Monaco, April 27, 2017, GasLog Partners LP ("GasLog Partners" or the "Partnership") (NYSE: GLOP), an
international owner and operator of liquefied natural gas ("LNG") carriers, today reported its financial results for the
three-month period ended March 31, 2017.
Quarterly Highlights
- Successfully completed an equity offering and issuance of general partner units, raising total net proceeds of $79.6
million.
- Announced the pending acquisition of the GasLog Greece from GasLog Ltd. ("GasLog") for $219.0 million, including $1.0
million for positive net working capital, with attached long-term charter to a subsidiary of Royal Dutch Shell plc
("Shell").
- Increased cash distribution of $0.50 per common unit for the first quarter of 2017, 2% higher than the fourth quarter of 2016
and 5% higher than the first quarter of 2016.
- Quarterly Revenues, Profit, Adjusted Profit(1) and EBITDA(1) of $57.0 million, $21.0 million, $20.4
million and $42.0 million, respectively.
- Highest-ever quarterly Partnership Performance(2) Results for Revenues and EBITDA(1).
- Distribution coverage ratio(3) of 1.17x.
(1) Adjusted Profit and EBITDA are non-GAAP financial measures, and should
not be used in isolation or as a substitute for GasLog Partners' financial results presented in accordance with International
Financial Reporting Standards ("IFRS"). For definition and reconciliation of these measures to the most directly comparable
financial measures calculated and presented in accordance with IFRS, please refer to Exhibit III at the end of this press release.
(2) Partnership Performance represents the results attributable to GasLog
Partners which are non-GAAP financial measures. For definition and reconciliation 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.
(3) Distribution coverage ratio represents the ratio of Distributable cash
flow to the cash distribution declared. For definition and reconciliation of Distributable cash flow to the most directly
comparable financial measure calculated and presented in accordance with IFRS, please refer to Exhibit III at the end of this press
release.
CEO Statement
Mr. Andrew Orekar, Chief Executive Officer, commented: "I am delighted with what GasLog Partners has achieved thus far in 2017.
We announced the pending acquisition of the GasLog Greece, which is expected to expand the Partnership's fleet to ten wholly
owned LNG carriers and to extend our average remaining charter duration. The first full quarter contribution of the GasLog
Seattle, which the Partnership acquired on November 1, 2016, enabled GasLog Partners to deliver our highest-ever quarterly
Partnership Performance Results for Revenues and EBITDA. We also completed equity and debt financings in January and April 2017,
respectively, with the net proceeds to be used to fund the dropdown of the GasLog Greece and to repay the majority of the
junior tranche of the credit agreement entered into on February 18, 2016 (the "Five Vessel Refinancing"), originally due in April
2018.
As a result of these actions, we are increasing our quarterly cash distribution to $0.50 per unit, which represents a 33%
increase since our initial public offering ("IPO"), or an 11% compound annual growth rate. Our announced acquisition of the
GasLog Greece is supportive of the Partnership's guidance to grow unitholder distributions at a 10% to 15% compound annual
rate since IPO. We affirm this growth guidance, which, if approved, would result in an annualized distribution of $2.09 per unit or
higher by the fourth quarter of 2017.
Following the expected closing of the GasLog Greece acquisition in the second quarter of 2017, the Partnership will have
a dropdown pipeline of twelve vessels which, assuming the execution of further dropdowns, can support future growth of the
Partnership's fleet and distributable cash flows."
Completion of Equity Offering
On January 27, 2017, GasLog Partners completed an equity offering of 3,750,000 common units at a public offering price of $20.50
per unit. In addition, the option to purchase additional shares was partially exercised by the underwriter on February 24, 2017,
resulting in 120,000 additional units being sold at the same price. The aggregate net proceeds from this offering, including the
partial exercise by the underwriters of the option to purchase additional shares, after deducting underwriting discounts and other
offering expenses, were $78.0 million. In connection with the offering, the Partnership also issued 78,980 general partner units to
its general partner in order for GasLog to retain its 2.0% general partner interest. The net proceeds from the issuance of the
general partner units were $1.6 million.
Pending acquisition of the GasLog Greece
On March 23, 2017, GasLog Partners signed an agreement to acquire 100% of the shares in the entity that owns and charters to
Shell the GasLog Greece from GasLog. The GasLog Greece is a 174,000 cubic meter ("cbm") tri-fuel diesel electric
("TFDE") LNG carrier built in 2016 and operated by GasLog since delivery. The vessel is currently on a multi-year time charter with
a subsidiary of Shell through March 2026 and Shell has an option to extend the charter for a period of five years.
The aggregate purchase price for the acquisition will be $219.0 million, which includes $1.0 million for positive net working
capital balances transferred with the vessel. GasLog Partners expects to finance the acquisition with cash on hand, including
proceeds from its recent equity offering, and the assumption of the GasLog Greece's outstanding indebtedness of $151.4
million.
Financial Summary
|
|
IFRS Common Control Reported
Results(1) |
|
|
|
For the three months
ended |
|
% Change from |
|
(All amounts expressed in thousands of U.S. dollars) |
|
March 31,
2016 |
|
December 31,
2016 |
|
March 31, 2017 |
|
March 31,
2016 |
|
December 31,
2016 |
|
Revenues |
|
56,127 |
|
57,911 |
|
56,993 |
|
2% |
|
(2% |
) |
Profit |
|
16,013 |
|
25,467 |
|
21,022 |
|
31% |
|
(17% |
) |
Adjusted Profit(2) |
|
18,392 |
|
21,295 |
|
20,374 |
|
11% |
|
(4% |
) |
EBITDA(2) |
|
39,638 |
|
43,145 |
|
42,026 |
|
6% |
|
(3% |
) |
(1) "IFRS Common Control Reported Results" represent the results of GasLog
Partners in accordance with IFRS. Such results include amounts related to vessels currently owned by the Partnership for the
periods prior to their respective transfer to GasLog Partners from GasLog, as the transfer of such vessels was accounted for as a
reorganization of entities under common control for IFRS accounting purposes. The unaudited condensed consolidated financial
statements of the Partnership accompanying this press release are prepared under IFRS on this basis.
(2) Adjusted Profit and EBITDA are non-GAAP financial measures. For
definition and reconciliation of these measures to the most directly comparable financial measure presented in accordance with
IFRS, please refer to Exhibit III at the end of this press release.
The decrease in profit in the first quarter of 2017 as compared to the fourth quarter of 2016 is mainly attributable to a
decrease of $3.5 million in unrealized gain on the interest rate swaps signed in November 2016, combined with a decrease in
revenues due to fewer calendar days in the first quarter of 2017.
The increase in profit in the first quarter of 2017 as compared to the same period in 2016 is mainly
attributable to the increase in the profit from operations, mainly attributable to the scheduled dry-dockings and planned repairs
performed in the first quarter of 2016, as well as an unrealized gain on interest rate swaps in the first quarter of 2017 as
compared to an unrealized loss for the same period in 2016.
|
|
Partnership Performance
Results(1) |
|
|
|
For the three months
ended |
|
% Change from |
|
(All amounts expressed in thousands of U.S. dollars) |
|
March 31,
2016 |
|
December 31,
2016 |
|
March 31, 2017 |
|
March 31,
2016 |
|
December 31,
2016 |
|
Revenues |
|
49,358 |
|
55,978 |
|
56,993 |
|
15% |
|
2% |
|
Profit |
|
16,191 |
|
24,826 |
|
21,022 |
|
30% |
|
(15% |
) |
Adjusted Profit(2) |
|
16,191 |
|
20,654 |
|
20,374 |
|
26% |
|
(1% |
) |
EBITDA(2) |
|
34,457 |
|
41,632 |
|
42,026 |
|
22% |
|
1% |
|
Distributable cash flow(2) |
|
18,867 |
|
23,541 |
|
23,496 |
|
25% |
|
0% |
|
Cash distributions declared |
|
15,712 |
|
19,549 |
|
20,121 |
|
28% |
|
3% |
|
(1) "Partnership Performance Results" represent the results attributable to
GasLog Partners. Such results are non-GAAP measures and exclude amounts related to vessels currently owned by the Partnership for
the periods prior to their respective transfer to GasLog Partners from GasLog, as the Partnership is not entitled to the cash or
results generated in the periods prior to such transfers. Such results are included in the GasLog Partners' results in accordance
with IFRS because the transfer of the vessel owning entities by GasLog to the Partnership represents a reorganization of entities
under common control and the Partnership reflects such transfers retroactively under IFRS. GasLog Partners believes that these
non-GAAP financial measures provide meaningful supplemental information to both management and investors regarding the financial
and operating performance of the Partnership necessary to understand the underlying basis for the calculations of the quarterly
distribution and earnings per unit, which similarly exclude the results of vessels prior to their transfer to the Partnership.
These non-GAAP financial measures should not be viewed in isolation or as substitutes to the equivalent GAAP measures presented in
accordance with IFRS, but should be used in conjunction with the most directly comparable IFRS Common Control Reported Results. For
definitions and reconciliations of these measurements to the most directly comparable financial measures presented in accordance
with IFRS, please refer to Exhibit II at the end of this press release.
(2) Adjusted Profit, EBITDA and Distributable cash flow are non-GAAP
financial measures, and should not be used in isolation or as a substitute for GasLog Partners' financial results presented in
accordance with IFRS. For definition and reconciliation of these measures to the most directly comparable financial measures
calculated and presented in accordance with IFRS, please refer to Exhibit III at the end of this press release.
The decrease in profit in the first quarter of 2017 as compared to the fourth quarter of 2016 is mainly attributable to a
decrease of $3.5 million in unrealized gain on the interest rate swaps signed in November 2016.
The increases in the Partnership Performance Results for the first quarter of 2017 as compared to the same period in 2016 are
mainly attributable to the profit from operations of the GasLog Seattle, acquired by the Partnership on November 1, 2016,
and also to the increase in profit from operations of the existing fleet, mainly due to the scheduled dry-dockings and planned
repairs performed in the first quarter of 2016, which were partially offset by the interest expense with respect to the outstanding
debt of the GasLog Seattle.
The Partnership Performance Results reported in the first quarter of 2017 are the same as the IFRS Common Control Reported
Results for the period since there were no vessel acquisitions from GasLog during the quarter, which would have resulted in
retrospective adjustment of the historical financial statements.
Cash Distribution
On April 26, 2017, the board of directors of GasLog Partners approved and declared a quarterly cash distribution of $0.50 per
common unit for the quarter ended March 31, 2017. The cash distribution is payable on May 12, 2017, to all unitholders of record as
of May 8, 2017.
End of Subordination Period
The subordination period on the existing 9,822,358 subordinated units held by GasLog will extend until the second business day
following the aforementioned cash distribution. Upon expiration of the subordination period, each outstanding subordinated unit
(100% held by GasLog) will automatically convert into one common unit and will then participate pro rata with the other common
units in distributions of available cash.
Liquidity and Financing
As of March 31, 2017, we had $129.4 million of cash and cash equivalents, of which $42.9 million is held in current accounts and
$86.5 million was held in time deposits.
As of March 31, 2017, we had an aggregate of $800.8 million of indebtedness outstanding under our credit facilities, of which
$104.3 million is repayable within one year. In addition, we had unused availability under our revolving credit facilities of $42.9
million.
As of March 31, 2017, $60.1 million under the junior tranche of the Five Vessel Refinancing was reclassified under "Borrowings -
current portion" following a notice of prepayment issued by the respective subsidiaries on March 24, 2017 and was prepaid on April
5, 2017, as described below.
On April 3, 2017, the Partnership signed a deed of termination with respect to its revolving credit facility with GasLog. On the
same date, the Partnership entered into a new unsecured five year term loan of $45.0 million and a five year revolving credit
facility of $30.0 million with GasLog. Subsequently, on April 5, 2017, an amount of $45.0 million under the term loan facility and
an amount of $15.0 million under the revolving credit facility were drawn by the Partnership and were used on the same date to
prepay $60.1 million of the outstanding debt of GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd., which would have been
originally due in April 2018.
The Partnership has entered into three interest rate swap agreements with GasLog at a notional value of $390.0 million in
aggregate, maturing between 2020 and 2022. As of March 31, 2017, the Partnership has hedged 48.1% of its floating interest rate
exposure on its outstanding debt at a weighted average interest rate of approximately 1.6% (excluding margin).
As of March 31, 2017, our current assets totaled $139.9 million and current liabilities totaled $133.4 million, resulting in a
positive working capital position of $6.5 million.
LNG Market Update and Outlook
During the quarter, there has been continued momentum in the start-up of new LNG liquefaction capacity with the third trains at
both Gorgon and Sabine Pass commencing production. In addition, the world's first floating liquefaction terminal, the
Petronas-owned PFLNG Satu, loaded its first cargo in Malaysia. Later this year, Ichthys, Wheatstone, Cove Point and Sabine Pass
Train 4 are all expected to start production. Wood Mackenzie estimates that there will be projects with approximately 34 million
tons per annum ("mtpa") of nameplate capacity coming online in 2017.
Some offtakers of these projects are yet to secure all of their shipping requirements. In addition to newbuild LNG carriers, we
expect a number of vessels for these projects to be sourced from vessels currently operating in the short-term market, which should
be positive for the overall shipping supply and demand balance. In the 2017-2020 period, Wood Mackenzie expects approximately 120
mtpa of new nameplate capacity to come online around the world. We believe that this new supply will create significant demand for
LNG carriers over and above those available in the market and on order today.
Looking longer term, there have been a number of encouraging developments recently: ExxonMobil purchased a 25% interest in Area
4 in Mozambique; ENI's Coral FLNG has reached the final stages of a multi stage final investment decision ("FID") process; Total
made a $207.0 million investment in Tellurian to develop the Driftwood LNG project; and Qatar Petroleum announced the lifting of
the moratorium on incremental production from its North Field.
2016 saw significant increases in LNG demand from a number of new markets such as Pakistan, Poland, Lithuania and Jordan as well
as major energy growth markets such as China and India. This trend has continued into the first quarter of 2017 with further strong
increases in demand from China (+23% year-on-year to end March 2017) as well as in large conventional markets such as Japan (+13%
year-on-year) and South Korea (+18% year-on-year) following the cold winter and slow progress with nuclear re-starts.
A number of markets that do not currently import gas are exploring LNG as an alternative to oil and coal or to replace declining
domestic supply. Many countries with growing power demand, such as Ivory Coast, South Africa, Bangladesh and Myanmar, are looking
at floating storage and re-gasification units ("FSRU") as a quick-to-market, cost-effective solution to import LNG. Other countries
with FSRUs already in place are looking at expanding their use of FSRUs due to the successful commissioning and effective
operations of the existing units. FSRUs continue to dominate new import markets as a quicker to build, more flexible and low cost
alternative to an onshore facility. Many of the current and future LNG sellers are focusing their attention on FSRUs as a key
enabler in creating new markets for their LNG.
In the shipping market, short-term charter rates declined in February and March largely due to seasonally lower LNG demand
following the Northern Hemisphere winter. A high number of "re-lets" during the quarter also weighed on the market. We expect this
trend to reverse as we enter the summer cooling season in the Middle East, Europe and Asia and the Southern Hemisphere winter.
While the recovery in charter rates and utilization in the LNG shipping market is taking longer than we had anticipated, we are
seeing some initial signs of increased short-term and long-term activity, and we continue to believe that the longer term
fundamentals point to a strengthening market in 2017 and beyond.
Conference Call
GasLog Partners will host a conference call to discuss its results for the first quarter of 2017 at 8:30 a.m. EDT (1:30 p.m.
BST) on Thursday, April 27, 2017. Andrew Orekar, Chief Executive Officer, and Alastair Maxwell, Chief Financial Officer, will
review the Partnership's operational and financial performance for the period. Management's presentation will be followed by a
Q&A session.
The dial-in numbers for the conference call are as follows:
+1 855 253 8928 (USA)
+44 20 3107 0289 (United Kingdom)
+33 1 70 80 71 53 (France)
Conference ID: 4415089
A live webcast of the conference call will also be available on the investor relations page of the Partnership's website at
http://www.gaslogmlp.com/investor-relations.
For those unable to participate in the conference call, a replay will also be available from 2:00 p.m. EDT (7:00 p.m. BST) on
Thursday, April 27, 2017 until 11:59 p.m. EDT (4:59 a.m. BST) on Thursday, May 4, 2017.
The replay dial-in numbers are as follows:
+1 855 859 2056 (USA)
+44 20 3107 0235 (United Kingdom)
+33 1 70 80 71 79 (France)
Conference ID: 4415089
The replay will also be available via a webcast on the investor relations page of the Partnership's website at
http://www.gaslogmlp.com/investor-relations.
About GasLog Partners
GasLog Partners is a growth-oriented master limited partnership focused on owning, operating and acquiring LNG carriers under
multi-year charters. Upon closing of the announced GasLog Greece acquisition, GasLog Partners' fleet will consist of ten LNG
carriers with an average carrying capacity of approximately 152,000 cbm. GasLog Partners' principal executive offices are located
at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. Visit the GasLog Partners website at http://www.gaslogmlp.com.
Forward-Looking Statements
All statements in this press release that are not statements of historical fact are "forward-looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address
activities, events or developments that the Partnership expects, projects, believes or anticipates will or may occur in the future,
particularly in relation to our operations, cash flows, financial position, liquidity and cash available for dividends or
distributions, plans, strategies, business prospects and changes and trends in our business and the markets in which we operate. We
caution that these forward-looking statements represent our estimates and assumptions only as of the date of this press release,
about factors that are beyond our ability to control or predict, and are not intended to give any assurance as to future results.
Any of these factors or a combination of these factors could materially affect future results of operations and the ultimate
accuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements.
Factors that might cause future results and outcomes to differ include, but are not limited to, the following:
- general LNG shipping market conditions and trends, including spot and long-term charter rates, ship values, factors affecting
supply and demand of LNG and LNG shipping, technological advancements and opportunities for the profitable operations of LNG
carriers;
- continued low prices for crude oil and petroleum products and volatility in gas prices;
- our ability to leverage GasLog's relationships and reputation in the shipping industry;
- our ability to enter into time charters with new and existing customers;
- 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 dividends and distributions;
- our ability to purchase vessels from GasLog in the future;
- our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, funding by banks
of their financial commitments, funding by GasLog of the revolving credit facility with GasLog entered into on April 3, 2017 and
our ability to meet our restrictive covenants and other obligations under our credit facilities;
- future, pending or recent acquisitions of ships or other assets, business strategy, areas of possible expansion and expected
capital spending or operating expenses;
- our expectations about the time that it may take to construct and deliver newbuildings and the useful lives of our
ships;
- number of off-hire days, dry-docking requirements and insurance costs;
- fluctuations in currencies and interest rates;
- our ability to maintain long-term relationships with major energy companies;
- our ability to maximize the use of our ships, including the re-employment or disposal of ships no longer under time charter
commitments, including the risk that our vessels may no longer have the latest technology at such time;
- environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory
authorities;
- the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization
standards, requirements imposed by classification societies and standards imposed by our charterers applicable to our
business;
- risks inherent in ship operation, including the discharge of pollutants;
- GasLog's ability to retain key employees and provide services to us, and the availability of skilled labor, ship crews and
management;
- potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists;
- potential liability from future litigation;
- our business strategy and other plans and objectives for future operations;
- any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a
possible cybersecurity breach; and
- other risks and uncertainties described in the Partnership's Annual Report on Form 20-F filed with the SEC on February 13,
2017, available at http://www.sec.gov.
We undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a
result of new information, future events, a change in our views or expectations or otherwise. New factors emerge from time to time,
and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our
business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from
those contained in any forward-looking statement.
The declaration and payment of distributions are at all times subject to the discretion of our board of directors and will
depend on, amongst other things, risks and uncertainties described above, restrictions in our credit facilities, the provisions of
Marshall Islands law and such other factors as our board of directors may deem relevant.
Contacts:
Alastair Maxwell
Chief Financial Officer
Phone: +44-203-388-3100
Jamie Buckland
Head of Investor Relations
Phone: +44-203-388-3116
Email: ir@gaslogmlp.com
Samaan Aziz
Investor Relations Manager
Phone: +1-212-223-0643
Email: ir@gaslogmlp.com
EXHIBIT I - Unaudited Interim Financial Information: IFRS Common Control Reported Results
Unaudited condensed consolidated statements of financial position
As of December 31, 2016 and March 31, 2017
(All amounts expressed in thousands of U.S. Dollars, except unit data)
|
|
|
|
|
|
December 31, 2016 |
|
|
March 31, 2017 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
Other non-current assets |
|
|
|
|
|
928 |
|
|
532 |
|
Derivative financial instruments |
|
|
|
|
|
6,008 |
|
|
5,865 |
|
Vessels |
|
|
|
|
|
1,419,833 |
|
|
1,407,471 |
|
Total non-current assets |
|
|
|
|
|
1,426,769 |
|
|
1,413,868 |
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
|
|
|
3,158 |
|
|
2,722 |
|
Inventories |
|
|
|
|
|
2,062 |
|
|
2,042 |
|
Due from related parties |
|
|
|
|
|
4,353 |
|
|
4,766 |
|
Prepayments and other current assets |
|
|
|
|
|
838 |
|
|
987 |
|
Short-term investments |
|
|
|
|
|
1,500 |
|
|
- |
|
Cash and cash equivalents |
|
|
|
|
|
50,458 |
|
|
129,380 |
|
Total current assets |
|
|
|
|
|
62,369 |
|
|
139,897 |
|
Total assets |
|
|
|
|
|
1,489,138 |
|
|
1,553,765 |
|
Partners' equity and liabilities |
|
|
|
|
|
|
|
|
|
|
Partners' equity |
|
|
|
|
|
|
|
|
|
|
Common unitholders (24,572,358 units issued and outstanding as of December 31, 2016
and 28,442,358 units issued and outstanding as of March 31, 2017) |
|
|
|
|
|
565,408 |
|
|
644,331 |
|
Subordinated unitholders (9,822,358 units issued and outstanding as of December 31,
2016 and March 31, 2017) |
|
|
|
|
|
60,988 |
|
|
61,278 |
|
General partner (701,933 units issued and outstanding as of December 31, 2016 and
780,913 units issued and outstanding as of March 31, 2017) |
|
|
|
|
|
10,095 |
|
|
11,745 |
|
Incentive distribution rights |
|
|
|
|
|
5,878 |
|
|
6,226 |
|
Total partners' equity |
|
|
|
|
|
642,369 |
|
|
723,580 |
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
|
|
1,421 |
|
|
1,940 |
|
Due to related parties |
|
|
|
|
|
255 |
|
|
189 |
|
Derivative financial instruments |
|
|
|
|
|
1,836 |
|
|
1,045 |
|
Other payables and accruals |
|
|
|
|
|
29,323 |
|
|
25,945 |
|
Borrowings - current portion |
|
|
|
|
|
45,122 |
|
|
104,277 |
|
Total current liabilities |
|
|
|
|
|
77,957 |
|
|
133,396 |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
Borrowings - non-current portion |
|
|
|
|
|
768,630 |
|
|
696,566 |
|
Other non-current liabilities |
|
|
|
|
|
182 |
|
|
223 |
|
Total non-current liabilities |
|
|
|
|
|
768,812 |
|
|
696,789 |
|
Total partners' equity and liabilities |
|
|
|
|
|
1,489,138 |
|
|
1,553,765 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited condensed consolidated statements of profit or loss
For the three months ended March 31, 2016 and March 31, 2017
(All amounts expressed in thousands of U.S. Dollars, except per unit data)
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
|
|
|
|
March 31, 2016 |
|
March 31, 2017 |
|
Revenues |
|
|
|
|
|
|
|
56,127 |
|
56,993 |
|
Vessel operating costs |
|
|
|
|
|
|
|
(12,748 |
) |
(11,168 |
) |
Voyage expenses and commissions |
|
|
|
|
|
|
|
(799 |
) |
(715 |
) |
Depreciation |
|
|
|
|
|
|
|
(12,531 |
) |
(12,362 |
) |
General and administrative expenses |
|
|
|
|
|
|
|
(2,942 |
) |
(3,084 |
) |
Profit from operations |
|
|
|
|
|
|
|
27,107 |
|
29,664 |
|
Financial costs |
|
|
|
|
|
|
|
(8,210 |
) |
(8,782 |
) |
Financial income |
|
|
|
|
|
|
|
18 |
|
117 |
|
(Loss)/gain on interest rate swaps |
|
|
|
|
|
|
|
(2,902 |
) |
23 |
|
Total other expenses, net |
|
|
|
|
|
|
|
(11,094 |
) |
(8,642 |
) |
Profit for the period |
|
|
|
|
|
|
|
16,013 |
|
21,022 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Loss attributable to GasLog's operations |
|
|
|
|
|
|
|
178 |
|
- |
|
Profit attributable to Partnership's operations |
|
|
|
|
|
|
|
16,191 |
|
21,022 |
|
Partnership's profit attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Common units |
|
|
|
|
|
|
|
10,679 |
|
14,724 |
|
Subordinated units |
|
|
|
|
|
|
|
4,807 |
|
5,085 |
|
General partner units |
|
|
|
|
|
|
|
324 |
|
420 |
|
Incentive distribution rights |
|
|
|
|
|
|
|
381 |
|
793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit for the period (basic and diluted): |
|
|
|
|
|
|
|
|
|
|
|
Common unit (basic and diluted) |
|
|
|
|
|
|
|
0.49 |
|
0.54 |
|
Subordinated unit |
|
|
|
|
|
|
|
0.49 |
|
0.52 |
|
General partner unit |
|
|
|
|
|
|
|
0.50 |
|
0.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited condensed consolidated statements of cash flows
For the three months ended March 31, 2016 and March 31, 2017
(All amounts expressed in thousands of U.S. Dollars)
|
|
|
|
For the three months ended |
|
|
|
|
|
|
March 31, 2016 |
|
|
March 31, 2017 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
|
|
|
|
16,013 |
|
|
21,022 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
12,531 |
|
|
12,362 |
|
Financial costs |
|
|
|
|
|
8,210 |
|
|
8,782 |
|
Financial income |
|
|
|
|
|
(18 |
) |
|
(117 |
) |
Unrealized loss/(gain) on interest rate swaps held for trading |
|
|
|
|
|
2,235 |
|
|
(648 |
) |
Recycled loss of cash flow hedges reclassified to profit or loss |
|
|
|
|
|
144 |
|
|
- |
|
Share-based compensation |
|
|
|
|
|
68 |
|
|
135 |
|
|
|
|
|
|
|
39,183 |
|
|
41,536 |
|
Movements in working capital |
|
|
|
|
|
9,257 |
|
|
(2,309 |
) |
Cash provided by operations |
|
|
|
|
|
48,440 |
|
|
39,227 |
|
Interest paid |
|
|
|
|
|
(7,786 |
) |
|
(8,499 |
) |
Net cash provided by operating activities |
|
|
|
|
|
40,654 |
|
|
30,728 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
Payments for vessels' additions |
|
|
|
|
|
(1,172 |
) |
|
- |
|
Financial income received |
|
|
|
|
|
18 |
|
|
117 |
|
Maturity of short-term investments |
|
|
|
|
|
- |
|
|
1,500 |
|
Net cash (used in)/provided by investing activities |
|
|
|
|
|
(1,154 |
) |
|
1,617 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
Borrowings repayments |
|
|
|
|
|
(17,625 |
) |
|
(13,898 |
) |
Payment of loan issuance costs |
|
|
|
|
|
(5,285 |
) |
|
- |
|
Proceeds from public offering and issuance of general partner units, net of
underwriters' discount |
|
|
|
|
|
- |
|
|
80,141 |
|
Payment of offering costs |
|
|
|
|
|
(26 |
) |
|
(117 |
) |
Distributions paid |
|
|
|
|
|
(15,711 |
) |
|
(19,549 |
) |
Dividend due to GasLog before vessel dropdown |
|
|
|
|
|
(3,500 |
) |
|
- |
|
Net cash (used in)/provided by financing activities |
|
|
|
|
|
(42,147 |
) |
|
46,577 |
|
(Decrease)/increase in cash and cash equivalents |
|
|
|
|
|
(2,647 |
) |
|
78,922 |
|
Cash and cash equivalents, beginning of the period |
|
|
|
|
|
62,677 |
|
|
50,458 |
|
Cash and cash equivalents, end of the period |
|
|
|
|
|
60,030 |
|
|
129,380 |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT II
Non-GAAP Financial Measures:
Reconciliation of Partnership Performance Results to IFRS Common Control Reported Results in our Financial
Statements:
Our Partnership Performance Results for the three months ended March 31, 2016 and December 31, 2016 presented below are non-GAAP
measures and exclude amounts related to GAS-seven Ltd. (the owner of the GasLog Seattle), for the period prior to its
transfer to the Partnership on November 1, 2016. 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-seven Ltd. was not owned by the Partnership prior to its transfer to the Partnership on November 1,
2016, and accordingly the Partnership was not entitled to the cash or results generated in the period prior to such transfer.
Our IFRS Common Control Reported Results presented below include the accounts of the Partnership and its
subsidiaries. Transfers of vessel owning subsidiaries from GasLog are accounted for as a reorganization of entities under common
control and the Partnership's consolidated financial statements are restated to reflect such subsidiaries from the date of their
incorporation by GasLog as they were under the common control of GasLog.
GasLog Partners believes that these non-GAAP financial measures provide meaningful supplemental information to both management
and investors regarding the financial and operating performance of the Partnership which is necessary to understand the underlying
basis for the calculations of the quarterly distribution and the earnings per unit, which similarly exclude the results of acquired
vessels prior to their transfer to the Partnership. These non-GAAP financial measures should not be viewed in isolation or as
substitutes for the equivalent GAAP measures presented in accordance with IFRS, but should be used in conjunction with the most
directly comparable IFRS Common Control Reported Results.
|
|
|
|
For the three months ended March 31, 2016 |
|
(All amounts expressed in thousands of U.S. dollars) |
|
|
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
|
|
6,769 |
|
49,358 |
|
56,127 |
|
Vessel operating costs |
|
|
|
(1,354 |
) |
(11,394 |
) |
(12,748 |
) |
Voyage expenses and commissions |
|
|
|
(85 |
) |
(714 |
) |
(799 |
) |
Depreciation |
|
|
|
(1,428 |
) |
(11,103 |
) |
(12,531 |
) |
General and administrative expenses |
|
|
|
(149 |
) |
(2,793 |
) |
(2,942 |
) |
Profit from operations |
|
|
|
3,753 |
|
23,354 |
|
27,107 |
|
Financial costs |
|
|
|
(1,029 |
) |
(7,181 |
) |
(8,210 |
) |
Financial income |
|
|
|
- |
|
18 |
|
18 |
|
Loss on interest rate swaps |
|
|
|
(2,902 |
) |
- |
|
(2,902 |
) |
Total other expenses, net |
|
|
|
(3,931 |
) |
(7,163 |
) |
(11,094 |
) |
(Loss)/profit for the period |
|
|
|
(178 |
) |
16,191 |
|
16,013 |
|
|
|
|
|
For the three months ended December 31, 2016 |
|
(All amounts expressed in thousands of U.S. dollars) |
|
|
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
|
|
1,933 |
|
55,978 |
|
57,911 |
|
Vessel operating costs |
|
|
|
(341 |
) |
(10,845 |
) |
(11,186 |
) |
Voyage expenses and commissions |
|
|
|
(28 |
) |
(707 |
) |
(735 |
) |
Depreciation |
|
|
|
(486 |
) |
(12,062 |
) |
(12,548 |
) |
General and administrative expenses |
|
|
|
(51 |
) |
(2,794 |
) |
(2,845 |
) |
Profit from operations |
|
|
|
1,027 |
|
29,570 |
|
30,597 |
|
Financial costs |
|
|
|
(386 |
) |
(8,420 |
) |
(8,806 |
) |
Financial income |
|
|
|
- |
|
53 |
|
53 |
|
Gain on interest rate swaps |
|
|
|
- |
|
3,623 |
|
3,623 |
|
Total other expenses, net |
|
|
|
(386 |
) |
(4,744 |
) |
(5,130 |
) |
Profit for the period |
|
|
|
641 |
|
24,826 |
|
25,467 |
|
Amounts reflected in the Partnership's unaudited condensed consolidated financial statements for the three months ended March
31, 2017 are fully attributable to the Partnership. The Partnership Performance Results reported in the first quarter of 2017 are
the same as the IFRS Common Control Reported Results for the period since there were no vessel acquisitions from GasLog during the
quarter, which would have resulted in retrospective adjustment of the historical financial statements.
|
|
|
|
For the three months ended March 31, 2017 |
|
(All amounts expressed in thousands of U.S. dollars) |
|
|
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
|
|
- |
|
56,993 |
|
56,993 |
|
Vessel operating costs |
|
|
|
- |
|
(11,168 |
) |
(11,168 |
) |
Voyage expenses and commissions |
|
|
|
- |
|
(715 |
) |
(715 |
) |
Depreciation |
|
|
|
- |
|
(12,362 |
) |
(12,362 |
) |
General and administrative expenses |
|
|
|
- |
|
(3,084 |
) |
(3,084 |
) |
Profit from operations |
|
|
|
- |
|
29,664 |
|
29,664 |
|
Financial costs |
|
|
|
- |
|
(8,782 |
) |
(8,782 |
) |
Financial income |
|
|
|
- |
|
117 |
|
117 |
|
Gain on interest rate swaps |
|
|
|
- |
|
23 |
|
23 |
|
Total other expenses, net |
|
|
|
- |
|
(8,642 |
) |
(8,642 |
) |
Profit for the period |
|
|
|
- |
|
21,022 |
|
21,022 |
|
EXHIBIT III
Non-GAAP Financial Measures:
EBITDA is defined as earnings before interest income and expense, gain/loss on interest rate swaps, taxes, depreciation and
amortization. Adjusted Profit represents earnings before (a) non-cash gain/loss on interest rate swaps that includes unrealized
gain/loss on interest rate swaps held for trading and recycled loss of cash flow hedges reclassified to profit or loss and (b)
write-off of unamortized loan fees. EBITDA and Adjusted Profit, which are non-GAAP financial measures, are used as supplemental
financial measures by management and external users of financial statements, such as investors, to assess our financial and
operating performance. The Partnership believes that these non-GAAP financial measures assist our management and investors by
increasing the comparability of our performance from period to period. The Partnership believes that including EBITDA and Adjusted
Profit assists our management and investors in (i) understanding and analyzing the results of our operating and business
performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our ongoing financial
and operational strength in assessing whether to 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, interest, gain/loss on interest rate swaps,
taxes, depreciation and amortization; and in the case of Adjusted Profit, non-cash gain/loss on interest rate swaps and write-off
of unamortized loan fees, which items are affected by various and possibly changing financing methods, financial market conditions,
capital structure and historical cost basis and which items may significantly affect results of operations between periods.
EBITDA and Adjusted Profit have limitations as analytical tools and should not be considered as alternatives to, or as
substitutes for, or superior to, profit, profit from operations, earnings per unit or any other measure of financial performance
presented in accordance with IFRS. Some of these limitations include the fact that they do not reflect (i) our cash expenditures or
future requirements for capital expenditures or contractual commitments, (ii) changes in, or cash requirements for, our working
capital needs and (iii) the cash requirements necessary to service interest or principal payments on our debt. Although
depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in
the future, and EBITDA does not reflect any cash requirements for such replacements. It is not adjusted for all non-cash income or
expense items that are reflected in our statement of cash flows and other companies in our industry may calculate this measure
differently to how we do, limiting its usefulness as a comparative measure.
EBITDA and Adjusted Profit are presented on the basis of IFRS Common Control Reported Results and Partnership Performance
Results. Partnership Performance Results are non-GAAP measures. The difference between IFRS Common Control Reported Results and
Partnership Performance Results are results attributable to GasLog.
Reconciliation of EBITDA to Profit:
(Amounts expressed in thousands of U.S. Dollars)
|
IFRS Common Control Reported Results |
|
|
For the three months ended |
|
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
Profit for the period |
16,013 |
|
25,467 |
|
21,022 |
|
Depreciation |
12,531 |
|
12,548 |
|
12,362 |
|
Financial costs |
8,210 |
|
8,806 |
|
8,782 |
|
Financial income |
(18 |
) |
(53 |
) |
(117 |
) |
Loss/(gain) on interest rate swaps |
2,902 |
|
(3,623 |
) |
(23 |
) |
EBITDA |
39,638 |
|
43,145 |
|
42,026 |
|
|
Partnership Performance Results |
|
|
For the three months ended |
|
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
Profit for the period |
16,191 |
|
24,826 |
|
21,022 |
|
Depreciation |
11,103 |
|
12,062 |
|
12,362 |
|
Financial costs |
7,181 |
|
8,420 |
|
8,782 |
|
Financial income |
(18 |
) |
(53 |
) |
(117 |
) |
Gain on interest rate swaps |
- |
|
(3,623 |
) |
(23 |
) |
EBITDA |
34,457 |
|
41,632 |
|
42,026 |
|
Reconciliation of Adjusted Profit to Profit:
(Amounts expressed in thousands of U.S. Dollars)
|
IFRS Common Control Reported Results |
|
|
For the three months ended |
|
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
Profit for the period |
16,013 |
|
25,467 |
|
21,022 |
|
Non-cash loss/(gain) on interest rate swaps |
2,379 |
|
(4,172 |
) |
(648 |
) |
Adjusted Profit |
18,392 |
|
21,295 |
|
20,374 |
|
|
Partnership Performance Results |
|
|
For the three months ended |
|
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
Profit for the period |
16,191 |
|
24,826 |
|
21,022 |
|
Non-cash gain on interest rate swaps |
- |
|
(4,172 |
) |
(648 |
) |
Adjusted Profit |
16,191 |
|
20,654 |
|
20,374 |
|
Distributable Cash Flow
Distributable cash flow with respect to any quarter means EBITDA, as defined above for the Partnership Performance Results,
after considering financial costs for the period, excluding amortization of loan fees, estimated dry-docking and replacement
capital reserves established by the Partnership. 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 revenue generated by, our capital
assets. Distributable cash flow 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 is a non-GAAP financial measure and should not be considered as an alternative to profit
or any other indicator of the Partnership's performance calculated in accordance with GAAP. The table below reconciles
Distributable cash flow to Profit for the period attributable to the Partnership.
Reconciliation of Distributable Cash Flow to Profit:
(Amounts expressed in thousands of U.S. Dollars)
|
For the three months ended |
|
|
March 31, 2016 (1) |
|
December 31, 2016 (1) |
|
March 31, 2017 (2) |
|
Partnership's profit for the period |
16,191 |
|
24,826 |
|
21,022 |
|
Depreciation |
11,103 |
|
12,062 |
|
12,362 |
|
Financial costs |
7,181 |
|
8,420 |
|
8,782 |
|
Financial income |
(18 |
) |
(53 |
) |
(117 |
) |
Gain on interest rate swaps |
- |
|
(3,623 |
) |
(23 |
) |
EBITDA |
34,457 |
|
41,632 |
|
42,026 |
|
Financial costs excluding amortization of loan fees and realized loss on interest
rate swaps |
(6,191 |
) |
(7,991 |
) |
(8,419 |
) |
Dry-docking capital reserve |
(2,168 |
) |
(2,324 |
) |
(2,682 |
) |
Replacement capital reserve |
(7,231 |
) |
(7,776 |
) |
(7,429 |
) |
Distributable cash flow |
18,867 |
|
23,541 |
|
23,496 |
|
Other reserves(3) (4) |
(3,155 |
) |
(3,992 |
) |
(3,375 |
) |
Cash distribution declared |
15,712 |
|
19,549 |
|
20,121 |
|
(1) Excludes amounts related to GAS-seven Ltd., the owner of the GasLog Seattle, for the period prior to its
transfer to the Partnership on November 1, 2016. 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-seven Ltd. was not owned by the Partnership prior to its transfer to the Partnership on November 1,
2016, and accordingly the Partnership was not entitled to the cash or results generated in the period prior to such transfer.
(2) Amounts reflected in the Partnership's unaudited condensed consolidated financial statements for the three months
ended March 31, 2017 are fully attributable to the Partnership.
(3) Refers to reserves (other than the dry-docking and replacement capital reserves) for the proper conduct of the
business of the Partnership and its subsidiaries (including reserves for future capital expenditures and for anticipated future
credit needs of the Partnership and its subsidiaries). For the three months ended March 31, 2016, the other reserves amount above
has been reduced by $142 of foreign exchange losses. For this period, distributable cash flow as reported had been adjusted to
exclude the potentially disparate impact of foreign exchange losses.
(4) For the three months ended December 31, 2016 and March 31, 2017, the cash distribution declared and the other
reserves have been affected by $1,922 and $2,035, respectively, paid in respect of the units issued in the Partnership's equity
offering completed in the first quarter of 2017. After giving effect to the aforementioned equity offering, the Q4 2016
distribution coverage ratio decreased from 1.34 to 1.20 and the Q1 2017 distribution coverage ratio decreased from 1.30 to
1.17.
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