GasLog (Hold, TP: USD3.30) - Refinancing risk reduced
In recent efforts, GasLog has raised USD36m in equity and refinanced nearly USD1.1bn in legacy debt. Refinance risk is reduced, but management will now turn to refinance USD315m of senior notes due Q1 2022. We have lowered our 2020e EBITDA by 4% due to the challenging freight rate environment, as the LNG market is oversupplied with gas (limiting new volumes and reducing ton-mile) and vessels (keeping utilisation low). We reiterate our HOLD and have lowered our target price to USD3.3 (4.5) based on a 40% discount to our NAV.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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