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 ended June 30, 2021.
Highlights
- Announced three new time charter agreements: a one-year charter
for the GasLog Sydney with a subsidiary of TotalEnergies SE
(“TotalEnergies”), an eight-month charter for the Solaris with a
subsidiary of Royal Dutch Shell plc (“Shell”) and a charter with a
minimum duration of one year (and a maximum of three years) for the
Methane Heather Sally with a wholly owned subsidiary of Cheniere
Energy, Inc. (“Cheniere”).
- Post quarter-end signed a new one-year time charter agreement
for the GasLog Seattle with TotalEnergies.
- Repaid $18.8 million of debt during the second quarter of 2021,
or $54.8 million of debt in the first six months of 2021.
- Published the Partnership’s Sustainability Report for 2020 on
July 20, 2021.
- Announced the appointment of Paolo Enoizi, currently Chief
Operating Officer of GasLog Ltd. (“GasLog”), as a director of the
Partnership and as Chief Executive Officer of the Partnership,
effective August 1, 2021.
- Executed scheduled dry-dockings for three of our vessels, the
Methane Rita Andrea, the GasLog Greece and the GasLog Glasgow,
resulting in a total of 82 scheduled off-hire days during the
quarter (compared to nil in the second quarter in 2020).
- Quarterly Revenues, Profit, Adjusted Profit(1) and Adjusted
EBITDA(1) of $70.4 million, $14.7 million, $12.7 million and $45.0
million, respectively.
- Quarterly Earnings per unit (“EPU”) of $0.14 and Adjusted
EPU(1) of $0.10.
- Declared cash distribution of $0.01 per common unit for the
second quarter of 2021.
CEO Statement
Paul Wogan, Chief Executive Officer, commented: “The
Partnership’s fleet performed strongly in the second quarter of
2021, with uptime of close to 100%, allowing us to safely deliver
nearly one million tonnes (“mt”) of LNG to customers around the
world. We also repaid $18.8 million of debt, bringing the total
amount of debt retired in 2021 to $54.8 million. In addition,
within the last month we took advantage of a strong LNG shipping
market and booked four new multi-month charters with leading
customers at attractive rates, that also allowed us to lock in
100.0% charter coverage for the remainder of 2021 and 69.2% for
2022. This fixed charter coverage along with the cash flows
generated during the first half of 2021 more than covers all the
Partnership’s operating, overhead, dry-docking and debt service
requirements for 2021 and 2022.
Our capital allocation for 2021 will continue to prioritize debt
repayment to reduce further our breakeven costs over time. We also
expect continued reductions to our operating and overhead expenses.
With these ongoing improvements to our cost base and continued high
levels of service and reliability, we believe that the Partnership
continues to position itself to be a leader in the short-term
market for LNG
shipping.”
New Charter Agreements
During the second quarter of 2021, GasLog Partners entered into
a one-year time charter agreement with TotalEnergies for the GasLog
Sydney, a 155,000 cubic meter (“cbm”) tri-fuel diesel electric
(“TFDE”) LNG carrier, built in 2013. In addition, following the
conclusion of the Solaris’ initial multi-year time charter with
Shell in late July 2021, its contract was extended for
approximately eight months, through the end of the first quarter of
2022. The Solaris is a 155,000 cbm TFDE LNG carrier built in 2014.
Finally, a new time charter agreement was signed with Cheniere for
the Methane Heather Sally, a 145,000 cbm steam turbine propulsion
(“Steam”) LNG carrier built in 2007. The charter has a minimum
duration of one year, with Cheniere having the option, until late
August, to extend the charter for an additional one or two years at
varying rates.
Post quarter-end, in July 2021, GasLog Partners rechartered an
additional vessel with TotalEnergies, the 155,000 cbm TFDE vessel
GasLog Seattle, built in 2013, again for a period of approximately
twelve months.
Financial Summary
|
|
For the three months ended |
|
% Change |
|
(All amounts expressed
in thousands of U.S. dollars, except per unit
amounts) |
|
June 30,
2020 |
|
June 30, 2021 |
|
|
Revenues |
|
84,448 |
|
70,352 |
|
(17 |
% |
) |
Profit |
|
8,213 |
|
14,663 |
|
79 |
% |
|
EPU, common (basic) |
|
0.01 |
|
0.14 |
|
1300 |
% |
|
Adjusted Profit(1) |
|
25,619 |
|
12,701 |
|
(50 |
% |
) |
Adjusted EBITDA(1) |
|
60,350 |
|
44,968 |
|
(25 |
% |
) |
Adjusted EPU, common (basic)(1) |
|
0.38 |
|
0.10 |
|
(74 |
% |
) |
Cash distributions declared |
|
6,022 |
|
518 |
|
(91 |
% |
) |
There were 1,283 available days for the three months ended June
30, 2021, as compared to 1,365 available days for the three months
ended June 30, 2020. The year-over-year decrease in available days
is attributable to 82 off-hire days due to the scheduled
dry-dockings of three vessels in the second quarter of 2021
(compared to nil in the second quarter of 2020).
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 June 30, 2020 and 2021, an analysis
of available days, revenues and voyage expenses and commissions per
category is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June
30, 2020 |
|
For the three months ended June
30, 2021 |
|
Amounts
in thousands of U.S. dollars |
|
Spot fleet |
|
Long-term fleet |
|
Spot fleet |
|
Long-term fleet |
|
Available days (*) |
|
565 |
|
800 |
|
761 |
|
522 |
|
Revenues |
|
20,523 |
|
63,925 |
|
27,471 |
|
42,881 |
|
Voyage expenses and commissions |
|
(1,873 |
) |
(909 |
) |
(1,064 |
) |
(788 |
) |
(*) 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 $14.0 million, from $84.4 million for the
quarter ended June 30, 2020, to $70.4 million for the same period
in 2021. The decrease is mainly attributable to the expirations of
the initial multi-year time charters of three of our Steam vessels
with Shell in 2020 and early 2021 (which were at higher rates
compared to their current re-contracted rates) and a decrease in
revenues resulting from the 82 off-hire days due to the scheduled
dry-dockings of three of our vessels in the second quarter of 2021
(compared to none in the same period in 2020).
Vessel operating costs increased by $3.1 million, from $16.9
million for the quarter ended June 30, 2020, to $20.0 million for
the same period in 2021. The increase in vessel operating costs is
mainly attributable to an increase of $1.7 million in technical
maintenance expenses primarily in connection with the dry-dockings
of three of our vessels in the second quarter of 2021 (compared to
none in the same period in 2020) and an increase of $0.9 million in
crew costs, mainly as a result of COVID-19 restrictions (increased
costs for travelling and quarantines) and the unfavorable movement
of the EUR/USD exchange rate compared to the same period in 2020.
Daily operating costs per vessel (after excluding calendar days for
the Solaris, the operating costs of which are covered by the
charterers) increased from $13,261 per day for the three-month
period ended June 30, 2020 to $15,734 per day for the three-month
period ended June 30, 2021, which includes dry-docking related
costs of $1,109 per day in the three-month period ended June 30,
2021.
General and administrative expenses decreased by $0.9 million,
from $4.4 million for the three-month period ended June 30, 2020,
to $3.5 million for the same period in 2021. The decrease in
general and administrative expenses is mainly attributable to a
decrease of $0.8 million in administrative services fees, in
connection with the decrease of the annual fee payable to GasLog in
2021 by approximately $0.2 million per vessel per year. The
decrease in the annual fee was driven by organizational changes and
corporate savings at GasLog. As a result, daily general and
administrative expenses decreased from $3,238 per vessel ownership
day for the quarter ended June 30, 2020, to $2,554 per vessel
ownership day for the quarter ended June 30, 2021.
The decrease in Adjusted EBITDA(1) of $15.4 million, from $60.4
million in the second quarter of 2020 as compared to $45.0 million
in the same period in 2021, is attributable to the decrease in
revenues of $14.0 million and increased operating expenses of $3.1
million described above, partially offset by an aggregate decrease
of $1.8 million in voyage and general and administrative
expenses.
Financial costs decreased by $4.0 million, from $13.1 million
for the quarter ended June 30, 2020, to $9.1 million for the same
period in 2021. The decrease in financial costs is mainly
attributable to a decrease of $3.8 million in interest expense on
loans, due to the lower London Interbank Offered Rate (“LIBOR”)
rates in the three months ended June 30, 2020, as compared to the
same period in 2021, as well as the reduced debt balances
year-over-year. During the three-month period ended June 30, 2020,
we had an average of $1,346.2 million of outstanding indebtedness
with a weighted average interest rate of 3.4%, compared to an
average of $1,261.1 million of outstanding indebtedness with a
weighted average interest rate of 2.4% during the three-month
period ended June 30, 2021.
Gain on derivatives decreased by $0.8 million, from a gain of
$0.4 million for the three-month period ended June 30, 2020 to a
loss of $0.4 million for the same period in 2021. The decrease is
attributable to a net increase of $1.3 million in realized loss on
derivatives held for trading (in 2021, interest rate swaps only),
partially offset by a net increase of $0.5 million 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 of $6.5 million from $8.2 million in the
second quarter of 2020 to $14.7 million in the second quarter of
2021 is mainly attributable to an impairment loss of $18.8 million
recorded in the three months ended June 30, 2020 and the
aforementioned decrease of $4.0 million in financial costs,
partially offset by the decrease in Adjusted EBITDA(1) described
above.
The decrease in Adjusted Profit(1) of $12.9 million, from $25.6
million in the second quarter of 2020 to $12.7 million in the
second quarter of 2021, is attributable to the decrease in Adjusted
EBITDA(1) described above, partially offset by the aforementioned
decrease of $4.0 million in financial costs.
As of June 30, 2021, we had $119.8 million of cash and cash
equivalents, out of which $62.9 million was held in current
accounts and $56.9 million was held in time deposits with an
original duration of less than three months. An additional amount
of $2.5 million of time deposits with an original duration greater
than three months was classified under short-term investments.
As of June 30, 2021, we had an aggregate of $1,233.1 million of
borrowings outstanding under our credit facilities, of which $105.1
million was repayable within one year.
As of June 30, 2021, our current assets totaled $141.6 million
and current liabilities totaled $183.2 million, resulting in a
negative working capital position of $41.6 million. Current
liabilities include $25.3 million of unearned revenue in relation
to hires received in advance (which represents a non-cash liability
that will be recognized as revenues in July 2021 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. 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 ability to access the capital
markets if needed, will be sufficient to meet our liquidity needs
and comply with our banking covenants for at least twelve months
from the date of this report.
(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.
LNG Market Update and
Outlook
LNG demand was 95 mt in the second quarter of 2021, according to
Poten, compared to 86 mt in the second quarter of 2020, an increase
of approximately 11%. Demand growth was particularly strong in Asia
and South America. Specifically, demand increased, year-over-year,
in China (+4 mt, or 25%), Japan (+1 mt, or 7%) and South Korea (+1
mt, or 9%), the three largest end markets for LNG, as these
countries rebuilt inventories following a colder than average
winter ahead of summer cooling demand. In addition, demand from
Argentina, Brazil and Chile together grew by approximately 3 mt (or
116%) year-over-year due to lower hydroelectric output from the
region. Growth from these regions was offset by a decline of
approximately 2 mt (or 35%) from the Middle East.
Global LNG supply was approximately 96 mt in the second quarter
of 2021, growing by 8 mt (or 9%) year-over-year, according to
Poten. Supply growth in the second quarter was particularly strong
in the United States (“U.S.”) which increased production by 7 mt
(or 61%) year-over-year, due to higher utilization from existing
liquefaction trains as well as the ramp-up of production at the
third trains at Freeport LNG, Cameron LNG and Corpus Christi LNG.
The resumption of LNG exports from Egypt helped grow supply from
the Middle East by approximately 2 mt (or 32%) while increased
utilization of existing facilities saw Russian LNG production grow
by approximately 1 mt (or 17%). Growth from these three regions
offset declines from Trinidad and Norway. Looking ahead,
approximately 125 mt of new LNG capacity is currently under
construction and scheduled to come online between 2021 and
2026.
Headline spot rates for TFDE LNG carriers, as reported by
Clarksons, averaged $58,000 per day in the second quarter of 2021,
a 61% increase over the $36,000 per day average in the second
quarter of 2020. Headline spot rates for Steam vessels averaged
$45,000 per day in the second quarter of 2021, 96% higher than the
average of $23,000 per day in the second quarter of 2020. Headline
spot rates in the second quarter benefited from LNG demand growth
from Asia combined with LNG supply growth in the US as detailed
above.
As of July 23, 2021, Clarksons assessed headline spot rates for
TFDE and Steam LNG carriers at $56,000 per day and $39,000 per day,
respectively. Forward assessments for LNG carrier spot rates
indicate rising spot rates through the remainder of the year.
However, the magnitude and pace of any sustained upward movement in
spot rates will depend on both the continued recovery of LNG demand
and LNG price differentials between the major export and import
regions, whilst the forecasted growth of the global LNG carrier
fleet combined with any slow-down in demand could create volatility
in the spot and short-term markets over the near and
medium-term.
As of July 23, 2021, Poten estimated that the orderbook totaled
126 dedicated LNG carriers (>100,000 cbm), representing 19% of
the on-the-water fleet. Of these, 106 vessels (or 84%) have
multi-year charters. 31 orders have been placed for newbuild LNG
carriers in 2021 as of July 23, 2021 compared with 34 for all of
2020.
ATM Common Equity Offering
Programme (“ATM
Programme”)
During the second quarter of 2021, GasLog Partners issued and
received payment for 3,195,401 common units at a weighted average
price of $3.19 per common unit for total gross proceeds of $10.2
million and net proceeds of $10.0 million, after broker
commissions. During this period, the Partnership also issued 56,158
general partner units to its general partner in order for GasLog to
retain its 2.0% general partner interest. The net proceeds from the
issuance of the general partner units were $0.2 million.
Preference Unit
Distributions
On July 26, 2021, 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 are
payable on September 15, 2021 to all unitholders of record as of
September 8, 2021.
Common Unit Distribution
On July 26, 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 June 30, 2021. The cash
distribution is payable on August 12, 2021 to all unitholders of
record as of August 9, 2021.
Conference Call
GasLog Partners will host a conference call to discuss its
results for the second quarter of 2021 at 8.30 a.m. EDT (3.30 p.m.
EEST) on Tuesday, July 27, 2021. The Partnership’s senior
management will review the 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:
+1 855 253 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: 6766434
A live webcast of the conference call will 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 page of
the GasLog Partners website
(http://www.gaslogmlp.com/investors).
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 changes to cash distributions 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 2, 2021,
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 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, 2020
and June 30,
2021(All amounts expressed in
thousands of U.S. Dollars, except unit data)
|
|
|
|
December 31,2020 |
|
June
30,2021 |
|
Assets |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Other non-current assets |
|
|
|
186 |
|
88 |
|
Tangible fixed assets |
|
|
|
2,206,618 |
|
2,174,891 |
|
Right-of-use assets |
|
|
|
516 |
|
602 |
|
Total non-current assets |
|
|
|
2,207,320 |
|
2,175,581 |
|
Current assets |
|
|
|
|
|
|
|
Trade and other receivables |
|
|
|
16,265 |
|
13,948 |
|
Inventories |
|
|
|
3,036 |
|
3,146 |
|
Prepayments and other current assets |
|
|
|
2,691 |
|
2,171 |
|
Short-term investments |
|
|
|
— |
|
2,500 |
|
Cash and cash equivalents |
|
|
|
103,736 |
|
119,816 |
|
Total current assets |
|
|
|
125,728 |
|
141,581 |
|
Total assets |
|
|
|
2,333,048 |
|
2,317,162 |
|
Partners’ equity and liabilities |
|
|
|
|
|
|
|
Partners’
equity |
|
|
|
|
|
|
|
Common unitholders (47,517,824 units issued and outstanding as of
December 31, 2020 and 50,722,201 units issued and outstanding as of
June 30, 2021) |
|
|
|
594,901 |
|
637,843 |
|
General partner (1,021,336 units issued and outstanding as of
December 31, 2020 and 1,077,494 units issued and outstanding as of
June 30, 2021) |
|
|
|
11,028 |
|
11,949 |
|
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, 2020 and
June 30, 2021) |
|
|
|
347,889 |
|
347,889 |
|
Total partners’ equity |
|
|
|
953,818 |
|
997,681 |
|
Current liabilities |
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
13,578 |
|
13,222 |
|
Due to related parties |
|
|
|
7,525 |
|
1,466 |
|
Derivative financial instruments—current portion |
|
|
|
8,185 |
|
7,632 |
|
Other payables and accruals |
|
|
|
50,679 |
|
55,447 |
|
Borrowings—current portion |
|
|
|
104,908 |
|
105,065 |
|
Lease liabilities—current portion |
|
|
|
332 |
|
363 |
|
Total current liabilities |
|
|
|
185,207 |
|
183,195 |
|
Non-current liabilities |
|
|
|
|
|
|
|
Derivative financial instruments—non-current portion |
|
|
|
12,152 |
|
7,136 |
|
Borrowings—non-current portion |
|
|
|
1,180,635 |
|
1,128,079 |
|
Lease liabilities—non-current portion |
|
|
|
112 |
|
197 |
|
Other non-current liabilities |
|
|
|
1,124 |
|
874 |
|
Total non-current liabilities |
|
|
|
1,194,023 |
|
1,136,286 |
|
Total partners’ equity and liabilities |
|
|
|
2,333,048 |
|
2,317,162 |
|
Unaudited condensed consolidated statements of profit or
lossFor the three and
six months ended June
30,
2020 and
2021(All amounts expressed in
thousands of U.S.
Dollars, except per unit
data)
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
Revenues |
|
|
|
84,448 |
|
70,352 |
|
175,801 |
|
157,440 |
|
Voyage expenses and commissions |
|
|
|
(2,782 |
) |
(1,852 |
) |
(6,670 |
) |
(3,931 |
) |
Vessel operating costs |
|
|
|
(16,895 |
) |
(20,044 |
) |
(35,988 |
) |
(37,851 |
) |
Depreciation |
|
|
|
(20,675 |
) |
(20,798 |
) |
(41,273 |
) |
(41,484 |
) |
General and administrative expenses |
|
|
|
(4,421 |
) |
(3,488 |
) |
(8,592 |
) |
(6,559 |
) |
Impairment loss on vessels |
|
|
|
(18,841 |
) |
— |
|
(18,841 |
) |
— |
|
Profit from operations |
|
|
|
20,834 |
|
24,170 |
|
64,437 |
|
67,615 |
|
Financial costs |
|
|
|
(13,067 |
) |
(9,115 |
) |
(28,580 |
) |
(18,531 |
) |
Financial income |
|
|
|
77 |
|
11 |
|
276 |
|
23 |
|
Gain/(loss) on derivatives |
|
|
|
369 |
|
(403 |
) |
(13,751 |
) |
916 |
|
Total other expenses, net |
|
|
|
(12,621 |
) |
(9,507 |
) |
(42,055 |
) |
(17,592 |
) |
Profit and total comprehensive income for the
period |
|
|
|
8,213 |
|
14,663 |
|
22,382 |
|
50,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit, basic
and diluted: |
|
|
|
|
|
|
|
|
|
|
|
Common unit, basic |
|
|
|
0.01 |
|
0.14 |
|
0.15 |
|
0.71 |
|
Common unit, diluted |
|
|
|
0.01 |
|
0.14 |
|
0.14 |
|
0.68 |
|
General partner unit |
|
|
|
0.01 |
|
0.14 |
|
0.15 |
|
0.72 |
|
Unaudited condensed consolidated statements of cash
flowsFor the six
months ended June
30,
2020 and
2021(All amounts expressed in
thousands of U.S. Dollars)
|
|
|
|
For the six months ended |
|
|
|
|
|
June 30,2020 |
|
|
June
30,2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Profit for the period |
|
|
|
22,382 |
|
|
50,023 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
41,273 |
|
|
41,484 |
|
Impairment loss on vessels |
|
|
|
18,841 |
|
|
— |
|
Financial costs |
|
|
|
28,580 |
|
|
18,531 |
|
Financial income |
|
|
|
(276 |
) |
|
(23 |
) |
Loss/(gain) on derivatives (excluding realized loss on forward
foreign exchange contracts held for trading) |
|
|
|
13,342 |
|
|
(916 |
) |
Share-based compensation |
|
|
|
659 |
|
|
167 |
|
|
|
|
|
124,801 |
|
|
109,266 |
|
Movements in working capital |
|
|
|
(14,743 |
) |
|
3,751 |
|
Net cash provided by
operating activities |
|
|
|
110,058 |
|
|
113,017 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Payments for tangible fixed assets additions |
|
|
|
(12,027 |
) |
|
(12,241 |
) |
Financial income received |
|
|
|
307 |
|
|
23 |
|
Purchase of short-term investments |
|
|
|
— |
|
|
(2,500 |
) |
Net cash used in
investing activities |
|
|
|
(11,720 |
) |
|
(14,718 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Borrowings drawdowns |
|
|
|
25,940 |
|
|
— |
|
Borrowings repayments |
|
|
|
(55,805 |
) |
|
(54,838 |
) |
Interest paid |
|
|
|
(28,834 |
) |
|
(21,384 |
) |
Payments of cash collateral for interest rate swaps |
|
|
|
(15,000 |
) |
|
— |
|
Release of cash collateral for interest rate swaps |
|
|
|
— |
|
|
280 |
|
Payment of loan issuance costs |
|
|
|
(189 |
) |
|
— |
|
Proceeds from public offerings of common units and issuances of
general partner units (net of underwriting discounts and
commissions) |
|
|
|
— |
|
|
10,205 |
|
Repurchases of common units |
|
|
|
(996 |
) |
|
— |
|
Payment of offering costs |
|
|
|
(15 |
) |
|
(124 |
) |
Distributions paid |
|
|
|
(47,885 |
) |
|
(16,134 |
) |
Payments for lease liabilities |
|
|
|
(228 |
) |
|
(224 |
) |
Net cash used in financing activities |
|
|
|
(123,012 |
) |
|
(82,219 |
) |
(Decrease)/increase in cash and cash
equivalents |
|
|
|
(24,674 |
) |
|
16,080 |
|
Cash and cash equivalents, beginning of the period |
|
|
|
96,884 |
|
|
103,736 |
|
Cash and cash equivalents, end of the period |
|
|
|
72,210 |
|
|
119,816 |
|
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 Adjusted Profit (as defined above), after deducting
preference unit distributions, 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 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. 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.
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 six months
ended |
|
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
Profit for the period |
8,213 |
|
14,663 |
|
22,382 |
|
50,023 |
|
Depreciation |
20,675 |
|
20,798 |
|
41,273 |
|
41,484 |
|
Financial costs |
13,067 |
|
9,115 |
|
28,580 |
|
18,531 |
|
Financial income |
(77 |
) |
(11 |
) |
(276 |
) |
(23 |
) |
(Gain)/loss on derivatives |
(369 |
) |
403 |
|
13,751 |
|
(916 |
) |
EBITDA |
41,509 |
|
44,968 |
|
105,710 |
|
109,099 |
|
Impairment loss on vessels |
18,841 |
|
— |
|
18,841 |
|
— |
|
Adjusted EBITDA |
60,350 |
|
44,968 |
|
124,551 |
|
109,099 |
|
Reconciliation of Profit to Adjusted
Profit:
(Amounts expressed in thousands of U.S.
Dollars)
|
|
|
|
For the three months ended |
|
For the six months
ended |
|
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
Profit for the period |
8,213 |
|
14,663 |
|
22,382 |
|
50,023 |
|
Non-cash (gain)/loss on derivatives |
(1,435 |
) |
(1,962 |
) |
12,217 |
|
(5,569 |
) |
Impairment loss on vessels |
18,841 |
|
— |
|
18,841 |
|
— |
|
Adjusted Profit |
25,619 |
|
12,701 |
|
53,440 |
|
44,454 |
|
Reconciliation of Profit to EPU and Adjusted
EPU:
(Amounts expressed in thousands of U.S.
Dollars,except unit and per unit
amounts)
|
For the three months ended |
|
For the six months
ended |
|
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
Profit for the period |
8,213 |
|
14,663 |
|
22,382 |
|
50,023 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Paid and accrued preference unit distributions |
(7,582 |
) |
(7,582 |
) |
(15,164 |
) |
(15,164 |
) |
Partnership’s profit attributable to: |
631 |
|
7,081 |
|
7,218 |
|
34,859 |
|
Common units |
617 |
|
6,933 |
|
7,063 |
|
34,127 |
|
General partner units |
14 |
|
148 |
|
155 |
|
732 |
|
Weighted average units
outstanding (basic) |
|
|
|
|
|
|
|
|
Common units |
46,713,991 |
|
48,161,285 |
|
46,739,034 |
|
47,841,332 |
|
General partner units |
1,021,336 |
|
1,021,953 |
|
1,021,336 |
|
1,021,646 |
|
EPU (basic) |
|
|
|
|
|
|
|
|
Common units |
0.01 |
|
0.14 |
|
0.15 |
|
0.71 |
|
General partner units |
0.01 |
|
0.14 |
|
0.15 |
|
0.72 |
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
Profit for the period |
8,213 |
|
14,663 |
|
22,382 |
|
50,023 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Paid and accrued preference unit distributions |
(7,582 |
) |
(7,582 |
) |
(15,164 |
) |
(15,164 |
) |
Partnership’s profit used in EPU calculation |
631 |
|
7,081 |
|
7,218 |
|
34,859 |
|
Non-cash (gain)/loss on derivatives |
(1,435 |
) |
(1,962 |
) |
12,217 |
|
(5,569 |
) |
Impairment loss on vessels |
18,841 |
|
— |
|
18,841 |
|
— |
|
Adjusted Partnership’s profit used in EPU calculation
attributable to: |
18,037 |
|
5,119 |
|
38,276 |
|
29,290 |
|
Common units |
17,650 |
|
5,013 |
|
37,455 |
|
28,675 |
|
General partner units |
387 |
|
106 |
|
821 |
|
615 |
|
Weighted average units
outstanding (basic) |
|
|
|
|
|
|
|
|
Common units |
46,713,991 |
|
48,161,285 |
|
46,739,034 |
|
47,841,332 |
|
General partner units |
1,021,336 |
|
1,021,953 |
|
1,021,336 |
|
1,021,646 |
|
Adjusted EPU (basic) |
|
|
|
|
|
|
|
|
Common units |
0.38 |
|
0.10 |
|
0.80 |
|
0.60 |
|
General partner units |
0.38 |
|
0.10 |
|
0.80 |
|
0.60 |
|
Gaslog Partners (NYSE:GLOP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gaslog Partners (NYSE:GLOP)
Historical Stock Chart
From Apr 2023 to Apr 2024