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Was GasLog’s Stable Revenue in 4Q15 a Positive or Negative Sign?

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Dec. 4 2020, Updated 10:53 a.m. ET

GasLog’s revenue 

GasLog’s revenue in fiscal 4Q15 was very similar to fiscal 3Q15 revenue. In 4Q15, the company posted revenue of $107.5 million compared to $105.7 million in the previous quarter. Revenue increased by 8.5% compared to 4Q14 revenue of $99 million.

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What impacted revenue?

GLOG’s fiscal 4Q15 revenue is very much in line with fiscal 3Q15, as the company had no fleet additions or dry dockings. The 8.5% increase in revenue from the same period last year was due to an increase in the average number of vessels in the company’s fleet. The revenue was partially negatively impacted by weak spot market conditions in 2015.

Revenue comparison with peers 

Let’s compare GLOG’s revenue rise of 8.5% to its peers. Teekay LNG Partners’ (TGP) revenue rose by 4% in 4Q15 compared to 4Q14. Dynagas LNG Partners’ (DLNG) revenue rose by 1.6%. Golar LNG Partners’ (GMLP) revenue rose by 12.7%.

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Fiscal 1Q16 revenue expectations

In its fourth quarter conference call, GasLog (GLOG) said it expects one of its vessels to go into a scheduled and planned dry dock for approximately 30 days. There are fewer days in fiscal 1Q16 than 4Q15 since February is a shorter month. The company also mentioned that industry spot rates continuing to be weak will impact the company’s three vessels in the Cool Pool. All these factors will negatively impact its revenues, and 1Q16 revenues will probably be lower than 4Q15 revenues.

Short-to-medium-term revenue expectations

GLOG will add fully contracted ships at the end of each quarter in 2016. Company revenues for 2Q16 are expected to increase.

It’s important to look at the company’s backlog to gauge its future long-term revenue. In the next article, we’ll take a look at the company’s fleet and backlog.

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