GasLog Partners (GLOP) Misses Q1 EPS by 17c, Revenues Miss

GasLog Partners (NYSE: GLOP) reported Q1 EPS of $0.28, $0.17 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $86.33 million versus the consensus estimate of $86.81 million.

CEO Statement

Mr. Andrew Orekar, Chief Executive Officer, commented: “In the first quarter, GasLog Partners continued to execute our strategy, announcing the accretive acquisition of the GasLog Glasgow and expanding our fleet to 15 LNG carriers. This transaction is the Partnership’s third completed drop-down in the last 12 months, and significantly increases our contracted Revenues, EBITDA, Distributable cash flow and contracted days to 91% in 2019 and 74% in 2020. As previously communicated, no new common equity was issued to fund this acquisition.

During the quarter, we refinanced in full our 2019 debt maturity with a new loan agreement at a reduced margin above the London Interbank Offered Rate (“LIBOR”) compared to the previous facility. The refinancing provides $90.0 million of incremental liquidity for the Partnership with an improved covenant package. Following the transaction, the Partnership’s next debt maturity is not until 2021.

Looking ahead, GasLog’s recent commercial successes, including new, multi-year charters with Endesa and JERA, have increased our drop-down pipeline to 13 vessels. Despite seasonal weakness in spot LNG shipping markets due to warmer than normal winter temperatures combined with high inventory levels, we expect the spot market to strengthen as we move through 2019, supported by the expected increase in new LNG supply over the balance of the year, especially from U.S. projects. With the GasLog Glasgowacquisition now closed, we are reiterating our year-on-year distribution growth guidance of 2% to 4% in 2019. Our guidance reflects the positive outlook for the LNG shipping market and our recently completed accretive acquisitions, while also considering our two scheduled dry-dockings and one vessel coming off charter in late 2019.

In addition, while we expect distributions to continue serving as our primary means of returning capital to unitholders, in the first quarter GasLog Partners authorized a unit buyback programme of up to $25.0 million, and we expect to opportunistically repurchase common units as market conditions warrant.”

For earnings history and earnings-related data on GasLog Partners (GLOP) click here.

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