News Article | May 15, 2017
The group is a proud training partner to Emirates NBD, Al Masraf, Commercial Bank of Dubai, ADNOC, Qatar Petroleum, Sharjah Investment Authority, Abu Dhabi Hospital, Al Shirawi Group, KACST and AW Rostamani to name a few. -- Westford Exeed, the executive education and corporate training brand of Westford Education Group, announced the transformation of its brand as Exeed School of Business and Finance. Promoted by Westford Education Group, an international group with a presence in the UK, UAE, Qatar, Lebanon, Qatar, Saudi Arabia, India, South Africa and Oman, Westford Exeed started operations in the year 2014 by entering an MOU with UCSI Blue Ocean Strategy Consulting Group and Cambridge International Qualifications.Westford Exeed, which holds the reputation of being the official representative of Pearson, Blue Ocean Strategy, Cambridge International Qualifications, Institute of Management Accountants and USB Executive Education is a proud training partner of Emirates NBD, Al Masraf, Commercial Bank of Dubai, ADNOC, Qatar Petroleum, Sharjah Investment Authority, Abu Dhabi Hospital, Al Shirawi Group, King Abdul Aziz Centre for Science and Technology, Colliers and AW Rostamani to name few.Post-transformation, ESBF entered into strategic alliance with Project Management Institute, Chartered Management Institute, Axelos, Six Sigma Study and Scrum Study, besides continuing its existing alliances, to expand its program offerings in the domain of Management, Finance and Banking.Post inception, Samras Mayimi, the Executive Director of Exeed School of Business and Finance, conveyed that ESBF will carry on the legacy of Exeed but with much larger impact. He also told that during the course of time, ESBF will enter into strategic alliances with premium universities of USA and Canada to offer Executive Education programs in the region.Samras Mayimi, who also leads the corporate training and executive education vision of Westford Education Group, announced the new official logo, recruiting of business experts from the industry and increasing the trainer pool. He also said that ESBF is working on few more projects which are aligned as per the global talent and knowledge needs of new age and disruptive companies.In the end, he urged organizations to modernize their workplaces and training methods and presented the case studies of some of the successful organizations of recent times. He also shared the board's vision of Westford Education Group and their future endeavors.Please stay tuned to http://www.westfordtraining.com for more updates
News Article | May 17, 2017
NEW YORK--(BUSINESS WIRE)--International Seaways, Inc. (NYSE:INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, today announced that its joint venture with Euronav NV has signed two contracts for five years with North Oil Company (NOC), the future operator of the Al Shaheen oil field, off the coast of Qatar, whose shareholders are Qatar Petroleum Oil & Gas Limited and Total E&P Golfe Limited. These contracts are for the FSO Africa and FSO Asia and commence upon expiry of their current contracts with Maersk Oil Qatar in the third quarter of 2017. The FSO Africa and FSO Asia floating storage platforms are both high specification, specially built units serving the Al Shaheen oil field since 2010. In addition, the joint venture will be debt free from July 2017. The new contracts are expected, over their five year terms, to generate in excess of $360 million of EBITDA (earnings before interest, taxes, depreciation and amortization) for the joint venture. Based on International Seaways’ ownership in the joint venture, the five year contracts are expected to generate in excess of $180 million of EBITDA for the Company. “ We look forward to our FSO joint venture continuing its presence at Al Shaheen and are pleased to have finalized the new five year contracts,” said Lois K. Zabrocky, International Seaways’ president and CEO. “ Complementing our balanced fleet deployment strategy, this FSO joint venture combined with the Company’s LNG joint venture position International Seaways to optimize revenue through the current tanker cycle. With a high quality, diverse tanker fleet and upside to the spot market, the Company also remains poised to capitalize on a market recovery in both the product and crude sectors.” International Seaways, Inc. (NYSE:INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 55 vessels, including one ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and 20 MR tankers. Through joint ventures, it has ownership interests in four liquefied natural gas carriers and two floating storage and offloading service vessels. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at www.intlseas.com. This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the Company’s plans to issue dividends, its prospects, including statements regarding trends in the tanker markets, possibilities of strategic alliances and investments, and projections of the amount of EBITDA to be generated in the future. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for the Company and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.
News Article | May 17, 2017
Antwerp-based tanker owner and operator Euronav has, through a joint venture with International Seaways, signed a contract for five years for the FSO Africa and FSO Asia in direct continuation of the current contractual service. The contract was signed with North Oil Company (NOC), the future operator of the Al-Shaheen oil field, whose shareholders are Qatar Petroleum Oil & Gas Limited and Total E&P Golfe Limited. Euronav said that the new contracts for these custom-made 3 million barrels capacity units which have been significantly converted and that have been serving the Al-Shaheen field without interruption since 2010 will have a duration of five years starting at the expiry of the existing contracts with Maersk Oil Qatar. The existing contracts will remain in force until expiry in the third quarter of 2017. The new contracts are expected over their full duration to generate EBITDA in excess of USD 360 million for the joint ventures. Based on Euronav’s 50% ownership in the joint ventures the five year contracts are expected to generate in excess of USD 180 million of EBITDA for the company. The FSO Africa and FSO Asia floating storage platforms are both high specification and long duration assets with a potential trading life to 2032. In addition, the joint venture with International Seaways will be debt free from July 2017 “providing further optionality to create value,” Euronav said.
News Article | May 1, 2017
"HOUSTON — The Trump administration is moving to make the United States the world’s leading exporter of natural gas as a central component of both energy and trade policy. But whether global markets, currently awash with gas, will play along remains a long shot over the next several years. Any breakdown of talks to remodel the North American Free Trade Agreement, which set the regulatory framework that allowed gas exports to Mexico to triple over the last six years, could also get in the way. The administration’s ambitions were explained emphatically last month by Gary D. Cohn, director of the National Economic Council, and they were followed up by the Energy Department’s authorization last Tuesday for a Texas export terminal that Exxon Mobil and Qatar Petroleum have pursued for years. Other administration plans include opening the way for more gas exports from Oregon to serve Asia." Clifford Krauss reports for the New York Times May 1, 2017.
News Article | May 4, 2017
The Trump administration approved its first liquefied-natural-gas terminal on April 25. U.S. Secretary of Energy Rick Perry touted the Golden Pass LNG terminal, sited along the Gulf Coast, as an example of Trump “making the United States an energy-dominant force.” The facility, located near Sabine Pass, Texas, already imports LNG. The Dept. of Energy’s approval would allow the facility to export up to 2.21 billion cu ft per day to countries without free-trade agreements with the U.S. The owners of the terminal—Qatar Petroleum, ExxonMobil and ConocoPhillips—have not yet decided on whether to move forward with the facility. They say construction of the facility would provide 45,000 direct and indirect jobs. Currently, there are seven LNG terminals under construction and another four that have been approved.
News Article | May 5, 2017
Monaco, May 5, 2017, GasLog Ltd. and its subsidiaries ("GasLog" or "Group" or "Company") (NYSE: GLOG), an international owner, operator and manager of liquefied natural gas ("LNG") carriers, today reported its financial results for the quarter ended March 31, 2017. (1) Earnings/Loss per share ("EPS") and Adjusted EPS are net of the profit attributable to the non-controlling interest of $14.6 million and the dividend on preferred stock of $2.5 million for the quarter ended March 31, 2017 ($10.6 million and $2.5 million, respectively, for the quarter ended March 31, 2016). (2) EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog's financial results presented in accordance with International Financial Reporting Standards ("IFRS"). For definition and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release. Paul Wogan, Chief Executive Officer, stated: "GasLog had another active quarter, achieving record revenues and EBITDA for the Company. During the period, GasLog Partners raised $78.0 million in new equity and we subsequently announced the sale of the GasLog Greece to GasLog Partners for $219.0 million. This second dropdown transaction in six months demonstrates GasLog Partner's ability to recycle capital through the business to support GasLog's ambitious LNG carrier and FSRU growth plans. As we execute further dropdowns from our extensive pipeline of contracted vessels, GasLog will increase its share of the cash flows distributed by GasLog Partners, further enhancing the ability of GasLog to fund its growth. We were pleased to execute a $250.0 million U.S. bond offering during the quarter which provides GasLog with access to a new and liquid pool of capital. The transaction also enables the Company to push out most of its 2018 debt maturities to 2022, creating additional liquidity for growth. In the short-term shipping market, spot rates fell from the highs seen during the Northern Hemisphere winter. We believe this rate sensitivity to seasonal changes in demand demonstrates that the market is tightening. We expect the current marginal vessel oversupply to be absorbed in the coming months as new liquefaction projects come online, leading to a recovery in rates in 2018." Completion of GasLog Partners' Equity Offering and Dropdown of the GasLog Greece On January 27, 2017, GasLog Partners completed an equity offering of 3,750,000 common units at a public offering price of $20.50 per unit. In addition, the option to purchase additional shares was partially exercised by the underwriter on February 24, 2017, resulting in 120,000 additional units being sold at the same price. The aggregate net proceeds from this offering, including the partial exercise by the underwriters of the option to purchase additional shares, after deducting underwriting discounts and other offering expenses, were $78.0 million. Proceeds from the public offering will be used to finance the acquisition from GasLog of 100% of the ownership interest in GAS-eleven Ltd., the entity that owns the GasLog Greece, for an aggregate purchase price of $219.0 million, which includes $1.0 million for positive net working capital balances transferred with the vessel. The acquisition closed on May 3, 2017. In February 2017, GasLog entered into three new interest rate swap agreements with a notional value of $300.0 million in aggregate, maturing in 2022. On March 22, 2017, GasLog announced the closing of a public offering of $250.0 million aggregate principal amount of 8.875% Senior Notes due in 2022 at a public offering price of 100% of the principal amount. The net proceeds from the offering after deducting the underwriting discount and offering expenses were $245.3 million. On April 5, 2017, GasLog used $150.0 million of the proceeds from the offering of the 8.875% Senior Notes to partially prepay the junior tranche of the Five Vessel Refinancing, originally due in April 2018. On February 9, 2017, GasLog closed the acquisition of a twenty percent (20%) shareholding in Gastrade, a private limited company licensed to develop an independent natural gas system offshore Alexandroupolis in Northern Greece utilizing a FSRU along with other fixed infrastructure. GasLog, as well as being a shareholder, will provide operations and maintenance ("O&M") services for the FSRU through an O&M agreement. Gastrade is currently in discussions with a number of additional potential investors, including DEPA, the Greek state owned gas company, Bulgarian Energy Holding, the holding company of the Bulgarian Ministry of Energy, and major gas suppliers in Bulgaria, and targets to take a final investment decision ("FID") by the end of 2017 with the FSRU scheduled to be operational by the end of 2019. On April 28, 2017, the Group signed an amendment to the GasLog Skagen seasonal time charter agreement, pursuant to which the seasonal charter of the vessel was replaced by a continuous time charter for a duration of 2.4 years ending in August 2019. The amended continuous charter will cover the same number of fixed days as the previous seasonal charter and will eliminate redelivery risk at the beginning and end of each seasonal period. In addition, the amended charter will provide assurance of revenue through August 2019. The subordination period on the existing 9,822,358 subordinated units of GasLog Partners held by GasLog will extend until the second business day following the GasLog Partners' cash distribution for the first quarter of 2017 on May 12, 2017. Upon expiration of the subordination period, each outstanding subordinated unit (100% held by GasLog) will automatically convert into one common unit and will then participate pro rata with the other common units in distributions of available cash. On March 9, 2017, the board of directors declared a dividend on the Series A Preference Shares of $0.546875 per share, or $2.5 million in the aggregate, payable on April 3, 2017 to holders of record as of March 31, 2017. GasLog paid the declared dividend to the transfer agent on March 31, 2017. On May 4, 2017, the board of directors declared a quarterly cash dividend of $0.14 per common share, or $11.3 million in the aggregate, payable on May 25, 2017 to shareholders of record as of May 15, 2017. (1) Adjusted Profit, EBITDA, Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog's financial results presented in accordance with IFRS. For definitions and reconciliations of these measurements to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release. There were 2,070 operating days for the quarter ended March 31, 2017, as compared to 1,643 operating days for the quarter ended March 31, 2016. The increase in operating days resulted mainly from the deliveries of the GasLog Greece, the GasLog Glasgow, the GasLog Geneva and the GasLog Gibraltar on March 29, 2016, June 30, 2016, September 30, 2016 and October 31, 2016, respectively. Profit was $23.4 million for the quarter ended March 31, 2017 ($5.3 million loss for the quarter ended March 31, 2016). This increase in profit is mainly attributable to the increased profit from operations mainly due to the higher number of operating days, as well as a positive movement in mark-to-market valuations of our derivative financial instruments in the first quarter of 2017. Adjusted Profit(1) was $21.9 million for the quarter ended March 31, 2017 ($6.2 million for the quarter ended March 31, 2016) adjusted for the effects of the non-cash gain on swaps and the net foreign exchange losses. Profit attributable to the owners of GasLog was $8.8 million for the quarter ended March 31, 2017 (loss of $15.9 million for the quarter ended March 31, 2016). The increase in profit attributable to the owners of GasLog resulted mainly from the respective movements in profit mentioned above, partially offset by the increased amount allocated to third parties as a result of the GasLog Partners' equity offerings in August 2016 and January 2017. EBITDA(1) was $89.1 million for the quarter ended March 31, 2017 ($62.3 million for the quarter ended March 31, 2016). Adjusted EBITDA(1) was $89.3 million for the quarter ended March 31, 2017 ($62.2 million for the quarter ended March 31, 2016). EPS was $0.08 for the quarter ended March 31, 2017 (a loss of $0.23 for the quarter ended March 31, 2016). The increase in earnings per share is mainly attributable to the respective movements in profit attributable to the owners of GasLog discussed above. Adjusted EPS(1) was $0.06 for the quarter ended March 31, 2017 (a loss of $0.09 for the quarter ended March 31, 2016). Revenues were $128.3 million for the quarter ended March 31, 2017 ($104.4 million for the quarter ended March 31, 2016). The increase was mainly driven by the new deliveries in our fleet (the GasLog Glasgow, the GasLog Geneva and the GasLog Gibraltar) and the full operation of the GasLog Greece, increased revenues from vessels operating in the spot market and fewer off-hire days due to dry-docking (no dry-dockings in the first quarter of 2017 as opposed to one dry-docking in the same quarter in 2016). Vessel operating and supervision costs were $27.5 million for the quarter ended March 31, 2017 ($28.5 million for the quarter ended March 31, 2016). The decrease was mainly driven by the decrease in scheduled technical maintenance expenses. Voyage expenses and commissions were $2.0 million for the quarter ended March 31, 2017 ($5.3 million for the quarter ended March 31, 2016). Depreciation was $33.7 million for the quarter ended March 31, 2017 ($28.2 million for the quarter ended March 31, 2016). General and administrative expenses were $10.1 million for the quarter ended March 31, 2017 ($8.7 million for the quarter ended March 31, 2016). The increase is mainly attributable to an increase in employee costs, in foreign exchange differences and in non-cash share-based compensation expenses. Financial costs were $32.5 million for the quarter ended March 31, 2017 ($29.2 million for the quarter ended March 31, 2016). An analysis of financial costs is set forth below. Gain on swaps was $0.2 million for the quarter ended March 31, 2017 ($10.4 million loss for the quarter ended March 31, 2016). An analysis of gain/loss on swaps is set forth below. The increase in gain on swaps in the first quarter of 2017 as compared to the first quarter of 2016 is mainly attributable to an increase of $10.5 million in gain from mark-to-market valuation of our derivative financial instruments carried at fair value through profit or loss. The $2.3 million gain from mark-to-market valuation of our derivative financial instruments in the first quarter of 2017 derived from the fact that the London Interbank Offered Rate ("LIBOR") yield curve, which was used to estimate the present value of the estimated future cash flows, was higher than the contracted fixed interest rates resulting in a decrease in derivative liabilities from derivative financial instruments held for trading as compared to December 31, 2016. GasLog's contracted charter revenues are estimated to increase from $444.5 million for the fiscal year 2016 to $486.5 million for the fiscal year 2019, based on contracts in effect as of March 31, 2017, without giving effect to the recently signed amendment of the GasLog Skagen seasonal charter party agreement and excluding any extension options. As of March 31, 2017, the total future firm contracted revenue stood at $3.5 billion(1), including the vessels owned by GasLog Partners but excluding the vessels operating in the spot market. (1) Contracted revenue calculations assume: (a) 365 revenue days per annum, with 30 off-hire days when the ship undergoes scheduled dry-docking; (b) all LNG carriers on order are delivered on schedule; and (c) no exercise of any option to extend the terms of charters. As of March 31, 2017, GasLog had $532.8 million of cash and cash equivalents, of which $266.3 million was held in time deposits and the remaining balance in current accounts. Moreover, as of March 31, 2017, GasLog had $10.0 million held in time deposits with an initial duration of more than three months but less than a year that have been classified as short-term investments. As of March 31, 2017, GasLog had an aggregate of $2.9 billion of indebtedness outstanding under its credit facilities and bond agreements, of which $297.9 million was repayable within one year, and a $218.7 million finance lease liability related to the sale and leaseback of the Methane Julia Louise, of which $6.0 million was repayable within one year. As of March 31, 2017, $150.0 million under the junior tranche of the Five Vessel Refinancing that subsidiaries of GasLog and GasLog Partners entered into on February 18, 2016 was reclassified under "Borrowings - current portion" following a notice of prepayment issued by the respective subsidiaries on March 24, 2017 and was prepaid on April 5, 2017, using part of the proceeds from the offering of the 8.875% Senior Notes. As of March 31, 2017, there was undrawn available capacity of $58.4 million under the revolving credit facility of the credit agreement of up to $1.1 billion entered into on July 19, 2016 (the "Legacy Facility Refinancing"). As of March 31, 2017, GasLog's commitments for capital expenditures are related to the five LNG carriers on order, which have a gross aggregate contract price of approximately $1.0 billion. As of March 31, 2017, the total remaining balance of the contract prices of the aforementioned newbuildings was $936.6 million that GasLog expects to be funded with the $664.0 million undrawn capacity under the financing agreement entered into on October 16, 2015, as well as cash balances, cash from operations and borrowings under new debt agreements. As of March 31, 2017, GasLog's current assets totalled $565.7 million while current liabilities totalled $407.4 million, resulting in a positive working capital position of $158.3 million. GasLog has hedged 49.2% of its expected floating interest rate exposure on its outstanding debt (excluding the finance lease liability and the 8.875% Senior Notes) as of March 31, 2017. GasLog has three newbuildings on order at Samsung Heavy Industries Co. Ltd. ("Samsung") and two newbuildings on order at Hyundai Heavy Industries Co., Ltd. ("Hyundai"). Our vessels presently under construction are on schedule and within budget. The expected delivery dates are as follows: Our subsidiaries that own two of the vessels expected to be delivered in 2018 and one vessel expected to be delivered in 2019 have entered into 9.5 year time charters with Methane Services Limited ("MSL"). Our subsidiary that owns the remaining vessel expected to be delivered in 2018 entered into a seven-year time charter with Total Gas & Power Chartering Limited ("Total") in July 2016. Finally, our subsidiary that owns the last vessel expected to be delivered in 2019 entered into a seven-year time charter with Pioneer Shipping Limited, a wholly owned subsidiary of Centrica plc. ("Centrica") in October 2016. During the quarter, there has been continued momentum in the start-up of new LNG liquefaction capacity with the third trains at both Gorgon and Sabine Pass commencing production. In addition, the world's first floating liquefaction terminal, the Petronas-owned PFLNG Satu, loaded its first cargo in Malaysia. Later this year, Wheatstone, Cove Point and Sabine Pass Train 4 are all expected to start production. Wood Mackenzie estimates that there will be projects with approximately 34 million tons per annum ("mtpa") of nameplate capacity coming online in 2017. Some off-takers of these projects are yet to secure all of their shipping requirements. In addition to newbuild LNG carriers, we expect a number of vessels for these projects to be sourced from vessels currently operating in the short-term market, which should be positive for the overall shipping supply and demand balance. In the 2017-2020 period, Wood Mackenzie expects approximately 120 mtpa of new nameplate capacity to come online around the world. We believe that this new supply will create significant demand for LNG carriers over and above those available in the market and on order today. Looking at the longer term, there have been a number of encouraging developments recently: ExxonMobil purchased a 25% interest in Area 4 in Mozambique; ENI's Coral FLNG has reached the final stages of a multi stage FID process; Total made a $207.0 million investment in Tellurian to develop the Driftwood LNG project; and Qatar Petroleum announced the lifting of the moratorium on incremental production from its North Field. 2016 saw significant increases in LNG demand from a number of new markets such as Pakistan, Poland, Lithuania and Jordan as well as major energy growth markets such as China and India. This trend has continued into the first quarter of 2017 with further strong increases in demand from China (+23% year-on-year to end March 2017) as well as in large conventional markets such as Japan (+13% year-on-year) and South Korea (+18% year-on-year) following the cold winter and slow progress with nuclear re-starts. A number of markets that do not currently import gas are exploring LNG as an alternative to oil and coal or to replace declining domestic supply. Many countries with growing power demand, such as Ivory Coast, South Africa, Bangladesh and Myanmar, are looking at FSRUs as a quick-to-market, cost-effective solution to import LNG. Other countries with FSRUs already in place are looking at expanding their use of FSRUs due to the successful commissioning and effective operations of the existing units. FSRUs continue to dominate new import markets as a quicker to build, more flexible and low cost alternative to an onshore facility. Many of the current and future LNG sellers are focusing their attention on FSRUs as a key enabler in creating new markets for their LNG. In the shipping market, short-term charter rates declined in February and March largely due to seasonally lower LNG demand following the Northern Hemisphere winter. A high number of "re-lets" during the quarter also weighed on the market. We expect this trend to reverse as we enter the summer cooling season in the Middle East, Europe and Asia and the Southern Hemisphere winter. While the recovery in charter rates and utilization in the LNG shipping market is taking longer than we had anticipated, we are seeing some initial signs of increased short-term and long-term activity, and we continue to believe that the longer term fundamentals point to a strengthening market in 2017 and beyond. GasLog will host a conference call to discuss its results for the first quarter of 2017 at 8:30 a.m. EDT (1:30 p.m. BST) on Friday, May 5, 2017. Paul Wogan, Chief Executive Officer, and Alastair Maxwell, Chief Financial Officer, will review the Company's operational and financial performance for the period. Management's presentation will be followed by a Q&A session. The dial-in numbers for the conference call are as follows: Conference ID: 4429094 A live webcast of the conference call will also be available on the investor relations page of the Company's website at http://www.gaslogltd.com/investor-relations. For those unable to participate in the conference call, a replay will also be available from 2:00 p.m. EDT (7:00 p.m. BST) on Friday, May 5, 2017 until 11:59 p.m. EDT (4:59 a.m. BST) on Friday, May 12, 2017. The replay dial-in numbers are as follows: The replay will also be available via a webcast in the investor relations page of the Company's website at http://www.gaslogltd.com/investor-relations. GasLog is an international owner, operator and manager of LNG carriers providing support to international energy companies as part of their LNG logistics chain. GasLog's consolidated fleet consists of 27 LNG carriers (22 ships on the water and five on order). GasLog also has an additional LNG carrier which was sold to a subsidiary of Mitsui & Co. Ltd. and leased back under a long-term bareboat charter. GasLog's consolidated fleet includes ten LNG carriers in operation owned by GasLog Partners. GasLog's principal executive offices are at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. Visit GasLog's website at http://www.gaslogltd.com All statements in this press release that are not statements of historical fact are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, particularly in relation to our operations, cash flows, financial position, liquidity and cash available for dividends or distributions, plans, strategies, business prospects and changes and trends in our business and the markets in which we operate. We caution that these forward-looking statements represent our estimates and assumptions only as of the date of this press release, about factors that are beyond our ability to control or predict, and are not intended to give any assurance as to future results. Any of these factors or a combination of these factors could materially affect future results of operations and the ultimate accuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements. Factors that might cause future results and outcomes to differ include, but are not limited to the following: We undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events, a change in our views or expectations or otherwise, except as required by applicable law. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. The declaration and payment of dividends are at all times subject to the discretion of our board of directors and will depend on, amongst other things, risks and uncertainties described above, restrictions in our credit facilities, the provisions of Bermuda law and such other factors as our board of directors may deem relevant. Unaudited condensed consolidated statements of financial position As of December 31, 2016 and March 31, 2017 (Amounts expressed in thousands of U.S. Dollars) Unaudited condensed consolidated statements of profit or loss For the three months ended March 31, 2016 and 2017 (Amounts expressed in thousands of U.S. Dollars, except per share data) Unaudited condensed consolidated statements of cash flows For the three months ended March 31, 2016 and 2017 (Amounts expressed in thousands of U.S. Dollars) EBITDA is defined as earnings before depreciation, amortization, interest income and expense, gain/loss on swaps and taxes. Adjusted EBITDA is defined as EBITDA before foreign exchange gains/losses. Adjusted Profit represents earnings before write-off and accelerated amortization of unamortized loan fees, foreign exchange gains/losses and non-cash gain/loss on swaps that includes (if any) (a) unrealized gain/loss on derivative financial instruments held for trading and (b) recycled loss of cash flow hedges reclassified to profit or loss. Adjusted EPS represents earnings attributable to owners of the Group before non-cash gain/loss on swaps as defined above, foreign exchange gains/losses and write-off and accelerated amortization of unamortized loan fees, divided by the weighted average number of shares outstanding. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP financial measures that are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. We believe that including EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our ongoing financial and operational strength in assessing whether to continue to hold our common shares. This is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, financial costs, gain/loss on swaps, taxes, depreciation and amortization; in the case of Adjusted EBITDA, foreign exchange gains/losses; and in the case of Adjusted Profit and Adjusted EPS, non-cash gain/loss on swaps, foreign exchange gains/losses and write-off and accelerated amortization of unamortized loan fees, which items are affected by various and possibly changing financing methods, financial market conditions, capital structure and historical cost basis and which items may significantly affect results of operations between periods. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS have limitations as analytical tools and should not be considered as alternatives to, or as substitutes for, or superior to, profit, profit from operations, earnings per share or any other measure of financial performance presented in accordance with IFRS. Some of these limitations include the fact that they do not reflect (i) our cash expenditures or future requirements for capital expenditures or contractual commitments, (ii) changes in, or cash requirements for, our working capital needs and (iii) the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows and other companies in our industry may calculate these measures differently than we do, limiting their usefulness as a comparative measure. In evaluating Adjusted EBITDA, Adjusted Profit and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA, Adjusted Profit and Adjusted EPS should not be construed as an inference that our future results will be unaffected by the excluded items. Therefore, the non-GAAP financial measures as presented below may not be comparable to similarly titled measures of other companies in the shipping or other industries. Reconciliation of EBITDA and Adjusted EBITDA to Loss/Profit: (Amounts expressed in thousands of U.S. Dollars) Reconciliation of Adjusted Profit to Loss/Profit: (Amounts expressed in thousands of U.S. Dollars) Reconciliation of Adjusted (Loss)/Earnings Per Share to (Loss)/Earnings Per Share: (Amounts expressed in thousands of U.S. Dollars, except shares and per share data)
News Article | May 1, 2017
Washington Post: EPA Website Removes Climate Science Site From Public View After Two Decades The Environmental Protection Agency announced Friday evening that its website would be “undergoing changes” to better represent the new direction the agency is taking, triggering the removal of several agency websites containing detailed climate data and scientific information. One of the websites that appeared to be gone had been cited to challenge statements made by the EPA’s new administrator, Scott Pruitt. Another provided detailed information on the previous administration’s Clean Power Plan, including fact sheets about greenhouse gas emissions on the state and local levels and how different demographic groups were affected by such emissions. The changes came less than 24 hours before thousands of protesters were set to march in Washington and around the country in support of political action to push back against the Trump administration’s rollbacks of former president Barack Obama’s climate policies. Some of the world's biggest pension funds, seeking long-term returns on green investments, are scouting for deals in India's solar power sector, where Prime Minister Narendra Modi is targeting $100 billion in investment in the next five years. Power demand in Asia's third-largest economy is set to surge as the economy grows and more people move into the cities. India estimates peak electricity demand will more than quadruple in the next two decades to 690 gigawatt (GW), which would require rapid growth in generation and transmission capacity. That potential, helped by cheaper solar material costs and government efforts to curb pollution, is drawing global investors, including Canada's top pension fund managers - Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement du Québec (CDPQ), and Ontario Teacher's Pension Plan (OTPP). The Trump administration is moving to make the United States the world’s leading exporter of natural gas as a central component of both energy and trade policy. But whether global markets, currently awash with gas, will play along remains a long shot over the next several years. Any breakdown of talks to remodel the North American Free Trade Agreement, which set the regulatory framework that allowed gas exports to Mexico to triple over the last six years, could also get in the way. The administration’s ambitions were explained emphatically last month by Gary D. Cohn, director of the National Economic Council, and they were followed up by the Energy Department’s authorization last Tuesday for a Texas export terminal that Exxon Mobil and Qatar Petroleum have pursued for years. Other administration plans include opening the way for more gas exports from Oregon to serve Asia. Newsday: Block Island to Start Getting Power From Wind Turbines Block Island on Monday will formally throw the switch on a first-time connection to the New England energy grid through a new cable to the mainland, and begin receiving power from the country’s first five offshore wind turbines. In an interview Friday, Block Island Power Co. chief executive Jeff Wright said the event will end nearly a century of dependency on loud, smoky diesel-fired power generators that burn about 1 million gallons a year. “We’re so looking forward to the peace and the quiet,” said Wright, alluding to the shutdown of the combustion generators. A switch connecting to the grid via a National Grid cable to the mainland is scheduled to be thrown at 5:30 a.m. “We’re confident in the switch-over.” Business Insider: Elon Musk Revealed New Details About His Tunneling Project Tesla CEO Elon Musk revealed new details about his futuristic tunnel-boring project during his TED Talk on Friday. The Boring Company, Musk's latest venture, led by SpaceX engineer Steve Davis, is working on building a network of underground tunnels in Los Angeles that would transport cars on an electric skate. The skate would propel cars through the tunnel at a maximum speed of 130 mph -- fast enough to get from Westwood to Los Angeles in five minutes, Musk said.
News Article | April 25, 2017
TORONTO, ONTARIO--(Marketwired - April 25, 2017) - Augusta Industries Inc. (the "Corporation") (TSX VENTURE:AAO) is pleased to announce that its wholly owned subsidiary, Fox-Tek Canada Inc. ("Fox-Tek"), has successfully delivered its new lab electric field mapping ("EFM") technology to a nuclear facility in the United Kingdom. The Corporation previously announced in its press release dated January 17th, 2017 that it was awarded a contract to develop a laboratory version of its EFM technology to be used in a nuclear facility. The new EFM Lab System is specifically designed for use in a research/experimental environment where a need for accurate material changes is required. Unlike Fox-Tek's standard EFM units that are fully autonomous, these new units will require a user to take readings. As such, a computer interface tool is being developed to ensure that the user is able to quickly configure the system for a particular application. Fox-Tek will continue to make its DMAT tools suite available to client's that might require more help to analyze their data. "The new EFM units represents an exciting new opportunity for the Corporation as it will open new markets and create more opportunities for the Corporation's products and technology," stated Allen Lone, President of the Corporation. "The Corporation will continue to develop and engineer solutions to meet and exceed current industry requirements for continuous and/or periodic non-intrusive wall loss monitoring." Through its wholly owned subsidiaries, Marcon International Inc. ("Marcon") and Fox-Tek, the Corporation provides a variety of services and products to a number of clients. Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co. FOX-TEK develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
News Article | February 28, 2017
* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP. Golar reports today a 4Q 2016 operating loss of $32.7 million as compared to a 3Q loss of $28.3 million. As stated in the 3Q report, the observed improvements in shipping rates and activity levels during the final weeks of 4Q will not translate into improved net revenues until 1Q 2017. Utilisation and voyage expenses during 4Q remained relatively stable at 39% and $12.6 million respectively (versus 37% and $11.7 million in 3Q). Included in voyage, charter-hire and commission expenses is $4.9 million in respect of the cost of chartering the Golar Grand from Golar Partners. Vessel operating expenses decreased a further $0.7 million to $11.4 million in 4Q following settlement of a 2014 insurance claim in respect of the Golar Viking. Administration costs on the other hand reflected a $5.1 million increase over 3Q to $14.9 million in 4Q. Increases in non-cash share option charges following the awards made in November 2016 and project costs due to increased project development activity make up the majority of the movement from 3Q. Depreciation and amortisation at $16.8 million is in line with 3Q. Relative to 3Q the above resulted in a $4.6 million increase in EBITDA* losses from a loss of $11.3 million in 3Q to a loss of $15.9 million in 4Q and a $4.4 million increase in operating losses from a loss of $28.3 million in 3Q to a loss of $32.7 million in 4Q. In 4Q the Company generated a net loss of $13.7 million. Notable contributors to this are summarised as follows: The reported financial results contained herein for the fourth quarter of 2016 are preliminary in particular in relation to two outstanding items as explained further below In October 2016, the Company's affiliate, Golar Power elected to buy out the project developer's, Genpower, 50% equity interest in the entity which holds the investment in the Sergipe project company. Accordingly, Golar Power has accounted for this step acquisition as a business combination. The initial accounting requires a valuation exercise to be performed in order to reflect all identifiable assets and liabilities acquired at fair value. This valuation exercise is in progress and is expected to be finalized by the time the Company's Form 20-F is filed. Adjustments arising from this valuation, which are expected to result in a gain, will impact the following line items in the financial statements, "investments in affiliate" and "Equity in net earnings in affiliates" in the Company's balance sheet and income statement, respectively. There will be no impact on the Company's reported net cashflows. The Company's preliminary fourth quarter results presented herein exclude all fair value adjustments arising from this transaction and the valuation exercise. In October 2016, the Company received 3.7 million common units and 0.1 million general partner units (inclusive of 0.8 million earn-out units) in exchange for enabling Golar Partners to reset its IDRs. The accounting for this transaction is complex. As a result the Company is still in the process of completing its assessment as to the appropriate accounting treatment under US GAAP for this transaction. With regard to the Company's preliminary fourth quarter results, no gain or loss has been recognized in the Company's statement of income in respect of this transaction and the Company has presented all interests exchanged in Golar Partners on a historical carrying value basis. The alternative accounting treatment would be to recognize this transaction on a fair value basis. Accordingly, the potential impact, once the final accounting has been determined may be quantitatively material to the Company's income statement and balance sheet. However, this would not impact the Company's reported net cash flows. Any adjustment to reflect the final conclusion will be made in the financial statements included when the form 20-F is filed. LNG chartering activity was light for the first half of the quarter. Into December fixing activity increased as stronger Asian demand coincided with supply outages at Gorgon T1 and Brunei. Asian LNG prices quickly responded rising steeply toward $10mmbtu. This widened the export spread for US cargoes, many of which were redirected from their more proximate markets of South America, Europe, the Middle East and India toward the Far East. The resultant increase in ton miles combined with thin tonnage availability resulted in a step-up in rates for available Atlantic based vessels. The increase in ton miles was also sufficient to negate the negative impact of supply outages in the Pacific basin where rates also responded to firming expectations. Into January, a cold snap in Europe saw European LNG prices ramp up to equalise with Eastern indices. Inter-basin arbitrage opportunities closed and spot LNG prices in both basins subsequently declined in lock-step as Gorgon production resumed and European temperatures rose. Vessel rate expectations have since eased back. Seasonal fluctuations and supply outages aside, new production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass now in ramp-up mode. Gorgon T3 and Sabine Pass T3 & 4 together with Wheatstone are all on track for start-up this year. Consensus estimates indicate that approximately 35 million tons of new LNG will reach the market in 2017, more than twice the new production delivered in 2016. It is however important to note that a material portion (approximately 24 million tons) of the new 2017 production is due to commence in the second half of the year and that this will not therefore influence the shipping balance until the end of the year. All in, approximately 125 million tonnes of new production equivalent to 47% of current LNG production is expected to deliver between now and 1Q 2021. Although the market remains long, prompt available shipping is approximately half what it was in January 2016. Increased activity in the market for short to medium term charter arrangements from the major operators has been noted. The existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 100% availability during scheduled 4Q operations. On December 23, Golar Partners received notice of Petrobras' intention to terminate the FSRU Golar Spirit charter in June 2017, 14 months ahead of schedule. Current rainfall is supporting reliable hydro power in Brazil which in turn has facilitated Petrobras' inclusion of its nearest expiring FSRU contract in its cost savings program. The Partnership will receive a termination fee approximately equivalent to 62% of EBITDA* which would have otherwise been earned between June 2017 and August 2018. Golar Spirit is now being actively marketed for new opportunities with particular focus on smaller scale developments. The FSRU Golar Tundra remains at anchor off the coast of Ghana. Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their gas sales agreement in October and have commenced some works but the major construction works of a connecting pipeline, jetty and breakwater are yet to be completed. Until this infrastructure is in place the FSRU cannot commence operations. While Golar remains in dialogue with WAGL regarding an alteration of the existing charter agreement, including a later start-up and an extension of the charter period, we are actively protecting our legal right with regard to collection of amounts due under the charter. In order to mitigate the consequences of non-payment, Golar has requested and awaits WAGLs permission to trade the ship in the short term market. Golar Partners right to put the vessel back to Golar expires in late May. In view of the current situation, if a mutually agreeable alternative arrangement cannot be found there is a risk that the vessel will be put back. This being the case, the Company will assume legal ownership of the vessel and repay approximately $107 million to the Partnership. On October 17, CELSE, a project company 50% owned by Golar Power and 50% by Ebrasil, reached a FID on its 25 year Brazilian FSRU-to-power project. CELSE subsequently entered into two agreements: 1) A lump-sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5GW combined cycle power station, and 2) A flexible Sale and Purchase Agreement with Ocean LNG Limited, an affiliate of Qatar Petroleum and ExxonMobil to provide the power station with LNG. All-in capital expenditure for the power station and supporting infrastructure is expected to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion. Additional returns can be earned if the power station is called upon to dispatch. Good development progress is now being made and the project remains on track to distribute power to its 26 committed off takers from January 2020. Site groundworks and offshore engineering together with procurement, licencing, logistic and permitting activities necessary to bring the 90+ large modules to site and import the new build FSRU Nanook are all underway. When called upon to dispatch, the FSRU Nanook will be approximately 35% utilised. Remaining capacity can be used for an expansion of the Sergipe power complex. This is actively being developed to be offered into future energy auctions. Structures for commercialising the remaining FSRU capacity via its integration into the Brazilian grid are also being independently pursued by Golar Power and CELSE. Any returns generated from this will be additional to the FSRUs 25-year $39 million annual EBITDA*, all of which accrues to Golar Power. Long-lead items for Golar Power's first FSRU conversion were ordered in January. This enables Golar Power to commit to provide an FSRU for a project start-up as early as May 2018. Several commercial leads with the potential to crystallise into time charters by mid-2017 are in the pipeline. LNG prices remain competitive on a burn parity basis even after seasonal uplifts. The scale of new production soon to arrive can be expected to place a de-facto lid on LNG prices until new markets have been opened up to absorb the uncontracted length. Inexpensive LNG can therefore be expected to remain very supportive of the FSRU business for at least the next 2-3-years. Golar Power is actively pursuing several specific integrated LNG to power opportunities globally. The FLNG Hilli conversion is proceeding to plan and remains under budget. During recent months approximately 4,500 contractors have been working on the vessel. Testing and pre-commissioning has commenced and will continue in Singapore until the vessel is scheduled for redelivery from the yard in May. Commissioning and production are scheduled to start by the end of September. Perenco are on track with their scope of works in Cameroon and SNH are firmly committed to their stake in the project. The Government is also supportive of opportunities to draw upon neighbouring stranded gas reserves to increase utilisation of the FLNG Hilli, recently renamed Hilli Episeyo. On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a joint venture to commercialise Ophir's 2.6Tcf Fortuna gas reserves, offshore Equatorial Guinea. The joint venture, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own both Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years. A signed term-sheet with a syndicate of Far Eastern banks has been received and documentation is now progressing. Good progress toward securing the requisite governmental approvals has also been made. As previously communicated, FID is expected to be taken within the first half of 2017 and the Gandria is now positioning to Keppel shipyard where refurbishment work will be initiated. Including upstream and midstream development CAPEX, the project is expected to cost $2.0 billion to develop. Of this, approximately $1.5 billion will be used to convert the FLNG Gandria and $0.5 billion will cover upstream work necessary to bring gas from ground to vessel. After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. With respect to its $332 million share, Golar can expect to receive credit for the LNG carrier Gandria and associated down payments already made to Keppel. Any credit receivable with respect to the Company's intellectual property contribution and guarantees provided will likely be reflected in a greater than 51% share of OneLNG's 66.2% stake in the joint venture accruing to Golar. The national gas company of Equatorial Guinea, Sonagas, has also expressed interest in taking a stake in the midstream FLNG Gandria. Although this would not change the ownership structure of the joint venture, it would reduce its stake in the FLNG Gandria. Investment by Sonagas would further improve stakeholder alignment and reduce the above equity contributions required from OneLNG and Ophir. OneLNG is working actively on 4-5 additional projects, each involving 1 or more FLNG unit. The structures of these opportunities range from fully integrated projects where OneLNG will also be reserve holders to projects where FLNG units are rented on a tariff basis to major gas companies. Golar's unrestricted cash position as at December 31, 2016 was $224.2 million. Subsequent to February's convertible bond issue, the cash position is approximately $543 million today. Of the outstanding $250 million March maturing convertible bond, $30 million was purchased prior to year-end. The $220 million balance will be serviced by the undrawn $150 million margin loan and proceeds raised from other financing activities. As at December 31, 2016, $678 million has been spent on the Hilli Episeyo conversion ($732 million including capitalised interest) and $250 million has been drawn against the $960 million CSSCL facility. A further $34.5 million of restricted cash associated with the Perenco Letter of Credit was released to liquidity in 4Q reducing the restricted cash tied up in this facility to $232 million as at December 31. On February 17 the Company closed a new $402.5 million senior unsecured 5-year 2.75% convertible bond. The conversion rate for the bonds will initially equal 26.5308 common shares per $1,000 principle amount of the bonds. This is equivalent to an initial conversion price of $37.69 per common share or a 35% premium on the February 13 closing share price of $27.92. The conversion price is subject to adjustment for dividends paid. To mitigate the dilution risk of conversion to common equity, the Company also entered into capped call transactions costing approximately $31.2 million. The capped call transactions cover approximately 10,678,647 common shares, have an initial strike price of $37.69 and an initial cap price of $48.86. The cap price of $48.86, which is a proxy for the revised conversion price, represents a 75% premium to the February 13 closing price. Including the $31.2 million cost of the capped call the all-in cost of the bond is approximately 4.3%. Bond proceeds net of fees and the cost of the capped call amount to $360.2 million. Proceeds from the convertible bond will be used to fund the Company's initial equity participation in the Fortuna FLNG project, to meet its commitments to Golar Power and for general corporate purposes. Concluding the new convertible bond affords Golar the flexibility to manage timing differences between investment commitments and the release of other identified sources of funding without being exposed to the risk of delays, unsupportive market conditions or working capital shortfalls. The Company anticipates that significant cash will be released during the first year following start-up of Hilli Episeyo. Major components of this include $160 million equity released from the final loan draw-down, $87 million released from the letter or credit in favour of Perenco and $170 million in expected EBITDA* from operations. As at December 31 there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $42.03 per share. There are also 3.8 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter. The Company now has access to the capital it needs to support its legacy shipping business, deliver FLNG Hilli Episeyo, meet its share of Golar Power's equity contribution to the Sergipe project and take a Final Investment Decision on the Fortuna FLNG project without further recourse to equity markets. Having recovered its 'equity currency', the Partnership successfully completed in February an underwritten public offering raising gross proceeds of approximately $119.4 million. Golar Partners now has the capital it needs to contemplate the acquisition of a share of the FLNG Hilli Episeyo. A further $107 million will be available to Golar Partners should the FSRU Tundra be put back at the end of May. This share in Hilli Episeyo could therefore be increased. Golar and the Partnership are continuing their discussions with regard to the Hilli deal structure and valuation and expect to make a decision later this year. The results of the shipping business are expected to show some improvement in Q1 2017 relative to Q4 2016. Any major improvement in shipping rates should not however be expected before 2H 2017 when a further 24 million tons of new LNG are expected to reach the market. Although the immediate priority of Golar is firmly on delivering and commissioning the FLNG Hilli Episeyo on time and on budget, the Board is pleased that the Company is now on track to become a fully integrated clean energy well to grid company in 2020. This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management's current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue," or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in LNG carriers, FSRU and floating LNG vessel market trends, including charter rates, ship values and technological advancements; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels; changes in Golar's ability to retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels' useful lives; changes in the ability of Golar to obtain additional financing; changes in Golar's relationships with major chartering parties; changes in Golar's ability to sell vessels to Golar LNG Partners LP; Golar's ability to integrate and realize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels; changes in domestic and international political conditions, particularly where Golar operates; accounting adjustments relating to Golar's ownership in Golar Power; accounting adjustments relating to the accounting treatment of general partner units Golar holds in Golar LNG Partners LP; as well as other factors discussed in Golar's most recent Form 20-F filed with the Securities and Exchange Commission. In particular, there is no guarantee that any expectations set forth in "Golar Power - Status of affiliate's valuation exercise" and "IDR Reset" will have the impact on our balance sheet or income statement described therein. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements. As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law. Questions should be directed to:
News Article | February 28, 2017
TORONTO, ONTARIO--(Marketwired - Feb. 28, 2017) - Augusta Industries Inc. (the "Corporation") (TSX VENTURE:AAO) is pleased to announce that its wholly owned subsidiary, Marcon International Inc. ("Marcon"), has been awarded contracts with various departments of the United States government for the supply of instrumentation and equipment. The aggregate value of the agreement entered into was $283,563.90 in the month of February. The current pipeline of orders, including these new contracts, is $651,813.50 as of February 28, 2017. "The Corporation is pleased that it continues to enter into new agreements with various entities of the United States government," stated Allen Lone, President of the Corporation. "The Corporation's sales strategy has resulted in increased sales and continued growth." Through its wholly owned subsidiaries, Marcon and Fox-Tek Canada Inc. ("Fox-Tek"), the Corporation provides a variety of services and products to a number of clients. Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co. Fox-Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to teupda or revise any forward-looking statements, whether as a result of new information, future events or otherwise.