GasLog Partners LP (“GasLog Partners” or the “Partnership”) (NYSE:
GLOP), an international owner and operator of liquefied natural gas
(“LNG”) carriers, today reported its financial results for the
three-month period and the year ended December 31, 2020.
Highlights
- Following the completion of the Partnership’s strategic review,
GasLog Partners will maintain its current corporate structure and
will continue to pursue its own independent strategy of owning,
operating and acquiring LNG carriers.
- During the quarter, signed a new two-year time charter for the
15-year old steam turbine propulsion (“Steam”) vessel, Methane Jane
Elizabeth, with a wholly owned subsidiary of Cheniere Energy Inc.
(“Cheniere”).
- Repaid $18.8 million of debt in the fourth quarter of 2020,
bringing total debt repayment (excluding prepayments for refinanced
facilities) to $107.3 million during 2020.
- Quarterly Revenues, Profit, Adjusted Profit(1) and Adjusted
EBITDA(1) of $85.0 million, $22.6 million, $25.9 million and $59.0
million, respectively.
- Annual Revenues, Profit, Adjusted Profit(1) and Adjusted
EBITDA(1) of $333.7 million, $56.9 million, $92.4 million and
$230.6 million, respectively.
- Quarterly Earnings per unit of $0.31 and Adjusted Earnings per
unit(1) of $0.38.
- Annual Earnings per unit of $0.55 and Adjusted Earnings per
unit(1) of $1.29.
- Cash distribution of $0.01 per common unit for the fourth
quarter of 2020, unchanged from the third quarter of 2020.
Chairman and CEO Statements
Curt Anastasio, Chairman of GasLog Partners stated: "The spot
and short-term trading market for LNG carriers has experienced
significant growth in recent years and we expect this to continue
as the LNG commodity itself becomes increasingly traded on a spot
and short-term basis. With a leading operating and commercial
platform backing us through our parent, GasLog Ltd., as well as a
diverse asset base, the Partnership is positioned to succeed in
this market.
While the independent strategic review announced last November
has concluded, strategy remains an ongoing focus of the board. We
are open to entertaining all value-enhancing options for the
business as we continue to reduce debt and enhance liquidity."
Paul Wogan, Chief Executive Officer, commented: “The fourth
quarter was another operational and commercial success for the
Partnership with fleet uptime of approximately 100%. I am pleased
to say that we were able to execute on our strategic priorities of
maximizing fleet utilization and reducing our leverage during 2020,
despite the headwinds brought on by the COVID-19 pandemic, and I
look forward to further progression in 2021.
During the quarter, we repaid $18.8 million of debt, bringing
the total debt amortization for 2020 to $107.3 million. In
addition, we entered a two-year time charter with Cheniere for the
Methane Jane Elizabeth, increasing our charter coverage for 2021
and 2022 to 77% and 57% of available days, respectively. Although
we have taken material steps to balance our market exposure in
2021, we expect our capital allocation strategy to continue to
focus on reducing our leverage during 2021.
We expect that our focus on debt reduction will reduce the cash
break-even rates of our fleet overtime, increasing our
competitiveness and free cash flow capacity.”
Strategic Review Update
On November 10, 2020, the Partnership announced its intention to
engage with an independent advisor to assess its strategic
alternatives. After a comprehensive analysis conducted by
management, in conjunction with Stifel, Nicolaus & Company,
Inc. acting as a financial advisor, of the Partnership’s corporate
structure, assets, financial position, competitive environment and
current and expected commercial market, the following conclusions
have been reached:
- The Partnership will maintain its current corporate structure
with GasLog Ltd. (“GasLog”, the “General Partner” or “GP”) as its
general partner;
- The Partnership will continue to pursue an independent
commercial and operational strategy of owning, operating and
acquiring LNG carriers; and
- Strategy remains an ongoing focus of the board of directors and
we are open to entertaining all value-enhancing options for the
business as we continue to reduce debt and enhance liquidity.
Financial Summary
|
|
For the three months ended
|
|
For the years ended |
|
(All amounts expressed
in thousands of U.S. dollars, except per unit
amounts) |
|
December
31, 2019 |
|
December
31, 2020 |
|
%
change |
|
December 31, 2019 |
|
December 31, 2020 |
|
%
change |
|
Revenues |
|
96,512 |
|
85,048 |
|
(12 |
% |
) |
378,687 |
|
333,662 |
|
(12 |
% |
) |
(Loss)/profit |
|
(106,362 |
) |
22,611 |
|
(121 |
% |
) |
(34,769 |
) |
56,859 |
|
(264 |
% |
) |
Earnings/(loss) per unit
(“EPU”), common (basic) |
|
(2.37 |
) |
0.31 |
|
(113 |
% |
) |
(1.43 |
) |
0.55 |
|
(138 |
% |
) |
Adjusted Profit(1) |
|
29,646 |
|
25,926 |
|
(13 |
% |
) |
118,925 |
|
92,442 |
|
(22 |
% |
) |
Adjusted EBITDA(1) |
|
68,255 |
|
59,049 |
|
(13 |
% |
) |
276,294 |
|
230,635 |
|
(17 |
% |
) |
Adjusted EPU, common
(basic)(1) |
|
0.46 |
|
0.38 |
|
(17 |
% |
) |
1.82 |
|
1.29 |
|
(29 |
% |
) |
Distributable cash flow |
|
31,781 |
|
25,997 |
|
(18 |
% |
) |
123,108 |
|
91,241 |
|
(26 |
% |
) |
Cash distribution
declared |
|
26,754 |
|
485 |
|
(98 |
% |
) |
106,742 |
|
12,959 |
|
(88 |
% |
) |
There were 1,348 and 5,186 revenue operating days for the
quarter and the year ended December 31, 2020, respectively, as
compared to 1,348 and 5,397 revenue operating days for the quarter
and the year ended December 31, 2019, respectively. The
year-over-year decrease in revenue operating days is mainly
attributable to increased off-charter days for the vessels not
operating under multi-year time charters and increased off-hire
days for scheduled dry-dockings.
Management classifies the Partnership’s vessels from a
commercial strategy 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 quarter and the year ended December 31, 2020, an
analysis of available days, revenue operating days, revenues and
voyage expenses and commissions per category is presented
below:
Amounts
in thousands of U.S. dollars |
|
For the three months ended December 31, 2020 |
|
For the year ended December 31,
2020 |
|
|
Spot fleet |
|
Long-term fleet |
|
Spot fleet |
|
Long-term fleet |
|
Available days (*) |
|
|
644 |
|
|
716 |
|
|
2,225 |
|
|
3,108 |
|
Revenue operating days
(**) |
|
|
632 |
|
|
716 |
|
|
2,078 |
|
|
3,108 |
|
Revenues |
|
|
27,850 |
|
|
57,198 |
|
|
90,374 |
|
|
243,288 |
|
Voyage expenses and
commissions |
|
|
(549 |
) |
|
(978 |
) |
|
(6,272 |
) |
|
(4,171 |
) |
(*) 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). (**) Revenue operating days represent
total available days after deducting off-charter days and
unscheduled off-hire days.
Revenues decreased by $11.5 million, from $96.5 million for the
quarter ended December 31, 2019 to $85.0 million for the same
period in 2020, primarily due to the expirations of the initial
multi-year time charters of the Methane Alison Victoria, the
Methane Rita Andrea and the Methane Shirley Elisabeth with a
subsidiary of Royal Dutch Shell plc (“Shell”), which were
contracted at rates higher than their current contracted rates. The
Methane Alison Victoria has been on a three-year charter with a
wholly owned subsidiary of JOVO Group (“JOVO”) since June 2020, the
Methane Shirley Elisabeth has been on a two-year charter with CNTIC
VPower Energy Ltd. (“CNTIC VPower”) since September 2020, while the
Methane Rita Andrea has been on a multi-month charter since May
2020.
Vessel operating costs also decreased by $1.9 million, from
$21.4 million for the quarter ended December 31, 2019 to $19.5
million for the same period in 2020. The decrease in vessel
operating costs is mainly attributable to a decrease of $1.3
million in technical maintenance expenses due to savings resulting
from management’s operating cost initiatives during 2020. Daily
operating costs per vessel (after excluding calendar days for the
Solaris, the operating costs of which are covered by the
charterers) notably decreased from $16,651 per day for the quarter
ended December 31, 2019 to $15,127 per day for the quarter
ended December 31, 2020.
General and administrative expenses were $5.0 million for the
quarters ended December 31, 2019 and 2020, since the aggregate
decrease in administrative services fees and amortization of
share-based compensation was almost entirely offset by an increase
in other expenses in the three months ended December 31, 2020.
Daily general and administrative expenses decreased marginally from
$3,659 per vessel ownership day for the quarter ended December 31,
2019 to $3,615 per vessel ownership day for the quarter ended
December 31, 2020.
The decrease in Adjusted EBITDA of $9.3 million, from $68.3
million in the fourth quarter of 2019 as compared to $59.0 million
in the same period in 2020 is mainly attributable to the decrease
in revenues of $11.5 million described above, partially offset by
the aforementioned decrease of $1.9 million in operating
expenses.
In the quarter ended December 31, 2020, the Partnership
recognized a non-cash impairment loss of $5.1 million in aggregate
on certain of its Steam vessels, in addition to the impairment loss
of $18.8 million recognized in the second quarter of 2020. The
COVID-19 pandemic placed downward pressure on economic activity and
energy demand, as well as significant uncertainty regarding future
near-term LNG demand and, therefore, LNG shipping requirements.
This has reduced our expectations for the estimated rates at which
employment for our vessels could be secured over the near-term in
the spot market. The non-cash impairment loss of $5.1 million in
the three months ended December 31, 2020 was recognized with
respect to two of our Steam vessels, the Methane Alison Victoria
and the Methane Heather Sally.
Financial costs decreased by $6.3 million, from $16.3 million
for the quarter ended December 31, 2019 to $10.0 million for
the same period in 2020. The decrease is mainly attributable to a
decrease in interest expense on loans of $6.2 million, mainly due
to the lower London Interbank Offered Rate (“LIBOR”) rates
prevailing in the fourth quarter of 2020 compared to the same
period in 2019. During the quarter ended December 31, 2019, we had
an average of $1,382.4 million of outstanding indebtedness with a
weighted average interest rate of 4.2%, compared to an average of
$1,316.2 million of outstanding indebtedness with a weighted
average interest rate of 2.5% during the quarter ended December 31,
2020.
Gain on derivatives decreased by $2.9 million, from a gain of
$2.7 million for the quarter ended December 31, 2019 to a loss
of $0.2 million for the same period in 2020. The decrease is
attributable to a net increase of $1.8 million in realized loss on
derivatives held for trading and a $1.1 million decrease in
unrealized gain from the mark-to-market valuation of derivatives
held for trading which were carried at fair value through profit or
loss.
The increase in profit from a loss of $106.4 million in the
fourth quarter of 2019 to a profit of $22.6 million in the fourth
quarter of 2020 is mainly attributable to an impairment loss on
vessels of $138.8 million recognized in the fourth quarter of 2019
compared to an impairment loss of $5.1 million recognized in the
fourth quarter of 2020, as well as the other variances analyzed
above.
The decrease in Adjusted Profit of $3.7 million, from $29.6
million in the fourth quarter of 2019 to $25.9 million in the
fourth quarter of 2020, is mainly attributable to the decrease in
revenues of $11.5 million described above, partially offset by the
decrease in interest expense of $6.2 million and the decrease in
operating expenses of $1.9 million, as also discussed above.
As of December 31, 2020, we had $103.7 million of cash and cash
equivalents. The cash collateral previously held with GasLog during
the year has been fully released and is nil as of December 31,
2020.
As of December 31, 2020, we had an aggregate of $1,285.5 million
of borrowings outstanding under our credit facilities, of which
$104.9 million was repayable within one year. In addition, as of
December 31, 2020, we had unused availability under our revolving
credit facility with GasLog of $30.0 million, which matures in
March 2022.
As of December 31, 2020, our current assets totaled $125.7
million and current liabilities totaled $185.2 million, resulting
in a negative working capital position of $59.5 million. Current
liabilities include $25.8 million of unearned revenue in relation
to hires received in advance as of December 31, 2020 (which
represents a non-cash liability that will be recognized as revenues
after December 31, 2020 as the services are rendered). Management
monitors the Partnership’s liquidity position throughout the year
to ensure that it has access to sufficient funds to meet its
forecast cash requirements, including debt service commitments, and
to monitor compliance with the financial covenants within its loan
facilities. Taking into account the volatile commercial and
financial market conditions experienced throughout 2020, we
anticipate that our primary sources of funds for at least twelve
months from the date of this report will be available cash, cash
from operations and existing debt facilities. We believe that these
anticipated sources of funds, as well as our decision to decrease
the common unit distributions and preserve liquidity, will be
sufficient to meet our liquidity needs and to comply with our
banking covenants for at least twelve months from the date of this
report. Our long-term ability to repay our debts and maintain
compliance with our debt covenants for at least twelve months from
the date of this report without reliance on additional sources of
finance is also dependent on a sustainable longer-term recovery in
the LNG charter market from the market disruption observed in 2020
as a result of the COVID-19 outbreak.
(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
Distributions
On November 9, 2020, the board of directors of GasLog Partners
approved and declared a distribution on the 8.625% Series A
Cumulative Redeemable Perpetual Fixed to Floating Rate Preference
Units (the “Series A Preference Units”) of $0.5390625 per
preference unit, a distribution on the 8.200% Series B Cumulative
Redeemable Perpetual Fixed to Floating Rate Preference Units (the
“Series B Preference Units”) of $0.5125 per preference unit and a
distribution on the 8.500% Series C Cumulative Redeemable Perpetual
Fixed to Floating Rate Preference Units (the “Series C Preference
Units”) of $0.53125 per preference unit. The cash distributions
were paid on December 15, 2020 to all unitholders of record as of
December 8, 2020.
Common Unit Distribution
On January 27, 2021, the board of directors of GasLog Partners
approved and declared a quarterly cash distribution of $0.01 per
common unit for the quarter ended December 31, 2020. The cash
distribution was paid on February 11, 2021 to all unitholders of
record as of February 8, 2021.
Our Fleet
Our fleet currently consists of the following vessels:
LNG Carrier |
|
Year Built |
|
Cargo Capacity (cubic meters “cbm”) |
|
Charterer (for contracts of more than six
months) |
|
Propulsion |
|
Charter Expiration |
|
Optional Period |
|
1 |
Methane Rita Andrea |
|
2006 |
|
145,000 |
|
Spot Market |
|
Steam |
|
— |
|
— |
|
2 |
Methane Heather Sally |
|
2007 |
|
145,000 |
|
Spot Market |
|
Steam |
|
— |
|
— |
|
3 |
GasLog Sydney |
|
2013 |
|
155,000 |
|
Spot Market |
|
TFDE |
|
— |
|
— |
|
4 |
GasLog Seattle |
|
2013 |
|
155,000 |
|
Shell |
|
TFDE |
|
June 2021 |
|
— |
|
5 |
Solaris |
|
2014 |
|
155,000 |
|
Shell |
|
TFDE |
|
August 2021 |
|
— |
|
6 |
GasLog Santiago |
|
2013 |
|
155,000 |
|
Trafigura (1) |
|
TFDE |
|
December 2021 |
|
2022–2028 (1) |
|
7 |
Methane Shirley Elisabeth |
|
2007 |
|
145,000 |
|
JOVO (2) |
|
Steam |
|
August 2022 |
|
— |
|
8 |
GasLog Shanghai |
|
2013 |
|
155,000 |
|
Gunvor (3) |
|
TFDE |
|
November 2022 |
|
— |
|
9 |
Methane Jane Elizabeth |
|
2006 |
|
145,000 |
|
Cheniere (4) |
|
Steam |
|
March 2023 |
|
2024–2025 (4) |
|
10 |
GasLog Geneva |
|
2016 |
|
174,000 |
|
Shell |
|
TFDE |
|
September 2023 |
|
2028–2031 (5) |
|
11 |
Methane Alison Victoria |
|
2007 |
|
145,000 |
|
CNTIC VPower (6) |
|
Steam |
|
October 2023 |
|
2024–2025 (6) |
|
12 |
GasLog Gibraltar |
|
2016 |
|
174,000 |
|
Shell |
|
TFDE |
|
October 2023 |
|
2028–2031 (5) |
|
13 |
Methane Becki Anne |
|
2010 |
|
170,000 |
|
Shell |
|
TFDE |
|
March 2024 |
|
2027–2029 (7) |
|
14 |
GasLog Greece |
|
2016 |
|
174,000 |
|
Shell |
|
TFDE |
|
March 2026 |
|
2031 (8) |
|
15 |
GasLog Glasgow |
|
2016 |
|
174,000 |
|
Shell |
|
TFDE |
|
June 2026 |
|
2031 (8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The vessel is
chartered to Trafigura Maritime Logistics PTE Ltd. (“Trafigura”).
Charterer may extend the term of this time charter for a period
ranging from one to seven years, provided that the charterer gives
us advance notice of declaration. The period shown reflects the
expiration of the minimum optional period and the maximum optional
period.(2) The vessel is
chartered to Singapore Carbon Hydrogen Energy Pte. Ltd., a wholly
owned subsidiary of JOVO. The charter commenced in July
2020.(3) The vessel is
chartered to Clearlake Shipping Pte. Ltd., a subsidiary of Gunvor
Group Ltd. (“Gunvor”).(4)
The vessel is chartered to Cheniere Marketing International LLP, a
subsidiary of Cheniere. Charterer may extend the term of the time
charters by two additional periods of one year, provided that the
charterer gives us advance notice of declaration. The period shown
reflects the expiration of the minimum optional period and the
maximum optional
period.(5) Charterer may
extend the term of the time charters by two additional periods of
five and three years, respectively, provided that the charterer
gives us advance notice of declaration. The period shown reflects
the expiration of the minimum optional period and the maximum
optional period.(6) The
vessel is chartered to CNTIC VPower, an independent Chinese energy
company. The charterer may extend the term of the related charter
by two additional periods of one year, provided that the charterer
gives us advance notice of its exercise of any extension option.
The period shown reflects the expiration of the minimum optional
period and the maximum optional
period.(7) Charterer may
extend the term of the related charter for one extension period of
three or five years, provided that the charterer gives us advance
notice of its exercise of any extension option. The period shown
reflects the expiration of the minimum optional period and the
maximum optional
period.(8) Charterer may
extend the term of these time charters for a period of five years,
provided that the charterer gives us advance notice of
declaration.
LNG Market Update and
Outlook
LNG demand was 93 million tonnes (“mt”) in the fourth quarter of
2020, according to Poten, compared to 94 mt in the fourth quarter
of 2019, or a decrease of approximately 1%. Demand growth varied
significantly by region during the fourth quarter, as compared to
the fourth quarter of 2019. For example, Chinese LNG demand was 20
mt in the fourth quarter of 2020, an increase of over 2 mt or 14%
and demand grew by 1 mt for each of India and Japan, with increases
of 13% and 6%, respectively. In contrast, demand from Europe
declined by 7 mt or approximately 32%. For the full year 2020, LNG
demand was 360 mt compared to approximately 358mt for the full year
2019, an increase of approximately 1%. Demand growth in 2020 was
led by China where demand grew over 6 mt or 11% and India where
demand grew 3 mt or 13%. This growth was balanced by declines in
Europe, where demand declined by approximately 5 mt or 5% and Japan
where demand declined by over 1 mt or approximately 2%.
Global LNG supply was approximately 94 mt in the fourth quarter
of 2020, an increase of approximately 1 mt, or 1%, over the fourth
quarter of 2019, according to Poten. Supply from the United States
(“U.S.”) increased by over 3 mt or 30%, the result of the start-up
of the third trains at Cameron and Freeport earlier in the year and
the ramp up of projects which began production in the second half
of 2019. In contrast, a fire at Hammerfest LNG in Norway saw
production from the facility shuttered for all of the fourth
quarter, a decline of over 1 mt, while feed gas for Trinidad’s
Atlantic LNG saw production decline by over 1 mt or 47%. Supply for
2020 totaled 369 mt, an increase of 10 mt or approximately 3% over
2019. The U.S. led supply growth in 2020, up by approximately 12 mt
or 32% year-over-year, while Trinidad, Egypt and Malaysia each
registered a decline of over 2 mt or 20%, 67% and 8%, respectively.
Looking ahead, approximately 109 mt of new LNG capacity is
currently under construction and scheduled to come online from
2021-2026.
In the LNG shipping spot market, TFDE headline rates, as
reported by Clarksons, averaged $104,000 per day in the fourth
quarter of 2020, a modest decrease from the average of $107,000 in
the fourth quarter of 2019. Headline spot rates for Steam vessels
averaged $73,000 per day in the fourth quarter of 2020, a decrease
from the average of $78,000 per day in the fourth quarter of 2019.
Headline spot rates in the fourth quarter were aided by a
combination of demand growth from Asia and supply growth in the US
as well as delays at the Panama Canal.
As of February 19, 2021, Clarksons assesses headline spot rates
for TFDE and Steam LNG carriers at $46,500 per day and $30,000 per
day, respectively. While headline spot rates at the beginning of
2021 are higher than those over the same period in 2020, forward
assessments for LNG carrier spot rates indicate declines from
current levels during the seasonally weak shoulder months of the
spring. In addition, the magnitude and pace of any recovery of the
global economy following the continued COVID-19 outbreak and its
effects and the forecasted growth of the global LNG carrier fleet
have the potential to create volatility in the spot and short-term
markets over the near and medium-term.
As of February 6, 2021, Poten estimates that the orderbook
totals 112 dedicated LNG carriers (>100,000 cbm), representing
21% of the on-the-water fleet. Of these, 86 vessels (or 77%) have
multi-year charters. During 2020, 34 LNG carriers were ordered, all
for long-term business with no vessels ordered on a speculative
basis.
Contracted Charter Revenues
The following table summarizes GasLog Partners’ contracted
charter revenues and vessel utilization after December 31,
2020:
|
|
|
|
For the years ending December 31, |
|
|
|
|
|
|
2021 |
|
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2025-2026 |
|
|
Total |
|
|
|
|
|
(in millions of U.S. dollars, except days and
percentages) |
|
Contracted time charter
revenues(1)(2)(3)(4)(5) |
|
|
|
$ |
237.3 |
|
|
|
$ |
189.3 |
|
|
|
$ |
149.9 |
|
|
|
$ |
70.4 |
|
|
|
$ |
80.8 |
|
|
|
$ |
727.7 |
|
|
Total contracted
days(1)(2) |
|
|
|
|
4,079 |
|
|
|
|
3,111 |
|
|
|
|
2,016 |
|
|
|
|
823 |
|
|
|
|
940 |
|
|
|
|
10,969 |
|
|
Total available days(6) |
|
|
|
|
5,325 |
|
|
|
|
5,475 |
|
|
|
|
5,355 |
|
|
|
|
5,430 |
|
|
|
|
10,680 |
|
|
|
|
32,265 |
|
|
Total unfixed days(7) |
|
|
|
|
1,246 |
|
|
|
|
2,364 |
|
|
|
|
3,339 |
|
|
|
|
4,607 |
|
|
|
|
9,740 |
|
|
|
|
21,296 |
|
|
Percentage of total contracted
days/total available days |
|
|
|
|
76.6 |
% |
|
|
|
56.8 |
% |
|
|
|
37.6 |
% |
|
|
|
15.2 |
% |
|
|
|
8.8 |
% |
|
|
|
34.0 |
% |
|
After giving effect to the charter parties signed from December
31, 2020 until February 16, 2021, the contracted time charter
revenues and the percentage of total contracted days to total
available days increased to $244.6 million and 80.7%, respectively,
for 2021.
(1) Reflects time charter revenues and contracted days
for the 15 LNG carriers in our fleet as of December 31, 2020.(2)
Our ships are scheduled to undergo dry-docking once every
five years. Revenue calculations assume 365 revenue days per ship
per annum, with 30 off-hire days when each ship undergoes scheduled
dry-docking.(3) For time charters that include a fixed
operating cost component, subject to annual escalation, revenue
calculations include that fixed annual escalation. Revenue
calculations for such charters include an estimate of the amount of
the operating cost component and the management fee component.
(4) For time charters that include a variable rate of
hire within an agreed range during the charter period, revenue
calculations are based on the agreed minimum rate of hire for the
respective period.(5) Revenue calculations assume no
exercise of any option to extend the terms of the charters.(6)
Available days represent total calendar days after deducting
30 off-hire days when the ship undergoes scheduled dry-docking.(7)
Unfixed days represent available days for the ships after
the expiration of the existing charters (assuming charterers do not
exercise any option to extend the terms of the charters).
The table above provides information about our contracted
charter revenues and ship utilization based on contracts in effect
for the 15 LNG carriers in our fleet as of December 31, 2020. The
table reflects only our contracted charter revenues for the ships
in our owned fleet for which we have secured time charters, and it
does not reflect the costs or expenses we will incur in fulfilling
our obligations under the charters. In particular, the table does
not reflect time charter revenues from any additional ships we may
acquire in the future, nor does it reflect the options under our
time charters that permit our charterers to extend the time charter
terms for successive multi-year periods at comparable charter hire
rates. If exercised, the options to extend the terms of our
existing charters would result in an increase in the number of
contracted days and the contracted revenue for our fleet in the
future. Although the contracted charter revenues are based on
contracted charter hire rate provisions, they reflect certain
assumptions, including assumptions relating to future ship
operating costs. We consider the assumptions to be reasonable as of
the date of this report, but if these assumptions prove to be
incorrect, our actual time charter revenues could differ from those
reflected in the table. Furthermore, any contract is subject to
various risks, including non-performance by the counterparties or
an early termination of the contract pursuant to its terms. If the
charterers are unable or unwilling to make charter payments to us,
or if we agree to renegotiate charter terms at the request of a
charterer or if contracts are prematurely terminated for any
reason, we would be exposed to prevailing market conditions at the
time and our results of operations and financial condition may be
materially adversely affected. Please see the disclosure under the
heading “Risk Factors” in our Annual Report on Form 20-F filed with
the SEC on March 3, 2020 and the updated risk factors in the
Company’s Quarterly Report on Form 6-K filed with the SEC on
November 10, 2020 (Exhibit 99.2, under the caption “Forward-Looking
Statements”). For these reasons, the contracted charter revenue
information presented above is not fact and should not be relied
upon as being necessarily indicative of future results and readers
are cautioned not to place undue reliance on this information.
Neither the Partnership’s independent auditors, nor any other
independent accountants, have compiled, examined or performed any
procedures with respect to the information presented in the table,
nor have they expressed any opinion or any other form of assurance
on such information or its achievability, and assume no
responsibility for, and disclaim any association with, the
information in the table.
Conference Call
GasLog Partners and GasLog will host a joint conference call to
discuss their results for the fourth quarter of 2020 at 8.30 a.m.
EST (3.30 p.m. EET) on Monday, February 22, 2021. Senior management
of GasLog Partners and GasLog will review the operational and
financial performance of the companies. The presentation of each
company’s fourth quarter results will be followed by separate
Q&A sessions for each company.
The dial-in numbers for the conference call are as follows:
+1 855 253 8928 (USA)+44 20 3107 0289 (United Kingdom)+33 1 70
80 71 53 (France)+852 5819 4851 (Hong Kong)+47 2396 4173 (Oslo)
Conference ID: 5262308
A live webcast of the conference call will also be available on
the Investor Relations page of the GasLog Partners website
(http://www.gaslogmlp.com/investors).
For those unable to participate in the conference call, a replay
of the webcast will be available on the Investor Relations pages of
the company website as referenced above.
About GasLog Partners
GasLog Partners is a growth-oriented owner, operator and
acquirer of LNG carriers. The Partnership’s fleet consists of 15
LNG carriers with an average carrying capacity of approximately
158,000 cbm. GasLog Partners is a publicly traded master limited
partnership (NYSE: GLOP) but has elected to be treated as a C
corporation for U.S. income tax purposes and therefore its
investors receive an Internal Revenue Service Form 1099 with
respect to any distributions declared and received. The
Partnership’s principal executive offices are located at 69 Akti
Miaouli, 18537, Piraeus, Greece. Visit GasLog Partners’ website at
http://www.gaslogmlp.com.
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 Partnership 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 distributions, and the
impact of cash distribution reductions on the Partnership’s
business and growth prospects, plans, strategies 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 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 wages,
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;
- disruption to the LNG, LNG shipping and financial markets
caused by the global shutdown as a result of the COVID-19
pandemic;
- 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
the 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;
- the ability of GasLog to maintain long-term relationships with
major energy companies and major LNG producers, marketers and
consumers;
- 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 cash distribution
reductions 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, funding by GasLog of the revolving credit facility 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;
- the impact on us and the shipping industry of environmental
concerns, including climate change;
- 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, 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 on March 3, 2020 and
Quarterly Reports on Form 6-K filed with the SEC on May 7, 2020,
August 5, 2020 and November 10, 2020, 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 Marshall
Islands law and such other factors as our board of directors may
deem relevant.
Contacts:
Joseph NelsonHead of Investor RelationsPhone:
+1-212-223-0643
E-mail: ir@gaslogmlp.com
EXHIBIT I – Unaudited Interim Financial
Information
Unaudited condensed consolidated
statements of financial positionAs of December 31,
2019 and December 31, 2020(All amounts expressed
in thousands of U.S. Dollars, except unit data)
|
|
|
|
December
31,2019 |
|
December
31,2020 |
|
Assets |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
Other non-current assets |
|
|
|
128 |
|
186 |
|
Tangible fixed assets |
|
|
|
2,286,430 |
|
2,206,618 |
|
Right-of-use assets |
|
|
|
1,033 |
|
516 |
|
Total non-current
assets |
|
|
|
2,287,591 |
|
2,207,320 |
|
Current
assets |
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
|
7,147 |
|
16,265 |
|
Inventories |
|
|
|
3,353 |
|
3,036 |
|
Prepayments and other current
assets |
|
|
|
1,597 |
|
2,691 |
|
Derivative financial
instruments |
|
|
|
372 |
|
— |
|
Cash and cash equivalents |
|
|
|
96,884 |
|
103,736 |
|
Total current
assets |
|
|
|
109,353 |
|
125,728 |
|
Total
assets |
|
|
|
2,396,944 |
|
2,333,048 |
|
Partners’ equity and
liabilities |
|
|
|
|
|
|
|
Partners’
equity |
|
|
|
|
|
|
|
Common unitholders (46,860,182
units issued and outstanding as of December 31, 2019 and 47,517,824
units issued and outstanding as of December 31, 2020) |
|
|
|
606,811 |
|
594,901 |
|
General partner (1,021,336
units issued and outstanding as of December 31, 2019 and December
31, 2020) |
|
|
|
11,271 |
|
11,028 |
|
Preference unitholders
(5,750,000 Series A Preference Units, 4,600,000 Series B Preference
Units and 4,000,000 Series C Preference Units issued and
outstanding as of December 31, 2019 and December 31, 2020) |
|
|
|
347,889 |
|
347,889 |
|
Total partners’
equity |
|
|
|
965,971 |
|
953,818 |
|
Current
liabilities |
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
16,630 |
|
13,578 |
|
Due to related parties |
|
|
|
5,642 |
|
7,525 |
|
Derivative financial
instruments |
|
|
|
2,607 |
|
8,185 |
|
Other payables and
accruals |
|
|
|
51,570 |
|
50,679 |
|
Borrowings—current
portion |
|
|
|
109,822 |
|
104,908 |
|
Lease liabilities—current
portion |
|
|
|
472 |
|
332 |
|
Total current
liabilities |
|
|
|
186,743 |
|
185,207 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
Derivative financial
instruments |
|
|
|
6,688 |
|
12,152 |
|
Borrowings—non-current
portion |
|
|
|
1,236,202 |
|
1,180,635 |
|
Lease liabilities—non-current
portion |
|
|
|
414 |
|
112 |
|
Other non-current
liabilities |
|
|
|
926 |
|
1,124 |
|
Total non-current
liabilities |
|
|
|
1,244,230 |
|
1,194,023 |
|
Total partners’ equity
and liabilities |
|
|
|
2,396,944 |
|
2,333,048 |
|
Unaudited condensed consolidated statements of profit or
lossFor the three-month periods and the years
ended December 31, 2019 and December 31, 2020(All
amounts expressed in thousands of U.S. Dollars, except per unit
data)
|
|
|
|
For the three months ended |
|
For the years ended |
|
|
|
|
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
Revenues |
|
|
|
96,512 |
|
85,048 |
|
378,687 |
|
333,662 |
|
Net pool allocation |
|
|
|
— |
|
— |
|
1,058 |
|
— |
|
Voyage expenses and
commissions |
|
|
|
(1,761 |
) |
(1,527 |
) |
(7,308 |
) |
(10,443 |
) |
Vessel operating costs |
|
|
|
(21,447 |
) |
(19,483 |
) |
(76,742 |
) |
(74,798 |
) |
Depreciation |
|
|
|
(22,483 |
) |
(21,208 |
) |
(89,309 |
) |
(83,058 |
) |
General and administrative
expenses |
|
|
|
(5,049 |
) |
(4,989 |
) |
(19,401 |
) |
(18,960 |
) |
Impairment loss on vessels |
|
|
|
(138,848 |
) |
(5,082 |
) |
(138,848 |
) |
(23,923 |
) |
(Loss)/profit from operations |
|
|
|
(93,076 |
) |
32,759 |
|
48,137 |
|
122,480 |
|
Financial costs |
|
|
|
(16,348 |
) |
(9,970 |
) |
(71,998 |
) |
(50,987 |
) |
Financial income |
|
|
|
329 |
|
10 |
|
1,887 |
|
295 |
|
Gain/(loss) on derivatives |
|
|
|
2,733 |
|
(188 |
) |
(12,795 |
) |
(14,929 |
) |
Total other expenses, net |
|
|
|
(13,286 |
) |
(10,148 |
) |
(82,906 |
) |
(65,621 |
) |
(Loss)/profit and total
comprehensive (loss)/income for the period |
|
|
|
(106,362 |
) |
22,611 |
|
(34,769 |
) |
56,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings per
unit basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
Common unit, basic |
|
|
|
(2.37 |
) |
0.31 |
|
(1.43 |
) |
0.55 |
|
Common unit, diluted |
|
|
|
(2.37 |
) |
0.30 |
|
(1.43 |
) |
0.52 |
|
General partner unit |
|
|
|
(2.38 |
) |
0.31 |
|
(1.52 |
) |
0.55 |
|
Unaudited condensed consolidated statements of cash
flowsFor the years ended
December 31, 2019 and December 31,
2020(All amounts expressed in thousands of U.S.
Dollars)
|
|
|
|
For the years ended |
|
|
|
|
|
December
31,2019 |
|
|
December
31,2020 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
(Loss)/profit for the
year |
|
|
|
(34,769 |
) |
|
56,859 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
89,309 |
|
|
83,058 |
|
Impairment loss on
vessels |
|
|
|
138,848 |
|
|
23,923 |
|
Financial costs |
|
|
|
71,998 |
|
|
50,987 |
|
Financial income |
|
|
|
(1,887 |
) |
|
(295 |
) |
Unrealized loss on derivatives
held for trading |
|
|
|
13,858 |
|
|
8,568 |
|
Share-based compensation |
|
|
|
1,158 |
|
|
1,908 |
|
Realized foreign exchange
losses |
|
|
|
542 |
|
|
— |
|
|
|
|
|
279,057 |
|
|
225,008 |
|
Movements in working
capital |
|
|
|
27,763 |
|
|
(11,305 |
) |
Cash provided by
operations |
|
|
|
306,820 |
|
|
213,703 |
|
Interest paid |
|
|
|
(67,759 |
) |
|
(47,088 |
) |
Net cash provided by
operating activities |
|
|
|
239,061 |
|
|
166,615 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Payments for tangible fixed
assets |
|
|
|
(13,940 |
) |
|
(23,618 |
) |
Return of capital
expenditures |
|
|
|
7,465 |
|
|
— |
|
Financial income received |
|
|
|
1,950 |
|
|
326 |
|
Maturity of short-term
investments |
|
|
|
43,000 |
|
|
— |
|
Purchase of short-term
investments |
|
|
|
(33,000 |
) |
|
— |
|
Net cash provided
by/(used in) investing activities |
|
|
|
5,475 |
|
|
(23,292 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Borrowings drawdowns |
|
|
|
445,000 |
|
|
479,984 |
|
Borrowings repayments |
|
|
|
(465,195 |
) |
|
(540,701 |
) |
Payment of loan issuance
costs |
|
|
|
(6,173 |
) |
|
(7,362 |
) |
Proceeds from entering into
interest rate swaps |
|
|
|
— |
|
|
16,056 |
|
Payments for interest rate
swaps termination |
|
|
|
— |
|
|
(13,210 |
) |
Proceeds from issuances of
general partner units |
|
|
|
1,996 |
|
|
— |
|
Repurchases of common
units |
|
|
|
(22,890 |
) |
|
(996 |
) |
Payment of offering costs |
|
|
|
(1,670 |
) |
|
(146 |
) |
Cash distribution to GasLog in
exchange for contribution of net assets |
|
|
|
(93,646 |
) |
|
— |
|
Distributions paid |
|
|
|
(137,953 |
) |
|
(69,556 |
) |
Payments for lease
liabilities |
|
|
|
(491 |
) |
|
(540 |
) |
Net cash used in
financing activities |
|
|
|
(281,022 |
) |
|
(136,471 |
) |
(Decrease)/increase in
cash and cash equivalents |
|
|
|
(36,486 |
) |
|
6,852 |
|
Cash and cash equivalents,
beginning of the year |
|
|
|
133,370 |
|
|
96,884 |
|
Cash and cash
equivalents, end of the year |
|
|
|
96,884 |
|
|
103,736 |
|
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 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 and (d) restructuring costs. Adjusted
EPU, represents earnings attributable to unitholders 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 and (d) restructuring costs. 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 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 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. In the current year,
restructuring costs have been 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. In the current year and prior year, impairment loss
has been 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.
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 U.S.
Dollars)
|
For the three months ended |
|
For the years ended |
|
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
(Loss)/profit for the period |
(106,362 |
) |
22,611 |
|
(34,769 |
) |
56,859 |
|
Depreciation |
22,483 |
|
21,208 |
|
89,309 |
|
83,058 |
|
Financial costs |
16,348 |
|
9,970 |
|
71,998 |
|
50,987 |
|
Financial income |
(329 |
) |
(10 |
) |
(1,887 |
) |
(295 |
) |
(Gain)/loss on derivatives |
(2,733 |
) |
188 |
|
12,795 |
|
14,929 |
|
EBITDA |
(70,593 |
) |
53,967 |
|
137,446 |
|
205,538 |
|
Impairment loss on vessels |
138,848 |
|
5,082 |
|
138,848 |
|
23,923 |
|
Restructuring costs |
— |
|
— |
|
— |
|
1,174 |
|
Adjusted EBITDA |
68,255 |
|
59,049 |
|
276,294 |
|
230,635 |
|
Reconciliation of Profit to Adjusted
Profit:
(Amounts expressed in thousands of U.S.
Dollars)
|
|
|
For the three months ended |
|
For the years ended |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
(Loss)/profit for the period |
(106,362 |
) |
22,611 |
|
(34,769 |
) |
56,859 |
Non-cash (gain)/loss on derivatives |
(2,840 |
) |
(1,767 |
) |
13,858 |
|
8,568 |
Write-off and accelerated amortization of unamortized loan
fees |
— |
|
— |
|
988 |
|
1,918 |
Impairment loss on vessels |
138,848 |
|
5,082 |
|
138,848 |
|
23,923 |
Restructuring costs |
— |
|
— |
|
— |
|
1,174 |
Adjusted Profit |
29,646 |
|
25,926 |
|
118,925 |
|
92,442 |
Reconciliation of Profit to EPU and Adjusted
EPU:
(Amounts expressed in thousands of U.S.
Dollars)
|
For the three months ended |
|
For the years ended |
|
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
(Loss)/profit for the period |
(106,362 |
) |
22,611 |
|
(34,769 |
) |
56,859 |
|
Less: |
|
|
|
|
|
|
|
|
Profit attributable to
GasLog’s operations |
— |
|
— |
|
(2,650 |
) |
— |
|
(Loss)/profit
attributable to Partnership’s operations |
(106,362 |
) |
22,611 |
|
(37,419 |
) |
56,859 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Paid and accrued preference
unit distributions |
(7,582 |
) |
(7,582 |
) |
(30,328 |
) |
(30,328 |
) |
Partnership’s (loss)/profit attributable
to: |
(113,944 |
) |
15,029 |
|
(67,747 |
) |
26,531 |
|
Common units |
(111,514 |
) |
14,714 |
|
(66,268 |
) |
25,970 |
|
General partner units |
(2,430 |
) |
315 |
|
(1,479 |
) |
561 |
|
Incentive distribution rights |
N/A |
|
N/A |
|
— |
|
N/A |
|
Weighted average units outstanding (basic)
|
|
|
|
|
|
|
|
|
Common units |
46,986,958 |
|
47,517,824 |
|
46,272,598 |
|
47,042,494 |
|
General partner units |
1,021,336 |
|
1,021,336 |
|
975,531 |
|
1,021,336 |
|
EPU (basic) |
|
|
|
|
|
|
|
|
Common units |
(2.37 |
) |
0.31 |
|
(1.43 |
) |
0.55 |
|
General partner units |
(2.38 |
) |
0.31 |
|
(1.52 |
) |
0.55 |
|
|
|
|
|
For the three months ended |
|
For the years ended |
|
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
(Loss)/profit for the period |
(106,362 |
) |
22,611 |
|
(34,769 |
) |
56,859 |
|
Less: |
|
|
|
|
|
|
|
|
Profit attributable to
GasLog’s operations |
— |
|
— |
|
(2,650 |
) |
— |
|
(Loss)/profit
attributable to Partnership’s operations |
(106,362 |
) |
22,611 |
|
(37,419 |
) |
56,859 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Paid and accrued preference
unit distributions |
(7,582 |
) |
(7,582 |
) |
(30,328 |
) |
(30,328 |
) |
Partnership’s (loss)/profit used in EPU
calculation |
(113,944 |
) |
15,029 |
|
(67,747 |
) |
26,531 |
|
Non-cash (gain)/loss on derivatives |
(2,840 |
) |
(1,767 |
) |
13,858 |
|
8,568 |
|
Write-off and accelerated amortization of unamortized loan
fees |
— |
|
— |
|
988 |
|
1,918 |
|
Impairment loss on vessels |
138,848 |
|
5,082 |
|
138,848 |
|
23,923 |
|
Restructuring costs |
— |
|
— |
|
— |
|
1,174 |
|
Adjusted Partnership’s profit/(loss) used in EPU
calculation attributable to: |
22,064 |
|
18,344 |
|
85,947 |
|
62,114 |
|
Common units |
21,593 |
|
17,961 |
|
84,168 |
|
60,793 |
|
General partner units |
471 |
|
383 |
|
1,779 |
|
1,321 |
|
Incentive distribution rights |
N/A |
|
N/A |
|
— |
|
N/A |
|
Weighted average units outstanding (basic)
|
|
|
|
|
|
|
|
|
Common units |
46,986,958 |
|
47,517,824 |
|
46,272,598 |
|
47,042,494 |
|
General partner units |
1,021,336 |
|
1,021,336 |
|
975,531 |
|
1,021,336 |
|
Adjusted EPU (basic) |
|
|
|
|
|
|
|
|
Common units |
0.46 |
|
0.38 |
|
1.82 |
|
1.29 |
|
General partner units |
0.46 |
|
0.37 |
|
1.82 |
|
1.29 |
|
Distributable Cash Flow
Distributable cash flow means Adjusted EBITDA, on the basis of
the profit attributable to Partnership’s operations(1) (as
calculated above), after considering financial costs for the
period, including realized loss on derivatives (interest rate swaps
and forward foreign exchange contracts) and excluding amortization
of loan fees, lease expense, estimated dry-docking and replacement
capital reserves established by the Partnership and accrued
distributions on preference units, whether or not declared.
Estimated dry-docking and replacement capital reserves represent
capital expenditures required to renew and maintain over the
long-term the operating capacity of, or the revenues generated by,
our capital assets. Distributable cash flow, which is a non-GAAP
financial measure, is a quantitative standard used by investors in
publicly traded partnerships to assess their ability to make
quarterly cash distributions. Our calculation of Distributable cash
flow may not be comparable to that reported by other companies.
Distributable cash flow has limitations as an analytical tool and
should not be considered as an alternative to, or substitute for,
or superior to, profit or loss, profit or loss from operations,
earnings per unit or any other measure of operating performance
presented in accordance with IFRS. The table below reconciles
Distributable cash flow to (Loss)/profit for the period.
Reconciliation of Distributable Cash Flow to
(Loss)/profit:
(Amounts expressed in thousands of U.S.
Dollars)
|
For the three months ended |
|
For the years ended |
|
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019(1) |
|
December 31, 2020 |
|
(Loss)/profit for the
period |
(106,362 |
) |
22,611 |
|
(34,769 |
) |
56,859 |
|
Less: |
|
|
|
|
|
|
|
|
Profit attributable to
GasLog’s operations |
— |
|
— |
|
(2,650 |
) |
— |
|
(Loss)/profit
attributable to Partnership’s
operations(1) |
(106,362 |
) |
22,611 |
|
(37,419 |
) |
56,859 |
|
Depreciation |
22,483 |
|
21,208 |
|
87,819 |
|
83,058 |
|
Financial costs |
16,348 |
|
9,970 |
|
70,268 |
|
50,987 |
|
Financial income |
(329 |
) |
(10 |
) |
(1,873 |
) |
(295 |
) |
(Gain)/loss on
derivatives |
(2,733 |
) |
188 |
|
12,795 |
|
14,929 |
|
EBITDA |
(70,593 |
) |
53,967 |
|
131,590 |
|
205,538 |
|
Impairment loss on
vessels |
138,848 |
|
5,082 |
|
138,848 |
|
23,923 |
|
Restructuring costs |
— |
|
— |
|
— |
|
1,174 |
|
Adjusted
EBITDA |
68,255 |
|
59,049 |
|
270,438 |
|
230,635 |
|
Financial costs (excluding
amortization of loan fees and lease expense) and realized loss on
derivatives |
(15,036 |
) |
(10,674 |
) |
(62,507 |
) |
(49,882 |
) |
Dry-docking capital reserve
(2) |
(4,170 |
) |
(4,027 |
) |
(16,392 |
) |
(16,108 |
) |
Replacement capital reserve
(2) |
(9,686 |
) |
(10,769 |
) |
(38,103 |
) |
(43,076 |
) |
Paid and accrued preferred
equity distribution |
(7,582 |
) |
(7,582 |
) |
(30,328 |
) |
(30,328 |
) |
Distributable cash
flow |
31,781 |
|
25,997 |
|
123,108 |
|
91,241 |
|
Other reserves (3) |
(5,027 |
) |
(25,512 |
) |
(16,366 |
) |
(78,282 |
) |
Cash distribution
declared |
26,754 |
|
485 |
|
106,742 |
|
12,959 |
|
(1) Excludes amounts related
to GAS-twelve Ltd., the owner of the GasLog Glasgow for the period
prior to its transfer to the Partnership on April 1, 2019. While
such amounts are reflected in the Partnership’s unaudited condensed
consolidated financial statements because the transfer to the
Partnership was accounted for as a reorganization of entities under
common control under IFRS, GAS-twelve Ltd. was not owned by the
Partnership prior to its respective transfer to the Partnership in
April 2019 and accordingly the Partnership was not entitled to the
cash or results generated in the period prior to such transfer.
(2)
Effective January 1, 2020, the Partnership revised the assumed
re-investment rate used in calculating the dry-docking capital
reserve and the replacement capital reserve to reflect recent
movements in market interest rate
forecasts. (3)
Refers to movements in reserves (other than the dry-docking and
replacement capital reserves) for the proper conduct of the
business of the Partnership and its subsidiaries.
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