Mariners Rescued from Disabled Barge Off Rhode Island
Three mariners were rescued from a disabled barge off the coast of Point Judith, Rhode Island on Wednesday after their tug sank. The U.S. Coast Guard reports that watchstanders at...
GasLog (NYSE: GLOG) announced further expansion of their shipping fleet today in the form of an additional LNG carrier from Singapore-based STX Pan Ocean. The agreement to acquire the STX Frontier, a 2010-built, 153,600 cubic meter LNG carrier will reportedly close in Q4 2013 for approximately $160 million. The vessel does not bring a charter with it, but will be strategically positioned in Spain upon delivery “to take advantage of the current tight supply of tonnage for this winter in the Atlantic,” according to GasLog
Paul Wogan, CEO of GasLog commented on the deal noting, “We believe this modern asset will provide great value for our shareholders based on the attractive purchase price and our expectations for the charter market going forward.
Including this latest purchase with the four ships we ordered earlier this year we have been able to grow our owned fleet by 50%. We have accomplished this by adding the previously announced medium to long term chartered newbuildings at attractive rates and now with the opportunistic acquisition of a secondhand ship.
With this acquisition we are further building a strategic mix of potentially more opportunistic vessels that complement our existing portfolio of medium- to long term fixed vessels. We think this mixed portfolio is the best way to maximize risk adjusted returns to our shareholders in what we believe will be a very positive long-term LNG transportation market.”
Simon Crowe, Chief Financial Officer, notes that the acquisition will be accomplished ‘without the need to issue additional GasLog common shares. The strength of the underlying business, with over $2.2 billion of contracted revenue, combined with our operational platform mean that we are well placed to take advantage of further opportunities and to optimize our charter portfolio in what we currently see as a tight short term market.”
GasLog’s fleet consists of 15 wholly-owned LNG carriers, including two ships delivered in 2010, four ships delivered in 2013 and eight LNG carriers on order. In addition, GasLog currently has 12 LNG carriers operating under its technical management for third parties.
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