Shipowner GasLog Partners is forecasting strong revenues in 2022 on the back of the strong demand being seen for term time-chartered LNG carriers.
Announcing first quarter results on Thursday, GasLog Partners chief executive Paolo Enoizi said the global LNG market was already tight before the conflict in Ukraine.
“This further need to secure energy supply has led to a significant increase in demand for LNG in recent months. This has resulted in a tight term market, despite volatility in the spot market in the first quarter of 2022.
“We expect that the Partnership’s contracted revenues in 2022 will more than fulfill its operational and financial obligations, whilst also retaining significant market exposure, particularly in the seasonally stronger second half of the year,” he said.
“Given the scarcity of independently-owned vessels available for term charters, based on current market conditions, we expect to recognise material upside well above our contracted revenues.”
The company said it signed a new multi-month charter with Spain's Naturgy for its vessel, the 155,000-cbm GasLog Sydney (built 2013) during the quarter.
GasLog turned in a profit of $35m for the first three months of 2022, a shade under the $35.4m logged by the company in the same period a year earlier.
Revenue was also slightly lower at $87.1m from $85.5m in the first quarter of 2021.
GasLog Partners said the fall is mainly due to a decrease in revenues from its vessels operating in the spot market during the first quarter and lower average rates as the “premium winter spot market” ended earlier this year than in 2021.
Voyage expenses and commissions fell on the back of a decrease in bunker consumption costs due to increased vessel utilisation.
But ship operation costs were up due to higher crew costs related to Covid-19.
GasLog Partners said the slip in profit was mainly attributable to the decrease in revenues, the increase in general and administrative expenses of $1.6m and a $0.8m rise in operating expenses which was partially offset by a $3.7m gain on derivatives.
Enoizi said GasLog Partners, which operates a fleet of 14 owned LNG carriers and has a single vessel on bareboat charter, will continue its business strategy of de-leveraging its balance sheet and increasing its potential for free cash flow generation.
