New
York-listed GasLog today added two firm ships to its tally at the South Korean yard,
and pencilled in options for four more.
It
explains the deal comes after securing long-term contracts for the firm newbuildings
with its largest customer, BG Group.
GasLog
is paying between $410m and $420m for the initial two vessels, investors are told.
The
174,000-cbm ships will be delivered from Samsung in the first and second
quarters of 2016 and start 10-year charters with BG.
While
a specific rate is not revealed, GasLog says the ships will generate a combined
core operating profit of $47m to $48m over the first 12 months.
GasLog,
which has until the end of July to firm up the options, now has nine
newbuildings at Samsung. Its three trading ships were also built by the Korean
yard.
One
of its newbuildings set to join BG when it is completed this year has seen its
contract redrawn today.
GasLog
says Hull 2017 will run with the
charterer for the first three years of an intended eight on the previously agreed
terms.
For the remaining five years,
however, it will spend only seven months of each year with BG, and trade spot
for the remainder.
“This seasonal charter is
expected to generate approximately $14-16m of EBITDA
during the seven months on hire and will provide GasLog
with the opportunity to secure additional upside in a period of potentially
strong demand,” a statement said.
