GASLOG PARTNERS LP Highlights
- Signed a new multi-month time charter agreement for the GasLog Sydney with
Naturgy Aprovisionamientos S.A. (“Naturgy”). - Repurchased
$10.0 million of preference units in the open market in the first quarter of 2022. - Repaid
$37.0 million of debt and lease liabilities during the first three months of 2022. - Quarterly Revenues, Profit, Adjusted Profit(1) and Adjusted EBITDA(1) of
$85.5 million ,$35.0 million ,$28.3 million and$60.9 million , respectively. - Quarterly Earnings per unit (“EPU”) of
$0.53 and Adjusted EPU(1) of$0.41 . - Declared cash distribution of
$0.01 per common unit for the first quarter of 2022.
CEO Statement
We expect that the Partnership’s contracted revenues in 2022 will more than fulfill its operational and financial obligations, whilst also retaining significant market exposure, particularly in the seasonally stronger second half of the year. Given the scarcity of independently-owned vessels available for term charters, based on current market conditions, we expect to recognize material upside well above our contracted revenues. We continue to execute on our business strategy, de-leveraging our balance sheet and simultaneously increasing our potential for free cash flow generation in order to create long-term value for our stakeholders.”
| Financial Summary | |||||||
| For the three months ended | |||||||
| (All amounts expressed in thousands of | % Change | ||||||
| Revenues | 87,088 | 85,459 | (2 | %) | |||
| Profit | 35,360 | 34,981 | (1 | %) | |||
| EPU, common (basic) | 0.57 | 0.53 | (7 | %) | |||
| Adjusted Profit(1) | 31,753 | 28,326 | (11 | %) | |||
| Adjusted EBITDA(1) | 64,131 | 60,901 | (5 | %) | |||
| Adjusted EPU, common (basic)(1) | 0.50 | 0.41 | (18 | %) | |||
There were 1,350 available days for the quarter ended
Management classifies the Partnership’s vessels from a commercial point of view into two categories: (a) spot fleet and (b) long-term fleet. The spot fleet includes all vessels under charter party agreements with an initial duration of less than (or equal to) five years (excluding optional periods), while the long-term fleet comprises all vessels with charter party agreements of an initial duration of more than five years (excluding optional periods).
For the three months ended
| For the three months ended | For the three months ended | ||||||||
| All amounts expressed in thousands of U.S. dollars, except number of days | Spot fleet | Long-term fleet | Spot fleet | Long-term fleet | |||||
| Available days(*) | 698 | 638 | 810 | 540 | |||||
| Revenues | 37,054 | 50,034 | 40,107 | 45,352 | |||||
| Voyage expenses and commissions | (1,248 | ) | (831 | ) | (743 | ) | (718 | ) | |
(*) Available days represent total calendar days in the period after deducting off-hire days where vessels are undergoing dry-dockings and unavailable days (i.e. days before and after a dry-docking where the vessel has limited practical ability for chartering opportunities).
Revenues decreased by
Voyage expenses and commissions decreased by
Vessel operating costs increased by
General and administrative expenses increased by
The decrease in Adjusted EBITDA(1) of
Financial costs decreased by
Gain on derivatives increased by
The decrease in profit of
The decrease in Adjusted Profit of
As of
As of
As of
(1) Adjusted Profit, Adjusted EBITDA and Adjusted EPU are non-GAAP financial measures and should not be used in isolation or as substitutes for GasLog Partners’ financial results presented in accordance with International Financial Reporting Standards (“IFRS”). For the definitions and reconciliations 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.
Preference Unit Repurchase Programme
In the three months ended
Since inception of the Repurchase Programme and up to
LNG Market Update and Outlook
Headline spot rates for tri-fuel diesel electric (“TFDE”) LNG carriers, as reported by
As of
As of
Preference Unit Distributions
On
Common Unit Distribution
On
ATM Common Equity Offering Programme (“ATM Programme”)
The Partnership did not issue any common units under the ATM Programme during the first quarter of 2022.
Conference Call
The dial-in numbers for the conference call are as follows:
+1 866 374 5140 (
+44 20 3100 4191 (
+33 1 72 25 67 60 (
+852 800 9337 52 (
+47 2396 4173 (
Conference ID: 90159316
A live webcast of the conference call will be available on the Investor Relations page of the
For those unable to participate in the conference call, a replay of the webcast will be available on the Investor Relations page of the
About
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
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 multi-year charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping, including geopolitical events, technological advancements and opportunities for the profitable operations of LNG carriers;
- fluctuations in charter hire rates, vessel utilization and vessel values;
- our ability to secure new multi-year charters at economically attractive rates;
- our ability to maximize the use of our vessels, including the re-deployment or disposition of vessels which are not operating under multi-year charters, including the risk that certain of our vessels may no longer have the latest technology at such time which may impact our ability to secure employment for such vessels as well as the rate at which we can charter such vessels;
- changes in our operating expenses, including crew costs, maintenance, dry-docking and insurance costs and bunker prices;
- number of off-hire days and dry-docking requirements, including our ability to complete scheduled dry-dockings on time and within budget;
- planned capital expenditures and availability of capital resources to fund capital expenditures;
- business disruptions resulting from measures taken to reduce the spread of COVID-19, including possible delays due to the quarantine of vessels and crew, as well as government-imposed shutdowns;
- fluctuations in prices for crude oil, petroleum products and natural gas, including LNG;
- fluctuations in exchange rates, especially the
U.S. dollar and Euro; - our ability to expand our portfolio by acquiring vessels through our drop-down pipeline with GasLog or by acquiring other assets from third parties;
- our ability to leverage GasLog’s relationships and reputation in the shipping industry and the ability of GasLog to maintain long-term relationships with major energy companies and major LNG producers, marketers and consumers to obtain new charter contracts;
- GasLog’s relationships with its employees and ship crews, its ability to retain key employees and provide services to us, and the availability of skilled labor, ship crews and management;
- changes in the ownership of our charterers;
- our customers’ performance of their obligations under our time charters and other contracts;
- our future operating performance, financial condition, liquidity and cash available for distributions;
- our distribution policy and our ability to make cash distributions on our units or the impact of changes to cash distributions on our financial position;
- our ability to obtain debt and equity financing on acceptable terms 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 ships or other assets, business strategy, areas of possible expansion and expected capital spending;
- risks inherent in ship operation, including the discharge of pollutants;
- any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity event;
- the expected cost of and our ability to comply with environmental and regulatory requirements related to climate change, including with respect to emissions of air pollutants and greenhouse gases, as well as future changes in such requirements or other actions taken by regulatory authorities, governmental organizations, classification societies and standards imposed by our charterers applicable to our business;
- potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists;
- potential liability from future litigation; and
- other risks and uncertainties described in the Partnership’s Annual Report on Form 20-F filed with the
SEC onMarch 1, 2022 , 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 distributions 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
Contacts:
Phone: +1 212-517-0810
Email: gaslog@roseandco.com
| EXHIBIT I – Unaudited Interim Financial Information | |||||
| Unaudited condensed consolidated statements of financial position | |||||
| As of | |||||
| (All amounts expressed in thousands of | |||||
2021 | 2022 | ||||
| Assets | |||||
| Non-current assets | |||||
| Other non-current assets | 44 | 95 | |||
| Tangible fixed assets | 1,888,583 | 1,871,260 | |||
| Right-of-use assets | 81,996 | 77,773 | |||
| Total non-current assets | 1,970,623 | 1,949,128 | |||
| Current assets | |||||
| Trade and other receivables | 11,156 | 12,585 | |||
| Inventories | 2,991 | 3,276 | |||
| Prepayments and other current assets | 1,433 | 2,023 | |||
| Cash and cash equivalents | 145,530 | 135,933 | |||
| Total current assets | 161,110 | 153,817 | |||
| Total assets | 2,131,733 | 2,102,945 | |||
| Partners’ equity and liabilities | |||||
| Partners’ equity | |||||
| Common unitholders (51,137,201 units issued and outstanding as of | 579,447 | 606,519 | |||
| General partner (1,077,494 units issued and outstanding as of | 10,717 | 11,287 | |||
| Preference unitholders (5,750,000 Series A Preference Units, 4,135,571 Series B Preference Units and 3,730,451 Series C Preference Units issued and outstanding as of | 329,334 | 319,292 | |||
| Total partners’ equity | 919,498 | 937,098 | |||
| Current liabilities | |||||
| Trade accounts payable | 9,547 | 11,283 | |||
| Due to related parties | 952 | 1,225 | |||
| Derivative financial instruments—current portion | 5,184 | 2,159 | |||
| Other payables and accruals | 50,171 | 44,598 | |||
| Borrowings—current portion | 99,307 | 99,386 | |||
| Lease liabilities—current portion | 10,342 | 10,406 | |||
| Total current liabilities | 175,503 | 169,057 | |||
| Non-current liabilities | |||||
| Derivative financial instruments—non-current portion | 4,061 | 263 | |||
| Borrowings—non-current portion | 986,451 | 952,979 | |||
| Lease liabilities—non-current portion | 45,556 | 42,986 | |||
| Other non-current liabilities | 664 | 562 | |||
| Total non-current liabilities | 1,036,732 | 996,790 | |||
| Total partners’ equity and liabilities | 2,131,733 | 2,102,945 | |||
| Unaudited condensed consolidated statements of profit or loss | ||||||
| For the three months ended | ||||||
| (All amounts expressed in thousands of | ||||||
| For the three months ended | ||||||
| Revenues | 87,088 | 85,459 | ||||
| Voyage expenses and commissions | (2,079 | ) | (1,461 | ) | ||
| Vessel operating costs | (17,807 | ) | (18,574 | ) | ||
| Depreciation | (20,686 | ) | (21,987 | ) | ||
| General and administrative expenses | (3,071 | ) | (4,691 | ) | ||
| Profit from operations | 43,445 | 38,746 | ||||
| Financial costs | (9,416 | ) | (8,781 | ) | ||
| Financial income | 12 | 39 | ||||
| Gain on derivatives | 1,319 | 4,977 | ||||
| Total other expenses, net | (8,085 | ) | (3,765 | ) | ||
| Profit and total comprehensive income for the period | 35,360 | 34,981 | ||||
| Earnings per unit, basic and diluted: | ||||||
| Common unit, basic | 0.57 | 0.53 | ||||
| Common unit, diluted | 0.55 | 0.52 | ||||
| General partner unit | 0.57 | 0.53 | ||||
| Unaudited condensed consolidated statements of cash flows | ||||||
| For the three months ended | ||||||
| (All amounts expressed in thousands of | ||||||
| For the three months ended | ||||||
2021 | 2022 | |||||
| Cash flows from operating activities: | ||||||
| Profit for the period | 35,360 | 34,981 | ||||
| Adjustments for: | ||||||
| Depreciation | 20,686 | 21,987 | ||||
| Financial costs | 9,416 | 8,781 | ||||
| Financial income | (12 | ) | (39 | ) | ||
| Gain on derivatives | (1,319 | ) | (4,977 | ) | ||
| Share-based compensation | 73 | 260 | ||||
| 64,204 | 60,993 | |||||
| Movements in working capital | (8,778 | ) | (2,370 | ) | ||
| Net cash provided by operating activities | 55,426 | 58,623 | ||||
| Cash flows from investing activities: | ||||||
| Payments for tangible fixed assets additions | (5,685 | ) | (971 | ) | ||
| Financial income received | 12 | 16 | ||||
| Net cash used in investing activities | (5,673 | ) | (955 | ) | ||
| Cash flows from financing activities: | ||||||
| Borrowings repayments | (36,017 | ) | (34,472 | ) | ||
| Principal elements of lease payments | (123 | ) | (2,551 | ) | ||
| Interest paid | (14,468 | ) | (12,586 | ) | ||
| Release of cash collateral for interest rate swaps | 280 | — | ||||
| Repurchases of preference units | — | (10,002 | ) | |||
| Payment of offering costs | — | (20 | ) | |||
| Distributions paid (including common and preference) | (8,067 | ) | (7,634 | ) | ||
| Net cash used in financing activities | (58,395 | ) | (67,265 | ) | ||
| Decrease in cash and cash equivalents | (8,642 | ) | (9,597 | ) | ||
| Cash and cash equivalents, beginning of the period | 103,736 | 145,530 | ||||
| Cash and cash equivalents, end of the period | 95,094 | 135,933 | ||||
EXHIBIT II
Non-GAAP Financial Measures:
EBITDA is defined as earnings before financial income and costs, gain/loss on derivatives, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before impairment loss on vessels, loss on disposal of vessel and restructuring costs. Adjusted Profit represents earnings before (a) non-cash gain/loss on derivatives that includes unrealized gain/loss on derivatives held for trading, (b) write-off and accelerated amortization of unamortized loan fees, (c) impairment loss on vessels, (d) loss on disposal of vessel and (e) restructuring costs. Adjusted EPU represents Adjusted Profit (as defined above), after deducting preference unit distributions and adding/deducting any difference between the carrying amount of preference units and the fair value of the consideration paid to settle them, divided by the weighted average number of units outstanding during the period. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU, which are non-GAAP financial measures, are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. The Partnership believes that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. The Partnership believes that including EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU 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 purchase and/or to continue to hold our common units. This increased comparability is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, financial costs, gain/loss on derivatives, taxes, depreciation and amortization; in the case of Adjusted EBITDA, impairment loss on vessels, loss on disposal of vessel and restructuring costs and, in the case of Adjusted Profit and Adjusted EPU, non-cash gain/loss on derivatives, write-off and accelerated amortization of unamortized loan fees, impairment loss on vessels, loss on disposal of vessel and restructuring costs, which items are affected by various and possibly changing financing methods, financial market conditions, general shipping market conditions, capital structure and historical cost basis and which items may significantly affect results of operations between periods. Restructuring costs are excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because restructuring costs represent charges reflecting specific actions taken by management to improve the Partnership’s future profitability and therefore are not considered representative of the underlying operations of the Partnership. Impairment loss is excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because impairment loss on vessels represents the excess of their carrying amount over the amount that is expected to be recovered from them in the future and therefore is not considered representative of the underlying operations of the Partnership. Loss on disposal of vessel is excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because loss on disposal of vessel represents the excess of its carrying amount over the amount that was recovered through sale and therefore is not considered representative of the underlying operations of the Partnership.
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU 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 unit or any other measure of operating 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 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 often 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 EPU are not adjusted for all non-cash income or expense items that are reflected in our statement of cash flows and other companies in our industry may calculate these measures differently to how we do, limiting their usefulness as comparative measures. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU exclude some, but not all, items that affect profit or loss and these measures may vary among other companies. Therefore, EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU as presented herein may not be comparable to similarly titled measures of other companies. The following tables reconcile EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU to Profit, the most directly comparable IFRS financial measure, for the periods presented.
In evaluating EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU 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 EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU should not be construed as an inference that our future results will be unaffected by the excluded items.
| Reconciliation of Profit to EBITDA and Adjusted EBITDA: | |||||||
| (Amounts expressed in thousands of | |||||||
| For the three months ended | |||||||
| Profit for the period | 35,360 | 34,981 | |||||
| Depreciation | 20,686 | 21,987 | |||||
| Financial costs | 9,416 | 8,781 | |||||
| Financial income | (12 | ) | (39 | ) | |||
| Gain on derivatives | (1,319 | ) | (4,977 | ) | |||
| EBITDA | 64,131 | 60,733 | |||||
| Restructuring costs | — | 168 | |||||
| Adjusted EBITDA | 64,131 | 60,901 | |||||
| Reconciliation of Profit to Adjusted Profit: | ||||||
| (Amounts expressed in thousands of | ||||||
| For the three months ended | ||||||
| Profit for the period | 35,360 | 34,981 | ||||
| Non-cash gain on derivatives | (3,607 | ) | (6,823 | ) | ||
| Restructuring costs | — | 168 | ||||
| Adjusted Profit | 31,753 | 28,326 | ||||
| Reconciliation of Profit to EPU and Adjusted EPU: | ||||||
| (Amounts expressed in thousands of | ||||||
| For the three months ended | ||||||
| Profit for the period | 35,360 | 34,981 | ||||
| Adjustment for: | ||||||
| Accrued preference unit distributions | (7,582 | ) | (6,990 | ) | ||
| Differences on repurchase of preference units | — | (82 | ) | |||
| Partnership’s profit attributable to: | 27,778 | 27,909 | ||||
| Common units | 27,194 | 27,333 | ||||
| General partner units | 584 | 576 | ||||
| Weighted average units outstanding (basic) | ||||||
| Common units | 47,517,824 | 51,137,201 | ||||
| General partner units | 1,021,336 | 1,077,494 | ||||
| EPU (basic) | ||||||
| Common units | 0.57 | 0.53 | ||||
| General partner units | 0.57 | 0.53 | ||||
| For the three months ended | ||||||
| Profit for the period | 35,360 | 34,981 | ||||
| Adjustment for: | ||||||
| Accrued preference unit distributions | (7,582 | ) | (6,990 | ) | ||
| Differences on repurchase of preference units | — | (82 | ) | |||
| Partnership’s profit used in EPU calculation | 27,778 | 27,909 | ||||
| Non-cash gain on derivatives | (3,607 | ) | (6,823 | ) | ||
| Restructuring costs | — | 168 | ||||
| Adjusted Partnership’s profit used in EPU calculation attributable to: | 24,171 | 21,254 | ||||
| Common units | 23,662 | 20,815 | ||||
| General partner units | 509 | 439 | ||||
| Weighted average units outstanding (basic) | ||||||
| Common units | 47,517,824 | 51,137,201 | ||||
| General partner units | 1,021,336 | 1,077,494 | ||||
| Adjusted EPU (basic) | ||||||
| Common units | 0.50 | 0.41 | ||||
| General partner units | 0.50 | 0.41 | ||||
2022 GlobeNewswire, Inc., source
