GasLog rode a high spot market to a record fourth quarter performance, the company reported Thursday.
The New York-traded LNG carrier owner posted $62.5m in adjusted profit as spot rates shot into the six-figures in the last three months of 2018, and over $200,000 in November.
The companyreported record revenue at $188.6m and Ebitda at $145m.
It's adjusted earnings per share came in at $0.54, $0.22 better than analyst expectations.
"GasLog delivered another set of record results in the fourth quarter of 2018 driven in large part by very strong earnings from our spot vessels against a backdrop of extreme tightness in the LNG shipping market," chief executive Paul Wogan said.
The companalso trumpeted its $0.40 per share special divided and its $50m share repurchase program.
Deutche Bank's Chris Snyder said GasLog Ebitda came in $11m higher than their projection.
"[GasLog] benefited from very tight LNG shipping markets in Q4, allowing it to grow Ebitda 27% sequentially and 62% y/y," he wrote in a Thursday note.
He said that while LNG carrier spot rates have contracted since the six-figure highs seen late least year, new liquefaction projects are building out "at the fastest pace in history."
"We think it is important to note that energy demand is resilient and the reason LNG is taking share is because it is a lower cost of energy and more environmentally friendly – two secular trends that should support growth even under a slowdown scenario," Snyder said.
