GasLog Partners LP Reports Financial Results for the Three-Month Period and the Year Ended December 31, 2020
GasLog Partners LP, an international owner and operator of liquefied natural gas (“LNG”) carriers, yesterday reported its financial results for the three-month period and the year ended December 31, 2020.
• 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 100%. I am pleased to say that we were able to execute on our strategic priorities of maximizing fleet utilization and reducing our leverage during 2020, despite the headwinds brought on by the COVID-19 pandemic, and I look forward to further progression in 2021.
During the quarter, we repaid $18.8 million of debt, bringing the total debt amortization for 2020 to $107.3 million. In addition, we entered a two-year time charter with Cheniere for the Methane Jane Elizabeth, increasing our charter coverage for 2021 and 2022 to 77% and 57% of available days, respectively. Although we have taken material steps to balance our market exposure in 2021, we expect our capital allocation strategy to continue to focus on reducing our leverage during 2021.
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.
Source: GasLog Partners LP