GasLog Partners LP has reported its financial results for the three-month period ended 30 June 2018.
- Completed the acquisition of the GasLog Gibraltar from GasLog Ltd. for US$207.0 million, with attached multi-year charter to a subsidiary of Royal Dutch Shell plc. The acquisition was partially financed through the private issuance of US$45 million of common units to GasLog.
- Announced new time charter for the GasLog Sydney for 18 months with a wholly owned subsidiary of Cheniere Energy, Inc., scheduled to commence between September and December 2018.
- Completed the dry-docking of and installation of reliquefaction modules on the GasLog Santiago and the GasLog Sydney, thereby enhancing the commercial competitiveness of both vessels.
- Quarterly Revenues, Profit, Adjusted Profit, and EBITDA of US$76.9 million, US$23.8 million, US$22.8 million, and US$55.0 million, respectively.
- Partnership Performance Results for Revenues, Profit Adjusted Profit, EBITDA and Distributable cash flow of US$74.9 million, US$22.9 million, US$21.9 million, US$53.3 million, and US$22.9 million, respectively.
- Cash distribution of US$0.53 per common unit for Q2 2018, unchanged from Q1 2018 and 3.9% higher than Q2 2017.
- Distribution coverage ratio of 0.94x, or 1.18x adjusted distribution coverage ratio to reflect the impact on revenues of the scheduled dry-dockings of the GasLog Santiago and the GasLog Sydney.
Adjusted Profit, EBITDA and Distributable cash flow are non-GAAP financial measures and should not be used in isolation or as a substitute for GasLog Partners’ financial results presented in accordance with International Financial Reporting Standards (IFRS).
Partnership Performance Results represent the results attributable to GasLog Partners which are non-GAAP financial measures.
Distribution coverage ratio represents the ratio of Distributable cash flow to the cash distribution declared.
Adjusted distribution coverage ratio represents the ratio of Adjusted distributable cash flow to the cash distribution declared. Adjusted distributable cash flow is defined as Distributable cash flow after adjusting for the US$5.8 million negative impact on revenues of the scheduled dry-dockings of the GasLog Santiago and the GasLog Sydney.
Andrew Orekar, Chief Executive Officer, commented: “In the second quarter, GasLog Partners continued to execute our strategy, completing the accretive acquisition of the GasLog Gibraltar and agreeing to a firm 18 month time charter plus two six month options with Cheniere for the GasLog Sydney. This charter is the Partnership’s second agreement this year with a new, high-quality counterparty and increases our contracted days to 91% in both 2018 and 2019.
As previously communicated, the dry-dockings of the GasLog Sydney and the GasLog Santiago in the second quarter temporarily impacted our EBITDA and Distributable cash flow. As a result, we have elected to maintain our quarterly distribution at US$0.53 per unit, or US$2.12 per unit annualised. Adjusted for the impact of these scheduled dry-dockings, our distribution coverage ratio was 1.18x and in-line with our historical performance.
The outlook for LNG demand remains robust, underpinning a requirement for additional investment in liquefaction, regasification and shipping capacity. With current liquidity available to fund our next drop-down acquisition and the GasLog Shanghai exposed to the anticipated strength in spot LNG shipping rates, we are reiterating our year-on-year distribution growth guidance of 5 – 7% in 2018.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26072018/gaslog-releases-financial-results/