Partners (NYSE:GLOP), will have total contracted revenues of $3.3B.
Dec. 8, 2014, 12:43 PM
- GasLog (GLOG -4.3%) has not been helped by Stifel's upgrade to Buy from Hold with a $24 price target, as the firm believes shares are unjustifiably weak.
- GLOG's chairman indicated last week that he expects the company to announce a substantial contract before the end of the year, which firm believes could be employment for the four 2017 built vessels on order or a new sale leaseback agreement with an oil major for existing vessels.
Dec. 3, 2014, 12:45 PM
Dec. 3, 2014, 11:32 AM
- The energy sector (XLE +1.5%) continues its momentum from yesterday, leading the way again as the best performing sector in early trading with crude oil rising 1.2% so far today and reports that U.S. well permits fell 40% last month.
- Top performers include Clayton Williams (CWEI +7.7%), Transocean Partners (RIGP +10.6%), Gaslog (GLOG +13.8%) and Energy XXI (EXXI +15.7%).
- Other leading energy names are showing stronger recoveries as they clear last Friday's bearish gap zone: XOM +0.2%, CVX +0.4%, COP +2.5%, OXY +2.5%, DVN +2.9%, EOG +2.5%, HES +2.2%, MUR +1.5%, NBL +2.3%, PXD +4.2%, SU +3%, CNQ +1.9%.
- Some analysts warn that the worst may not be over, however, as much of the advance is being driven by investors repurchasing ETFs they used to make short bets; investors also could opt to sell oil shares at a loss in coming weeks to reduce tax burdens.
Nov. 20, 2014, 5:39 AM
Nov. 19, 2014, 5:30 PM
Oct. 1, 2014, 5:36 PM
Aug. 20, 2014, 8:55 AM
- GasLog (NYSE:GLOG) +3% premarket after reporting in-line Q2 earnings, better than expected Q2 revenues, and a strong outlook for coming years.
- GLOG says it estimates contracted charter revenues to rise from $145.4M for FY 2013 to $424.2M for FY 2017 based on contracts in effect as of June 30, 2014 for the eight LNG carriers delivered in 2010, 2013 and through June 30, six LNG carriers acquired from a subsidiary of BG Group and four LNG carriers on order for which time charters have been secured.
- GLOG says it has 15 vessels on the water vs. eight at the end of Q1; of the 15, 14 are on multi-year charters.
- Sees the medium to long-term outlook for LNG shipping as very positive, and anticipates significant opportunities as the expected ramp-up of new liquefaction capacity around the world is projected to outstrip the number of ships currently on order.
Aug. 20, 2014, 6:56 AM
Aug. 19, 2014, 5:30 PM
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