GasLog Ltd. Reports Financial Results for the Quar

Monaco, February 17, 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 unaudited financial results for the quarter and the year ended December 31, 2016.

Highlights

  ⁽¹⁾  Pioneer Shipping Limited, a wholly owned subsidiary of Centrica plc ("Centrica").

⁽²⁾ Earnings/Loss per share ("EPS") and Adjusted EPS are negatively affected by the profit attributable to the non-controlling interest of $15.1 million and the dividend on preferred stock of $2.5 million for the quarter ended December 31, 2016 ($12.7 million and $2.5 million, respectively, for the quarter ended December 31, 2015).

  ⁽³⁾ 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.

CEO Statement

Paul Wogan, Chief Executive Officer, stated: "GasLog had a strong final quarter of the year and despite the market volatility in 2016, continued to execute on its strategy throughout the year.

We signed a seven-year charter with Centrica, a leading European energy company and a new customer for GasLog. We made encouraging progress on our FSRU strategy both through signing a SPA to acquire a 20% interest in Gastrade, a company that is developing a FSRU project in Northern Greece, and securing long-lead items for a FSRU vessel conversion. We took delivery of the GasLog Gibraltar on time and on budget and it immediately commenced a seven-year charter to Shell. Finally, we announced and completed the dropdown of the GasLog Seattle to GasLog Partners, demonstrating the effectiveness of our master limited partnership ("MLP") as a cost-efficient funding vehicle for GasLog.

Looking forward, we expect to drop down another vessel into GasLog Partners in the first half of 2017, providing GasLog with additional capital. This, along with all the achievements of 2016, places the Company in a strong position to take advantage of opportunities we expect to arise as the LNG shipping market supply and demand balance continues to tighten. We remain confident that 2017 will be a productive year for GasLog and its shareholders."

Charter Party Agreement with Centrica and Newbuilding Order

In October 2016, GasLog entered into a time charter party agreement with a subsidiary of Centrica for a period of seven years, commencing in 2019. In conjunction with this new charter award, GAS-twenty eight Ltd. entered into a shipbuilding contract with Samsung for the construction of one LNG carrier (180,000 cbm). The vessel is expected to be delivered in the second quarter of 2019. Delivery of the GasLog Gibraltar

On October 31, 2016, GasLog took delivery of the GasLog Gibraltar , a LNG carrier of 174,000 cbm with tri-fuel diesel electric ("TFDE") propulsion constructed by Samsung. The vessel is chartered out to Methane Services Limited ("MSL"), a subsidiary of Shell, from delivery until 2023.

Agreement for a FSRU Project with Gastrade

In December 2016, GasLog entered into a SPA to acquire 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 ("BEH"), the holding company of the Bulgarian Ministry of Energy and major gas suppliers and targets to take final investment decision ("FID") by the end of 2017 with the FSRU scheduled to be operational by the end of 2019. The acquisition closed on February 9, 2017.

Order of FSRU LLIs for LNG Carrier Conversion

Keppel, the world's leading shipyard for FSRU conversions, has begun ordering LLIs required for the FSRU conversion of a GasLog or GasLog Partners LNG carrier. The LLIs will take approximately 12 months to deliver at a total cost of around $16 million. Ordering the LLIs reduces the time necessary to convert an LNG carrier from between 18-20 months to 6-8 months once the LLIs are delivered.

Dropdown of the GasLog Seattle

On November 1, 2016, GasLog Partners acquired from GasLog 100% of the ownership interest in GAS-seven Ltd., the entity that owns the GasLog Seattle , for an aggregate purchase price of $189.0 million, including $1.0 million of positive net working capital. The acquisition was partially financed with proceeds from the public offering completed by GasLog Partners in August 2016.

GasLog Partners Equity Offering

On January 27, 2017, GasLog Partners completed an equity offering of 3,750,000 common units at a price to the public of $20.50 per common unit.  The Partnership plans to use the net proceeds from the public offering for general partnership purposes, which may include future acquisitions, debt repayment, capital expenditures and additions to working capital. We estimate that the net proceeds from this offering will be $75.5 million (excluding $1.6 million from the sale of general partner units to GasLog to maintain its 2.0% interest in the Partnership).

Chief Financial Officer Transition

In January 2017, Simon Crowe, GasLog and GasLog Partners' Chief Financial Officer ("CFO") informed the board of directors of his intention to step down from the position of CFO in March 2017. As GasLog's CFO for four years and GasLog Partners' CFO since its inception, Mr. Crowe has been instrumental in supporting the Company's growth, with a focus on the balance sheet and capital structure. His numerous successful financing activities have put GasLog and GasLog Partners in a strong financial position.

On February 1, 2017, GasLog and GasLog Partners announced that the board of directors had appointed Alastair Maxwell as CFO with an expected effective date in early March 2017.

Dividend Declaration

On November 17, 2016, 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 January 3, 2017 to holders of record as of December 30, 2016. GasLog paid the declared dividend to the transfer agent on December 30, 2016.

On February 16, 2017, the board of directors declared a quarterly cash dividend of $0.14 per common share payable on March 16, 2017 to shareholders of record as of March 6, 2017.

Financial Summary

⁽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 2,078 and 7,439 operating days for the quarter and the year ended December 31, 2016, respectively, as compared to 1,701 and 6,097 operating days for the quarter and the year ended December 31, 2015, respectively. The increase in operating days resulted mainly from the acquisitions of the Methane Becki Anne and the Methane Julia Louise on March 31, 2015 and the deliveries of the GasLog Salem , the GasLog Greece , the GasLog Glasgow , the GasLog Geneva and the GasLog Gibraltar on April 30, 2015, March 29, 2016, June 30, 2016, September 30, 2016 and October 31, 2016, respectively, combined with fewer off-hire days due to scheduled drydockings.

Profit was $46.4 million and $28.1 million for the quarter and the year ended December 31, 2016, respectively ($18.2 million and $53.7 million for the quarter and the year ended December 31, 2015, respectively). The increase in profit for the quarter is mainly attributable to the increased profit from operations mainly due to the higher number of operating days, as well as increased unrealized gain from swaps' mark to market valuations in the fourth quarter of 2016. The decrease in profit for the year is mainly attributable to the increased financial costs derived mainly from the write-off of unamortized fees associated with the six legacy facilities that were refinanced by the credit agreement entered into in July 2016 (the "Legacy Facility Refinancing") and the recycling of accumulated loss from equity to the statement of profit or loss related to the swap agreements that were terminated in July 2016, partially offset by a net increase in profit from operations resulting mainly from the increase in operating days mitigated by a lower daily hire rate affected by the vessels operating in the spot market.

Adjusted Profit ⁽¹⁾ was $18.9 million and $57.5 million for the quarter and the year ended December 31, 2016, respectively ($14.0 million and $55.9 million for the quarter and the year ended December 31, 2015, respectively), adjusted for the effects of the non-cash gain/(loss) on swaps, the write-off of unamortized loan fees, as well as the net foreign exchange losses.

Profit/(loss) attributable to the owners of GasLog was a profit of $31.3 million and a loss of $21.5 million for the quarter and the year ended December 31, 2016, respectively (profit of $5.5 million and $10.8 million for the quarter and the year ended December 31, 2015, respectively). The increase in profit attributable to the owners of GasLog for the quarter and the decrease for the year resulted mainly from the respective movements in profit mentioned above.  

EBITDA ⁽¹⁾ was $84.8 million and $301.0 million for the quarter and the year ended December 31, 2016, respectively ($68.0 million and $262.2 million for the quarter and the year ended December 31, 2015, respectively).

Adjusted EBITDA ⁽¹⁾ was $85.4 million and $302.4 million for the quarter and the year ended December 31, 2016, respectively ($69.2 million and $263.0 million for the quarter and the year ended December 31, 2015, respectively).

EPS was earnings of $0.36 and a loss of $0.39 for the quarter and the year ended December 31, 2016, respectively (earnings of $0.04 for both the quarter and the year ended December 31, 2015). The increase in earnings per share for the quarter and decrease in earnings per share for the year are mainly attributable to the respective movements in profit attributable to the owners of GasLog discussed above.

Adjusted EPS ⁽¹⁾ was earnings of $0.02 and a loss of $0.03 for the quarter and the year ended December 31, 2016, respectively (a loss of $0.02 and earnings of $0.07 for the quarter and the year ended December 31, 2015, respectively).

Revenues were $126.5 million and $466.1 million for the quarter and the year ended December 31, 2016, respectively ($107.5 million and $415.1 million for the quarter and the year ended December 31, 2015, respectively). The increase in revenues was mainly driven by the new vessel deliveries and on-the-water vessel acquisitions during the previous periods and fewer off-hire days due to scheduled drydockings.

Vessel operating and supervision costs were $29.4 million and $112.6 million for the quarter and the year ended December 31, 2016, respectively ($24.6 million and $98.6 million for the quarter and the year ended December 31, 2015, respectively).

Voyage expenses and commissions were $2.5 million and $15.2 million for the quarter and the year ended December 31, 2016, respectively ($4.1 million and $14.3 million for the quarter and the year ended December 31, 2015, respectively).

Depreciation was $33.9 million and $123.0 million for the quarter and the year ended December 31, 2016, respectively ($28.5 million and $106.6 million for the quarter and the year ended December 31, 2015, respectively).

The increases in vessel operating and supervision costs and depreciation were mainly attributable to the increase in ownership days from our increased fleet as discussed above.

General and administrative expenses were $10.3 million and $38.6 million for the quarter and the year ended December 31, 2016, respectively ($10.9 million and $41.3 million for the quarter and the year ended December 31, 2015, respectively). The year-on-year decrease is mainly attributable to a decrease in legal and professional expenses partially offset by an increase in all other expenses.

Financial costs were $30.6 million and $137.3 million for the quarter and the year ended December 31, 2016, respectively ($24.7 million and $92.0 million for the quarter and the year ended December 31, 2015, respectively). An analysis of financial costs is set forth below:

For the year ended December 31, 2016, an amount of $18.2 million of unamortized loan fees associated with the six legacy facilities that were refinanced by the Legacy Facility Refinancing is included in Amortization and write-off of deferred loan and bond issuance costs and premium.

Gain on swaps was $26.0 million for the quarter ended December 31, 2016 and loss on swaps was $13.4 million for the year ended December 31, 2016 (a gain of $3.2 million and a loss of $10.3 million for the quarter and the year ended December 31, 2015, respectively). An analysis of gain/(loss) on swaps is set forth below. The increase in gain on swaps in the fourth quarter of 2016 as compared to the fourth quarter of 2015 is mainly attributable to an increase of $22.4 million in gain from mark-to-market valuation of our interest rate swaps carried at fair value through profit or loss. The $28.2 million gain from mark-to-market valuation of our interest rate swaps in the fourth quarter of 2016 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 agreed fixed interest rates resulting in a decrease in derivative liabilities from interest rate swaps held for trading as compared to September 30, 2016.

Contracted Charter Revenues

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 December 31, 2016, without including any extension options. As of December 31, 2016, the total future firm contracted revenue stood at $3.57 billion ⁽¹⁾ , including the nine 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 drydocking; (b) all LNG carriers on order are delivered on schedule; and (c) no exercise of any option to extend the terms of charters.

Liquidity and Capital Resources

As of December 31, 2016, GasLog had $227.0 million of cash and cash equivalents, of which $58.3 million was held in time deposits and the remaining balance in current accounts. Moreover, as of December 31, 2016, GasLog had $18.0 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 December 31, 2016, GasLog had an aggregate of $2.65 billion of indebtedness outstanding under its credit facilities and bond agreements, of which $147.45 million was repayable within one year, and a $220.4 million finance lease liability related to the sale and leaseback of the Methane Julia Louise, of which $5.9 million was repayable within one year.

As of December 31, 2016, there was undrawn available capacity of $88.4 million under the revolving credit facility of the Legacy Facility Refinancing entered into on July 19, 2016.

As of December 31, 2016, GasLog's commitments for capital expenditures are related to the five LNG carriers on order, which have a gross aggregate contract price of approximately $1.04 billion. As of December 31, 2016, the total remaining balance of the contract prices of the aforementioned newbuildings was $946.9 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 December 31, 2016, GasLog's current assets totalled $270.3 million while current liabilities totalled $262.8 million, resulting in a positive working capital position of $7.5 million.

GasLog has hedged 37.8% of its expected floating interest rate exposure on its outstanding debt (excluding the finance lease liability) at a weighted average interest rate of approximately 4.6% (including margin) as of December 31, 2016.

Our Fleet

Owned Fleet

The following table presents information about our wholly owned vessels and their associated time charters as of February 17, 2017:

The following table presents information about GasLog Partners' fleet and their associated time charters as of February 17, 2017:

Bareboat Vessel

____________

Future Deliveries

GasLog has three newbuildings on order at 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 MSL. Our subsidiary that owns the remaining vessel expected to be delivered in 2018 entered into a seven-year time charter with 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 a subsidiary of Centrica in October 2016.

LNG Market Update and Outlook

With a significant forecast increase in LNG supply and a growing number of new demand centers, GasLog's demand outlook for LNG carriers with long-term charters remains positive. We continue to see tenders for multi-year charters for vessels, which we expect will be used to transport volumes from new liquefaction facilities coming online over the coming years. We believe that these new LNG volumes will create demand for additional ships over and above those available in the market today.

In the fourth quarter, there were several announcements that highlighted continued growth of LNG supply and shipping demand. BP committed to purchase 100% of the LNG produced by ENI's Coral South Floating LNG ("FLNG") facility. The facility is expected to be installed offshore Mozambique and to have a capacity of approximately 3.3 million tonnes per annum ("mtpa"). This commitment allowed ENI to authorize development of the project. BP also announced an investment of approximately $1 billion to develop gas reserves offshore Mauritania and Senegal and to create a new LNG hub in Africa. PETRONAS' 1.2 mtpa Malaysian FLNG facility was one of eight LNG liquefaction projects that successfully came online in 2016 (others include Sabine Pass, Australia Pacific, Gladstone and Gorgon). Total announced a $207 million investment in Tellurian's Driftwood LNG project. Finally, the rising LNG supply in the quarter was slightly offset by a supply outage at Chevron's Gorgon facility where Train 1 was shut down for maintenance.

During the quarter, there were also several announcements for new FSRUs. These projects continue the trend of new and existing importing nations selecting FSRUs, which are typically quicker to market and more flexible than land-based terminals.

Global Energy Infrastructure Limited signed a 20-year FSRU charter for its LNG import project in Port Qasim, Pakistan. This will be the third FSRU in Port Qasim, demonstrating the growing demand in the region. The CI-GNL (Ivory Coast LNG) consortium led by Total was awarded the rights to build and operate a 3 mtpa FSRU in the Ivory Coast. The Brazilian gas-to-power Porto de Sergipe Project took FID.  In connection with the FID, the project's sponsor entered into a 25-year FSRU charter agreement. Also in the quarter, Turkey chartered its first FSRU, the GDF Suez Neptune, from the French utility company Engie. There were seven new FSRU awards during the year, a significant increase on previous years, demonstrating the growing demand for offshore re-gasification infrastructure. This compares to around 20 existing FSRU projects in operation around the world today.

In the shorter-term shipping market in the fourth quarter, brokers reported that spot rates in the Atlantic Basin increased to approximately $45,000 per day, with one end-of-year fixture reported above $50,000. The catalyst was greater ton-mile demand with many cargoes going from the U.S. to Asia through the Panama Canal. Spot charter terms have also improved with round trip economics now seen on some short term voyages. In the Pacific Basin, reported rates were lower at around $38,000 per day than the Atlantic, largely due to the greater availability of vessels during the period.

During the quarter, U.S. natural gas prices increased 30% to $4 per million British thermal units ("mmbtu"). However, Northeast Asian LNG prices rose by 60% to approximately $10 per mmbtu due to a cold start to winter in key demand centers such as Japan, China and Korea. Destination flexibility allowed offtakers to send more LNG cargos to Asia, which increased ton-mile demand. For 2016 in total, there were approximately 275 short term fixtures, an increase of more than 50% over 2015. Whilst it is too early to predict a sustained recovery we believe that fundamentals continue to point to a recovery, through 2017 and beyond.

Conference Call

GasLog will host a conference call to discuss its results for the fourth quarter of 2016 at 8:30 a.m. EST (1:30 p.m. GMT) on Friday, February 17, 2017. Paul Wogan, Chief Executive Officer and Simon Crowe, 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:

+1 855 537 5839 (USA) +44 20 3107 0289 (United Kingdom) +33 1 70 80 71 53 (France) +852 3011 4522 (Hong Kong)

Conference ID: 46501504

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. EST (7:00 p.m. GMT) on Friday, February 17, 2017 until 11:59 p.m. EST (4:59 a.m. GMT) on Friday, February 24, 2017.

The replay dial-in numbers are as follows:

+1 855 859 2056 (USA) +44 20 3107 0235 (United Kingdom) +33 1 70 80 71 79 (France) +852 3011 4541 (Hong Kong)

Replay passcode: 46501504

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 .

Forward Looking Statements

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:

• general LNG shipping market conditions and trends, including spot and long-term charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping and technological advancements;
• continued low prices for crude oil and petroleum products;
• our ability to enter into time charters with new and existing customers;
• increased exposure to spot market and fluctuations in spot charter rates;
• changes in the ownership of our charterers;
• our customers' performance of their obligations under our time charters;
• our future operating performance, financial condition, liquidity and cash available for dividends and distributions;
• our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, funding by banks of their financial commitments, and our ability to meet our restrictive covenants and other obligations under our credit facilities;
• future, pending or recent acquisitions of or orders for ships or other assets, business strategy, areas of possible expansion and expected capital spending or operating expenses;
• the time that it may take to construct and deliver newbuildings and the useful lives of our ships;
• number of off-hire days, drydocking requirements and insurance costs;
• fluctuations in currencies and interest rates;
• our ability to maintain long-term relationships with major energy companies;
• our ability to maximize the use of our ships, including the re-employment or disposal of ships not under time charter commitments;
• environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities;
• the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, requirements imposed by classification societies and standards imposed by our charterers applicable to our business;
• risks inherent in ship operation, including the discharge of pollutants;
• availability of skilled labor, ship crews and management;
• potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists;
• potential liability from future litigation;
• any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach; and
• other risks and uncertainties described in the Company's Annual Report on Form 20-F filed with the SEC on March 14, 2016 and available at http://www.sec.gov .

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.

Contacts: Simon Crowe Chief Financial Officer Phone: +44-203-388-3108

Jamie Buckland Head of Investor Relations Phone: +44-203-388-3116 Email: ir@gaslogltd.com

EXHIBIT I - Unaudited Interim Financial Information

Unaudited condensed consolidated statements of financial position As of December 31, 2015 and 2016 (Amounts expressed in thousands of U.S. Dollars)

Unaudited condensed consolidated statements of profit or loss For the three months and years ended December 31, 2015 and 2016 (Amounts expressed in thousands of U.S. Dollars, except per share data)

Unaudited condensed consolidated statements of cash flows For the years ended December 31, 2015 and 2016 (Amounts expressed in thousands of U.S. Dollars)

EXHIBIT II

Non-GAAP Financial Measures:

EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS

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/bond fees and premium, foreign exchange gains/losses and non-cash gain/loss on swaps that includes (if any) (a) unrealized gain/loss on swaps held for trading, (b) recycled loss of cash flow hedges reclassified to profit or loss in relation to derivatives no longer designated as hedges and (c) ineffective portion of cash flow hedges. 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/bond fees and premium, 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, interest, 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/bond fees and premium, which items are affected by various and possibly changing financing methods, 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 Profit: (Amounts expressed in thousands of U.S. Dollars)

Reconciliation of Adjusted Profit to Profit: (Amounts expressed in thousands of U.S. Dollars)

Reconciliation of Adjusted Earnings/(Loss) Per Share to Earnings/(Loss) Per Share: (Amounts expressed in thousands of U.S. Dollars, except shares and per share data)