Owner and operator of LNG carriers GasLog Partners has reached an agreement to acquire the LNG carrier Methane Becki Anne from GasLog Ltd.
Namely, GasLog Partners will acquire 100% of the shares in the entity that owns and charters the 170,000 cbm tri-fuel diesel electric vessel to oil and gas major Shell.
Methane Becki Anne, built in 2010 and technically managed by GasLog since delivery, is currently on a multi-year time charter with a subsidiary of Shell through March 2024 and Shell has a unilateral option to extend the term of the time charter for a period of either three or five years.
The parties agreed a purchase price of USD 207.4 million for the unit, which includes USD 1 million for positive net working capital balances to be transferred with the vessel and is approximately equal to the vessel’s net book value.
GasLog Partners said it would finance the acquisition with cash on hand, plus the assumption of the Methane Becki Anne’s outstanding indebtedness of USD 93.9 million.
The partnership estimated that Methane Becki Anne would add around USD 22 million to EBITDA in the first 12 months after closing. The acquisition is expected to close in the fourth quarter of 2018.
“The acquisition of the Methane Becki Anne is anticipated to be immediately accretive to our Distributable cash flow per unit and increases our contracted days to 91% in 2019 and 70% in 2020,” Andrew Orekar, Chief Executive Officer, said.
GasLog Partners unveiled the deal as part of its quarterly financial report. For the three-month period ended September 30, 2018, the company delivered a profit of 27.3 million, down from USD 31 million reported a year earlier, while its revenues decreased to USD 81.9 million from USD 86.3 million for the period.
The decrease in profit is mainly attributable to decreased net revenues due to the expiry of the initial charters of the GasLog Shanghai, the GasLog Santiago and the GasLog Sydney, which ended in May, June and September 2018, respectively.