GasLog Partners announces acquisition of GasLog Glasgow to fund capital programme
GasLog Partners announces acquisition of GasLog Glasgow from GasLog Ltd. for $214 million. GasLog Partners estimates that the GasLog Glasgow will add approximately $23.5 million to EBITDA in the first 12 months after closing.
The GasLog Glasgow is a 174,000 cbm tri-fuel diesel electric LNG carrier built in 2016 and operated by GasLog since delivery. The vessel is currently on a multi-year time charter with a wholly owned subsidiary of Shell through June 2026. Shell has the option to extend the charter for a period of five years.
Andy Orekar, Chief Executive Officer of GasLog Partners, stated: “I am very pleased to announce the accretive acquisition of the GasLog Glasgow. This 2016-built vessel is highly complementary to our strategy and its charter to Shell provides over seven years of stable cash flows at attractive fixed charter terms. The Acquisition will expand the Partnership’s fleet to 15 wholly owned LNG carriers, significantly grow our contracted EBITDA and increase our contracted days to approximately 92% for 2019 and 74% for 2020.”
Paul Wogan, Chief Executive Officer of GasLog, commented: “We continue to execute on our strategy of dropping vessels into GasLog Partners in order to recycle capital back to GasLog to fund our capital programme. In turn, this leads to further growth opportunities for the Partnership. Since the inception of the Partnership in 2014 – when we had a dropdown pipeline of 12 vessels with multi-year charters – we have sold 12 vessels to the Partnership. Today, our pipeline of future growth opportunities for GasLog Partners is 11 vessels. With the equity recycled to GasLog, we remain solidly on track to deliver on our target to more than double our consolidated run-rate EBITDA by 2022.”
For more information visit www.gaslogltd.com
11th March 2019