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, 2018.
Highlights
- Completed the acquisition of the GasLog Gibraltar from GasLog
Ltd. (“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.
- Announced new time charter for the GasLog Sydney for 18 months
with a wholly owned subsidiary of Cheniere Energy, Inc.
(“Cheniere”), scheduled to commence between September and December
2018.
- Completed the dry-docking of and installation of reliquefaction
modules on the GasLog Santiago and the GasLog Sydney, thereby
enhancing the commercial competitiveness of both vessels.
- Quarterly Revenues, Profit, Adjusted Profit(1) and EBITDA(1) of
$76.9 million, $23.8 million, $22.8 million and $55.0 million,
respectively.
- Partnership Performance Results for Revenues(2), Profit(2),
Adjusted Profit(1)(2), EBITDA(1)(2) and Distributable cash flow(1)
of $74.9 million, $22.9 million, $21.9 million, $53.3 million and
$22.9 million, respectively.
- Cash distribution of $0.53 per common unit for the second
quarter of 2018, unchanged from the first quarter of 2018 and 3.9%
higher than the second quarter of 2017.
- Distribution coverage ratio(3) of 0.94x, or 1.18x adjusted
distribution coverage ratio(4) to reflect the impact on revenues of
the scheduled dry-dockings of the GasLog Santiago and the GasLog
Sydney.
- Adjusted Profit, EBITDA and Distributable cash flow are
non-GAAP financial measures and should not be used in isolation or
as a substitute 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 III at
the end of this press release.
- Partnership Performance Results represent the results
attributable to GasLog Partners which are non-GAAP financial
measures. 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.
- Distribution coverage ratio represents the ratio of
Distributable cash flow to the cash distribution declared. For the
definition and reconciliation of Distributable cash flow to the
most directly comparable financial measure calculated and presented
in accordance with IFRS, please refer to Exhibit III at the end of
this press release.
- Adjusted distribution coverage ratio represents the ratio of
Adjusted distributable cash flow to the cash distribution declared.
Adjusted distributable cash flow is defined as Distributable cash
flow after adjusting for the $5.8 million negative impact on
revenues of the scheduled dry-dockings of the GasLog Santiago and
the GasLog Sydney. For the definition and reconciliation of
Distributable cash flow to the most directly comparable financial
measure calculated and presented in accordance with IFRS, please
refer to Exhibit III at the end of this press release.
CEO Statement
Mr. Andrew Orekar, Chief Executive Officer, commented: “In the
second quarter, GasLog Partners continued to execute our strategy,
completing the accretive acquisition of the GasLog Gibraltar and
agreeing to a firm 18-month time charter plus two six-month options
with Cheniere for the GasLog Sydney. This charter is the
Partnership’s second agreement this year with a new, high-quality
counterparty and increases our contracted days to 91% in both 2018
and 2019.
As previously communicated, the dry-dockings of the GasLog
Sydney and the GasLog Santiago in the second quarter temporarily
impacted our EBITDA and Distributable cash flow. As a result, we
have elected to maintain our quarterly distribution at $0.53 per
unit, or $2.12 per unit annualized. Adjusted for the impact of
these scheduled dry-dockings, our distribution coverage ratio was
1.18x and in-line with our historical performance.
The outlook for LNG demand remains robust, underpinning a
requirement for additional investment in liquefaction,
regasification and shipping capacity. With current liquidity
available to fund our next drop-down acquisition and the GasLog
Shanghai exposed to the anticipated strength in spot LNG shipping
rates, we are reiterating our year-on-year distribution growth
guidance of 5% to 7% in 2018.”
New Charter Agreement
On June 18, 2018, GasLog Partners entered into a new time
charter for the GasLog Sydney for 18 months with Cheniere Marketing
International LLP, a wholly owned subsidiary of Cheniere, scheduled
to commence between September and December 2018. The charterer has
options to extend the charter for up to two consecutive periods of
six months at escalating rates. The GasLog Sydney is a 155,000
cubic meter (“cbm”) tri-fuel diesel electric (“TFDE”) LNG carrier
built in 2013 and currently on a multi-year time charter with a
wholly owned subsidiary of Shell through September 2018. The vessel
recently completed a scheduled dry-docking during which its
commercial competitiveness was enhanced through the installation of
a reliquefaction module.
Operations in the Cool Pool
On May 18, 2018, the GasLog Shanghai entered the Cool Pool,
which was established by GasLog, Dynagas Ltd. and Golar LNG Ltd.
(the “Cool Pool”) on October 1, 2015 to market their vessels
operating in the LNG shipping spot market. The Cool Pool allows the
participating owners to optimize the operation of the pool vessels
through improved scheduling ability, cost efficiencies and common
marketing. The objective of the Cool Pool is to serve the growing
LNG market by providing customers with reliable, flexible, and
innovative solutions to meet their increasingly complex shipping
requirements. As of June 30, 2018, the Cool Pool consisted of 17
modern efficient TFDE LNG carriers in the 155-170,000 cbm range.
The Cool Pool charters the vessels for periods up to one year in
duration as agents for the owners, who each remain responsible for
the technical and commercial operation of their vessels and
performance of the contracts. During June and July 2018, Dynagas
Ltd. removed its three vessels from the Cool Pool.
Pool revenues and Voyage expenses and commissions are recognized
on a gross basis and are included under Revenues and Voyage
expenses and commissions, respectively. Pool revenues represent
time charter revenues earned by the GasLog Shanghai under her spot
charter agreements in the Cool Pool. Voyage expenses and
commissions represent the broker commissions of the aforementioned
spot charter agreements and the bunkers consumed during the
vessel’s unemployed periods. The Partnership’s adjustment for the
net pool allocation is included under Net pool allocation and
represents the adjustment of the net results generated by the
GasLog Shanghai in accordance with the pool distribution formula.
The formula takes into account gross revenues, voyage expenses and
the number of days that each vessel participates in the pool.
Acquisition of the GasLog
Gibraltar
On April 26, 2018, GasLog Partners acquired from GasLog 100% of
the shares in the entity that owns and charters the GasLog
Gibraltar. The GasLog Gibraltar is a 174,000 cbm 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 included $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 Series B Preference Units public offering in January 2018,
$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.
ATM Common Equity Offering Programme (“ATM
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 June 30,
2018, GasLog Partners has issued and received payment for a total
of 2,738,425 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 55,887 general partner units to its general
partner.
In the second quarter of 2018, GasLog Partners issued and
received payment for an additional 1,020 common units at a weighted
average price of $24.25 per unit for gross and net proceeds of
$0.02 million. In connection with this issuance of common units,
the Partnership also issued 21 general partner units to its general
partner in order for GasLog to retain its 2.0% general partner
interest. As of June 30, 2018, the cumulative net proceeds from the
ATM Programme and the issuance of general partner units were $63.4
million.
Financial Summary
|
|
IFRS Common Control Reported
Results(1) |
|
|
|
For the three months ended |
|
% Change from |
|
(All amounts expressed in thousands of U.S.
dollars) |
|
June 30,2017 |
|
March 31,2018 |
|
June 30,2018 |
|
June 30,2017 |
|
March 31,2018 |
|
Revenues |
|
85,405 |
|
84,351 |
|
76,934 |
|
(10% |
) |
(9% |
) |
Profit |
|
29,200 |
|
34,735 |
|
23,841 |
|
(18% |
) |
(31% |
) |
Adjusted Profit(2) |
|
31,057 |
|
29,265 |
|
22,840 |
|
(26% |
) |
(22% |
) |
EBITDA(2) |
|
64,515 |
|
61,459 |
|
54,992 |
|
(15% |
) |
(11% |
) |
- “IFRS Common Control Reported Results” represent the results of
GasLog Partners in accordance with IFRS. Such results include
amounts related to vessels currently owned by the Partnership for
the periods prior to their respective transfer to GasLog Partners
from GasLog, as the transfers of such vessels were accounted for as
reorganizations of entities under common control for IFRS
accounting purposes. The unaudited condensed consolidated financial
statements of the Partnership accompanying this press release are
prepared under IFRS on this basis.
- Adjusted Profit and EBITDA are non-GAAP financial measures. For
the definitions and reconciliations of these measures to the most
directly comparable financial measure presented in accordance with
IFRS, please refer to Exhibit III at the end of this press
release.
The decrease in profit in the second quarter of 2018 as compared
to the same period in 2017 is mainly attributable to decreased
revenues due to two scheduled dry-dockings (with additional
off-hire days required for the installation of a reliquefaction
module on each vessel) and also due to the expiration of the time
charter of the GasLog Shanghai and her entering the spot market in
May 2018 and an increase in administrative fees, partially offset
by a decrease in loss on derivatives.
The decrease in profit in the second quarter of 2018 as compared
to the first quarter of 2018 is mainly attributable to decreased
revenues due to two scheduled dry-dockings (with additional
off-hire days required for the installation of a reliquefaction
module on each vessel), partially offset by a decrease in loss on
interest rate swaps.
|
|
Partnership Performance
Results(1) |
|
|
|
For the three months ended |
|
% Change from |
|
(All amounts expressed in thousands of U.S.
dollars) |
|
June 30,2017 |
|
March 31,2018 |
|
June 30,2018 |
|
June 30,2017 |
|
March 31,2018 |
|
Revenues |
|
62,582 |
|
77,061 |
|
74,909 |
|
20% |
|
(3% |
) |
Profit |
|
19,358 |
|
32,002 |
|
22,901 |
|
18% |
|
(28% |
) |
Adjusted Profit(2) |
|
21,215 |
|
26,532 |
|
21,900 |
|
3% |
|
(17% |
) |
EBITDA(2) |
|
45,220 |
|
55,830 |
|
53,260 |
|
18% |
|
(5% |
) |
Distributable cash flow(2) |
|
23,254 |
|
27,462 |
|
22,915 |
|
(1% |
) |
(17% |
) |
Cash
distributions declared |
|
21,001 |
|
24,272 |
|
24,272 |
|
16% |
|
0% |
|
- “Partnership Performance Results” represent the results
attributable to GasLog Partners. Such results are non-GAAP measures
and exclude amounts related to vessels currently owned by the
Partnership for the periods prior to their respective transfers to
GasLog Partners from GasLog, as the Partnership is not entitled to
the cash or results generated in the periods prior to such
transfers. Such results are included in the GasLog Partners’
results in accordance with IFRS because the transfers of the vessel
owning entities by GasLog to the Partnership represent
reorganizations of entities under common control and the
Partnership reflects such transfers retroactively under IFRS.
GasLog Partners believes that these non-GAAP financial measures
provide meaningful supplemental information to both management and
investors regarding the financial and operating performance of the
Partnership necessary to understand the underlying basis for the
calculations of the quarterly distribution and earnings per unit,
which similarly exclude the results of vessels prior to their
transfers to the Partnership. These non-GAAP financial measures
should not be viewed in isolation or as substitutes to the
equivalent GAAP measures presented in accordance with IFRS, but
should be used in conjunction with the most directly comparable
IFRS Common Control Reported Results. For the definitions and
reconciliations of these measurements to the most directly
comparable financial measures presented in accordance with IFRS,
please refer to Exhibit II at the end of this press release.
- Adjusted Profit, EBITDA and Distributable cash flow are
non-GAAP financial measures and should not be used in isolation or
as a substitute for GasLog Partners’ financial results presented in
accordance with 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 III at the end of this press release.
The increase in profit for the second quarter of 2018 as
compared to the same period in 2017 is mainly attributable to the
profit from operations of the GasLog Greece, the GasLog Geneva, the
Solaris and the GasLog Gibraltar, acquired by the Partnership on
May 3, 2017, July 3, 2017, October 20, 2017 and April 26, 2018,
respectively, and the decrease in mark-to-market loss on
derivatives attributable to the Partnership, which were offset by
the decreased revenues due to the two scheduled dry-dockings of the
GasLog Santiago and the GasLog Sydney and the spot market exposure
of the GasLog Shanghai, the increased financial costs and the
increased administrative fees pursuant to the acquisitions of the
aforementioned vessels.
The decrease in profit in the second quarter of 2018 as compared
to the first quarter of 2018 is mainly attributable to decreased
revenues due to two scheduled dry-dockings (with additional
off-hire days required for the installation of a reliquefaction
module on each vessel) and a decrease in gain on interest rate
swaps, partially offset by the profit of the GasLog Gibraltar,
which was acquired by the Partnership on April 26, 2018.
Preference Unit
Distributions
On May 11, 2018, the board of directors of GasLog Partners
approved and declared a distribution on the Series A Cumulative
Redeemable Perpetual Fixed to Floating Rate Preference Units (the
“Series A Preference Units”) of $0.5390625 per preference unit and
a distribution on the Series B Cumulative Redeemable Perpetual
Fixed to Floating Rate Preference Units (the “Series B Preference
Units”) of $0.5125 per preference unit. The cash distributions were
paid on June 15, 2018 to all unitholders of record as of June 8,
2018.
Common Unit Distribution
On July 25, 2018, the board of directors of GasLog Partners
approved and declared a quarterly cash distribution of $0.53 per
common unit for the quarter ended June 30, 2018. The cash
distribution is payable on August 10, 2018 to all unitholders of
record as of August 6, 2018.
Liquidity and Financing
As of June 30, 2018, we had $134.7 million of cash and cash
equivalents, of which $52.1 million was held in current accounts
and $82.6 million was held in time deposits with an original
duration of less than three months. An amount of $13.0 million of
time deposits with an original duration greater than three months
was classified as short-term investments.
As of June 30, 2018, we had an aggregate of $1,184.4 million of
indebtedness outstanding under our credit facilities, of which
$85.0 million is repayable within one year. In addition, we had
unused availability under our revolving credit facilities of $55.9
million.
On April 26, 2018, in connection with the acquisition of
GAS-fourteen Ltd., the entity that owns the GasLog Gibraltar, the
Partnership paid GasLog $19.0 million representing the $207.0
million aggregate purchase price, less the $45.0 million new
privately placed common units issued to GasLog (1,858,975 common
units at a price of $24.21 per unit) and the $143.6 million of
outstanding indebtedness of the acquired entity assumed by GasLog
Partners plus an adjustment of $0.6 million in order to maintain
the agreed working capital position in the acquired entity of $1.0
million.
On May 23, 2018, the Partnership entered into a new interest
rate swap agreement with GasLog with a notional value of $80.0
million, maturing in 2023. On the same date, the Partnership also
entered into twelve forward foreign exchange contracts with GasLog
with a notional value of €24.0 million and staggered maturities
until mid-2019 to mitigate its foreign exchange transaction
exposure in its operating expenses.
In total, the Partnership has entered into five interest rate
swap agreements with GasLog at a notional value of $550.0 million
in aggregate, maturing between 2020 and 2023. As a result of its
hedging agreements, the Partnership has hedged 45.7% of its
floating interest rate exposure on its outstanding debt as of June
30, 2018, at a weighted average interest rate of approximately 1.9%
(excluding margin).
Following the completion of the scheduled dry-dockings of the
GasLog Santiago and the GasLog Sydney, the GasLog Seattle is
scheduled to commence her regular dry-docking in the fourth quarter
of 2018.
As of June 30, 2018, our current assets totaled $161.0 million
and current liabilities totaled $155.0 million, resulting in a
positive working capital position of $6.0 million.
LNG Market Update and
Outlook
Demand for natural gas and LNG remains robust, underpinned in
the second quarter by significant increases in demand from major
Asian consumers. According to Poten, LNG imports into China, South
Korea and India during the first half of 2018 increased 50%, 14%
and 10%, respectively, year-on-year, marginally offset by a 3%
reduction in Japan’s LNG imports. In particular, the growth in
China’s LNG demand is attributed to the secular driver of
coal-to-gas switching, strong industrial demand and constrained
domestic gas production. The backdrop for growth in global LNG
demand remains favorable, with Wood Mackenzie estimating compound
annual growth of 6% over the 2017-2023 period.
Wood Mackenzie estimates that during the second quarter of 2018
global LNG supply increased by 8% year-over-year, but declined 3%
from the first quarter of 2018. The year-on-year increase was
driven by the start-up of new liquefaction capacity in the United
States (“US”), Russia and Australia, while the sequential decline
is attributed to normal seasonal weakness in the spring shoulder
months, supply disruptions from PNG LNG following an earthquake
earlier this year, underperformance from projects in Algeria and
Trinidad and unplanned downtime of facilities in the United Arab
Emirates. These disruptions offset new liquefaction startups in the
quarter which included Cameroon Floating LNG, Cove Point and
Wheatstone LNG Train 2. In the second quarter of 2018, 75 cargoes
were exported from the US, with around half of these cargoes
delivered to Asia. Data from the second quarter of 2018 suggests
that 1.91 vessels were required for each million tonnes of LNG
exported from the US, compared to an average of 1.86 ships per
million tonnes of LNG since the start-up of Sabine Pass.
Progress was made during the quarter on projects that underpin
Wood Mackenzie’s 2018 LNG supply growth forecast of 9%.
Commissioning cargoes were introduced to the Ichthys and Prelude
facilities, while Yamal Train 2 (Russia) and Elba Island (US) are
also expected onstream before year-end. A further 41 million tonnes
per annum (“mtpa”) of new supply, or 13% growth, is expected in
2019, principally driven by additions in the US and the ramp-up of
Ichthys and Prelude in Australia.
In May, Cheniere announced a final investment decision (“FID”)
on Train 3 at the Corpus Christi Liquefaction Project, the first
approval of a new liquefaction project since June 2017 and the
first in the US since 2015. According to Wood Mackenzie and press
reports, in the second quarter of 2018, 15 mtpa of long-term supply
contracts were agreed or signed, bringing the total volume of
long-term supply contracts concluded since the beginning of 2017 to
52 mtpa. Buyers include Asian and European utilities as well as
portfolio suppliers and traders. Several recent offtake contracts
for projects yet to reach FID have been for a duration of 20 years
or more, giving these projects greater visibility on cashflows
which may de-risk the financing required for FID. LNG Canada, which
is targeting 24 mtpa of capacity in a phased approach and where
Petronas took a 25% stake in May, may take FID later in 2018, while
FID on the Golden Pass project (16 mtpa capacity) in the US may be
taken in early 2019. Mozambique Area 1 LNG (13 mtpa capacity) and
the Calcasieu Pass (10 mtpa capacity) project in the US have also
made progress in the second quarter towards potential FIDs in
2019.
During the second quarter, Panama became the 42nd country to
import LNG after commencing operations at its Costa Norte terminal.
Plans have also progressed to import LNG into eastern Australia’s
gas market to alleviate potential shortages in the future.
Pakistan’s Ambassador to the US outlined plans in early July to
import more gas from the US, claiming that the country is on its
way to becoming “one of the world’s largest gas importers”. In May,
Chinese gas distributor ENN was reportedly seeking a commissioning
cargo for the country’s first privately owned LNG regasification
terminal. The Zhoushan terminal has a planned capacity of 3 mtpa
and is expected to come onstream in the coming months.
Headline daily spot TFDE LNG shipping rates as reported by
Clarksons averaged $54,000 in the second quarter, compared to
$34,000 in the second quarter of 2017. During the period, rates
exhibited counter-seasonal strength, rising to $87,000 per day in
late June from $38,000 per day in late April. This recent, sharp
increase in headline spot rates was driven by increased vessel
demand, as LNG suppliers sought to capitalize on the arbitrage
between the Atlantic basin and Asian markets, which was widened by
counter-seasonal strength in Asian LNG prices (as measured by the
Platts Japan-Korea Marker (“JKM”) assessment). As a result, the
number of spot fixtures rose to 110 during the second quarter of
2018, an all-time high and an increase over the 70 and 78 fixtures
in the first quarter of 2018 and second quarter of 2017,
respectively. Spot TFDE shipping rates have moderated in recent
weeks, with a current Clarksons assessment of $75,000 per day, as
softening Asia LNG prices have narrowed the near-term arbitrage
opportunity. However, based on current JKM pricing, the arbitrage
between the Atlantic and Pacific Basins is expected to remain open
for the 2018/19 Northern Hemisphere winter, suggesting that the
recent increase in LNG shipping rates could potentially be
sustained throughout the remainder of 2018 and into early 2019.
According to Poten and press reports, 26 firm orders for LNG
carriers have been made so far in 2018, of which three are GasLog
vessels. The pace of firm newbuild orders has recently increased,
as shipowners look to lock in attractive yard pricing against a
positive backdrop for LNG vessel demand. However, even after taking
into account the current orderbook, we believe that the LNG
shipping market could be short of vessels as soon as 2019 based on
current supply and demand projections. The earliest a newbuilding
can now be delivered is 2021, which points towards a tighter market
in 2019 and 2020, again underpinning the outlook for shipping
rates. Based on our analysis and excluding the current orderbook,
28-56 additional vessels may be needed by 2022 to satisfy projected
market growth, with this range increasing to 105-137 additional
vessels by 2025.
Conference Call
GasLog Partners will host a conference call to discuss its
results for the second quarter of 2018 at 8:30 a.m. EDT (1:30 p.m.
BST) on Thursday, July 26, 2018. Andrew Orekar, Chief Executive
Officer, and Alastair Maxwell, Chief Financial Officer, will review
the Partnership’s operational and financial performance for the
period. Management’s presentation will be followed by a Q&A
session.
The dial-in numbers for the conference call are as follows:+1
855 253 8928 (USA) +44 20 3107 0289 (United Kingdom) +33 1 70 80 71
53 (France)+852 3011 4522 (Hong Kong)
Conference ID: 3597854
A live webcast of the conference call will also be available on
the investor relations page of the Partnership’s website at
http://www.gaslogmlp.com/investor-relations.
For those unable to participate in the conference call, a replay
will also be available from 12:00 p.m. EDT (5:00 p.m. BST) on
Thursday, July 26, 2018 until 12:00 p.m. EDT (5:00 p.m. BST) on
Thursday, August 2, 2018.
The replay dial-in numbers are as follows:+1 855 859 2056
(USA)+44 20 3107 0235 (United Kingdom) +33 1 70 80 71 79
(France)+852 3011 4541 (Hong Kong)
Conference ID: 3597854
The replay will also be available via a webcast on the investor
relations page of the Partnership’s website at
http://www.gaslogmlp.com/investor-relations.
About GasLog Partners
GasLog Partners is a growth-oriented master limited partnership
focused on owning, operating and acquiring LNG carriers under
multi-year charters. GasLog Partners' fleet consists of 13 LNG
carriers with an average carrying capacity of approximately 156,000
cbm. GasLog Partners’ principal executive offices are located at
Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. 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 dividends or
distributions, plans, strategies, business prospects and changes
and trends in our business and the markets in which we operate. We
caution that these forward-looking statements represent our
estimates and assumptions only as of the date of this press
release, about factors that are beyond our ability to control or
predict, and are not intended to give any assurance as to future
results. Any of these factors or a combination of these factors
could materially affect future results of operations and the
ultimate accuracy of the forward-looking statements. Accordingly,
you should not unduly rely on any forward-looking statements.
Factors that might cause future results and outcomes to differ
include, but are not limited to, the following:
- general LNG shipping market conditions and trends, including
spot and long-term charter rates, ship values, factors affecting
supply and demand of LNG and LNG shipping, technological
advancements and opportunities for the profitable operations of LNG
carriers;
- fluctuations in charter hire rates and vessel values;
- 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;
- our ability to maximize the use of our vessels, including the
re-deployment or disposition of vessels no longer under long-term
time charter commitments, including the risk that certain of our
vessels may no longer have the latest technology at such time,
which may impact the rate at which we can charter such
vessels;
- our ability to secure new multi-year charters at economically
attractive rates;
- fluctuations in prices for crude oil, petroleum products and
natural gas, including LNG;
- our ability to expand our fleet by acquiring vessels through
our drop-down pipeline with GasLog;
- 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;
- 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 ability to acquire assets in the future, including vessels
from GasLog;
- our ability to obtain financing to fund capital expenditures,
acquisitions and other corporate activities, funding by banks of
their financial commitments, funding by GasLog of the revolving
credit facility with GasLog entered into on April 3, 2017 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;
- the expected cost of and our ability to comply with
environmental and regulatory conditions, including changes in laws
and regulations or actions taken by regulatory authorities,
governmental organizations, classification societies and standards
imposed by our charterers applicable to our business;
- risks inherent in ship operations, including the discharge of
pollutants;
- 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;
- potential disruption of shipping routes due to accidents,
political events, piracy or acts by terrorists;
- potential liability from future litigation;
- our business strategy and other plans and objectives for future
operations;
- any malfunction or disruption of information technology systems
and networks that our operations rely on or any impact of a
possible cybersecurity breach; and
- other risks and uncertainties described in the Partnership’s
Annual Report on Form 20-F filed with the SEC on February 12, 2018,
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. 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:
Alastair MaxwellChief Financial OfficerPhone:
+44-203-388-3100
Phil CorbettHead of Investor RelationsPhone:
+44-203-388-3116
Joseph NelsonDeputy Head of Investor
RelationsPhone: +1-212-223-0643
E-mail: ir@gaslogmlp.com
EXHIBIT I – Unaudited Interim Financial Information:
IFRS Common Control Reported Results
Unaudited condensed consolidated statements of financial
positionAs of December 31, 2017 and June 30,
2018(All amounts expressed in thousands of U.S.
Dollars, except unit data)
|
|
|
|
December 31,2017 |
|
June 30,2018 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
Derivative financial
instruments |
|
|
|
6,038 |
|
11,121 |
|
Vessels |
|
|
|
2,149,751 |
|
2,141,529 |
|
Total
non-current assets |
|
|
|
2,155,789 |
|
2,152,650 |
|
Current
assets |
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
|
3,755 |
|
2,739 |
|
Inventories |
|
|
|
2,857 |
|
4,149 |
|
Due from related
parties |
|
|
|
3,712 |
|
1,083 |
|
Prepayments and other
current assets |
|
|
|
1,579 |
|
1,399 |
|
Derivative financial
instruments |
|
|
|
577 |
|
3,924 |
|
Short-term
investments |
|
|
|
— |
|
13,000 |
|
Cash and cash
equivalents |
|
|
|
146,721 |
|
134,686 |
|
Total current
assets |
|
|
|
159,201 |
|
160,980 |
|
Total
assets |
|
|
|
2,314,990 |
|
2,313,630 |
|
Partners’
equity and liabilities |
|
|
|
|
|
|
|
Partners’
equity |
|
|
|
|
|
|
|
Owners’ capital |
|
|
|
53,354 |
|
— |
|
Common unitholders
(41,002,121 units issued and outstanding as of December 31, 2017
and 42,896,114 units issued and outstanding as of June 30,
2018) |
|
|
|
752,456 |
|
788,087 |
|
General partner
(836,779 units issued and outstanding as of December 31, 2017 and
875,432 units issued and outstanding as of June 30, 2018) |
|
|
|
11,781 |
|
12,183 |
|
Incentive distribution
rights (“IDR”) |
|
|
|
6,596 |
|
7,068 |
|
Preference unitholders
(5,750,000 Series A Preference Units issued and outstanding as of
December 31, 2017 and 5,750,000 Series A Preference Units and
4,600,000 Series B Preference Units issued and outstanding as of
June 30, 2018) |
|
|
|
139,321 |
|
250,934 |
|
Total partners’
equity |
|
|
|
963,508 |
|
1,058,272 |
|
Current
liabilities |
|
|
|
|
|
|
|
Trade accounts
payable |
|
|
|
4,785 |
|
7,428 |
|
Due to related
parties |
|
|
|
2,613 |
|
2,382 |
|
Derivative financial
instruments |
|
|
|
269 |
|
657 |
|
Other payables and
accruals |
|
|
|
43,000 |
|
59,619 |
|
Borrowings—current
portion |
|
|
|
114,570 |
|
84,961 |
|
Total current
liabilities |
|
|
|
165,237 |
|
155,047 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
Derivative financial
instruments |
|
|
|
— |
|
671 |
|
Borrowings—non-current
portion |
|
|
|
1,185,995 |
|
1,099,482 |
|
Other non-current
liabilities |
|
|
|
250 |
|
158 |
|
Total
non-current liabilities |
|
|
|
1,186,245 |
|
1,100,311 |
|
Total partners’
equity and liabilities |
|
|
|
2,314,990 |
|
2,313,630 |
|
Unaudited condensed consolidated statements of profit or
lossFor the three and six months ended June 30,
2017 and June 30, 2018(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, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
Revenues |
|
|
|
85,405 |
|
76,934 |
|
169,882 |
|
161,285 |
|
Net pool
allocation |
|
|
|
— |
|
(357 |
) |
— |
|
(357 |
) |
Voyage expenses and
commissions |
|
|
|
(1,070 |
) |
(1,536 |
) |
(2,128 |
) |
(2,683 |
) |
Vessel operating
costs |
|
|
|
(16,232 |
) |
(15,351 |
) |
(31,220 |
) |
(32,413 |
) |
Depreciation |
|
|
|
(18,330 |
) |
(18,375 |
) |
(36,464 |
) |
(36,604 |
) |
General and
administrative expenses |
|
|
|
(3,588 |
) |
(4,698 |
) |
(7,078 |
) |
(9,381 |
) |
Profit from
operations |
|
|
|
46,185 |
|
36,617 |
|
92,992 |
|
79,847 |
|
Financial costs |
|
|
|
(14,892 |
) |
(14,946 |
) |
(29,066 |
) |
(30,293 |
) |
Financial income |
|
|
|
243 |
|
582 |
|
373 |
|
1,107 |
|
(Loss)/gain on
derivatives |
|
|
|
(2,336 |
) |
1,588 |
|
(2,313 |
) |
7,915 |
|
Total other
expenses, net |
|
|
|
(16,985 |
) |
(12,776 |
) |
(31,006 |
) |
(21,271 |
) |
Profit for the
period |
|
|
|
29,200 |
|
23,841 |
|
61,986 |
|
58,576 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
GasLog’s operations |
|
|
|
(9,842 |
) |
(940 |
) |
(21,606 |
) |
(3,673 |
) |
Profit
attributable to Partnership’s operations |
|
|
|
19,358 |
|
22,901 |
|
40,380 |
|
54,903 |
|
Partnership’s
profit attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Common units |
|
|
|
17,349 |
|
17,095 |
|
32,073 |
|
41,152 |
|
Subordinated units |
|
|
|
N/A |
|
N/A |
|
5,085 |
|
N/A |
|
General partner
units |
|
|
|
357 |
|
349 |
|
777 |
|
888 |
|
Incentive distribution
rights |
|
|
|
103 |
|
— |
|
896 |
|
2,368 |
|
Preference units |
|
|
|
1,549 |
|
5,457 |
|
1,549 |
|
10,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
unit for the period (basic and
diluted): |
|
|
|
|
|
|
|
|
|
|
|
Common unit
(basic) |
|
|
|
0.45 |
|
0.40 |
|
0.98 |
|
0.99 |
|
Common unit
(diluted) |
|
|
|
0.45 |
|
0.40 |
|
0.98 |
|
0.98 |
|
Subordinated unit |
|
|
|
N/A |
|
N/A |
|
0.52 |
|
N/A |
|
General partner
unit |
|
|
|
0.46 |
|
0.40 |
|
1.01 |
|
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited condensed consolidated statements of cash
flowsFor the six months ended June 30, 2017 and
June 30, 2018(All amounts expressed in thousands
of U.S. Dollars)
|
|
|
|
For the six months ended |
|
|
|
|
|
June
30,2017 |
|
|
June
30,2018 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Profit for the
period |
|
|
|
61,986 |
|
|
58,576 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
36,464 |
|
|
36,604 |
|
Financial costs |
|
|
|
29,066 |
|
|
30,293 |
|
Financial income |
|
|
|
(373 |
) |
|
(1,107 |
) |
Unrealized loss/(gain)
on derivatives |
|
|
|
1,209 |
|
|
(7,371 |
) |
Share-based
compensation |
|
|
|
371 |
|
|
498 |
|
|
|
|
|
128,723 |
|
|
117,493 |
|
Movements in working
capital |
|
|
|
(9,025 |
) |
|
5,915 |
|
Cash provided
by operations |
|
|
|
119,698 |
|
|
123,408 |
|
Interest paid |
|
|
|
(25,921 |
) |
|
(25,519 |
) |
Net cash
provided by operating activities |
|
|
|
93,777 |
|
|
97,889 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Payments for vessels’
additions |
|
|
|
(700 |
) |
|
(13,590 |
) |
Financial income
received |
|
|
|
374 |
|
|
928 |
|
Maturity of short-term
investments |
|
|
|
7,500 |
|
|
5,000 |
|
Purchase of short-term
investments |
|
|
|
— |
|
|
(18,000 |
) |
Net cash
provided by/(used in) investing activities |
|
|
|
7,174 |
|
|
(25,662 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Borrowings
drawdowns |
|
|
|
60,000 |
|
|
— |
|
Borrowings
repayments |
|
|
|
(120,129 |
) |
|
(119,757 |
) |
Payment of loan
issuance costs |
|
|
|
(1,499 |
) |
|
(68 |
) |
Proceeds from public
offerings and issuances of common units and general partner units
(net of underwriting discounts and commissions) |
|
|
|
89,649 |
|
|
960 |
|
Proceeds from issuance
of preference units (net of underwriting discounts and
commissions) |
|
|
|
139,222 |
|
|
111,544 |
|
Payment of offering
costs |
|
|
|
(336 |
) |
|
(662 |
) |
Cash payment to GasLog
in exchange for contribution of net assets |
|
|
|
(66,643 |
) |
|
(19,086 |
) |
Distributions paid |
|
|
|
(39,670 |
) |
|
(57,193 |
) |
Net cash
provided by/(used in) financing activities |
|
|
|
60,594 |
|
|
(84,262 |
) |
Increase/(decrease) in cash and cash
equivalents |
|
|
|
161,545 |
|
|
(12,035 |
) |
Cash and cash
equivalents, beginning of the period |
|
|
|
59,875 |
|
|
146,721 |
|
Cash and cash
equivalents, end of the period |
|
|
|
221,420 |
|
|
134,686 |
|
|
|
|
|
|
|
|
|
|
EXHIBIT II
Non-GAAP Financial Measures:
Reconciliation of IFRS Common Control Reported Results
in our Financial Statements to Partnership Performance
Results:
Our Partnership Performance Results presented below are non-GAAP
measures and exclude amounts related to GAS-eleven Ltd. (the owner
of the GasLog Greece), GAS-thirteen Ltd. (the owner of the GasLog
Geneva), GAS-eight Ltd. (the owner of the Solaris) and GAS-fourteen
Ltd. (the owner of the GasLog Gibraltar), for the periods prior to
their transfers to the Partnership on May 3, 2017, July 3, 2017,
October 20, 2017 and April 26, 2018, respectively. While such
amounts are reflected in the Partnership’s unaudited condensed
consolidated financial statements because the transfers to the
Partnership were accounted for as reorganizations of entities under
common control under IFRS, GAS-eleven Ltd., GAS-thirteen Ltd.,
GAS-eight Ltd. and GAS-fourteen Ltd. were not owned by the
Partnership prior to their respective transfers to the Partnership
on May 3, 2017, July 3, 2017, October 20, 2017 and April 26, 2018,
respectively, and accordingly the Partnership was not entitled to
the cash or results generated in the periods prior to such
transfers.
Our IFRS Common Control Reported Results presented below include
the accounts of the Partnership and its subsidiaries. Transfers of
vessel owning subsidiaries from GasLog are accounted for as
reorganizations of entities under common control and the
Partnership’s consolidated financial statements are restated to
reflect such subsidiaries from the date of their incorporation by
GasLog as they were under the common control of GasLog.
GasLog Partners believes that these non-GAAP financial measures
provide meaningful supplemental information to both management and
investors regarding the financial and operating performance of the
Partnership which is necessary to understand the underlying basis
for the calculations of the quarterly distribution and the earnings
per unit, which similarly exclude the results of acquired vessels
prior to their transfers to the Partnership. These non-GAAP
financial measures should not be viewed in isolation or as
substitutes for the equivalent GAAP measures presented in
accordance with IFRS, but should be used in conjunction with the
most directly comparable IFRS Common Control Reported Results.
|
|
|
|
For the three months ended June 30,
2017 |
|
(All
amounts expressed in thousands of U.S. dollars) |
|
|
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
|
|
22,823 |
|
62,582 |
|
85,405 |
|
Voyage expenses and
commissions |
|
|
|
(284 |
) |
(786 |
) |
(1,070 |
) |
Vessel operating
costs |
|
|
|
(2,923 |
) |
(13,309 |
) |
(16,232 |
) |
Depreciation |
|
|
|
(4,864 |
) |
(13,466 |
) |
(18,330 |
) |
General and
administrative expenses |
|
|
|
(321 |
) |
(3,267 |
) |
(3,588 |
) |
Profit from
operations |
|
|
|
14,431 |
|
31,754 |
|
46,185 |
|
Financial costs |
|
|
|
(4,604 |
) |
(10,288 |
) |
(14,892 |
) |
Financial income |
|
|
|
15 |
|
228 |
|
243 |
|
Loss on
derivatives |
|
|
|
— |
|
(2,336 |
) |
(2,336 |
) |
Total other
expenses, net |
|
|
|
(4,589 |
) |
(12,396 |
) |
(16,985 |
) |
Profit for the
period |
|
|
|
9,842 |
|
19,358 |
|
29,200 |
|
|
|
|
|
For the three months ended March 31,
2018 |
|
(All
amounts expressed in thousands of U.S. dollars) |
|
|
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
|
|
7,290 |
|
77,061 |
|
84,351 |
|
Voyage expenses and
commissions |
|
|
|
(92 |
) |
(1,055 |
) |
(1,147 |
) |
Vessel operating
costs |
|
|
|
(1,471 |
) |
(15,591 |
) |
(17,062 |
) |
Depreciation |
|
|
|
(1,443 |
) |
(16,786 |
) |
(18,229 |
) |
General and
administrative expenses |
|
|
|
(98 |
) |
(4,585 |
) |
(4,683 |
) |
Profit from
operations |
|
|
|
4,186 |
|
39,044 |
|
43,230 |
|
Financial costs |
|
|
|
(1,459 |
) |
(13,888 |
) |
(15,347 |
) |
Financial income |
|
|
|
6 |
|
519 |
|
525 |
|
Gain on
derivatives |
|
|
|
— |
|
6,327 |
|
6,327 |
|
Total other
expenses, net |
|
|
|
(1,453 |
) |
(7,042 |
) |
(8,495 |
) |
Profit for the
period |
|
|
|
2,733 |
|
32,002 |
|
34,735 |
|
|
|
|
|
For the three months ended June 30,
2018 |
|
(All
amounts expressed in thousands of U.S. dollars) |
|
|
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
|
|
2,025 |
|
74,909 |
|
76,934 |
|
Net pool
allocation |
|
|
|
— |
|
(357 |
) |
(357 |
) |
Voyage expenses and
commissions |
|
|
|
(25 |
) |
(1,511 |
) |
(1,536 |
) |
Vessel operating
costs |
|
|
|
(241 |
) |
(15,110 |
) |
(15,351 |
) |
Depreciation |
|
|
|
(401 |
) |
(17,974 |
) |
(18,375 |
) |
General and
administrative expenses |
|
|
|
(27 |
) |
(4,671 |
) |
(4,698 |
) |
Profit from
operations |
|
|
|
1,331 |
|
35,286 |
|
36,617 |
|
Financial costs |
|
|
|
(394 |
) |
(14,552 |
) |
(14,946 |
) |
Financial income |
|
|
|
3 |
|
579 |
|
582 |
|
Gain on
derivatives |
|
|
|
— |
|
1,588 |
|
1,588 |
|
Total other
expenses, net |
|
|
|
(391 |
) |
(12,385 |
) |
(12,776 |
) |
Profit for the
period |
|
|
|
940 |
|
22,901 |
|
23,841 |
|
EXHIBIT III
Non-GAAP Financial Measures:
EBITDA is defined as earnings before interest income and
expense, gain/loss on derivatives, taxes, depreciation and
amortization. Adjusted Profit represents earnings before (a)
non-cash gain/loss on derivatives that includes unrealized
gain/loss on derivative financial instruments held for trading and
(b) write-off and accelerated amortization of unamortized loan
fees. EBITDA and Adjusted Profit, 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 and Adjusted Profit 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, financial costs, gain/loss on derivatives, taxes,
depreciation and amortization; and in the case of Adjusted Profit,
non-cash gain/loss on derivatives and write-off of unamortized loan
fees, which items are affected by various and possibly changing
financing methods, financial market conditions, capital structure
and historical cost basis and which items may significantly affect
results of operations between periods.
EBITDA and Adjusted Profit 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
does not reflect any cash requirements for such replacements. It is
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 this measure differently to how we do,
limiting its usefulness as a comparative measure. EBITDA excludes
some, but not all, items that affect profit or loss and these
measures may vary among other companies. Therefore, EBITDA as
presented herein may not be comparable to similarly titled measures
of other companies. The following table reconciles EBITDA to
profit, the most directly comparable IFRS financial measure, for
the periods presented.
EBITDA and Adjusted Profit are presented on the basis of IFRS
Common Control Reported Results and Partnership Performance
Results. Partnership Performance Results are non-GAAP measures. The
difference between IFRS Common Control Reported Results and
Partnership Performance Results are results attributable to GasLog,
as set out in the reconciliations below.
Reconciliation of Profit to EBITDA:
(Amounts expressed in thousands of U.S.
Dollars)
|
IFRS Common Control Reported
Results |
|
|
For the three months ended |
|
|
June 30, 2017 |
|
March 31, 2018 |
|
June 30, 2018 |
|
Profit for the
period |
29,200 |
|
34,735 |
|
23,841 |
|
Depreciation |
18,330 |
|
18,229 |
|
18,375 |
|
Financial costs |
14,892 |
|
15,347 |
|
14,946 |
|
Financial income |
(243 |
) |
(525 |
) |
(582 |
) |
Loss/(gain) on
derivatives |
2,336 |
|
(6,327 |
) |
(1,588 |
) |
EBITDA |
64,515 |
|
61,459 |
|
54,992 |
|
|
Partnership Performance Results |
|
|
For the three months ended |
|
|
June 30, 2017 |
|
March 31, 2018 |
|
June 30, 2018 |
|
Profit for the
period |
19,358 |
|
32,002 |
|
22,901 |
|
Depreciation |
13,466 |
|
16,786 |
|
17,974 |
|
Financial costs |
10,288 |
|
13,888 |
|
14,552 |
|
Financial income |
(228 |
) |
(519 |
) |
(579 |
) |
Loss/(gain) on
derivatives |
2,336 |
|
(6,327 |
) |
(1,588 |
) |
EBITDA |
45,220 |
|
55,830 |
|
53,260 |
|
|
|
|
|
|
|
|
Reconciliation of Profit to Adjusted
Profit:
(Amounts expressed in thousands of U.S.
Dollars)
|
IFRS Common Control Reported
Results |
|
|
For the three months ended |
|
|
June 30, 2017 |
|
March 31, 2018 |
|
June 30, 2018 |
|
Profit for the
period |
29,200 |
|
34,735 |
|
23,841 |
|
Non-cash loss/(gain) on
derivatives |
1,857 |
|
(6,370 |
) |
(1,001 |
) |
Write-off and
accelerated amortization of unamortized loan fees |
— |
|
900 |
|
— |
|
Adjusted
Profit |
31,057 |
|
29,265 |
|
22,840 |
|
|
Partnership Performance Results |
|
|
For the three months ended |
|
|
June 30, 2017 |
|
March 31, 2018 |
|
June 30, 2018 |
|
Profit for the
period |
19,358 |
|
32,002 |
|
22,901 |
|
Non-cash loss/(gain) on
derivatives |
1,857 |
|
(6,370 |
) |
(1,001 |
) |
Write-off and
accelerated amortization of unamortized loan fees |
— |
|
900 |
|
— |
|
Adjusted
Profit |
21,215 |
|
26,532 |
|
21,900 |
|
Distributable Cash Flow
Distributable cash flow means EBITDA, on the basis of the
Partnership Performance Results, 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, 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 Profit for the period attributable to
the Partnership.
Reconciliation of Distributable Cash Flow to
Partnership’s Profit:
(Amounts expressed in thousands of U.S.
Dollars)
|
For the three months ended |
|
|
June 30, 2017 (1) |
|
March 31, 2018 (1) |
|
June 30, 2018 (1) |
|
Partnership’s profit
for the period |
19,358 |
|
32,002 |
|
22,901 |
|
Depreciation |
13,466 |
|
16,786 |
|
17,974 |
|
Financial costs |
10,288 |
|
13,888 |
|
14,552 |
|
Financial income |
(228 |
) |
(519 |
) |
(579 |
) |
Loss/(gain) on
derivatives |
2,336 |
|
(6,327 |
) |
(1,588 |
) |
EBITDA |
45,220 |
|
55,830 |
|
53,260 |
|
Financial costs
(excluding amortization of loan fees) and realized loss/gain on
derivatives |
(9,591 |
) |
(11,771 |
) |
(12,674 |
) |
Dry-docking capital
reserve |
(2,871 |
) |
(3,245 |
) |
(3,447 |
) |
Replacement capital
reserve |
(7,955 |
) |
(8,314 |
) |
(8,767 |
) |
Accrued preferred
equity distribution |
(1,549 |
) |
(5,038 |
) |
(5,457 |
) |
Distributable
cash flow |
23,254 |
|
27,462 |
|
22,915 |
|
Other reserves (2) |
(2,253 |
) |
(3,190 |
) |
1,357 |
|
Cash
distribution declared |
21,001 |
|
24,272 |
|
24,272 |
|
- Excludes amounts related to GAS-eleven Ltd., the owner of the
GasLog Greece, GAS-thirteen Ltd., the owner of the GasLog Geneva,
GAS-eight Ltd., the owner of the Solaris and GAS-fourteen Ltd., the
owner of the GasLog Gibraltar, for the periods prior to their
transfers to the Partnership on May 3, 2017, July 3, 2017, October
20, 2017 and April 26, 2018, respectively. While such amounts are
reflected in the Partnership’s unaudited condensed consolidated
financial statements because the transfers to the Partnership were
accounted for as reorganizations of entities under common control
under IFRS, the aforementioned entities were not owned by the
Partnership prior to their respective transfers to the Partnership
in May 2017, July 2017, October 2017 and April 2018, respectively,
and accordingly the Partnership was not entitled to the cash or
results generated in the period prior to such transfers.
- 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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