GasLog Ltd. Reports Financial Results for the Quarter Ended June 30, 2016

Monaco - 4 August 2016

GasLog Ltd. and its subsidiaries (“GasLog” or “Group” or “Company”) (NYSE:GLOG), an international owner, operator and manager of liquefied natural gas (“LNG”) carriers, today reported its financial results for the quarter ended June 30, 2016.

Highlights

• Post quarter-end, successfully chartered the last newbuilding on order without a long-term charter contract to Total Gas & Power Chartering Limited (“Total”) for a period of seven years, commencing in 2018, at attractive rates.

• Delivery of the GasLog Glasgow on June 30, 2016 and the commencement of its ten-year charter to a subsidiary of BG Group plc. (“BG Group”), now owned by Royal Dutch Shell plc (“Shell”).

• Post quarter-end, executed debt refinancing of $1.05 billion with a number of international banks, extending the maturity of six existing credit facilities to 2021.

• Issued NOK 750 million (equivalent to $90.2 million) of new senior unsecured bonds maturing in May 2021 in the Norwegian bond market refinancing NOK 588 million of existing bonds maturing in June 2018.

• Post quarter-end, GasLog Partners LP (“GasLog Partners” or the “Partnership”) launched a public offering of 2,750,000 common units raising gross proceeds of $53.6 million.

• Revenues of $114.5 million (Q2 2015: $104.4 million), Profit of $3.3 million (Q2 2015: $16.7 million) and Loss per share of $0.13(1) (Q2 2015: Earnings per share of $0.07), for the quarter ended June 30, 2016.

• Adjusted Profit(2) of $12.9 million (Q2 2015: $10.9 million), EBITDA(2) of $73.2 million (Q2 2015: $66.5 million), Adjusted EBITDA(2) of $73.7 million (Q2 2015: $64.5 million) and Adjusted Loss per share(2) of $0.01(1) (Q2 2015: $0.00) for the quarter ended June 30, 2016.

• Quarterly dividend of $0.14 per common share payable on August 25, 2016.

(1) EPS and Adjusted EPS are negatively affected by the profit attributable to the non-controlling interest of $11.2 million and the dividend on preferred stock of $2.5 million for the quarter ended June 30, 2016 ($8.5 million and $2.3 million, respectively, for the quarter ended June 30, 2015).

(2) EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted Earnings/Loss per share (“EPS”) are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog’s financial results presented in accordance with International Financial Reporting Standards (“IFRS”). For definition and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release.


CEO Statement
Paul Wogan, Chief Executive Officer, stated: “At the end of the quarter, we took delivery of the GasLog Glasgow. This vessel has a ten-year contract with a subsidiary of Shell and is one of eight vessels with multi-year contracts being delivered between 2016 and 2019. Post quarter-end, we were very pleased to announce the fixture of Hull 2801, GasLog’s only remaining open newbuild, to a subsidiary of Total for a minimum of seven years, which meets our objective of broadening GasLog’s long-term customer base.

The Total charter rate is consistent with long-term industry averages, demonstrating the resilience of long-term charter rates compared to the volatility of the short-term market. Once all eight newbuilds are operating under their long-term charters, they will deliver over $180 million of annualized in-built EBITDA(3). Following the Total fixture, GasLog now has 13 vessels with long-term charters that are eligible to be dropped down into GasLog Partners.

Whilst the short-term LNG shipping market remains challenging, in recent weeks we have seen increased utilization and improved charter terms such as round-trip economics. With less available tonnage, charterers at times have had to pay increased rates to secure vessels.”

(3) EBITDA, which represents earnings before interest income and expense, gain/loss on interest rate swaps, taxes, depreciation and amortization, is a non-GAAP financial measure. Please refer to Exhibit II at the end of this press release for guidance on the underlying assumptions used to derive EBITDA.

Dividend Declaration
On May 5, 2016, the board of directors declared a dividend on the Series A Preference Shares of $0.546875 per share, or $2.5 million in the aggregate, payable on July 1, 2016 to holders of record as of June 30, 2016. GasLog paid the declared dividend to the transfer agent on June 28, 2016.

On August 3, 2016, the board of directors declared a quarterly cash dividend of $0.14 per common share payable on August 25, 2016 to shareholders of record as of August 15, 2016.

Bond Issuance
On June 27, 2016, GasLog completed the issuance of NOK 750 million (equivalent to $90.2 million) of new senior unsecured bonds in the Norwegian bond market. The bonds will mature in May 2021 and have a coupon of 6.9% over 3 month NIBOR. The proceeds from the issuance were used to partly refinance GasLog’s existing bonds maturing in June 2018. Simultaneously with the aforementioned bond issuance, GasLog re-purchased and cancelled GasLog’s NOK 588 million of bonds from a total NOK 1 billion of bonds issued in June 27, 2013 and May 2, 2014 at a price of 103% of par value.

In addition, GasLog entered into three cross currency swaps (“CCSs”) to exchange interest payments and principal on maturity on the same terms as the NOK 750 million bonds, terminated three of its existing CCSs and decreased the notional amount of its remaining three CCSs to mirror the remaining NOK 412 million of bonds maturing in June 2018.

Delivery of the GasLog Glasgow
On June 30, 2016, GasLog took delivery of the GasLog Glasgow, an LNG carrier of 174,000 cubic meters capacity with tri-fuel diesel electric propulsion constructed by Samsung Heavy Industries Co. Ltd. (“Samsung”). The vessel is chartered out to Methane Services Limited (“MSL”), a subsidiary of BG Group, now owned by Shell, from its delivery until 2026, with an option for the charterer to extend the terms of the charter at specified rates.

Charter Party Agreement with Total
On July 11, 2016, GasLog entered a time charter party agreement with Total to charter Hull No. 2801 for a period of seven years, commencing in mid-2018 at a date to be finalized ahead of the commencement of the charter. A further option period of three years has been granted at the charterer's option. The vessel is currently under construction at Hyundai Heavy Industries Co., Ltd. (“Hyundai”) in South Korea and is due to be delivered in 2018.

Debt Refinancing
On July 19, 2016, GasLog entered into a credit agreement to refinance the existing indebtedness on eight of its on-the-water vessels of up to $1.05 billion (the “Legacy Facility Re-financing”) with a number of international banks. It is comprised of a five-year facility of up to $950.0 million and a revolving credit facility of up to $100.0 million. The vessels covered by the Legacy Facility Re-financing are the GasLog Savannah, the GasLog Singapore, the GasLog Skagen, the GasLog Seattle, the Solaris, the GasLog Saratoga, the GasLog Salem and the GasLog Chelsea. Citibank N.A, Credit Suisse AG and Nordea Bank AB were mandated lead arrangers to the transaction.

Swap Termination
On July 18, 2016, the Group terminated interest rate swap agreements with an aggregate notional value of $874.9 million, associated with the six legacy facilities being re-financed by the Legacy Facility Re-financing. Concomitantly, GasLog entered into new interest rate swap agreements with a notional value of $870.0 million in aggregate, maturing between 2020 and 2022.

Retirement of Chief Operating Officer
In June 2016, Graham Westgarth, GasLog’s Chief Operating Officer (“COO”) informed the board of directors of his intention to retire as of May 2017. We anticipate that Mr. Westgarth will be nominated, following his retirement, to serve on the GasLog Board as part of the 2017 Annual General Meeting. By the time of his retirement Mr. Westgarth will have been at GasLog for over four years in his role as COO and has been instrumental in supporting the growth of the business over that time, with a prime focus on the continuation of GasLog’s exceptional safety record and safe effective delivery of its newbuilds. Mr. Westgarth has worked in the global shipping industry in various roles for over forty years, and for five of those years also served as Chairman of INTERTANKO. A search for Mr. Westgarth’s successor is well underway and the retirement date of May 2017 ensures a prudent handover period.

GasLog Partners Equity Offering
On August 1, 2016, GasLog Partners announced that it has priced its public offering of 2,750,000 common units at a price to the public of $19.50 per common unit. The Partnership plans to use the net proceeds from the public offering for general partnership purposes, which may include future acquisitions, debt repayment, capital expenditures and additions to working capital. We estimate that the gross proceeds from this offering will be $53.6 million (excluding $1.1 million from the sale of the general partner units to GasLog to maintain its 2.0% interest in the Partnership).

Full report at: www.gaslogltd.com

GasLog Ltd. press release