GasLog Partners post record profit in Q1


GasLog Partners LP, an international owner and operator of liquefied natural gas carriers, reported its financial results for the three-month period ended March 31, 2018.


Completed a public offering of 8.200% Series B Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units, raising gross proceeds of $115.0 million and net proceeds of $111.2 million.

Prepaid in full the $45.0 million outstanding amount of the term loan facility with GasLog, due in March 2022.

Prepaid in full the remaining $29.8 million balance of the junior tranche of the credit agreement entered into on February 18, 2016, due in April 2018.

Successfully re-chartered the GasLog Santiago for approximately three and a half years commencing in either August or September 2018 at the Partnership’s option and either of the Methane Jane Elizabeth or the Methane Alison Victoria (as nominated by the Partnership) for one year, commencing in either November or December 2019 at the Partnership’s option.

Announced and, post quarter-end, completed the acquisition of the GasLog Gibraltar from GasLog for $207.0 million, with attached multi-year charter to a subsidiary of Royal Dutch Shell plc (“Shell”). The acquisition was partially financed through the private issuance of $45.0 million of common units to GasLog.

Quarterly Revenues, Profit, Adjusted Profit(1) and EBITDA of $77.1 million, $32.0 million, $26.5 million and $55.8 million, respectively.

Highest-ever quarterly Partnership Performance Results for Revenues, Profit, Adjusted Profit, EBITDA and Distributable cash flow of $77.1 million, $32.0 million, $26.5 million, $55.8 million and $27.5 million, respectively.

Increased cash distribution of $0.53 per common unit for the first quarter of 2018, 1.2% higher than the fourth quarter of 2017 and 6.0% higher than the first quarter of 2017.

Distribution coverage ratio of 1.13x, or 1.18x prior to the issuance of $45.0 million of common units in relation to the GasLog Gibraltar acquisition completed post quarter-end and certain other issuances of common and general partner units through April 26, 2018.

CEO Statement

Mr. Andrew Orekar, Chief Executive Officer, commented: “In the first quarter, GasLog Partners continued to execute its growth strategy, delivering our highest-ever Partnership Performance Results for Revenues, Profit, Adjusted Profit, EBITDA and Distributable cash flow. Following this strong performance, we are increasing our cash distribution for the sixth consecutive quarter to $0.53 per unit, or $2.12 per unit annualized, while maintaining prudent distribution coverage.

On March 21, 2018, we announced approval to enter into an agreement with GasLog for the drop-down of the GasLog Gibraltar, our fourth acquisition in the last twelve months. The acquisition closed on April 26, 2018, expanding the Partnership’s fleet to 13 wholly owned LNG carriers and increasing our average remaining charter duration. Furthermore, the financing of this transaction, with GasLog receiving $45 million newly issued, privately placed common units as partial consideration for the vessel, demonstrates the clearly aligned interests of GasLog Partners and GasLog.

We also announced multiple charter agreements with a new customer, including a three-and-a-half year charter for the GasLog Santiago, as well as a one-year charter for one of our modern steam-powered (“Steam”) vessels. Pro forma for the GasLog Gibraltar acquisition, these charters increase our contracted days to 90% in 2018 and 83% in 2019. Lastly, we strengthened our balance sheet by retiring over $100 million in debt during the quarter. These actions support our year-on-year distribution growth guidance of 5% to 7% in 2018 while positioning GasLog Partners to successfully execute future growth initiatives.”

Issuance of Series B Preference Units

On January 17, 2018, GasLog Partners completed a public offering of 4,600,000 8.200% Series B Preference Units (including 600,000 units issued upon the exercise in full by the underwriters of their option to purchase additional Series B Preference Units), liquidation preference $25.00 per unit, at a price to the public of $25.00 per preference unit. The net proceeds from the offering after deducting underwriting discounts, commissions and other offering expenses were $111.2 million. The Series B Preference Units are listed on the New York Stock Exchange under the symbol “GLOP PR B”.

New Charter Agreements

GasLog Partners entered into agreements with a new customer for two new charters plus options for an additional two charters, exercisable by the charterer. The agreements include an approximately three-and-a-half-year charter for the GasLog Santiago, a 155,000 cbm TFDE LNG carrier built in 2013, commencing in either August or September 2018 at the Partnership’s option, and a one-year charter for a 145,000 cbm Steam vessel (either the 2006-built Methane Jane Elizabeth or the 2007-built Methane Alison Victoria as nominated by the Partnership) commencing in either November or December 2019 at the Partnership’s option. The charterer has options to extend the first charter for up to an additional seven years and the second charter for up to an additional four years, both at escalating rates.

Acquisition of the GasLog Gibraltar

On March 21, 2018, we announced approval to enter into an agreement with GasLog to acquire 100% of the shares in the entity that owns and charters to Shell the GasLog Gibraltar from GasLog. The GasLog Gibraltar is a 174,000 cubic meter (“cbm”) tri-fuel diesel electric (“TFDE”) LNG carrier built in 2016 and operated by GasLog since delivery. The vessel is currently on a multi-year time charter with a subsidiary of Shell through October 2023 and Shell has two consecutive extension options which, if exercised, would extend the charter for a period of either five or eight years.

The aggregate purchase price for the acquisition was $207.0 million, which includes $1.0 million for positive net working capital balances transferred with the vessel. GasLog Partners financed the acquisition with cash on hand, including proceeds from the recent Series B Preference Units public offering, $45.0 million of new privately placed common units issued to GasLog (1,858,975 common units at a price of $24.21 per unit) and the assumption of the GasLog Gibraltar’s outstanding indebtedness of $143.6 million. The acquisition closed on April 26, 2018.

ATM Common Equity Offering Programme

On May 16, 2017, GasLog Partners commenced an ATM Programme under which the Partnership may, from time to time, raise equity through the issuance and sale of new common units having an aggregate offering price of up to $100.0 million in accordance with the terms of an equity distribution agreement entered into on the same date. Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC agreed to act as sales agents. On November 3, 2017, the size of the ATM Programme was increased to $144.0 million and UBS Securities LLC was included as a sales agent.

Since the commencement of the ATM Programme through March 31, 2018, GasLog Partners has issued and received payment for a total of 2,737,405 common units, with cumulative gross proceeds of $62.9 million at a weighted average price of $22.97 per unit, representing a discount of 0.5% to the volume weighted average trading price of GasLog Partners’ common units on the days on which new common units were issued. In connection with the issuance of common units under the ATM Programme during this period, the Partnership also issued 55,866 general partner units to its general partner.

No issuances of common units were made under the ATM Programme in the first quarter of 2018. As of March 31, 2018, the cumulative net proceeds from the ATM Programme and the issuance of general partner units were $62.5 million.



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