GasLog tightens loss in Q3

Piraeus-based LNG shipper GasLog has tightened its loss during the third quarter of 2020.

The company reported a loss of $354,000 for the period. This compares to a $13.5 million loss reported in the corresponding quarter in 2019.

Revenues were $156.7 million for the quarter ended September 30, 2020, down from $165.6 million for the quarter ended September 30, 2019.

The decrease was attributable to a decrease of $23.7 million from the vessels owned by GasLog’s unit, GasLog Partners, mainly due to the expiration of the initial multi-year time charters of the Methane Jane Elizabeth, the Methane Alison Victoria, the Methane Rita Andrea, the Methane Shirley Elisabeth and the 18-month time charter of the GasLog Sydney.

Commenting on the third-quarter events, the company’s CEO Paul Wogan, said, “during the third quarter, we refinanced all the Group’s debt maturing in 2021 and took delivery of the GasLog Westminster. This progress has continued in the fourth quarter and in October we completed the sale-and-leaseback of the GasLog Hong Kong”.

He added that the company expects to take delivery of the GasLog Georgetown later this month, the first of four vessels to be delivered into multi-year charters with Cheniere Energy.

LNG demand was 84 million tonnes (mt) in the third quarter of 2020, GasLog noted citing Poten. This compares to 88 mt in the third quarter of 2019, or a decrease of approximately 4 per cent.

Although demand declined globally in the third quarter of 2020, it also varied regionally, with Chinese and Indian LNG demand jumping 13 per cent, each.

These increases were balanced by declines in Europe, the Middle East, Japan, South Korea, North America and South America.

Global LNG supply was approximately 86 mt in the third quarter of 2020, a decrease of 4 per cent.

Supply from the United States decreased by approximately 18 per cent, the result of an estimated 112 cargoes canceled by customers of U.S. export facilities as well as unplanned outages at Cameron LNG following damage to its power supply caused by Hurricane Laura in late August.

In addition, supply from Australia declined by 7 per cent, due in part to unplanned maintenance at Gorgon LNG.

Looking ahead, approximately 104 mt of new LNG capacity is currently under construction and scheduled to come online from 2021-2026.

In the LNG shipping spot market, TFDE headline rates, as reported by Clarksons, averaged $41,000 per day in the third quarter of 2020, a decrease from the average of $66,000 in the third quarter of 2019.

Headline spot rates for Steam vessels averaged $28,000 per day in the third quarter of 2020, a decrease from the average of $43,000 per day in the third quarter of 2019.

Clarksons currently assesses headline spot rates for TFDE and Steam LNG carriers at $105,000 per day and $78,000 per day, respectively.

Early indications are for LNG demand to grow in the fourth quarter of 2020, relative to the third quarter of 2020, as demand in October was 2 per cent higher than September, according to Poten.

This demand growth has been reflected in the increasing headline spot rates for LNG carriers observed in recent weeks. However, taking into account the impact of the COVID-19 pandemic on the global economy, the forecast growth of the global LNG carrier fleet and expected seasonal trading patterns, there is continued potential for volatility in the spot and short-term markets over the near and medium-term.