GasLog Partners LP Reports Financial Results for the Three-Month Period and the Year Ended December 31, 2020
GasLog Partners LP (GLOP) reported its financial results for Q4 and FY 2020, maintaining its corporate structure post-strategic review. In Q4, revenues decreased by 12% to $85.0 million, with a profit of $22.6 million and earnings per unit of $0.31. Annual revenues were $333.7 million, down from $378.7 million in 2019. The partnership repaid $18.8 million in debt during the quarter, totaling $107.3 million for the year, while cash distribution remained at $0.01 per unit. New charters with Cheniere are expected to enhance coverage for 2021 and 2022.
- Entered a two-year charter with Cheniere, increasing coverage to 77% for 2021.
- Repaid $18.8 million in debt during Q4, totaling $107.3 million for 2020.
- Q4 revenues decreased by 12% year-over-year, reflecting a loss of revenue from expired charters.
- Annual revenues dropped to $333.7 million, a 12% decline from 2019.
Piraeus, Greece, Feb. 22, 2021 (GLOBE NEWSWIRE) -- GasLog Partners LP (“GasLog Partners” or the “Partnership”) (NYSE: GLOP), an international owner and operator of liquefied natural gas (“LNG”) carriers, today reported its financial results for the three-month period and the year ended December 31, 2020.
Highlights
- Following the completion of the Partnership’s strategic review, GasLog Partners will maintain its current corporate structure and will continue to pursue its own independent strategy of owning, operating and acquiring LNG carriers.
- During the quarter, signed a new two-year time charter for the 15-year old steam turbine propulsion (“Steam”) vessel, Methane Jane Elizabeth, with a wholly owned subsidiary of Cheniere Energy Inc. (“Cheniere”).
- Repaid
$18.8 million of debt in the fourth quarter of 2020, bringing total debt repayment (excluding prepayments for refinanced facilities) to$107.3 million during 2020. - Quarterly Revenues, Profit, Adjusted Profit(1) and Adjusted EBITDA(1) of
$85.0 million ,$22.6 million ,$25.9 million and$59.0 million , respectively. - Annual Revenues, Profit, Adjusted Profit(1) and Adjusted EBITDA(1) of
$333.7 million ,$56.9 million ,$92.4 million and$230.6 million , respectively. - Quarterly Earnings per unit of
$0.31 and Adjusted Earnings per unit(1) of$0.38 . - Annual Earnings per unit of
$0.55 and Adjusted Earnings per unit(1) of$1.29 . - Cash distribution of
$0.01 per common unit for the fourth quarter of 2020, unchanged from the third quarter of 2020.
Chairman and CEO Statements
Curt Anastasio, Chairman of GasLog Partners stated: "The spot and short-term trading market for LNG carriers has experienced significant growth in recent years and we expect this to continue as the LNG commodity itself becomes increasingly traded on a spot and short-term basis. With a leading operating and commercial platform backing us through our parent, GasLog Ltd., as well as a diverse asset base, the Partnership is positioned to succeed in this market.
While the independent strategic review announced last November has concluded, strategy remains an ongoing focus of the board. We are open to entertaining all value-enhancing options for the business as we continue to reduce debt and enhance liquidity."
Paul Wogan, Chief Executive Officer, commented: “The fourth quarter was another operational and commercial success for the Partnership with fleet uptime of approximately
During the quarter, we repaid
We expect that our focus on debt reduction will reduce the cash break-even rates of our fleet overtime, increasing our competitiveness and free cash flow capacity.”
Strategic Review Update
On November 10, 2020, the Partnership announced its intention to engage with an independent advisor to assess its strategic alternatives. After a comprehensive analysis conducted by management, in conjunction with Stifel, Nicolaus & Company, Inc. acting as a financial advisor, of the Partnership’s corporate structure, assets, financial position, competitive environment and current and expected commercial market, the following conclusions have been reached:
- The Partnership will maintain its current corporate structure with GasLog Ltd. (“GasLog”, the “General Partner” or “GP”) as its general partner;
- The Partnership will continue to pursue an independent commercial and operational strategy of owning, operating and acquiring LNG carriers; and
- Strategy remains an ongoing focus of the board of directors and we are open to entertaining all value-enhancing options for the business as we continue to reduce debt and enhance liquidity.
Financial Summary
| For the three months ended | For the years ended | ||||||||||||||
| (All amounts expressed in thousands of U.S. dollars, except per unit amounts) | December 31, 2019 | December 31, 2020 | % change | December 31, 2019 | December 31, 2020 | % change | |||||||||
| Revenues | 96,512 | 85,048 | (12 | % | ) | 378,687 | 333,662 | (12 | % | ) | |||||
| (Loss)/profit | (106,362 | ) | 22,611 | (121 | % | ) | (34,769 | ) | 56,859 | (264 | % | ) | |||
| Earnings/(loss) per unit (“EPU”), common (basic) | (2.37 | ) | 0.31 | (113 | % | ) | (1.43 | ) | 0.55 | (138 | % | ) | |||
| Adjusted Profit(1) | 29,646 | 25,926 | (13 | % | ) | 118,925 | 92,442 | (22 | % | ) | |||||
| Adjusted EBITDA(1) | 68,255 | 59,049 | (13 | % | ) | 276,294 | 230,635 | (17 | % | ) | |||||
| Adjusted EPU, common (basic)(1) | 0.46 | 0.38 | (17 | % | ) | 1.82 | 1.29 | (29 | % | ) | |||||
| Distributable cash flow | 31,781 | 25,997 | (18 | % | ) | 123,108 | 91,241 | (26 | % | ) | |||||
| Cash distribution declared | 26,754 | 485 | (98 | % | ) | 106,742 | 12,959 | (88 | % | ) | |||||
There were 1,348 and 5,186 revenue operating days for the quarter and the year ended December 31, 2020, respectively, as compared to 1,348 and 5,397 revenue operating days for the quarter and the year ended December 31, 2019, respectively. The year-over-year decrease in revenue operating days is mainly attributable to increased off-charter days for the vessels not operating under multi-year time charters and increased off-hire days for scheduled dry-dockings.
Management classifies the Partnership’s vessels from a commercial strategy point of view into two categories: (a) spot fleet and (b) long-term fleet. The spot fleet includes all vessels under charter party agreements with an initial duration of less than (or equal to) five years (excluding optional periods), while the long-term fleet comprises all vessels with charter party agreements of an initial duration of more than five years (excluding optional periods).
For the quarter and the year ended December 31, 2020, an analysis of available days, revenue operating days, revenues and voyage expenses and commissions per category is presented below:
| Amounts in thousands of U.S. dollars | For the three months ended December 31, 2020 | For the year ended December 31, 2020 | |||||||||||
| Spot fleet | Long-term fleet | Spot fleet | Long-term fleet | ||||||||||
| Available days (*) | 644 | 716 | 2,225 | 3,108 | |||||||||
| Revenue operating days (**) | 632 | 716 | 2,078 | 3,108 | |||||||||
| Revenues | 27,850 | 57,198 | 90,374 | 243,288 | |||||||||
| Voyage expenses and commissions | (549 | ) | (978 | ) | (6,272 | ) | (4,171 | ) | |||||
(*) Available days represent total calendar days in the period after deducting off-hire days where vessels are undergoing dry-dockings and unavailable days (i.e. days before and after a dry-docking where the vessel has limited practical ability for chartering opportunities).
(**) Revenue operating days represent total available days after deducting off-charter days and unscheduled off-hire days.
Revenues decreased by
Vessel operating costs also decreased by
General and administrative expenses were
The decrease in Adjusted EBITDA of
In the quarter ended December 31, 2020, the Partnership recognized a non-cash impairment loss of
Financial costs decreased by
Gain on derivatives decreased by
The increase in profit from a loss of
The decrease in Adjusted Profit of
As of December 31, 2020, we had
As of December 31, 2020, we had an aggregate of
As of December 31, 2020, our current assets totaled
(1) Adjusted Profit, Adjusted EBITDA and Adjusted EPU are non-GAAP financial measures and should not be used in isolation or as substitutes for GasLog Partners’ financial results presented in accordance with International Financial Reporting Standards (“IFRS”). For the definitions and reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release.
Preference Unit Distributions
On November 9, 2020, the board of directors of GasLog Partners approved and declared a distribution on the
Common Unit Distribution
On January 27, 2021, the board of directors of GasLog Partners approved and declared a quarterly cash distribution of
Our Fleet
Our fleet currently consists of the following vessels:
| LNG Carrier | Year Built | Cargo Capacity (cubic meters “cbm”) | Charterer (for contracts of more than six months) | Propulsion | Charter Expiration | Optional Period | ||||||||
| 1 | Methane Rita Andrea | 2006 | 145,000 | Spot Market | Steam | — | — | |||||||
| 2 | Methane Heather Sally | 2007 | 145,000 | Spot Market | Steam | — | — | |||||||
| 3 | GasLog Sydney | 2013 | 155,000 | Spot Market | TFDE | — | — | |||||||
| 4 | GasLog Seattle | 2013 | 155,000 | Shell | TFDE | June 2021 | — | |||||||
| 5 | Solaris | 2014 | 155,000 | Shell | TFDE | August 2021 | — | |||||||
| 6 | GasLog Santiago | 2013 | 155,000 | Trafigura (1) | TFDE | December 2021 | 2022–2028 (1) | |||||||
| 7 | Methane Shirley Elisabeth | 2007 | 145,000 | JOVO (2) | Steam | August 2022 | — | |||||||
| 8 | GasLog Shanghai | 2013 | 155,000 | Gunvor (3) | TFDE | November 2022 | — | |||||||
| 9 | Methane Jane Elizabeth | 2006 | 145,000 | Cheniere (4) | Steam | March 2023 | 2024–2025 (4) | |||||||
| 10 | GasLog Geneva | 2016 | 174,000 | Shell | TFDE | September 2023 | 2028–2031 (5) | |||||||
| 11 | Methane Alison Victoria | 2007 | 145,000 | CNTIC VPower (6) | Steam | October 2023 | 2024–2025 (6) | |||||||
| 12 | GasLog Gibraltar | 2016 | 174,000 | Shell | TFDE | October 2023 | 2028–2031 (5) | |||||||
| 13 | Methane Becki Anne | 2010 | 170,000 | Shell | TFDE | March 2024 | 2027–2029 (7) | |||||||
| 14 | GasLog Greece | 2016 | 174,000 | Shell | TFDE | March 2026 | 2031 (8) | |||||||
| 15 | GasLog Glasgow | 2016 | 174,000 | Shell | TFDE | June 2026 | 2031 (8) | |||||||
(1) The vessel is chartered to Trafigura Maritime Logistics PTE Ltd. (“Trafigura”). Charterer may extend the term of this time charter for a period ranging from one to seven years, provided that the charterer gives us advance notice of declaration. The period shown reflects the expiration of the minimum optional period and the maximum optional period.
(2) The vessel is chartered to Singapore Carbon Hydrogen Energy Pte. Ltd., a wholly owned subsidiary of JOVO. The charter commenced in July 2020.
(3) The vessel is chartered to Clearlake Shipping Pte. Ltd., a subsidiary of Gunvor Group Ltd. (“Gunvor”).
(4) The vessel is chartered to Cheniere Marketing International LLP, a subsidiary of Cheniere. Charterer may extend the term of the time charters by two additional periods of one year, provided that the charterer gives us advance notice of declaration. The period shown reflects the expiration of the minimum optional period and the maximum optional period.
(5) Charterer may extend the term of the time charters by two additional periods of five and three years, respectively, provided that the charterer gives us advance notice of declaration. The period shown reflects the expiration of the minimum optional period and the maximum optional period.
(6) The vessel is chartered to CNTIC VPower, an independent Chinese energy company. The charterer may extend the term of the related charter by two additional periods of one year, provided that the charterer gives us advance notice of its exercise of any extension option. The period shown reflects the expiration of the minimum optional period and the maximum optional period.
(7) Charterer may extend the term of the related charter for one extension period of three or five years, provided that the charterer gives us advance notice of its exercise of any extension option. The period shown reflects the expiration of the minimum optional period and the maximum optional period.
(8) Charterer may extend the term of these time charters for a period of five years, provided that the charterer gives us advance notice of declaration.
LNG Market Update and Outlook
LNG demand was 93 million tonnes (“mt”) in the fourth quarter of 2020, according to Poten, compared to 94 mt in the fourth quarter of 2019, or a decrease of approximately
Global LNG supply was approximately 94 mt in the fourth quarter of 2020, an increase of approximately 1 mt, or
In the LNG shipping spot market, TFDE headline rates, as reported by Clarksons, averaged
As of February 19, 2021, Clarksons assesses headline spot rates for TFDE and Steam LNG carriers at
As of February 6, 2021, Poten estimates that the orderbook totals 112 dedicated LNG carriers (>100,000 cbm), representing
Contracted Charter Revenues
The following table summarizes GasLog Partners’ contracted charter revenues and vessel utilization after December 31, 2020:
| For the years ending December 31, | ||||||||||||||||||||||||||||||||
| 2021 | 2022 | 2023 | 2024 | 2025-2026 | Total | |||||||||||||||||||||||||||
| (in millions of U.S. dollars, except days and percentages) | ||||||||||||||||||||||||||||||||
| Contracted time charter revenues(1)(2)(3)(4)(5) | $ | 237.3 | $ | 189.3 | $ | 149.9 | $ | 70.4 | $ | 80.8 | $ | 727.7 | ||||||||||||||||||||
| Total contracted days(1)(2) | 4,079 | 3,111 | 2,016 | 823 | 940 | 10,969 | ||||||||||||||||||||||||||
| Total available days(6) | 5,325 | 5,475 | 5,355 | 5,430 | 10,680 | 32,265 | ||||||||||||||||||||||||||
| Total unfixed days(7) | 1,246 | 2,364 | 3,339 | 4,607 | 9,740 | 21,296 | ||||||||||||||||||||||||||
| Percentage of total contracted days/total available days | 76.6 | % | 56.8 | % | 37.6 | % | 15.2 | % | 8.8 | % | 34.0 | % | ||||||||||||||||||||
After giving effect to the charter parties signed from December 31, 2020 until February 16, 2021, the contracted time charter revenues and the percentage of total contracted days to total available days increased to
(1) Reflects time charter revenues and contracted days for the 15 LNG carriers in our fleet as of December 31, 2020.
(2) Our ships are scheduled to undergo dry-docking once every five years. Revenue calculations assume 365 revenue days per ship per annum, with 30 off-hire days when each ship undergoes scheduled dry-docking.
(3) For time charters that include a fixed operating cost component, subject to annual escalation, revenue calculations include that fixed annual escalation. Revenue calculations for such charters include an estimate of the amount of the operating cost component and the management fee component.
(4) For time charters that include a variable rate of hire within an agreed range during the charter period, revenue calculations are based on the agreed minimum rate of hire for the respective period.
(5) Revenue calculations assume no exercise of any option to extend the terms of the charters.
(6) Available days represent total calendar days after deducting 30 off-hire days when the ship undergoes scheduled dry-docking.
(7) Unfixed days represent available days for the ships after the expiration of the existing charters (assuming charterers do not exercise any option to extend the terms of the charters).
The table above provides information about our contracted charter revenues and ship utilization based on contracts in effect for the 15 LNG carriers in our fleet as of December 31, 2020. The table reflects only our contracted charter revenues for the ships in our owned fleet for which we have secured time charters, and it does not reflect the costs or expenses we will incur in fulfilling our obligations under the charters. In particular, the table does not reflect time charter revenues from any additional ships we may acquire in the future, nor does it reflect the options under our time charters that permit our charterers to extend the time charter terms for successive multi-year periods at comparable charter hire rates. If exercised, the options to extend the terms of our existing charters would result in an increase in the number of contracted days and the contracted revenue for our fleet in the future. Although the contracted charter revenues are based on contracted charter hire rate provisions, they reflect certain assumptions, including assumptions relating to future ship operating costs. We consider the assumptions to be reasonable as of the date of this report, but if these assumptions prove to be incorrect, our actual time charter revenues could differ from those reflected in the table. Furthermore, any contract is subject to various risks, including non-performance by the counterparties or an early termination of the contract pursuant to its terms. If the charterers are unable or unwilling to make charter payments to us, or if we agree to renegotiate charter terms at the request of a charterer or if contracts are prematurely terminated for any reason, we would be exposed to prevailing market conditions at the time and our results of operations and financial condition may be materially adversely affected. Please see the disclosure under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on March 3, 2020 and the updated risk factors in the Company’s Quarterly Report on Form 6-K filed with the SEC on November 10, 2020 (Exhibit 99.2, under the caption “Forward-Looking Statements”). For these reasons, the contracted charter revenue information presented above is not fact and should not be relied upon as being necessarily indicative of future results and readers are cautioned not to place undue reliance on this information. Neither the Partnership’s independent auditors, nor any other independent accountants, have compiled, examined or performed any procedures with respect to the information presented in the table, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the information in the table.
Conference Call
GasLog Partners and GasLog will host a joint conference call to discuss their results for the fourth quarter of 2020 at 8.30 a.m. EST (3.30 p.m. EET) on Monday, February 22, 2021. Senior management of GasLog Partners and GasLog will review the operational and financial performance of the companies. The presentation of each company’s fourth quarter results will be followed by separate Q&A sessions for each company.
The dial-in numbers for the conference call are as follows:
+1 855 253 8928 (USA)
+44 20 3107 0289 (United Kingdom)
+33 1 70 80 71 53 (France)
+852 5819 4851 (Hong Kong)
+47 2396 4173 (Oslo)
Conference ID: 5262308
A live webcast of the conference call will also be available on the Investor Relations page of the GasLog Partners website (http://www.gaslogmlp.com/investors).
For those unable to participate in the conference call, a replay of the webcast will be available on the Investor Relations pages of the company website as referenced above.
About GasLog Partners
GasLog Partners is a growth-oriented owner, operator and acquirer of LNG carriers. The Partnership’s fleet consists of 15 LNG carriers with an average carrying capacity of approximately 158,000 cbm. GasLog Partners is a publicly traded master limited partnership (NYSE: GLOP) but has elected to be treated as a C corporation for U.S. income tax purposes and therefore its investors receive an Internal Revenue Service Form 1099 with respect to any distributions declared and received. The Partnership’s principal executive offices are located at 69 Akti Miaouli, 18537, Piraeus, Greece. Visit GasLog Partners’ website at http://www.gaslogmlp.com.
Forward-Looking Statements
All statements in this press release that are not statements of historical fact are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that the Partnership expects, projects, believes or anticipates will or may occur in the future, particularly in relation to our operations, cash flows, financial position, liquidity and cash available for distributions, and the impact of cash distribution reductions on the Partnership’s business and growth prospects, plans, strategies and changes and trends in our business and the markets in which we operate. We caution that these forward-looking statements represent our estimates and assumptions only as of the date of this press release, about factors that are beyond our ability to control or predict, and are not intended to give any assurance as to future results. Any of these factors or a combination of these factors could materially affect future results of operations and the ultimate accuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements.
Factors that might cause future results and outcomes to differ include, but are not limited to, the following:
- general LNG shipping market conditions and trends, including spot and multi-year charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping, including geopolitical events, technological advancements and opportunities for the profitable operations of LNG carriers;
- fluctuations in charter hire rates, vessel utilization and vessel values;
- our ability to secure new multi-year charters at economically attractive rates;
- our ability to maximize the use of our vessels, including the re-deployment or disposition of vessels which are not operating under multi-year charters, including the risk that certain of our vessels may no longer have the latest technology at such time which may impact our ability to secure employment for such vessels as well as the rate at which we can charter such vessels;
- changes in our operating expenses, including crew wages, maintenance, dry-docking and insurance costs and bunker prices;
- number of off-hire days and dry-docking requirements, including our ability to complete scheduled dry-dockings on time and within budget;
- planned capital expenditures and availability of capital resources to fund capital expenditures;
- disruption to the LNG, LNG shipping and financial markets caused by the global shutdown as a result of the COVID-19 pandemic;
- business disruptions resulting from measures taken to reduce the spread of COVID-19, including possible delays due to the quarantine of vessels and crew, as well as government-imposed shutdowns;
- fluctuations in prices for crude oil, petroleum products and natural gas, including LNG;
- fluctuations in exchange rates, especially the U.S. dollar and the Euro;
- our ability to expand our portfolio by acquiring vessels through our drop-down pipeline with GasLog or by acquiring other assets from third parties;
- our ability to leverage GasLog’s relationships and reputation in the shipping industry;
- the ability of GasLog to maintain long-term relationships with major energy companies and major LNG producers, marketers and consumers;
- GasLog’s relationships with its employees and ship crews, its ability to retain key employees and provide services to us, and the availability of skilled labor, ship crews and management;
- changes in the ownership of our charterers;
- our customers’ performance of their obligations under our time charters and other contracts;
- our future operating performance, financial condition, liquidity and cash available for distributions;
- our distribution policy and our ability to make cash distributions on our units or the impact of cash distribution reductions on our financial position;
- our ability to obtain debt and equity financing on acceptable terms to fund capital expenditures, acquisitions and other corporate activities, funding by banks of their financial commitments, funding by GasLog of the revolving credit facility and our ability to meet our restrictive covenants and other obligations under our credit facilities;
- future, pending or recent acquisitions of ships or other assets, business strategy, areas of possible expansion and expected capital spending;
- risks inherent in ship operation, including the discharge of pollutants;
- the impact on us and the shipping industry of environmental concerns, including climate change;
- any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity event;
- the expected cost of and our ability to comply with environmental and regulatory requirements, including with respect to emissions of air pollutants and greenhouse gases, as well as future changes in such requirements or other actions taken by regulatory authorities, governmental organizations, classification societies and standards imposed by our charterers applicable to our business;
- potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists;
- potential liability from future litigation; and
- other risks and uncertainties described in the Partnership’s Annual Report on Form 20-F filed with the SEC on March 3, 2020 and Quarterly Reports on Form 6-K filed with the SEC on May 7, 2020, August 5, 2020 and November 10, 2020, available at http://www.sec.gov.
We undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events, a change in our views or expectations or otherwise, except as required by applicable law. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.
The declaration and payment of distributions are at all times subject to the discretion of our board of directors and will depend on, amongst other things, risks and uncertainties described above, restrictions in our credit facilities, the provisions of Marshall Islands law and such other factors as our board of directors may deem relevant.
Contacts:
Joseph Nelson
Head of Investor Relations
Phone: +1-212-223-0643
E-mail: ir@gaslogmlp.com
EXHIBIT I – Unaudited Interim Financial Information
Unaudited condensed consolidated statements of financial position
As of December 31, 2019 and December 31, 2020
(All amounts expressed in thousands of U.S. Dollars, except unit data)
| December 31, 2019 | December 31, 2020 | ||||||
| Assets | |||||||
| Non-current assets | |||||||
| Other non-current assets | 128 | 186 | |||||
| Tangible fixed assets | 2,286,430 | 2,206,618 | |||||
| Right-of-use assets | 1,033 | 516 | |||||
| Total non-current assets | 2,287,591 | 2,207,320 | |||||
| Current assets | |||||||
| Trade and other receivables | 7,147 | 16,265 | |||||
| Inventories | 3,353 | 3,036 | |||||
| Prepayments and other current assets | 1,597 | 2,691 | |||||
| Derivative financial instruments | 372 | — | |||||
| Cash and cash equivalents | 96,884 | 103,736 | |||||
| Total current assets | 109,353 | 125,728 | |||||
| Total assets | 2,396,944 | 2,333,048 | |||||
| Partners’ equity and liabilities | |||||||
| Partners’ equity | |||||||
| Common unitholders (46,860,182 units issued and outstanding as of December 31, 2019 and 47,517,824 units issued and outstanding as of December 31, 2020) | 606,811 | 594,901 | |||||
| General partner (1,021,336 units issued and outstanding as of December 31, 2019 and December 31, 2020) | 11,271 | 11,028 | |||||
| Preference unitholders (5,750,000 Series A Preference Units, 4,600,000 Series B Preference Units and 4,000,000 Series C Preference Units issued and outstanding as of December 31, 2019 and December 31, 2020) | 347,889 | 347,889 | |||||
| Total partners’ equity | 965,971 | 953,818 | |||||
| Current liabilities | |||||||
| Trade accounts payable | 16,630 | 13,578 | |||||
| Due to related parties | 5,642 | 7,525 | |||||
| Derivative financial instruments | 2,607 | 8,185 | |||||
| Other payables and accruals | 51,570 | 50,679 | |||||
| Borrowings—current portion | 109,822 | 104,908 | |||||
| Lease liabilities—current portion | 472 | 332 | |||||
| Total current liabilities | 186,743 | 185,207 | |||||
| Non-current liabilities | |||||||
| Derivative financial instruments | 6,688 | 12,152 | |||||
| Borrowings—non-current portion | 1,236,202 | 1,180,635 | |||||
| Lease liabilities—non-current portion | 414 | 112 | |||||
| Other non-current liabilities | 926 | 1,124 | |||||
| Total non-current liabilities | 1,244,230 | 1,194,023 | |||||
| Total partners’ equity and liabilities | 2,396,944 | 2,333,048 |
Unaudited condensed consolidated statements of profit or loss
For the three-month periods and the years ended December 31, 2019 and December 31, 2020
(All amounts expressed in thousands of U.S. Dollars, except per unit data)
| For the three months ended | For the years ended | |||||||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||||||
| Revenues | 96,512 | 85,048 | 378,687 | 333,662 | ||||||||
| Net pool allocation | — | — | 1,058 | — | ||||||||
| Voyage expenses and commissions | (1,761 | ) | (1,527 | ) | (7,308 | ) | (10,443 | ) | ||||
| Vessel operating costs | (21,447 | ) | (19,483 | ) | (76,742 | ) | (74,798 | ) | ||||
| Depreciation | (22,483 | ) | (21,208 | ) | (89,309 | ) | (83,058 | ) | ||||
| General and administrative expenses | (5,049 | ) | (4,989 | ) | (19,401 | ) | (18,960 | ) | ||||
| Impairment loss on vessels | (138,848 | ) | (5,082 | ) | (138,848 | ) | (23,923 | ) | ||||
| (Loss)/profit from operations | (93,076 | ) | 32,759 | 48,137 | 122,480 | |||||||
| Financial costs | (16,348 | ) | (9,970 | ) | (71,998 | ) | (50,987 | ) | ||||
| Financial income | 329 | 10 | 1,887 | 295 | ||||||||
| Gain/(loss) on derivatives | 2,733 | (188 | ) | (12,795 | ) | (14,929 | ) | |||||
| Total other expenses, net | (13,286 | ) | (10,148 | ) | (82,906 | ) | (65,621 | ) | ||||
| (Loss)/profit and total comprehensive (loss)/income for the period | (106,362 | ) | 22,611 | (34,769 | ) | 56,859 | ||||||
| (Loss)/earnings per unit basic and diluted: | ||||||||||||
| Common unit, basic | (2.37 | ) | 0.31 | (1.43 | ) | 0.55 | ||||||
| Common unit, diluted | (2.37 | ) | 0.30 | (1.43 | ) | 0.52 | ||||||
| General partner unit | (2.38 | ) | 0.31 | (1.52 | ) | 0.55 | ||||||
Unaudited condensed consolidated statements of cash flows
For the years ended December 31, 2019 and December 31, 2020
(All amounts expressed in thousands of U.S. Dollars)
| For the years ended | ||||||||
| December 31, 2019 | December 31, 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| (Loss)/profit for the year | (34,769 | ) | 56,859 | |||||
| Adjustments for: | ||||||||
| Depreciation | 89,309 | 83,058 | ||||||
| Impairment loss on vessels | 138,848 | 23,923 | ||||||
| Financial costs | 71,998 | 50,987 | ||||||
| Financial income | (1,887 | ) | (295 | ) | ||||
| Unrealized loss on derivatives held for trading | 13,858 | 8,568 | ||||||
| Share-based compensation | 1,158 | 1,908 | ||||||
| Realized foreign exchange losses | 542 | — | ||||||
| 279,057 | 225,008 | |||||||
| Movements in working capital | 27,763 | (11,305 | ) | |||||
| Cash provided by operations | 306,820 | 213,703 | ||||||
| Interest paid | (67,759 | ) | (47,088 | ) | ||||
| Net cash provided by operating activities | 239,061 | 166,615 | ||||||
| Cash flows from investing activities: | ||||||||
| Payments for tangible fixed assets | (13,940 | ) | (23,618 | ) | ||||
| Return of capital expenditures | 7,465 | — | ||||||
| Financial income received | 1,950 | 326 | ||||||
| Maturity of short-term investments | 43,000 | — | ||||||
| Purchase of short-term investments | (33,000 | ) | — | |||||
| Net cash provided by/(used in) investing activities | 5,475 | (23,292 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Borrowings drawdowns | 445,000 | 479,984 | ||||||
| Borrowings repayments | (465,195 | ) | (540,701 | ) | ||||
| Payment of loan issuance costs | (6,173 | ) | (7,362 | ) | ||||
| Proceeds from entering into interest rate swaps | — | 16,056 | ||||||
| Payments for interest rate swaps termination | — | (13,210 | ) | |||||
| Proceeds from issuances of general partner units | 1,996 | — | ||||||
| Repurchases of common units | (22,890 | ) | (996 | ) | ||||
| Payment of offering costs | (1,670 | ) | (146 | ) | ||||
| Cash distribution to GasLog in exchange for contribution of net assets | (93,646 | ) | — | |||||
| Distributions paid | (137,953 | ) | (69,556 | ) | ||||
| Payments for lease liabilities | (491 | ) | (540 | ) | ||||
| Net cash used in financing activities | (281,022 | ) | (136,471 | ) | ||||
| (Decrease)/increase in cash and cash equivalents | (36,486 | ) | 6,852 | |||||
| Cash and cash equivalents, beginning of the year | 133,370 | 96,884 | ||||||
| Cash and cash equivalents, end of the year | 96,884 | 103,736 | ||||||
EXHIBIT II
Non-GAAP Financial Measures:
EBITDA is defined as earnings before financial income and costs, gain/loss on derivatives, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before impairment loss on vessels and restructuring costs. Adjusted Profit represents earnings before (a) non-cash gain/loss on derivatives that includes unrealized gain/loss on derivatives held for trading, (b) write-off and accelerated amortization of unamortized loan fees, (c) impairment loss on vessels and (d) restructuring costs. Adjusted EPU, represents earnings attributable to unitholders before (a) non-cash gain/loss on derivatives that includes unrealized gain/loss on derivatives held for trading, (b) write-off and accelerated amortization of unamortized loan fees, (c) impairment loss on vessels and (d) restructuring costs. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU, which are non-GAAP financial measures, are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. The Partnership believes that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. The Partnership believes that including EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our ongoing financial and operational strength in assessing whether to purchase and/or to continue to hold our common units. This increased comparability is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, financial costs, gain/loss on derivatives, taxes, depreciation and amortization; in the case of Adjusted EBITDA, impairment loss on vessels and restructuring costs and, in the case of Adjusted Profit and Adjusted EPU, non-cash gain/loss on derivatives, write-off and accelerated amortization of unamortized loan fees, impairment loss on vessels and restructuring costs, which items are affected by various and possibly changing financing methods, financial market conditions, general shipping market conditions, capital structure and historical cost basis and which items may significantly affect results of operations between periods. In the current year, restructuring costs have been excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because restructuring costs represent charges reflecting specific actions taken by management to improve the Partnership’s future profitability and therefore are not considered representative of the underlying operations of the Partnership. In the current year and prior year, impairment loss has been excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because impairment loss on vessels represents the excess of their carrying amount over the amount that is expected to be recovered from them in the future and therefore is not considered representative of the underlying operations of the Partnership.
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU have limitations as analytical tools and should not be considered as alternatives to, or as substitutes for, or superior to, profit, profit from operations, earnings per unit or any other measure of operating performance presented in accordance with IFRS. Some of these limitations include the fact that they do not reflect (i) our cash expenditures or future requirements for capital expenditures or contractual commitments, (ii) changes in, or cash requirements for, our working capital needs and (iii) the cash requirements necessary to service interest or principal payments on our debt. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU are not adjusted for all non-cash income or expense items that are reflected in our statement of cash flows and other companies in our industry may calculate these measures differently to how we do, limiting their usefulness as comparative measures. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU exclude some, but not all, items that affect profit or loss and these measures may vary among other companies. Therefore, EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU as presented herein may not be comparable to similarly titled measures of other companies. The following tables reconcile EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU to Profit, the most directly comparable IFRS financial measure, for the periods presented.
In evaluating EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU should not be construed as an inference that our future results will be unaffected by the excluded items.
Reconciliation of Profit to EBITDA and Adjusted EBITDA:
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | For the years ended | |||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||
| (Loss)/profit for the period | (106,362 | ) | 22,611 | (34,769 | ) | 56,859 | ||
| Depreciation | 22,483 | 21,208 | 89,309 | 83,058 | ||||
| Financial costs | 16,348 | 9,970 | 71,998 | 50,987 | ||||
| Financial income | (329 | ) | (10 | ) | (1,887 | ) | (295 | ) |
| (Gain)/loss on derivatives | (2,733 | ) | 188 | 12,795 | 14,929 | |||
| EBITDA | (70,593 | ) | 53,967 | 137,446 | 205,538 | |||
| Impairment loss on vessels | 138,848 | 5,082 | 138,848 | 23,923 | ||||
| Restructuring costs | — | — | — | 1,174 | ||||
| Adjusted EBITDA | 68,255 | 59,049 | 276,294 | 230,635 | ||||
Reconciliation of Profit to Adjusted Profit:
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | For the years ended | ||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | ||||
| (Loss)/profit for the period | (106,362 | ) | 22,611 | (34,769 | ) | 56,859 | |
| Non-cash (gain)/loss on derivatives | (2,840 | ) | (1,767 | ) | 13,858 | 8,568 | |
| Write-off and accelerated amortization of unamortized loan fees | — | — | 988 | 1,918 | |||
| Impairment loss on vessels | 138,848 | 5,082 | 138,848 | 23,923 | |||
| Restructuring costs | — | — | — | 1,174 | |||
| Adjusted Profit | 29,646 | 25,926 | 118,925 | 92,442 | |||
Reconciliation of Profit to EPU and Adjusted EPU:
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | For the years ended | |||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||
| (Loss)/profit for the period | (106,362 | ) | 22,611 | (34,769 | ) | 56,859 | ||
| Less: | ||||||||
| Profit attributable to GasLog’s operations | — | — | (2,650 | ) | — | |||
| (Loss)/profit attributable to Partnership’s operations | (106,362 | ) | 22,611 | (37,419 | ) | 56,859 | ||
| Adjustment for: | ||||||||
| Paid and accrued preference unit distributions | (7,582 | ) | (7,582 | ) | (30,328 | ) | (30,328 | ) |
| Partnership’s (loss)/profit attributable to: | (113,944 | ) | 15,029 | (67,747 | ) | 26,531 | ||
| Common units | (111,514 | ) | 14,714 | (66,268 | ) | 25,970 | ||
| General partner units | (2,430 | ) | 315 | (1,479 | ) | 561 | ||
| Incentive distribution rights | N/A | N/A | — | N/A | ||||
| Weighted average units outstanding (basic) | ||||||||
| Common units | 46,986,958 | 47,517,824 | 46,272,598 | 47,042,494 | ||||
| General partner units | 1,021,336 | 1,021,336 | 975,531 | 1,021,336 | ||||
| EPU (basic) | ||||||||
| Common units | (2.37 | ) | 0.31 | (1.43 | ) | 0.55 | ||
| General partner units | (2.38 | ) | 0.31 | (1.52 | ) | 0.55 | ||
| | ||||||||
| For the three months ended | For the years ended | |||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||
| (Loss)/profit for the period | (106,362 | ) | 22,611 | (34,769 | ) | 56,859 | ||
| Less: | ||||||||
| Profit attributable to GasLog’s operations | — | — | (2,650 | ) | — | |||
| (Loss)/profit attributable to Partnership’s operations | (106,362 | ) | 22,611 | (37,419 | ) | 56,859 | ||
| Adjustment for: | ||||||||
| Paid and accrued preference unit distributions | (7,582 | ) | (7,582 | ) | (30,328 | ) | (30,328 | ) |
| Partnership’s (loss)/profit used in EPU calculation | (113,944 | ) | 15,029 | (67,747 | ) | 26,531 | ||
| Non-cash (gain)/loss on derivatives | (2,840 | ) | (1,767 | ) | 13,858 | 8,568 | ||
| Write-off and accelerated amortization of unamortized loan fees | — | — | 988 | 1,918 | ||||
| Impairment loss on vessels | 138,848 | 5,082 | 138,848 | 23,923 | ||||
| Restructuring costs | — | — | — | 1,174 | ||||
| Adjusted Partnership’s profit/(loss) used in EPU calculation attributable to: | 22,064 | 18,344 | 85,947 | 62,114 | ||||
| Common units | 21,593 | 17,961 | 84,168 | 60,793 | ||||
| General partner units | 471 | 383 | 1,779 | 1,321 | ||||
| Incentive distribution rights | N/A | N/A | — | N/A | ||||
| Weighted average units outstanding (basic) | ||||||||
| Common units | 46,986,958 | 47,517,824 | 46,272,598 | 47,042,494 | ||||
| General partner units | 1,021,336 | 1,021,336 | 975,531 | 1,021,336 | ||||
| Adjusted EPU (basic) | ||||||||
| Common units | 0.46 | 0.38 | 1.82 | 1.29 | ||||
| General partner units | 0.46 | 0.37 | 1.82 | 1.29 | ||||
Distributable Cash Flow
Distributable cash flow means Adjusted EBITDA, on the basis of the profit attributable to Partnership’s operations(1) (as calculated above), after considering financial costs for the period, including realized loss on derivatives (interest rate swaps and forward foreign exchange contracts) and excluding amortization of loan fees, lease expense, estimated dry-docking and replacement capital reserves established by the Partnership and accrued distributions on preference units, whether or not declared. Estimated dry-docking and replacement capital reserves represent capital expenditures required to renew and maintain over the long-term the operating capacity of, or the revenues generated by, our capital assets. Distributable cash flow, which is a non-GAAP financial measure, is a quantitative standard used by investors in publicly traded partnerships to assess their ability to make quarterly cash distributions. Our calculation of Distributable cash flow may not be comparable to that reported by other companies. Distributable cash flow has limitations as an analytical tool and should not be considered as an alternative to, or substitute for, or superior to, profit or loss, profit or loss from operations, earnings per unit or any other measure of operating performance presented in accordance with IFRS. The table below reconciles Distributable cash flow to (Loss)/profit for the period.
Reconciliation of Distributable Cash Flow to (Loss)/profit:
(Amounts expressed in thousands of U.S. Dollars)
| For the three months ended | For the years ended | |||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019(1) | December 31, 2020 | |||||
| (Loss)/profit for the period | (106,362 | ) | 22,611 | (34,769 | ) | 56,859 | ||
| Less: | ||||||||
| Profit attributable to GasLog’s operations | — | — | (2,650 | ) | — | |||
| (Loss)/profit attributable to Partnership’s operations(1) | (106,362 | ) | 22,611 | (37,419 | ) | 56,859 | ||
| Depreciation | 22,483 | 21,208 | 87,819 | 83,058 | ||||
| Financial costs | 16,348 | 9,970 | 70,268 | 50,987 | ||||
| Financial income | (329 | ) | (10 | ) | (1,873 | ) | (295 | ) |
| (Gain)/loss on derivatives | (2,733 | ) | 188 | 12,795 | 14,929 | |||
| EBITDA | (70,593 | ) | 53,967 | 131,590 | 205,538 | |||
| Impairment loss on vessels | 138,848 | 5,082 | 138,848 | 23,923 | ||||
| Restructuring costs | — | — | — | 1,174 | ||||
| Adjusted EBITDA | 68,255 | 59,049 | 270,438 | 230,635 | ||||
| Financial costs (excluding amortization of loan fees and lease expense) and realized loss on derivatives | (15,036 | ) | (10,674 | ) | (62,507 | ) | (49,882 | ) |
| Dry-docking capital reserve (2) | (4,170 | ) | (4,027 | ) | (16,392 | ) | (16,108 | ) |
| Replacement capital reserve (2) | (9,686 | ) | (10,769 | ) | (38,103 | ) | (43,076 | ) |
| Paid and accrued preferred equity distribution | (7,582 | ) | (7,582 | ) | (30,328 | ) | (30,328 | ) |
| Distributable cash flow | 31,781 | 25,997 | 123,108 | 91,241 | ||||
| Other reserves (3) | (5,027 | ) | (25,512 | ) | (16,366 | ) | (78,282 | ) |
| Cash distribution declared | 26,754 | 485 | 106,742 | 12,959 | ||||
(1) Excludes amounts related to GAS-twelve Ltd., the owner of the GasLog Glasgow for the period prior to its transfer to the Partnership on April 1, 2019. While such amounts are reflected in the Partnership’s unaudited condensed consolidated financial statements because the transfer to the Partnership was accounted for as a reorganization of entities under common control under IFRS, GAS-twelve Ltd. was not owned by the Partnership prior to its respective transfer to the Partnership in April 2019 and accordingly the Partnership was not entitled to the cash or results generated in the period prior to such transfer.
(2) Effective January 1, 2020, the Partnership revised the assumed re-investment rate used in calculating the dry-docking capital reserve and the replacement capital reserve to reflect recent movements in market interest rate forecasts.
(3) Refers to movements in reserves (other than the dry-docking and replacement capital reserves) for the proper conduct of the business of the Partnership and its subsidiaries.
FAQ
What were GasLog Partners' earnings for Q4 2020?
How much did GasLog Partners repay in debt during 2020?
What is GasLog Partners' revenue for the year ended 2020?
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