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GasLog Partners LP Reports Financial Results for the Second Quarter of 2022 and Declares Cash Distribution

GasLog Partners LP
GasLog Partners LP

MAJURO, Marshall Islands, July 28, 2022 (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 second quarter of 2022.

Highlights

  • Rechartered the Methane Rita Andrea, a steam turbine propulsion (“Steam”) LNG carrier, with an energy major for one year and signed a new multi-month time charter agreement for the GasLog Seattle, a tri-fuel diesel electric (“TFDE”) LNG carrier, with a major trading house

  • Entered into an agreement to sell, subject to customary and other closing conditions, the Steam LNG carrier Methane Shirley Elisabeth, to an unrelated third party for approximately $54.0 million, with the sale expected to be completed in the third quarter of 2022, while pursuing an agreement for the sale and lease-back of another Steam vessel within the next 12 months

  • Repurchased $8.7 million of preference units in the open market in the second quarter of 2022 and a total of $18.7 million of repurchased preference units in the first six months of 2022

  • Repaid $19.9 million of debt and lease liabilities during the second quarter of 2022 and $56.9 million in the first six months of 2022

  • Quarterly Revenues, Profit, Adjusted Profit(1) and Adjusted EBITDA(1) of $84.9 million, $0.8 million, $26.3 million and $59.3 million, respectively

  • Quarterly Earnings/(loss) per unit (“EPU”) of ($0.12) and Adjusted EPU(1) of $0.37

  • Declared cash distribution of $0.01 per common unit for the second quarter of 2022

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CEO Statement

Paolo Enoizi, Chief Executive Officer, commented: “The Partnership is glad to report a positive operating result for the second quarter of 2022, driven by an improved LNG shipping spot market and a sustained interest for term business. Our team has been able to secure important chartering opportunities for two vessels in our fleet, the Steam LNG carrier Methane Rita Andrea and the TFDE LNG carrier GasLog Seattle, and realize another two important transactions with the expected sale of the Methane Shirley Elisabeth and the potential sale and lease-back of an additional Steam vessel at prices that reflect the improved LNG carrier sale and purchase market. The two new charters are expected to add approximately $50.0 million of incremental EBITDA(1) to our contract portfolio, while the sale of the Methane Shirley Elisabeth is expected to contribute approximately $20.0 million of incremental net liquidity (net sale proceeds less debt prepayment) to our balance sheet.

We continue to successfully execute on our business strategy and capital allocation plan, de-leveraging our balance sheet and continuing our preference unit repurchase programme and further reducing the all-in break-evens of our fleet.”

Financial Summary

 

 

For the three months ended

 

 

 

 

(All amounts expressed in thousands of U.S. dollars, except per unit amounts)

 

June 30, 2021

 

June 30, 2022

 

% Change

 

 

Revenues

 

70,352

 

84,922

 

21

%

 

Profit

 

14,663

 

761

 

(95

%

)

EPU, common (basic)

 

0.14

 

(0.12

)

(186

%

)

Adjusted Profit(1)

 

12,701

 

26,329

 

107

%

 

Adjusted EBITDA(1)

 

44,968

 

59,323

 

32

%

 

Adjusted EPU, common (basic)(1)

 

0.10

 

0.37

 

270

%

 

There were 1,365 available days for the second quarter of 2022, as compared to 1,283 available days for the second quarter of 2021, due to the scheduled dry-dockings of three of our vessels in the second quarter of 2021.

Management classifies the Partnership’s vessels from a commercial point of view into two categories: (a) spot fleet and (b) long-term fleet. The spot fleet includes all vessels under charter party agreements with an initial duration of up to five years (excluding optional periods), while the long-term fleet comprises all vessels with charter party agreements of an initial duration of more than five years (excluding optional periods).

For the three months ended June 30, 2021 and 2022, an analysis of available days, revenues and voyage expenses and commissions per category is presented below:

 

 

For the three months ended June 30, 2021

 

For the three months ended June 30, 2022

 

All amounts expressed in thousands of U.S. dollars,
except number of days

 

Spot fleet

 

Long-term fleet

 

Spot fleet

 

Long-term fleet

 

Available days (*)

 

761

 

522

 

819

 

546

 

Revenues

 

27,471

 

42,881

 

41,424

 

43,498

 

Voyage expenses and commissions

 

(1,064

)

(788

)

(663

)

(1,509

)

(*) Available days represent total calendar days in the period after deducting off-hire days where vessels are undergoing dry-dockings and unavailable days (for example days before and after a dry-docking where the vessel has limited practical ability for chartering opportunities).

Revenues were $84.9 million for the second quarter of 2022, compared to $70.4 million for the same period in 2021. The increase of $14.5 million is mainly attributable to a net increase in revenues from our vessels operating in the spot market in the second quarter of 2022, in line with the improvement of the LNG shipping spot and term market, combined with an increase in revenues resulting from the 82 off-hire days due to the scheduled dry-dockings of three of our vessels in the second quarter of 2021 (compared to nil in the same period in 2022).

Voyage expenses and commissions were $2.2 million for the second quarter of 2022, compared to $1.9 million for the same period in 2021. The increase of $0.3 million in voyage expenses and commissions is mainly attributable to an increase in broker commissions in line with the abovementioned increase in revenues in the second quarter of 2022, as compared to the same period in 2021.

Vessel operating costs were $19.0 million for the second quarter of 2022, compared to $20.0 million for the same period in 2021. The decrease of $1.0 million in vessel operating costs is mainly attributable to a decrease in technical maintenance expenses and a decrease in vessel management fees, partially offset by an increase in crew costs, with the latter largely related to the in-house management of the Solaris (after her redelivery into our managed fleet on April 6, 2022). As a result, daily operating costs per vessel decreased to $14,005 per day for the second quarter of 2022 from $15,734 per day for the second quarter of 2021.

General and administrative expenses were $4.4 million for the second quarter of 2022, compared to $3.5 million for the same period in 2021. The increase of $0.9 million is mainly attributable to an aggregate increase in administrative services fees for our fleet in connection with the increase in the annual fee per vessel payable to GasLog Ltd. in 2022 (approximately $0.3 million per vessel per year). As a result, daily general and administrative expenses increased to $3,211 per vessel ownership day for the second quarter of 2022 from $2,554 per vessel ownership day for the second quarter of 2021.

Impairment loss on vessels was $28.0 million for the second quarter of 2022, compared to nil for the same period in 2021. The impairment loss was recognized pursuant to the reclassification of two of our Steam vessels as held for sale and remeasurement of their carrying amounts as of June 30, 2022.

Adjusted EBITDA(1) was $59.3 million for the second quarter of 2022, compared to $45.0 million for the same period in 2021. The increase of $14.3 million is mainly attributable to the increase in revenues of $14.5 million described above.

Financial costs were $9.8 million for the second quarter of 2022, compared to $9.1 million for the same period in 2021. The increase of $0.7 million in financial costs is attributable to an increase in interest expense on loans, mainly due to an increase in the London Interbank Offered Rate (“LIBOR”) rates in the second quarter of 2022 as compared to the same period in 2021, and an increase in interest expense on leases, pursuant to the sale and leaseback of the GasLog Shanghai in October 2021. During the second quarter of 2022, we had an average of $1,058.1 million of bank borrowings outstanding under our credit facilities with a weighted average interest rate of 3.1%, compared to an average of $1,261.1 million of bank borrowings outstanding under our credit facilities with a weighted average interest rate of 2.4% during the second quarter of 2021.

Gain on derivatives was $1.2 million for the second quarter of 2022, compared to a loss of $0.4 million for the same period in 2021. The decrease of $1.6 million in the loss on derivatives is attributable to a decrease in realized loss on derivatives held for trading and an increase in unrealized gain from the mark-to-market valuation of derivatives (interest rate swaps) held for trading, which were carried at fair value through profit or loss, mainly due to changes in the forward yield curve.

Profit was $0.8 million for the second quarter of 2022, compared to $14.7 million for the same period in 2021. The decrease in profit of $13.9 million is mainly attributable to the impairment loss of $28.0 million, partially offset by the increase in revenues of $14.5 million, as described above.

Adjusted Profit was $26.3 million for the second quarter of 2022, compared to $12.7 million for the same period in 2021. The increase in Adjusted Profit of $13.6 million is mainly attributable to the increase in Adjusted EBITDA(1) discussed above.

As of June 30, 2022, we had $147.3 million of cash and cash equivalents, out of which $51.8 million was held in current accounts and $95.5 million was held in time deposits with an original duration of less than three months. An additional amount of $10.0 million of time deposits with an original duration greater than three months was classified under short-term cash deposits.

As of June 30, 2022, we had an aggregate of $1,036.1 million of bank borrowings outstanding under our credit facilities, of which $159.3 million was repayable within one year. Current bank borrowings include an amount of $69.1 million with respect to the associated debt of our two Steam vessels classified as held for sale as of June 30, 2022. As of June 30, 2022, we also had an aggregate of $50.9 million of lease liabilities mainly related to the sale and leaseback of the GasLog Shanghai, of which $10.5 million was payable within one year.

As of June 30, 2022, our current assets totaled $291.6 million and current liabilities totaled $239.8 million, resulting in a positive working capital position of $51.8 million.

(1)   Adjusted Profit, EBITDA, 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.

Sale of Vessels

In June 2022, GasLog Partners entered into an agreement to sell, subject to customary and other closing conditions, the Methane Shirley Elisabeth, a 145,000 cubic meter Steam LNG carrier built in 2007, to an unrelated third party for a gross sale price of approximately $54.0 million, resulting in the reclassification of the vessel as held for sale and the recognition of an impairment loss of $14.7 million as of June 30, 2022. The transaction is expected to be completed in the third quarter of 2022, upon redelivery of the vessel from its current charterer.

In addition, as of June 30, 2022, GasLog Partners had been pursuing an agreement for the sale and lease-back of another Steam vessel, resulting in the reclassification of that vessel as held for sale and the recognition of an impairment loss of $13.3 million. While no definitive agreement has yet been reached, the agreement is expected to be executed and the sale expected to be completed within the next 12 months.

Preference Unit Repurchase Programme

In the second quarter of 2022, under the Partnership’s preference unit repurchase programme (the “Repurchase Programme”) established in March 2021, GasLog Partners repurchased and cancelled 72,762 8.625% Series A Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units (the “Series A Preference Units”), 140,201 8.200% Series B Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units (the “Series B Preference Units”) and 132,715 8.500% Series C Cumulative Redeemable Perpetual Fixed to Floating Rate Preference Units (the “Series C Preference Units”), for an aggregate amount of $8.7 million, including commissions.

Since inception of the Repurchase Programme in March 2021 and up to June 30, 2022, GasLog Partners has repurchased and cancelled 80,600 Series A Preference Units, 777,220 Series B Preference Units and 615,599 Series C Preference Units at a weighted average price of $25.44, $25.06 and $25.23 per preference unit for Series A, Series B and Series C, respectively, for an aggregate amount of $37.1 million, including commissions.

LNG Market Update and Outlook

Global LNG demand was forecasted to be 95.7 million tonnes (“mt”) in the second quarter of 2022, according to Wood Mackenzie, Energy Research and Consultancy (“WoodMac”), compared to 92 mt in the second quarter of 2021, an increase of approximately 4%, primarily led by continued strong demand from Europe in response to low inventories and continued disruption of gas pipeline imports from Russia. As a result of increased LNG imports, European inventories were recovering to seasonal average levels. However, Russia has reduced flows via Nord Stream 1 pipeline into Germany by 60%, citing technical issues for the reduction.

Global LNG supply was approximately 101.3 mt in the second quarter of 2022, growing by 6.5 mt, or 6.9%, compared to the second quarter of 2021 according to WoodMac. LNG supply in 2022 retained strong levels compared to the first quarter of 2022, declining by just 0.1 mt as a result of high utilization in the United States (“U.S.”) and the gradual recovery of Norwegian exports. Looking ahead, approximately 163 mt of new LNG capacity is currently under construction and scheduled to come online between 2023 and 2027.

Headline spot rates for TFDE LNG carriers, as reported by Clarkson Research Services Limited (“Clarksons”), averaged $61,846 per day in the second quarter of 2022, a 6.7% increase over the $57,962 per day average in the second quarter of 2021. Headline spot rates for Steam LNG carriers averaged $40,346 per day in the second quarter of 2022, 10% lower than the average of $44,654 per day in the second quarter of 2021. Headline spot rates in the second quarter of 2022 were impacted by an increased availability of sublet tonnage, limited spot vessel enquiries and declining inter-basin demand. Most recently, the fire at the Freeport LNG export facility significantly negatively affected demand for LNG carriers in the Atlantic Basin while simultaneously releasing additional vessels into the spot market. The market for independently owned vessels, however, is supported by strong demand in the multi-month/multi-year market, despite the recent underperformance of the spot market, due to uncertainty, volatility and the small number of uncommitted vessels able to offer charterers the necessary flexibility. One-year time charter rates for TFDE LNG carriers averaged $112,250 per day in the second quarter of 2022, a 43% increase over the $78,267 per day average in the second quarter of 2021. One-year time charter rates for Steam LNG carriers averaged $62,450 per day in the second quarter of 2022, a 20% increase over the $52,083 daily average in the second quarter of 2021.

As of July 1, 2022, Clarksons assessed headline spot rates for TFDE and Steam LNG carriers at $58,750 per day and $32,500 per day, respectively. Forward assessments for LNG carrier spot rates indicate rising spot rates through the remainder of the year.

As of July 1, 2022, Poten & Partners Group Inc. estimated that the orderbook totaled 219 dedicated LNG carriers (>100,000 cbm), representing 37% of the on-the-water fleet. Of these, 189 vessels (or 86%) have multi-year charters. There were 88 orders for newbuild LNG carriers in the first six months of 2022 compared with 77 orders for all of 2021.

Preference Unit Distributions

On July 27, 2022, the board of directors of GasLog Partners approved and declared a distribution on the Series A Preference Units of $0.5390625 per preference unit, a distribution on the Series B Preference Units of $0.5125 per preference unit and a distribution on the Series C Preference Units of $0.53125 per preference unit. The cash distributions are payable on September 15, 2022 to all unitholders of record as of September 8, 2022.

Common Unit Distribution

On July 27, 2022, the board of directors of GasLog Partners approved and declared a quarterly cash distribution of $0.01 per common unit for the quarter ended June 30, 2022. The cash distribution is payable on August 11, 2022 to all unitholders of record as of August 8, 2022.

ATM Common Equity Offering Programme (“ATM Programme”)

The Partnership did not issue any common units under the ATM Programme during the second quarter of 2022.

Conference Call

GasLog Partners will host a conference call to discuss its results for the second quarter of 2022 at 8.00 a.m. EDT (3.00 p.m. EEST) on Thursday, July 28, 2022. The Partnership’s senior management will review the operational and financial performance for the period. Management’s presentation will be followed by a Q&A session.

The dial-in numbers for the conference call are as follows:

+1 866 374 5140 (USA)
+44 20 3100 4191 (United Kingdom)
+33 1 72 25 67 60 (France)
+852 800 9337 52 (Hong Kong)

Conference ID: 57987430

A live webcast of the conference call will be available on the Investor Relations page of the GasLog Partners website (http://www.gaslogmlp.com/investors).

For those unable to participate in the conference call, a replay of the webcast will be available on the Investor Relations page of the GasLog Partners website (http://www.gaslogmlp.com/investors).

About GasLog Partners

GasLog Partners is an owner and operator of LNG carriers. The Partnership’s fleet consists of 14 wholly-owned LNG carriers as well as one vessel on a bareboat charter, 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. Visit GasLog Partners’ website at http://www.gaslogmlp.com.

Forward-Looking Statements

All statements in this press release that are not statements of historical fact are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that the Partnership expects, projects, believes or anticipates will or may occur in the future, particularly in relation to our operations, cash flows, financial position, liquidity and cash available for distributions, and the impact of changes to cash distributions on the Partnership’s business and growth prospects, plans, strategies and changes and trends in our business and the markets in which we operate. We caution that these forward-looking statements represent our estimates and assumptions only as of the date of this press release, about factors that are beyond our ability to control or predict, and are not intended to give any assurance as to future results. Any of these factors or a combination of these factors could materially affect future results of operations and the ultimate accuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements.

Factors that might cause future results and outcomes to differ include, but are not limited to, the following:

  • general LNG shipping market conditions and trends, including spot and multi-year charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping, including geopolitical events, technological advancements and opportunities for the profitable operations of LNG carriers;

  • fluctuations in charter hire rates, vessel utilization and vessel values;

  • our ability to secure new multi-year charters at economically attractive rates;

  • our ability to maximize the use of our vessels, including the re-deployment or disposition of vessels which are not operating under multi-year charters, including the risk that certain of our vessels may no longer have the latest technology at such time which may impact our ability to secure employment for such vessels as well as the rate at which we can charter such vessels;

  • changes in our operating expenses, including crew costs, 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;

  • 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 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 and the ability of GasLog to maintain long-term relationships with major energy companies and major LNG producers, marketers and consumers to obtain new charter contracts;

  • 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 changes to cash distributions 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 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;

  • 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 related to climate change, 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 1, 2022, 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:

Robert Brinberg
Rose & Company
Phone: +1 212-517-0810

Email: gaslog@roseandco.com

EXHIBIT I – Unaudited Interim Financial Information

Unaudited condensed consolidated statements of financial position
As of December 31, 2021 and June 30, 2022
(All amounts expressed in thousands of U.S. Dollars, except unit data)

 

 

 

 

December 31,
2021

 

June 30,
2022

 

Assets

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Other non-current assets

 

 

 

44

 

128

 

Derivative financial instruments – non-current portion

 

 

 

 

25

 

Tangible fixed assets

 

 

 

1,888,583

 

1,714,062

 

Right-of-use assets

 

 

 

81,996

 

73,555

 

Total non-current assets

 

 

 

1,970,623

 

1,787,770

 

Current assets

 

 

 

 

 

 

 

Vessels held for sale

 

 

 

 

113,435

 

Trade and other receivables

 

 

 

11,156

 

15,828

 

Inventories

 

 

 

2,991

 

3,153

 

Prepayments and other current assets

 

 

 

1,433

 

1,808

 

Derivative financial instruments – current portion

 

 

 

 

94

 

Short-term cash deposits

 

 

 

 

10,000

 

Cash and cash equivalents

 

 

 

145,530

 

147,272

 

Total current assets

 

 

 

161,110

 

291,590

 

Total assets

 

 

 

2,131,733

 

2,079,360

 

Partners’ equity and liabilities

 

 

 

 

 

 

 

Partners’ equity

 

 

 

 

 

 

 

Common unitholders (51,137,201 units issued and outstanding as of December 31, 2021 and 51,272,865 units issued and outstanding as of June 30, 2022)

 

 

 

579,447

 

600,151

 

General partner (1,077,494 units issued and outstanding as of December 31, 2021 and 1,080,263 units issued and outstanding as of June 30, 2022)

 

 

 

10,717

 

11,170

 

Preference unitholders (5,750,000 Series A Preference Units, 4,135,571 Series B Preference Units and 3,730,451 Series C Preference Units issued and outstanding as of December 31, 2021 and 5,669,400 Series A Preference Units, 3,822,780 Series B Preference Units and 3,384,401 Series C Preference Units issued and outstanding as of June 30, 2022)

 

 

 

329,334

 

310,606

 

Total partners’ equity

 

 

 

919,498

 

921,927

 

Current liabilities

 

 

 

 

 

 

 

Trade accounts payable

 

 

 

9,547

 

14,220

 

Due to related parties

 

 

 

952

 

4,350

 

Derivative financial instruments—current portion

 

 

 

5,184

 

10

 

Other payables and accruals

 

 

 

50,171

 

51,352

 

Borrowings—current portion

 

 

 

99,307

 

159,342

 

Lease liabilities—current portion

 

 

 

10,342

 

10,512

 

Total current liabilities

 

 

 

175,503

 

239,786

 

Non-current liabilities

 

 

 

 

 

 

 

Derivative financial instruments—non-current portion

 

 

 

4,061

 

72

 

Borrowings—non-current portion

 

 

 

986,451

 

876,802

 

Lease liabilities—non-current portion

 

 

 

45,556

 

40,367

 

Other non-current liabilities

 

 

 

664

 

406

 

Total non-current liabilities

 

 

 

1,036,732

 

917,647

 

Total partners’ equity and liabilities

 

 

 

2,131,733

 

2,079,360

 

Unaudited condensed consolidated statements of profit or loss
For the three and six months ended June 30, 2021 and 2022
(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, 2021

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

70,352

 

84,922

 

157,440

 

170,381

 

Voyage expenses and commissions

 

(1,852

)

(2,172

)

(3,931

)

(3,633

)

Vessel operating costs

 

(20,044

)

(19,047

)

(37,851

)

(37,621

)

Depreciation

 

(20,798

)

(22,224

)

(41,484

)

(44,211

)

General and administrative expenses

 

(3,488

)

(4,380

)

(6,559

)

(9,071

)

Impairment loss on vessels

 

 

(28,027

)

 

(28,027

)

Profit from operations

 

24,170

 

9,072

 

67,615

 

47,818

 

Financial costs

 

(9,115

)

(9,778

)

(18,531

)

(18,559

)

Financial income

 

11

 

221

 

23

 

260

 

(Loss)/gain on derivatives

 

(403

)

1,246

 

916

 

6,223

 

Total other expenses, net

 

(9,507

)

(8,311

)

(17,592

)

(12,076

)

Profit and total comprehensive income for the period

 

14,663

 

761

 

50,023

 

35,742

 

 

 

 

 

 

 

 

 

 

 

Earnings/(loss) per unit, basic and diluted:

 

 

 

 

 

 

 

 

 

Common unit, basic

 

0.14

 

(0.12

)

0.71

 

0.42

 

Common unit, diluted

 

0.14

 

(0.12

)

0.68

 

0.40

 

General partner unit

 

0.14

 

(0.12

)

0.72

 

0.42

 

Unaudited condensed consolidated statements of cash flows
For the six months ended June 30, 2021 and 2022
(All amounts expressed in thousands of U.S. Dollars)

 

 

 

 

For the six months ended

 

 

 

 

 

June 30,
2021

 

 

June 30,
2022

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

50,023

 

 

35,742

 

Adjustments for:

 

 

 

 

 

 

 

 

Depreciation

 

 

 

41,484

 

 

44,211

 

Impairment loss on vessels

 

 

 

 

 

28,027

 

Financial costs

 

 

 

18,531

 

 

18,559

 

Financial income

 

 

 

(23

)

 

(260

)

Gain on derivatives

 

 

 

(916

)

 

(6,223

)

Share-based compensation

 

 

 

167

 

 

463

 

 

 

 

 

109,266

 

 

120,519

 

Movements in working capital

 

 

 

3,751

 

 

1,662

 

Net cash provided by operating activities

 

 

 

113,017

 

 

122,181

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Payments for tangible fixed assets additions

 

 

 

(12,241

)

 

(1,219

)

Financial income received

 

 

 

23

 

 

123

 

Purchase of short-term cash deposits

 

 

 

(2,500

)

 

(10,000

)

Net cash used in investing activities

 

 

 

(14,718

)

 

(11,096

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings repayments

 

 

 

(54,838

)

 

(51,746

)

Principal elements of lease payments

 

 

 

(224

)

 

(5,151

)

Interest paid

 

 

 

(21,384

)

 

(18,646

)

Release of cash collateral for interest rate swaps

 

 

 

280

 

 

 

Proceeds from public offerings of common units and issuances of general partner units (net of underwriting discounts and commissions)

 

 

 

10,205

 

 

16

 

Repurchases of preference units

 

 

 

 

 

(18,742

)

Payment of offering costs

 

 

 

(124

)

 

(20

)

Distributions paid (including common and preference)

 

 

 

(16,134

)

 

(15,054

)

Net cash used in financing activities

 

 

 

(82,219

)

 

(109,343

)

Increase in cash and cash equivalents

 

 

 

16,080

 

 

1,742

 

Cash and cash equivalents, beginning of the period

 

 

 

103,736

 

 

145,530

 

Cash and cash equivalents, end of the period

 

 

 

119,816

 

 

147,272

 

 

 

 

 

 

 

 

 

 

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, loss on disposal of vessel 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, (d) loss on disposal of vessel and (e) restructuring costs. Adjusted EPU represents Adjusted Profit (as defined above), after deducting preference unit distributions and adding/deducting any difference between the carrying amount of preference units and the fair value of the consideration paid to settle them, divided by the weighted average number of units outstanding during the period. EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU, which are non-GAAP financial measures, are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. The Partnership believes that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. The Partnership believes that including EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our ongoing financial and operational strength in assessing whether to purchase and/or to continue to hold our common units. This increased comparability is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, financial costs, gain/loss on derivatives, taxes, depreciation and amortization; in the case of Adjusted EBITDA, impairment loss on vessels, loss on disposal of vessel 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, loss on disposal of vessel and restructuring costs, which items are affected by various and possibly changing financing methods, financial market conditions, general shipping market conditions, capital structure and historical cost basis and which items may significantly affect results of operations between periods. Restructuring costs are excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because restructuring costs represent charges reflecting specific actions taken by management to improve the Partnership’s future profitability and therefore are not considered representative of the underlying operations of the Partnership. Impairment loss is excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because impairment loss on vessels represents the excess of their carrying amount over the amount that is expected to be recovered from them in the future and therefore is not considered representative of the underlying operations of the Partnership. Loss on disposal of vessel is excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU because loss on disposal of vessel represents the excess of its carrying amount over the amount that was recovered through sale 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.

The estimated incremental EBITDA in 2022 and 2023 in connection with the recharterings of the Methane Rita Andrea and the Gaslog Seattle is based on the following assumptions:

  • continuation of the time charters for the Methane Rita Andrea and the Gaslog Seattle through expiration in October 2023 and March 2023, respectively;

  • vessel operating and supervision costs and voyage expenses and commissions per current internal estimates; and

  • general and administrative expenses based on management’s current internal estimates.

We consider the above assumptions to be reasonable as of the date of this press release, but if these assumptions prove to be incorrect, actual EBITDA could differ materially from our estimates. The prospective financial information was not prepared with a view toward public disclosure or with a view toward complying with the guidelines established by the American Institute of Certified Public Accountants, but, in the view of the Partnership’s management, was prepared on a reasonable basis and reflects the best currently available estimates and judgments. However, this information is not fact and should not be relied upon as being necessarily indicative of future results, and readers of this press release are cautioned not to place undue reliance on the prospective financial information.

Neither our independent auditors nor any other independent accountants have compiled, examined, or performed any procedures with respect to the prospective financial information contained above, 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, such prospective financial information.

Reconciliation of Profit to EBITDA and Adjusted EBITDA:

(Amounts expressed in thousands of U.S. Dollars)

 

For the three months ended

 

For the six months ended

 

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

Profit for the period

14,663

 

761

 

50,023

 

35,742

 

Depreciation

20,798

 

22,224

 

41,484

 

44,211

 

Financial costs

9,115

 

9,778

 

18,531

 

18,559

 

Financial income

(11

)

(221

)

(23

)

(260

)

Loss/(gain) on derivatives

403

 

(1,246

)

(916

)

(6,223

)

EBITDA

44,968

 

31,296

 

109,099

 

92,029

 

Impairment loss on vessels

 

28,027

 

 

28,027

 

Restructuring costs

 

 

 

168

 

Adjusted EBITDA

44,968

 

59,323

 

109,099

 

120,224

 

Reconciliation of Profit to Adjusted Profit:

(Amounts expressed in thousands of U.S. Dollars)

 

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

Profit for the period

14,663

 

761

 

50,023

 

35,742

 

Non-cash gain on derivatives

(1,962

)

(2,459

)

(5,569

)

(9,282

)

Impairment loss on vessels

 

28,027

 

 

28,027

 

Restructuring costs

 

 

 

168

 

Adjusted Profit

12,701

 

26,329

 

44,454

 

54,655

 

Reconciliation of Profit to EPU and Adjusted EPU:

(Amounts expressed in thousands of U.S. Dollars)

 

For the three months ended

 

For the six months ended

 

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

Profit for the period

14,663

 

761

 

50,023

 

35,742

 

Adjustment for:

 

 

 

 

 

 

 

 

Accrued preference unit distributions

(7,582

)

(6,818

)

(15,164

)

(13,808

)

Differences on repurchase of preference units

 

(134

)

 

(216

)

Partnership’s profit/(loss) attributable to:

7,081

 

(6,191

)

34,859

 

21,718

 

Common units

6,933

 

(6,064

)

34,127

 

21,269

 

General partner units

148

 

(127

)

732

 

449

 

Weighted average units outstanding (basic)

 

 

 

 

 

 

 

 

Common units

48,161,285

 

51,171,651

 

47,841,332

 

51,154,521

 

General partner units

1,021,953

 

1,077,524

 

1,021,646

 

1,077,509

 

EPU (basic)

 

 

 

 

 

 

 

 

Common units

0.14

 

(0.12

)

0.71

 

0.42

 

General partner units

0.14

 

(0.12

)

0.72

 

0.42

 

 

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

Profit for the period

14,663

 

761

 

50,023

 

35,742

 

Adjustment for:

 

 

 

 

 

 

 

 

Accrued preference unit distributions

(7,582

)

(6,818

)

(15,164

)

(13,808

)

Differences on repurchase of preference units

 

(134

)

 

(216

)

Partnership’s profit/(loss) used in EPU calculation

7,081

 

(6,191

)

34,859

 

21,718

 

Non-cash gain on derivatives

(1,962

)

(2,459

)

(5,569

)

(9,282

)

Impairment loss on vessels

 

28,027

 

 

28,027

 

Restructuring costs

 

 

 

168

 

Adjusted Partnership’s profit used in EPU calculation attributable to:

5,119

 

19,377

 

29,290

 

40,631

 

Common units

5,013

 

18,978

 

28,675

 

39,793

 

General partner units

106

 

399

 

615

 

838

 

Weighted average units outstanding (basic)

 

 

 

 

 

 

 

 

Common units

48,161,285

 

51,171,651

 

47,841,332

 

51,154,521

 

General partner units

1,021,953

 

1,077,524

 

1,021,646

 

1,077,509

 

Adjusted EPU (basic)

 

 

 

 

 

 

 

 

Common units

0.10

 

0.37

 

0.60

 

0.78

 

General partner units

0.10

 

0.37

 

0.60

 

0.78