US-listed GasLog Partners has agreed a price on the sale of one of its five remaining steam turbine LNG carriers which is likely to set a benchmark level for this generation of vessels.
In its second-quarter results statement, GasLog Partners said it has sold, on subjects, to a third party the 145,000-cbm Methane Shirley Elisabeth (built 2007) for approximately $54m.
The company said the deal is expected to be completed in the third quarter of 2022 on the redelivery of the ship from its charterer.
Methane Shirley Elisabeth is currently on charter to Chinese trader Jovo.
It added that the company is also pursing an agreement for the sale and lease-back of another steam vessel within the next 12 months.
GasLog Partners currently controls a fleet of 15 LNG carriers, comprising five steamships and 10 tri-fuel diesel-electric vessels.
Flagging up the transactions, chief executive Paolo Enoizi said the prices on the two deals “reflect the improved LNG carrier sale and purchase market”.
He said the sale of the Methane Shirley Elisabeth is expected to contribute around $20m of incremental net liquidity to the company’s balance sheet.
During the quarter Enoizi said the company has secured “important chartering opportunities” for two vessels in its fleet.
The 145,000-cbm steam turbine LNG carrier Methane Rita Andrea (built 2006) has been re-chartered to an energy major for one year. The vessel is listed by GasLog as on charter to Gunvor.
The company has also inked a new multi-month time-charter with a major trading house for its 155,000-cbm tri-fuel diesel-electric LNG carrier GasLog Seattle (built 2013). This ship is currently chartered out to TotalEnergies, according to the company.
Enoizi said these two new charters are expected to add approximately $50.m of incremental Ebitda to the company’s contract portfolio.
GasLog Partners logged a profit of $0.8m for the second quarter, a 95% fall on the $14.7m reported in the same three months of the previous year.
The company said the fall is largely due an impairment loss of $28m on its reclassification of its two steam vessels as “held for sale and remeasurement of their carrying amounts”.
In contrast revenues for the three months rose to $84.9m from $70.4 million for the same period in 2021.
GasLog said the $14.5m rise is mainly attributable to a net increase in revenues from its vessels operating in the spot market and no dry-docking days.
Voyage expenses for the second quarter rose against the same period a year ago but vessel operating costs were down on the back of a decrease in technical maintenance expenses and vessel management fees, although crew costs rose slightly.
GasLog Partners said daily operating costs per vessel decreased to $14,005 per day for the second quarter of 2022 from $15,734 per day in the corresponding quarter of last year.
The company repurchased $8.7m of preference units in the open market in the second quarter of 2022 and a total of $18.7m of repurchased preference units in the first six months of 2022
It also repaid $19.9m and lease liabilities during quarter $56.9m in the first half.
Enoizi said the company’s positive operating result for the quarter was “driven by an improved LNG shipping spot market and a sustained interest for term business”.
“We continue to successfully execute on our business strategy and capital allocation plan, de-leveraging our balance sheet and continuing our preference unit repurchase programme and further reducing the all-in break-evens of our fleet,” the CEO said.