Having a long-term view has helped GasLog become a stable, pure-play shipper of liquefied natural gas.
Monaco-based GasLog (GLOG) has mostly stayed away from speculative LNG ship orders, instead favoring long-term contracts that carry set transportation rates.
As a result, while the LNG shipping market has and may experience some volatility due to excess capacity among gas carrier fleets, GasLog has been cruising along, mostly unaffected by spot day rates in the space.

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“GasLog is one of the most established and well respected LNG shipping operators,” said Fotis Giannakoulis, shipping analyst at Morgan Stanley.
The company is controlled by its chairman, shipping tycoon Peter Livanos, through his ownership of Ceres Shipping. It originally managed LNG ships for U.K.-based BG Group. In 2006, GasLog started buying and operating its own LNG carriers.
“The fact that BG entrusted them in operating technically their own vessels speaks volumes about the capabilities and the reliability of their technical operation,” said Giannakoulis. LNG ships are expensive and require high standards of safety and expertise.
“GasLog’s involvement in the shipping industry was very gradual and very carefully designed,” he said. “They didn’t do a splash into the market. They built operational expertise first, and 10 years later they started buying their first ships.”
Natural gas, generally cheaper and cleaner than oil, has increasingly been used for heating, cooking and electricity generation. U.S. production has soared in recent years, thanks to fracking and other unconventional technology. Other countries such as Qatar also are generating a glut of natgas. That’s increased demand for the highly specialized vessels to transport the fuel to overseas locations where prices are higher.
The industry experienced strong growth from 2011 to 2013, with vessels earning premium rates of $140,000 to $150,000 per day in the short-term market, says Giannakoulis. This has attracted speculative newcomers to the market.
At the top of the market, you could charter a vessel for a year at $130,000 a day, while five- to 10-year contracts cost closer to $80,000 to $90,000 per day, Giannakoulis notes. Those rates have come down to more reasonable levels.
“The premium of short-term rates vs. long-term rates that we saw in the previous three years has disappeared,” he said. “The current market looks in the near term to be oversupplied, because a number of ships are hitting the water this year and in 2015. These ships that were ordered at the peak arrive ahead of the liquefaction projects. However, as new LNG supply comes online, the market is expected to tighten again in 2016.”

Source: http://news.investors.com/business/031814-693530-gaslog-lng-fleet-contracts-fuel-rapid-earnings-growth.htm