MONACO, January 31, 2018, GasLog Partners LP ("GasLog
Partners" or the "Partnership") (NYSE: GLOP), an international
owner and operator of liquefied natural gas ("LNG") carriers, today
reported its financial results for the three-month period and the
year ended December 31, 2017.
Highlights
· Post
quarter-end, completed public offering of 8.200% Series B
Cumulative Redeemable Perpetual Fixed to Floating Rate Preference
Units (the "Series B Preference Units"), raising gross proceeds of
$115.0 million and net proceeds of $111.0
million.· Post
quarter-end, prepaid in full the remaining $29.8 million balance of
the junior tranche of the credit agreement entered into on February
18, 2016 (the "Five Vessel Refinancing"), due in April 2018.
· Completed
the acquisition of the Solaris from GasLog Ltd. ("GasLog") for
$185.9 million, with attached multi-year charter to a subsidiary of
Royal Dutch Shell plc
("Shell").· Quarterly
Revenues, Profit, Adjusted Profit(1) and EBITDA(1) of $77.3
million, $29.0 million, $25.6 million and $56.4 million,
respectively.· Highest-ever
quarterly Partnership Performance Results(2) for Revenues, Profit,
EBITDA(1) and Distributable cash flow (1) of $76.2 million, $28.4
million, $55.4 million and $26.9 million,
respectively.· Annual
Revenues, Profit, Adjusted Profit(1) and EBITDA(1) of $311.5
million, $112.8 million, $110.9 million and $233.0 million,
respectively.· Highest-ever
annual Partnership Performance Results(2) for Revenues, Profit,
Adjusted Profit(1), Adjusted EBITDA(1) and Distributable cash flow
(1) of $269.1 million, $94.1 million, $92.2 million, $196.1 million
and $100.6 million,
respectively.· Increased
cash distribution of $0.5235 per common unit for the fourth quarter
of 2017, 1.2% higher than the third quarter of 2017 and 6.8% higher
than the fourth quarter of
2016.· Distribution
coverage ratio(3) of 1.18x, including the impact of the scheduled
dry-docking of the GasLog Shanghai.
(1) 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"). 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 Results represent the results attributable
to GasLog Partners which are non-GAAP financial measures. 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.(3)
Distribution coverage ratio represents the ratio of Distributable
cash flow to the cash distribution declared. For the 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:
"Following the successful acquisition of the Solaris, GasLog
Partners delivered our highest-ever quarterly Partnership
Performance Results for Revenues, EBITDA and Distributable cash
flow, among other metrics. As a result of this strong performance,
we are increasing our cash distribution for the fifth consecutive
quarter to $0.5235 per unit, or $2.094 per unit annualized, while
maintaining conservative distribution coverage.
2017 was a significant year for GasLog Partners on several
measures. We completed three LNG carrier acquisitions from our
general partner sponsor, GasLog, raised $281.1 million in net
equity proceeds and retired $153.8 million in total debt. The
Partnership's fleet now stands at 12 wholly owned LNG carriers with
multiple years of visible, contracted cash flows, notwithstanding
scheduled charter expirations. With this quarter's distribution
increase, GasLog Partners has grown distributions per unit by 6.8%
year-on-year and by 39.6% since our initial public offering
("IPO"), representing a 10% compound annual growth rate.
On January 17, 2018, we successfully completed an offering of
perpetual preference units, generating $111.0 million of net
proceeds and demonstrating our continued access to growth capital
at an attractive cost. The offering substantially addresses the
Partnership's equity needs to deliver year-on-year distribution
growth of 5% to 7% in 2018. This guidance is supported by our
acquisitions completed in 2017, our drop-down pipeline and our
strong liquidity position, while also taking account of the three
scheduled vessel dry-dockings and three vessels whose current
charters end this year. While LNG shipping spot rates continue to
be volatile, the recent improvement in headline rates to above
mid-cycle levels gives us confidence in a continuing market
recovery."
Issuance of Series B Preference Units
On January 17, 2018, GasLog Partners completed a public offering
of 4,600,000 8.200% Series B Preference Units (including 600,000
units issued upon the exercise in full by the underwriters of their
option to purchase additional Series B Preference Units),
liquidation preference $25.00 per unit, at a price to the public of
$25.00 per preference unit. The net proceeds from the offering
after deducting underwriting discounts, commissions and other
offering expenses were $111.0 million. The Series B Preference
Units are listed on the New York Stock Exchange under the symbol
"GLOP PR B". The initial distribution on the Series B Preference
Units will be payable on March 15, 2018.
Acquisition of the Solaris
On October 20, 2017, GasLog Partners acquired 100% of the shares
in the entity that owns and charters to Shell the Solaris from
GasLog. The Solaris is a 155,000 cubic meter ("cbm") tri-fuel
diesel electric ("TFDE") LNG carrier built in 2014 and operated and
managed by Shell since delivery. The vessel is currently on a
multi-year time charter with a subsidiary of Shell through June
2021 and Shell has two consecutive five-year extension options
which, if exercised, would extend the charter for a period of
either five or ten years.
The aggregate purchase price for the acquisition was $185.9
million, which included $1.0 million for positive net working
capital balances transferred with the vessel. GasLog Partners
financed the acquisition with cash on hand, including proceeds from
the ongoing execution of our at-the-market common equity offering
programme ("ATM Programme") described below, and the assumption of
the Solaris' outstanding indebtedness of $116.5 million.
ATM Programme
On May 16, 2017, GasLog Partners commenced an ATM Programme
under which the Partnership may, from time to time, raise equity
through the issuance and sale of new common units having an
aggregate offering price of up to $100.0 million in accordance with
the terms of an equity distribution agreement entered into on the
same date. Citigroup Global Markets Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC
and Morgan Stanley & Co. LLC have agreed to act as sales
agents. On November 3, 2017, the size of the ATM Programme was
increased to $144.0 million and UBS Securities LLC was included as
a sales agent. During the fourth quarter of 2017, GasLog Partners
issued and received payment for 385,520 common units at a weighted
average price of $23.31 per common unit for total gross proceeds of
$9.0 million and net proceeds of $8.5 million, after broker
commissions of $0.1 million and other expenses of $0.4 million. In
connection with the issuance of common units under the ATM
Programme during this period, the Partnership also issued 7,868
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 $0.2 million.
Since the commencement of the ATM Programme through December 31,
2017, GasLog Partners has issued and received payment for a total
of 2,737,405 common units, with cumulative gross proceeds of $62.9
million at a weighted average price of $22.97 per unit,
representing a discount of 0.5% to the volume weighted average
trading price of GasLog Partners' common units on the days on which
new common units were issued. In connection with the issuance of
common units under the ATM Programme during this period, the
Partnership also issued 55,866 general partner units to its general
partner. The cumulative net proceeds from the ATM Programme and the
issuance of general partner units for the year ended December 31,
2017 were $62.5 million.
Financial Summary
|
|
IFRS Common Control Reported Results(1) |
|
|
|
For the three months ended |
|
For the year ended |
|
(All amounts
expressed in thousands of U.S. dollars) |
|
December 31, 2016 |
|
December 31, 2017 |
|
% change |
|
December 31, 2016 |
|
December 31, 2017 |
|
% change |
|
Revenues |
|
78,625 |
|
77,347 |
|
(2% |
) |
282,343 |
|
311,469 |
|
10% |
|
Profit |
|
34,634 |
|
28,960 |
|
(16% |
) |
92,469 |
|
112,833 |
|
22% |
|
Adjusted Profit(2) |
|
30,462 |
|
25,605 |
|
(16% |
) |
102,203 |
|
110,872 |
|
8% |
|
EBITDA(2) |
|
60,696 |
|
56,437 |
|
(7% |
) |
210,450 |
|
233,042 |
|
11% |
|
(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
transfers 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 and Adjusted Profit in the fourth quarter
of 2017 as compared to the fourth quarter of 2016 is mainly
attributable to a decrease of $4.4 million in profit from
operations, primarily due to the scheduled dry-docking of the
GasLog Shanghai completed in November 2017 and increased operating
expenses resulting from increased crew wages and technical
maintenance expenses.
The increase in Profit for the year ended December 31, 2017, as
compared to the year ended December 31, 2016, is mainly
attributable to an increase of $18.0 million in profit from
operations ($29.5 million increase in Revenues and $23.8 million
increase in EBITDA) from the full operation of the GasLog Greece
and the GasLog Geneva, delivered in March 2016 and September 2016,
respectively, and an increase of $6.3 million in non-cash gain on
interest rate swaps, partially offset by an increase of $1.8
million in administrative fees resulting from the drop-downs to the
Partnership of the GasLog Seattle, the GasLog Greece, the GasLog
Geneva and the Solaris.
|
|
Partnership Performance Results(1) |
|
|
|
For the three months ended |
|
For the year ended |
|
(All amounts
expressed in thousands of U.S. dollars) |
|
December 31, 2016 |
|
December 31, 2017 |
|
% change |
|
December 31, 2016 |
|
December 31, 2017 |
|
% change |
|
Revenues |
|
55,978 |
|
76,219 |
|
36% |
|
206,424 |
|
269,071 |
|
30% |
|
Profit |
|
24,827 |
|
28,438 |
|
15% |
|
77,270 |
|
94,117 |
|
22% |
|
Adjusted Profit(2) |
|
20,655 |
|
25,083 |
|
21% |
|
73,098 |
|
92,156 |
|
26% |
|
EBITDA(2) |
|
41,633 |
|
55,358 |
|
33% |
|
148,885 |
|
196,133 |
|
32% |
|
Distributable cash flow(2) (3) |
|
23,541 |
|
26,934 |
|
14% |
|
83,660 |
|
100,551 |
|
20% |
|
Cash
distributions declared |
|
19,549 |
|
22,845 |
|
17% |
|
69,416 |
|
86,344 |
|
24% |
|
(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 transfers 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.
(3)
After giving effect to preference unit distributions declared.
The increases in the Partnership Performance Results in the
fourth quarter of 2017 as compared to the fourth quarter of 2016
are mainly attributable to an increase of $21.7 million in
Revenues, $9.0 million in Profit and $17.8 million in EBITDA due to
the acquisitions of the GasLog Seattle, the GasLog Greece, the
GasLog Geneva and the Solaris by the Partnership on November 1,
2016, May 3, 2017, July 3, 2017 and October 20, 2017, respectively,
partially offset by a decrease in profit from operations from the
remaining fleet, mainly due to the scheduled dry-docking of the
GasLog Shanghai completed in November 2017 and increased crew wages
and technical maintenance expenses.
The increases in the Partnership Performance Results for the
year ended December 31, 2017, as compared to the year ended
December 31, 2016, are attributable to an increase of $61.9 million
in Revenues, $36.5 million in profit from operations and $49.4
million in EBITDA from the acquisitions of the GasLog Seattle, the
GasLog Greece, the GasLog Geneva and the Solaris by the Partnership
on November 1, 2016, May 3, 2017, July 3, 2017 and October 20,
2017, respectively, which was partially offset by an increase of
$17.4 million in net financial costs (comprising financial costs,
net of gain on interest rate swaps and financial income), mainly
resulting from the mark-to-market valuation of the interest rate
swaps and the increased weighted average outstanding debt, an
increase of $1.8 million in administrative fees resulting from the
drop-downs of the GasLog Seattle, the GasLog Greece, the GasLog
Geneva and the Solaris to the Partnership and increased crew wages
and technical maintenance expenses.
Preference Unit Distribution
On November 16, 2017, the board of directors of GasLog Partners
approved and declared a distribution on the Series A Preference
Units of $0.5390625 per preference unit. The cash distribution was
paid on December 15, 2017 to all unitholders of record as of
December 8, 2017.
Common Unit Distribution
On January 30, 2018, the board of directors of GasLog Partners
approved and declared a quarterly cash distribution of $0.5235 per
common unit for the quarter ended December 31, 2017. The cash
distribution is payable on February 14, 2018 to all unitholders of
record as of February 9, 2018.
Liquidity and Financing
As of December 31, 2017, we had $142.5 million of cash and cash
equivalents, of which $101.3 million was held in current accounts
and $41.2 million was held in time deposits.
As of December 31, 2017, we had an aggregate of $1,155.6 million
of indebtedness outstanding under our credit facilities of which
$103.8 million is repayable within one year. In addition, we had
unused availability under our revolving credit facilities of $55.9
million.
On October 20, 2017, in connection with the acquisition of
GAS-eight Ltd., the entity that owns the Solaris, the Partnership
paid GasLog $70.6 million representing the difference between the
$185.9 million aggregate purchase price and the $116.5 million of
outstanding indebtedness of the acquired entity assumed by GasLog
Partners less an adjustment of $1.2 million in order to maintain
the agreed working capital position in the acquired entity of $1.0
million.
As of December 31, 2017, the Partnership has hedged 41.7% of its
floating interest rate exposure on its outstanding debt at a
weighted average interest rate of approximately 1.7% (excluding
margin).
As of December 31, 2017, our current assets totaled $151.3
million and current liabilities totaled $148.2 million, resulting
in a positive working capital position of $3.1 million.
On January 5, 2018, the respective subsidiaries of GasLog
Partners prepaid in full the outstanding $29.8 million of the
junior tranche of the Five Vessel Refinancing, which would have
been due in April 2018.
The GasLog Santiago, the GasLog Sydney and the GasLog Seattle
are expected to carry out scheduled dry-dockings, of which two will
take place during the second quarter of 2018 and one in the fourth
quarter of 2018. In addition to the normal cost of the scheduled
dry-dockings for which provisions are made through our dry-docking
reserves in our Distributable cash flow calculations, we plan to
make certain investments in two of the vessels with scheduled
dry-dockings in 2018 with the aim of enhancing their operational
performance at a total cost of approximately $28 million, which is
expected to be capitalized as part of the respective vessel's cost.
Of the total cost of approximately $28 million, approximately $4
million has already been paid. As a result of the additional work
required, we expect the dry-dockings for these two vessels to last
somewhat longer than would normally be the case. The additional
time required for such work is expected to be around ten days per
vessel but this is yet to be finally verified.
LNG Market Update and Outlook
The fourth quarter of 2017 witnessed the start-up of Chevron's
Wheatstone LNG project in Australia, Novatek's Yamal Train 1 in
Russia, and Dominion's Cove Point project in the United States,
building on the momentum in the expansion of global liquefaction
capacity seen throughout 2017. In total, over 30 million tonnes per
annum ("mtpa") of new nameplate capacity came online in 2017, an
increase of 11% over 2016. Looking ahead, Ichthys, Wheatstone Train
2, Cameroon, Elba Island, Prelude and Yamal Train 2 are expected to
begin production this year, adding a further approximately 25 mtpa
of nameplate capacity, a projected increase of 9% over 2017.
Further out, the long-term outlook for incremental LNG supply
and demand continues to gather momentum as witnessed by Cheniere's
recent sale and purchase agreement with Trafigura under which it
agreed to supply 1 mtpa of LNG over 15 years beginning in 2019 and
Tohoku Electric's 0.2 mtpa off-take contract with Area 1 in
Mozambique. While only one final investment decision ("FID") was
made last year (ENI's 3.4 mtpa Coral FLNG), various sources project
a shortfall of LNG by between 2021 and 2023, implying the need for
additional project sanctions over the next 1-3 years.
Demand for LNG in 2017 was stronger than expected, growing an
estimated 12% over 2016. More specifically, Chinese demand grew by
almost 50% year-on-year, overtaking South Korea as the world's
second largest consumer of LNG as the country seeks to introduce
more natural gas into its energy mix. Elsewhere in Asia, demand
from Japan remained steady while South Korea and Taiwan grew 10%
and 14%, respectively. Strong seasonal demand from Asia drove spot
LNG prices to over $11/mmBTU in recent weeks, widening the
west-east arbitrage window for sending Atlantic Basin LNG into
Asia, expanding ton miles and driving incremental demand for LNG
shipping capacity.
In the LNG shipping spot market, TFDE headline rates, as
reported by Clarksons, rose through the end of the fourth quarter,
reaching a peak of $82,000 per day in late December, an increase of
82% from the same time in 2016. This improvement in rates, combined
with only ten newbuild orders last year, gives us confidence in the
sustainability of the current market recovery. While we expect
there to be seasonality in both LNG prices and LNG shipping spot
rates during 2018, the longer-term outlook for LNG shipping day
rates remains positive.
It may take time before the strength in the spot market observed
this winter translates into the multi-year charter market as we are
in the early stages of the recovery. However, we are observing
increasing levels of tendering activity for charters ranging from
multi-month to multi-year, an encouraging development as we look to
fix our open days for GasLog Partners' three vessels whose current
charters end in 2018. In addition, some off-takers for LNG projects
scheduled to begin production over the next two years have yet to
secure their shipping requirements. We expect a number of vessels
for these projects to be sourced from vessels currently operating
in the short-term market, but also expect the coming increase in
LNG supply to require additional LNG carriers beyond those
currently on the water and in the orderbook.
Conference Call
GasLog Partners will host a conference call to discuss its
results at 8:30 a.m. EST (1:30 p.m. GMT) on Wednesday, January 31,
2018. 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: 6975568
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. EST (7:00 p.m. GMT) on
Wednesday, January 31, 2018 until 11:59 p.m. EST (3:59 a.m. GMT) on
Thursday, February 7, 2018.
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: 6975568
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. GasLog Partners' fleet consists of twelve LNG
carriers with an average carrying capacity of approximately 154,000
cbm. GasLog Partners' principal executive offices are located at
Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. 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 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;
- fluctuations in charter hire rates and vessel values;
- changes in our operating expenses, including crew wages,
dry-docking and insurance costs and bunker prices;
- number of off-hire days and dry-docking requirements including
our ability to successfully complete scheduled dry-dockings on time
and within budget;
- planned capital expenditures and availability of capital
resources to fund capital expenditures;
- our ability to maximize the use of our vessels, including the
re-deployment or disposition of vessels no longer under long-term
time charter commitments, including the risk that certain of our
vessels may no longer have the latest technology at such time which
may impact the rate at which we can charter such vessels;
- our ability to secure new multi-year charters, at economically
attractive rates;
- fluctuations in prices for crude oil, petroleum products and
natural gas;
- our ability to expand our fleet by acquiring vessels from our
drop-down pipeline at GasLog;
- our ability to leverage GasLog's relationships and reputation
in the shipping industry;
- the ability of GasLog to maintain long-term relationships with
major energy companies;
- 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 acquire assets in the future, including vessels
from GasLog;
- 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;
- the expected cost of and our ability to comply with
environmental and regulatory conditions, including changes in laws
and regulations or actions taken by regulatory authorities,
governmental organizations, classification societies and standards
imposed by our charterers applicable to our business;
- risks inherent in ship operation, including the discharge of
pollutants;
- 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;
- 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 MaxwellChief Financial OfficerPhone:
+44-203-388-3100
Joseph NelsonDeputy Head of Investor
RelationsPhone: +1-212-223-0643Email: ir@gaslogmlp.com
EXHIBIT I - Unaudited Interim Financial Information: IFRS
Common Control Reported Results
Unaudited condensed consolidated statements of financial
positionAs of December 31, 2016 and December 31,
2017(All amounts expressed in thousands of U.S. Dollars,
except unit data)
|
|
|
|
|
|
December 31, 2016 |
|
|
December 31, 2017 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
|
|
Other non-current
assets |
|
|
|
|
|
928 |
|
|
- |
|
Derivative financial
instruments |
|
|
|
|
|
6,008 |
|
|
6,038 |
|
Vessels |
|
|
|
|
|
2,014,783 |
|
|
1,953,057 |
|
Total non-current
assets |
|
|
|
|
|
2,021,719 |
|
|
1,959,095 |
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
|
|
|
4,201 |
|
|
3,629 |
|
Inventories |
|
|
|
|
|
2,808 |
|
|
2,565 |
|
Due from related
parties |
|
|
|
|
|
- |
|
|
475 |
|
Prepayments and other
current assets |
|
|
|
|
|
1,554 |
|
|
1,502 |
|
Derivative financial
instruments |
|
|
|
|
|
- |
|
|
577 |
|
Short-term
investments |
|
|
|
|
|
6,000 |
|
|
- |
|
Cash and cash
equivalents |
|
|
|
|
|
56,506 |
|
|
142,547 |
|
Total current
assets |
|
|
|
|
|
71,069 |
|
|
151,295 |
|
Total assets |
|
|
|
|
|
2,092,788 |
|
|
2,110,390 |
|
Partners' equity and
liabilities |
|
|
|
|
|
|
|
|
|
|
Partners'
equity |
|
|
|
|
|
|
|
|
|
|
Owners' capital |
|
|
|
|
|
155,669 |
|
|
- |
|
Common unitholders
(24,572,358 units issued and outstanding as of December 31, 2016
and 41,002,121 units issued and outstanding as of December 31,
2017) |
|
|
|
|
|
565,408 |
|
|
752,456 |
|
Subordinated
unitholders (9,822,358 units issued and outstanding as of December
31, 2016, nil units issued and outstanding as of December 31,
2017) |
|
|
|
|
|
60,988 |
|
|
- |
|
General partner
(701,933 units issued and outstanding as of December 31, 2016 and
836,779 units issued and outstanding as of December 31, 2017) |
|
|
|
|
|
10,095 |
|
|
11,781 |
|
Incentive distribution
rights |
|
|
|
|
|
5,878 |
|
|
6,596 |
|
Preference unitholders
(nil units issued and outstanding as of December 31, 2016 and
5,750,000 units issued and outstanding as of December 31,
2017) |
|
|
|
|
|
- |
|
|
139,321 |
|
Total partners'
equity |
|
|
|
|
|
798,038 |
|
|
910,154 |
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable |
|
|
|
|
|
2,251 |
|
|
4,636 |
|
Due to related
parties |
|
|
|
|
|
5,610 |
|
|
230 |
|
Derivative financial
instruments |
|
|
|
|
|
1,836 |
|
|
269 |
|
Other payables and
accruals |
|
|
|
|
|
40,105 |
|
|
39,255 |
|
Borrowings-current
portion |
|
|
|
|
|
73,922 |
|
|
103,829 |
|
Total current
liabilities |
|
|
|
|
|
123,724 |
|
|
148,219 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
Borrowings-non-current
portion |
|
|
|
|
|
1,170,844 |
|
|
1,051,767 |
|
Other non-current
liabilities |
|
|
|
|
|
182 |
|
|
250 |
|
Total non-current
liabilities |
|
|
|
|
|
1,171,026 |
|
|
1,052,017 |
|
Total partners' equity
and liabilities |
|
|
|
|
|
2,092,788 |
|
|
2,110,390 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited condensed consolidated statements of profit or
lossFor the three-month periods and the years ended December
31, 2016 and December 31, 2017(All amounts expressed in
thousands of U.S. Dollars, except per unit data)
|
|
|
|
For the three months ended |
|
For the year ended |
|
|
|
|
|
December 31, 2016 |
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2017 |
|
Revenues |
|
|
|
78,625 |
|
77,347 |
|
282,343 |
|
311,469 |
|
Vessel operating
costs |
|
|
|
(13,829 |
) |
(16,186 |
) |
(55,424 |
) |
(60,015 |
) |
Voyage expenses and
commissions |
|
|
|
(995 |
) |
(971 |
) |
(3,842 |
) |
(3,904 |
) |
Depreciation |
|
|
|
(16,952 |
) |
(17,086 |
) |
(61,770 |
) |
(67,726 |
) |
General and
administrative expenses |
|
|
|
(3,105 |
) |
(3,753 |
) |
(12,627 |
) |
(14,508 |
) |
Profit from
operations |
|
|
|
43,744 |
|
39,351 |
|
148,680 |
|
165,316 |
|
Financial costs |
|
|
|
(12,795 |
) |
(13,814 |
) |
(49,579 |
) |
(53,602 |
) |
Financial income |
|
|
|
62 |
|
317 |
|
205 |
|
998 |
|
Gain/(loss) on interest
rate swaps |
|
|
|
3,623 |
|
3,106 |
|
(6,837 |
) |
121 |
|
Total other expenses,
net |
|
|
|
(9,110 |
) |
(10,391 |
) |
(56,211 |
) |
(52,483 |
) |
Profit for the
period |
|
|
|
34,634 |
|
28,960 |
|
92,469 |
|
112,833 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
GasLog's operations |
|
|
|
(9,807 |
) |
(522 |
) |
(15,199 |
) |
(18,716 |
) |
Profit attributable
to Partnership's operations |
|
|
|
24,827 |
|
28,438 |
|
77,270 |
|
94,117 |
|
Partnership's profit
attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Common units |
|
|
|
15,206 |
|
23,333 |
|
49,886 |
|
76,347 |
|
Subordinated units |
|
|
|
6,079 |
|
- |
|
21,049 |
|
5,085 |
|
General partner
units |
|
|
|
496 |
|
508 |
|
1,545 |
|
1,728 |
|
Incentive distribution
rights |
|
|
|
3,046 |
|
1,497 |
|
4,790 |
|
3,208 |
|
Preference units |
|
|
|
- |
|
3,100 |
|
- |
|
7,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit
for the period: |
|
|
|
|
|
|
|
|
|
|
|
Common unit
(basic) |
|
|
|
0.62 |
|
0.57 |
|
2.18 |
|
2.09 |
|
Common unit
(diluted) |
|
|
|
0.62 |
|
0.57 |
|
2.17 |
|
2.09 |
|
Subordinated unit |
|
|
|
0.62 |
|
N/A |
|
2.14 |
|
0.52 |
|
General partner
unit |
|
|
|
0.71 |
|
0.61 |
|
2.31 |
|
2.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited condensed consolidated statements of cash
flowsFor the years ended December 31, 2016 and December 31,
2017(All amounts expressed in thousands of U.S.
Dollars)
|
|
|
|
|
|
For the year ended |
|
|
|
|
|
|
|
December 31, 2016 |
|
|
December 31, 2017 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
Profit for the
period |
|
|
|
|
|
92,469 |
|
|
112,833 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
61,770 |
|
|
67,726 |
|
Financial costs |
|
|
|
|
|
49,579 |
|
|
53,602 |
|
Financial income |
|
|
|
|
|
(205 |
) |
|
(998 |
) |
Unrealized loss/(gain)
on interest rate swaps held for trading |
|
|
|
|
|
1,570 |
|
|
(2,174 |
) |
Recycled loss of cash
flow hedges reclassified to profit or loss |
|
|
|
|
|
2,527 |
|
|
- |
|
Share-based
compensation |
|
|
|
|
|
480 |
|
|
850 |
|
|
|
|
|
|
|
208,190 |
|
|
231,839 |
|
Movements in working
capital |
|
|
|
|
|
13,656 |
|
|
(4,880 |
) |
Cash provided by
operations |
|
|
|
|
|
221,846 |
|
|
226,959 |
|
Interest paid |
|
|
|
|
|
(30,797 |
) |
|
(46,832 |
) |
Net cash provided by
operating activities |
|
|
|
|
|
191,049 |
|
|
180,127 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
Payments for vessels'
additions |
|
|
|
|
|
(337,647 |
) |
|
(4,765 |
) |
Financial income
received |
|
|
|
|
|
201 |
|
|
991 |
|
Purchase of short-term
investments |
|
|
|
|
|
(4,500 |
) |
|
- |
|
Maturity of short-term
investments |
|
|
|
|
|
- |
|
|
6,000 |
|
Net cash (used
in)/provided by investing activities |
|
|
|
|
|
(341,946 |
) |
|
2,226 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
Borrowings
drawdowns |
|
|
|
|
|
886,837 |
|
|
60,000 |
|
Borrowings
repayments |
|
|
|
|
|
(625,160 |
) |
|
(153,756 |
) |
Payment of loan
issuance costs |
|
|
|
|
|
(19,223 |
) |
|
(1,594 |
) |
Payments for interest
rate swaps termination |
|
|
|
|
|
(10,647 |
) |
|
- |
|
Cash distribution to
GasLog in exchange for contribution of net assets |
|
|
|
|
|
(68,142 |
) |
|
(192,168 |
) |
Proceeds from public
offerings of common units and issuance of general partner units
(net of underwriting discounts and commissions) |
|
|
|
|
|
53,826 |
|
|
144,297 |
|
Proceeds from public
offering of preference units (net of underwriting discounts and
commissions) |
|
|
|
|
|
- |
|
|
139,222 |
|
Payment of offering
costs |
|
|
|
|
|
(454 |
) |
|
(2,033 |
) |
Distributions paid |
|
|
|
|
|
(65,577 |
) |
|
(90,280 |
) |
Dividend due to GasLog
before vessels' drop-down |
|
|
|
|
|
(10,800 |
) |
|
- |
|
Net cash provided
by/(used in) financing activities |
|
|
|
|
|
140,660 |
|
|
(96,312 |
) |
(Decrease)/increase
in cash and cash equivalents |
|
|
|
|
|
(10,237 |
) |
|
86,041 |
|
Cash and cash
equivalents, beginning of the period |
|
|
|
|
|
66,743 |
|
|
56,506 |
|
Cash and cash
equivalents, end of the period |
|
|
|
|
|
56,506 |
|
|
142,547 |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT II
Non-GAAP Financial Measures:
Reconciliation of IFRS Common Control Reported Results in our
Financial Statements to Partnership Performance Results:
Our Partnership Performance Results presented below are non-GAAP
measures and exclude amounts related to GAS-seven Ltd. (the owner
of the GasLog Seattle), GAS-eleven Ltd. (the owner of the GasLog
Greece), GAS-thirteen Ltd. (the owner of the GasLog Geneva) and
GAS-eight Ltd. (the owner of the Solaris), for the periods prior to
their transfers to the Partnership on November 1, 2016, May 3,
2017, July 3, 2017 and October 20, 2017, respectively. While such
amounts are reflected in the Partnership's unaudited condensed
consolidated financial statements because the transfers to the
Partnership were accounted for as reorganizations of entities under
common control under IFRS, GAS-seven Ltd., GAS-eleven Ltd.,
GAS-thirteen Ltd. and GAS-eight Ltd. were not owned by the
Partnership prior to their respective transfers to the Partnership
in November 2016, May 2017, July 2017 and October 2017, and
accordingly the Partnership was not entitled to the cash or results
generated in the periods prior to such transfers.
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 reorganizations 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 December 31,
2016 |
|
For the year ended December 31, 2016 |
|
(All amounts expressed in U.S. dollars) |
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
22,647 |
|
55,978 |
|
78,625 |
|
75,919 |
|
206,424 |
|
282,343 |
|
Vessel operating
costs |
|
(2,984 |
) |
(10,845 |
) |
(13,829 |
) |
(11,945 |
) |
(43,479 |
) |
(55,424 |
) |
Voyage expenses and
commissions |
|
(288 |
) |
(707 |
) |
(995 |
) |
(1,001 |
) |
(2,841 |
) |
(3,842 |
) |
Depreciation |
|
(4,890 |
) |
(12,062 |
) |
(16,952 |
) |
(16,540 |
) |
(45,230 |
) |
(61,770 |
) |
General and administrative
expenses |
|
(312 |
) |
(2,793 |
) |
(3,105 |
) |
(1,408 |
) |
(11,219 |
) |
(12,627 |
) |
Profit from
operations |
|
14,173 |
|
29,571 |
|
43,744 |
|
45,025 |
|
103,655 |
|
148,680 |
|
Financial costs |
|
(4,374 |
) |
(8,421 |
) |
(12,795 |
) |
(19,392 |
) |
(30,187 |
) |
(49,579 |
) |
Financial income |
|
8 |
|
54 |
|
62 |
|
26 |
|
179 |
|
205 |
|
Gain/(loss) on interest
rate swaps |
|
- |
|
3,623 |
|
3,623 |
|
(10,460 |
) |
3,623 |
|
(6,837 |
) |
Total other expenses,
net |
|
(4,366 |
) |
(4,744 |
) |
(9,110 |
) |
(29,826 |
) |
(26,385 |
) |
(56,211 |
) |
Profit for the
period |
|
9,807 |
|
24,827 |
|
34,634 |
|
15,199 |
|
77,270 |
|
92,469 |
|
|
|
For the three months ended December 31,
2017 |
|
For the year ended December 31, 2017 |
|
(All amounts expressed in U.S. dollars) |
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Results attributable to GasLog |
|
Partnership Performance Results |
|
IFRS Common Control Reported Results |
|
Revenues |
|
1,128 |
|
76,219 |
|
77,347 |
|
42,398 |
|
269,071 |
|
311,469 |
|
Vessel operating
costs |
|
(17 |
) |
(16,169 |
) |
(16,186 |
) |
(4,323 |
) |
(55,692 |
) |
(60,015 |
) |
Voyage expenses and
commissions |
|
(14 |
) |
(957 |
) |
(971 |
) |
(527 |
) |
(3,377 |
) |
(3,904 |
) |
Depreciation |
|
(301 |
) |
(16,785 |
) |
(17,086 |
) |
(9,533 |
) |
(58,193 |
) |
(67,726 |
) |
General and administrative
expenses |
|
(18 |
) |
(3,735 |
) |
(3,753 |
) |
(639 |
) |
(13,869 |
) |
(14,508 |
) |
Profit from
operations |
|
778 |
|
38,573 |
|
39,351 |
|
27,376 |
|
137,940 |
|
165,316 |
|
Financial costs |
|
(257 |
) |
(13,557 |
) |
(13,814 |
) |
(8,686 |
) |
(44,916 |
) |
(53,602 |
) |
Financial income |
|
1 |
|
316 |
|
317 |
|
26 |
|
972 |
|
998 |
|
Gain on interest rate
swaps |
|
- |
|
3,106 |
|
3,106 |
|
- |
|
121 |
|
121 |
|
Total other expenses,
net |
|
(256 |
) |
(10,135 |
) |
(10,391 |
) |
(8,660 |
) |
(43,823 |
) |
(52,483 |
) |
Profit for the
period |
|
522 |
|
28,438 |
|
28,960 |
|
18,716 |
|
94,117 |
|
112,833 |
|
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 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, financial costs, 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 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
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 excludes
some, but not all, items that affect profit or loss and these
measures may vary among other companies. Therefore, EBITDA as
presented herein may not be comparable to similarly titled measures
of other companies. The following table reconciles EBITDA to
profit, the most directly comparable IFRS financial measure, for
the periods presented.
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,
as set out in the reconciliations below.
Reconciliation of Profit to EBITDA:
(Amounts expressed in thousands of U.S. Dollars)
|
For the three months ended |
|
|
IFRS Common Control Reported Results |
|
Partnership
Performance Results |
|
|
December 31, 2016 |
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2017 |
|
Profit for the
period |
34,634 |
|
28,960 |
|
24,827 |
|
28,438 |
|
Depreciation |
16,952 |
|
17,086 |
|
12,062 |
|
16,785 |
|
Financial costs |
12,795 |
|
13,814 |
|
8,421 |
|
13,557 |
|
Financial income |
(62 |
) |
(317 |
) |
(54 |
) |
(316 |
) |
Gain on interest rate
swaps |
(3,623 |
) |
(3,106 |
) |
(3,623 |
) |
(3,106 |
) |
EBITDA |
60,696 |
|
56,437 |
|
41,633 |
|
55,358 |
|
|
For the year ended |
|
|
IFRS Common Control Reported Results |
|
Partnership
Performance Results |
|
|
December 31, 2016 |
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2017 |
|
Profit for the
year |
92,469 |
|
112,833 |
|
77,270 |
|
94,117 |
|
Depreciation |
61,770 |
|
67,726 |
|
45,230 |
|
58,193 |
|
Financial costs |
49,579 |
|
53,602 |
|
30,187 |
|
44,916 |
|
Financial income |
(205 |
) |
(998 |
) |
(179 |
) |
(972 |
) |
Loss/(gain) on interest
rate swaps |
6,837 |
|
(121 |
) |
(3,623 |
) |
(121 |
) |
EBITDA |
210,450 |
|
233,042 |
|
148,885 |
|
196,133 |
|
Reconciliation of Profit to Adjusted Profit:
(Amounts expressed in thousands of U.S. Dollars)
|
For the three months ended |
|
|
IFRS Common Control Reported Results |
|
Partnership
Performance Results |
|
|
December 31, 2016 |
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2017 |
|
Profit for the
period |
34,634 |
|
28,960 |
|
24,827 |
|
28,438 |
|
Non-cash gain on
interest rate swaps |
(4,172 |
) |
(3,568 |
) |
(4,172 |
) |
(3,568 |
) |
Write-off and
accelerated amortization of unamortized loan fees |
- |
|
213 |
|
- |
|
213 |
|
Adjusted
Profit |
30,462 |
|
25,605 |
|
20,655 |
|
25,083 |
|
|
For the year ended |
|
|
IFRS Common Control Reported Results |
|
Partnership
Performance Results |
|
|
December 31, 2016 |
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2017 |
|
Profit for the
year |
92,469 |
|
112,833 |
|
77,270 |
|
94,117 |
|
Non-cash loss/(gain) on
interest rate swaps |
4,097 |
|
(2,174 |
) |
(4,172 |
) |
(2,174 |
) |
Write-off and
accelerated amortization of unamortized loan fees |
5,637 |
|
213 |
|
- |
|
213 |
|
Adjusted
Profit |
102,203 |
|
110,872 |
|
73,098 |
|
92,156 |
|
Distributable Cash Flow
Distributable cash flow means EBITDA, on the basis of the
Partnership Performance Results, after considering financial costs
for the period, including realized loss on interest rate swaps and
excluding amortization of loan fees, estimated dry-docking and
replacement capital reserves established by the Partnership and
accrued distributions on preference units, whether or not declared.
Estimated dry-docking and replacement capital reserves represent
capital expenditures required to renew and maintain over the
long-term the operating capacity of, or the revenue generated by,
our capital assets. Distributable cash flow, which is a non-GAAP
financial measure, is a quantitative standard used by investors in
publicly-traded partnerships to assess their ability to make
quarterly cash distributions. Our calculation of Distributable cash
flow may not be comparable to that reported by other companies.
Distributable cash flow has limitations as an analytical tool and
should not be considered as an alternative to, or substitute for,
or superior to, profit or loss, profit or loss from operations,
earnings per unit or any other measure of operating performance
presented in accordance with IFRS. The table below reconciles
Distributable cash flow to Profit for the period attributable to
the Partnership.
Reconciliation of Partnership's Profit to Distributable Cash
Flow:
(Amounts expressed in thousands of U.S. Dollars)
|
For the three months ended |
|
For the year ended |
|
|
December 31, 2016(1) |
|
December 31, 2017(1) |
|
December 31, 2016(1) |
|
December 31, 2017(1) |
|
Partnership's profit
for the period |
24,827 |
|
28,438 |
|
77,270 |
|
94,117 |
|
Depreciation |
12,062 |
|
16,785 |
|
45,230 |
|
58,193 |
|
Financial costs |
8,421 |
|
13,557 |
|
30,187 |
|
44,916 |
|
Financial income |
(54 |
) |
(316 |
) |
(179 |
) |
(972 |
) |
Gain on interest rate
swaps |
(3,623 |
) |
(3,106 |
) |
(3,623 |
) |
(121 |
) |
EBITDA |
41,633 |
|
55,358 |
|
148,885 |
|
196,133 |
|
Financial costs
(excluding amortization of loan fees) and realized loss on interest
rate swaps |
(7,991 |
) |
(12,332 |
) |
(26,929 |
) |
(41,722 |
) |
Dry-docking capital
reserve |
(2,325 |
) |
(3,441 |
) |
(8,829 |
) |
(12,234 |
) |
Replacement capital
reserve |
(7,776 |
) |
(9,551 |
) |
(29,467 |
) |
(33,877 |
) |
Paid and accrued
preferred equity distribution |
- |
|
(3,100 |
) |
- |
|
(7,749 |
) |
Distributable cash
flow |
23,541 |
|
26,934 |
|
83,660 |
|
100,551 |
|
Other reserves (2)
(3) |
(3,992 |
) |
(4,089 |
) |
(14,244 |
) |
(14,207 |
) |
Cash distribution
declared |
19,549 |
|
22,845 |
|
69,416 |
|
86,344 |
|
(1) Excludes amounts related to GAS-seven Ltd., the owner of the
GasLog Seattle, GAS-eleven Ltd., the owner of the GasLog Greece,
GAS-thirteen Ltd., the owner of the GasLog Geneva, and GAS-eight
Ltd., the owner of the Solaris, for the periods prior to their
transfers to the Partnership on November 1, 2016, May 3, 2017, July
3, 2017 and October 20, 2017, respectively. While such amounts are
reflected in the Partnership's unaudited condensed consolidated
financial statements because the transfers to the Partnership were
accounted for as reorganizations of entities under common control
under IFRS, GAS-seven Ltd., GAS-eleven Ltd., GAS-thirteen Ltd. and
GAS-eight Ltd. were not owned by the Partnership prior to their
respective transfers to the Partnership in November 2016, May 2017,
July 2017 and October 2017 and accordingly the Partnership was not
entitled to the cash or results generated in the period prior to
such transfers.
(2) 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).
(3) For the three months ended December 31, 2017, the cash
distributions declared and the other reserves have been calculated
based on the number of units issued and outstanding as of December
31, 2017.
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