Boston, MA 06/20/2014 (wallstreetpr) – GasLog Ltd (NYSE:GLOG), the liquefied natural gas (LNG) transporter, benefitted from the surge in demand of natural gas over oil.
Natural Gas Over Oil
Natural gas, which has been gaining popularity as the alternative for oil for purposes including electricity generation, heating, cooking and also as automotive fuel, is cheaper and cleaner. The increased demand has pushed for a need for transporters of LNG. This has provided a boost for GasLog Ltd (NYSE:GLOG) which owns, operates and leverages LNG tankers. The industry’s favorable trends have assisted it in achieving the double digit revenue that it has been reporting for four consecutive quarters. The company has surged 56% in the year.
The Monaco based LNG shipper boosted heavy trade, jumping over 7% on Monday and hence reestablishing its 10 week moving average. It reported its best gain since the start of its current base in the beginning of May, on June 16.
Ukraine Crisis
A major contributing factor to the rise was the decline in natural gas prices following the news that Russia based Gazprom shut supply to Ukraine on account of a debt issue. Gazprom said that Ukriane owes as much as $4.5 billion in debt and the Russian company demanded full payment by Monday. When Ukraine failed to clear the debt, the Russian company reduced supplies. The news raised concerns about gas supply in Europe from within the continent.
GasLog Ltd (NYSE:GLOG), which transports LNG overseas, has as many as 23 LNG ships, three of which are in the process of acquisition from BG Group plc (LON:BG). While the company already has 14 carriers on the water, it expects to bring in 9 more in 3 years to address the global fuel demand. In sync with the boosted efficiency in LNG production, the company’s yearly earnings per share is anticipated to grow 40% in 2014 and further 52% in the next year, as per Thomas Reuters’ consensus.
