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 January 28, 2016 - 7:00 AM EST
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GasLog Partners LP Reports Financial Results for the Three-Month Period Ended December 31, 2015 and Declares Cash Distribution

MONACO, Jan. 28, 2016 (GLOBE NEWSWIRE) -- 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 December 31, 2015.

Partnership Performance(1) Highlights

  • Highest-ever quarterly performance for Revenues, Profit, EBITDA, Adjusted EBITDA and Distributable cash flow.
  • Declared cash distribution of $0.478 per unit for the fourth quarter of 2015, 10% higher than the fourth quarter of 2014 and unchanged from the third quarter of 2015.
  • Reduced total debt by $30.63 million during the fourth quarter of 2015 using cash balances and excess cash flow.
  • EBITDA and Adjusted EBITDA of $38.34 million, 58% and 59% higher, respectively, than the fourth quarter of 2014.
  • Distributable cash flow of $22.55 million, 73% higher than the fourth quarter of 2014.
  • Distribution coverage ratio of 1.43x(2).

(1) "Partnership Performance" represents the results attributable to GasLog Partners which are non-GAAP financial measures. See Note 1 to the Partnership Performance Results table below.

(2) Distribution coverage ratio represents the ratio of distributable cash flow over the cash distribution declared.

CEO Statement

Mr. Andrew Orekar, Chief Executive Officer, commented: "I am delighted by GasLog Partners' highest-ever quarterly financial results for Revenues(1), Adjusted EBITDA(1) and Distributable cash flow(1), among other metrics. This performance highlights the limited impact of lower commodity prices on the Partnership's stable cash flows, which are generated from multi-year charters with fixed-fee revenues.

For the fourth quarter, GasLog Partners has declared a cash distribution of $0.478 per unit, which is unchanged from the third quarter of 2015 and represents an 18% compound annual growth rate since the Partnership's initial public offering ("IPO"). This distribution does not come at the expense of coverage; in fact, our coverage ratio of 1.43x for the fourth quarter of 2015 is our strongest quarterly distribution coverage since GasLog Partners' IPO.

The Partnership's fleet of eight LNG carriers is fully financed and generating distributable cash flow well in excess of our distribution. In the fourth quarter, we have reduced debt using our excess cash flow, as doing so is accretive to GasLog Partners' distributable cash flow on a per unit basis. Our total debt repayment for the quarter was $30.63 million, including $15.0 million of borrowings under our revolving facility with GasLog Ltd. ("GasLog") that represents our highest cost debt and can be redrawn at any time. As a reminder, GasLog Partners does not have any future capital commitments for vessel newbuildings or other commercial projects.

We are pleased with the strong performance of GasLog Partners and the continued stability of the Partnership's cash flows and distributions."

(1) Represent the results attributable to GasLog Partners which are non-GAAP financial measures. See Note 1 to the Partnership Performance Results table below.

Financial Summary

  Partnership Performance Results(1)
  For the three months ended For the year ended
             
(All amounts expressed in thousands of U.S. dollars) December 31, December 31,   December 31, December 31,  
  2014 2015 % change 2014 2015 % change
Revenues 33,302 51,953 56% 65,931 168,927 156%
Profit 1,146 20,299 1671% 14,544 65,040 347%
Adjusted Profit 11,252 20,304 80% 23,842 65,096 173%
EBITDA 24,288 38,339 58% 48,297 122,786 154%
Adjusted EBITDA 24,191 38,344 59% 48,156 122,842 155%
Distributable cash flow 13,028 22,546 73% 27,118 72,310 167%
Cash distributions declared 10,717 15,712 47% 24,086 56,187 133%
             
(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 International Financial Reporting Standards ("IFRS") because the transfer of the vessel owning entities by GasLog to the Partnership represented a reorganization of entities under common control. 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 because such presentation is consistent with the calculation of the quarterly distribution and the earnings per unit, which similarly excludes 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 Exhibits II and III at the end of this press release.

The year-on-year increases in the Partnership Performance Results in the fourth quarter are attributable to the additional vessel operating days in our fleet resulting from the acquisitions of the Methane Alison Victoria, the Methane Shirley Elisabeth and the Methane Heather Sally on July 1, 2015 from GasLog.

  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, December 31,   December 31, December 31,  
  2014 2015 % change 2014 2015 % change
Revenues 51,449 51,953 1% 158,170 199,689 26%
Profit 8,069 20,299 152% 43,646 72,044 65%
Adjusted Profit(2) 18,072 20,304 12% 58,268 72,094 24%
EBITDA(2) 38,181 38,339 0% 119,008 143,473 21%
Adjusted EBITDA(2) 37,982 38,344 1% 118,875 143,523 21%
             
(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 combined and consolidated financial statements of the Partnership accompanying this press release are prepared under IFRS on this basis. 
(2)  Adjusted Profit, EBITDA and Adjusted EBITDA are non-GAAP financial measures. For definitions and reconciliations of these measurements to the most directly comparable financial measures presented in accordance with IFRS, please refer to Exhibit III at the end of this press release.

The year-on-year IFRS Common Control Reported Results for the fourth quarter do not present material fluctuations, with the exception of profit which has significantly increased. The increase in profit derives mainly from the adverse impact on our fourth quarter 2014 results of the $4.81 million loss on interest rate swaps and the $5.76 million of write-off of unamortized loan fees in connection with debt refinancing.

Cash Distribution

On January 27, 2016, the board of directors of GasLog Partners approved and declared a quarterly cash distribution of $0.478 per unit for the quarter ended December 31, 2015. The cash distribution is payable on February 12, 2016, to all unitholders of record as of February 8, 2016.

Liquidity and Financing

As of December 31, 2015, we had $60.40 million of cash and cash equivalents.

As of December 31, 2015, we had an aggregate of $748.0 million of indebtedness outstanding under our credit facilities, including $15.0 million outstanding under the Partnership's revolving credit facility with GasLog. An amount of $328.0 million of outstanding debt is repayable within one year.

As of December 31, 2015, our current assets totaled $70.36 million while current liabilities totaled $353.09 million, resulting in a negative working capital position of $282.73 million. Current liabilities include $328.0 million of loans due within one year, $305.50 million of which we are currently discussing to refinance, with the balance of $22.50 million representing scheduled amortization of other indebtedness. We have entered into an underwritten agreement with certain financial institutions to refinance our current debt and syndication is progressing. We expect to execute definitive documentation well in advance of the maturity of all associated existing indebtedness.

Other than the refinancing requirements noted above, and taking into account generally expected market conditions, we anticipate that cash flow generated from operations will be sufficient to fund our operations, including our working capital requirements, and to make the required principal and interest payments on our indebtedness during the next 12 months.

Depending on market conditions, we may use derivative financial instruments to reduce the risks associated with fluctuations in interest rates. We expect over time to economically hedge a material proportion of our exposure to interest rate fluctuations by entering into new interest rate swap contracts. As of December 31, 2015, the Partnership had no interest rate swaps.

LNG Market Update and Outlook

In 2016, we expect projects coming onstream that will have approximately 40 million tonnes of new liquefaction capacity in both Australia and the US. In Australia, Australia Pacific Train 1 (4.5 million tonnes per annum ("mtpa")) and Gladstone LNG (7.7 mtpa) have shipped their first cargoes in recent weeks and are expected to ramp up production through 2016. Other Australian projects due to start up in 2016 include Gorgon (15.6 mtpa), Australia Pacific Train 2 (4.5 mtpa), Prelude (3.6 mtpa) and Wheatstone (8.9 mtpa). The infrastructure for these projects has now largely been built and the majority of the volumes for these projects have already been sold.

Sabine Pass, one of five US projects under construction, is expected to export its first cargo later in the first quarter of 2016. When construction is completed, Sabine Pass will have a total export capacity of 22.5 mtpa and will be the first US project to export LNG into the global market. The US becoming an exporter of LNG is a welcome development for the LNG shipping sector as it creates new suppliers, new customers and new trade routes. The majority of US volumes have already been contracted with most expected to go into the Asian and European markets. This development will be positive for tonne mile demand as the US Gulf Coast to Asia voyage is approximately 9,000 nautical miles through the Panama Canal (which is not yet open to large LNG carriers). The same voyage around Cape Horn is approximately 13,000 nautical miles. From the US Gulf Coast to northwest Europe, the distance is approximately 5,000 nautical miles. In 2014 and 2015, the average global LNG voyage was approximately 4,000 nautical miles, and thus any voyage in excess of this distance will increase the global average distance and the need for LNG carriers.

Angola LNG (5.2 mtpa), which has been shut down for over a year for refurbishment and enhancements, is also due to restart in early 2016. Certain vessels that were chartered to Angola LNG have been operating in the spot market while the plant has been closed, and are expected to be put back into service for the project in 2016.

With the expected projects coming onstream, we are seeing encouraging levels of tendering activity for vessels to transport increased LNG volumes. We continue to see a future shortfall of vessels that will be required for the Australian and US projects that have taken final investment decision and are currently under construction.

Conference Call

GasLog Partners will host a conference call to discuss its results for the fourth quarter of 2015 at 8:30 a.m. EDT (13:30 p.m. GMT) on Thursday, January 28, 2016. Andrew Orekar, Chief Executive Officer, and Simon Crowe, 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:
+1 855 537 5839 (USA)
+44 (0) 20 3107 0289 (United Kingdom)
+33 (0) 1 70 80 71 53 (France)
Passcode: 11928088

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. ET (7:00 p.m. GMT) on Thursday, January 28, 2016 until 11:59 p.m. EDT (4:59 a.m. GMT) on Thursday, February 4, 2016.

The replay dial-in numbers are as follows:
+1 855 859 2056 (USA)
+44 (0) 20 3107 0235 (United Kingdom)
+33 (0)1 70 80 71 79 (France)
Replay passcode: 11928088

About GasLog Partners

GasLog Partners is a growth-oriented master limited partnership focused on owning, operating and acquiring LNG carriers under long-term charters. GasLog Partners' fleet consists of eight LNG carriers with an average carrying capacity of 148,750 cbm, each of which has a multi-year time charter. GasLog Partners' 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 the Partnership's operations, cash flows, financial position, liquidity and cash available for dividends or distributions, plans, strategies and business prospects and changes and trends in the Partnership's business and the markets in which it operates. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the Partnership's expectations and projections. Accordingly, you should not unduly rely on any forward-looking statements. Factors that might cause future results and outcomes to differ include:

  • 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 and technological advancements;
  • 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;
  • changing economic conditions and the differing pace of economic recovery in different regions of the world;
  • our future financial condition, liquidity and cash available for dividends and distributions;
  • our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, the ability of our lenders to meet their funding obligations, and our ability to meet the restrictive covenants and other obligations under our credit facilities;
  • our ability to enter into shipbuilding contracts for newbuildings and our expectations about the availability of existing LNG carriers to purchase, as well as our ability to consummate any such acquisitions;
  • 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, drydocking requirements and insurance costs;
  • our anticipated general and administrative expenses;
  • fluctuations in currencies and interest rates;
  • our ability to maximize the use of our ships, including the re-employment or disposal of ships not under time charter commitments;
  • environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities;
  • requirements imposed by classification societies;
  • risks inherent in ship operation, including the discharge of pollutants;
  • 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; and
  • other risks and uncertainties described in the Partnership's Annual Report on Form 20-F filed with the SEC on February 17, 2015 and in the Prospectus Supplement filed with the SEC on June 22, 2015. Copies of the Annual Report, as well as subsequent filings, are available online at http://www.sec.gov.

The Partnership does not undertake to update any forward-looking statements as a result of new information or future events or developments except as may be required by law.

Contacts:
Simon Crowe
Chief Financial Officer
Phone: +44-203-388-3108

Jamie Buckland
Head of Investor Relations
Phone: +44-203-388-3116
Email: ir@gaslogltd.com

Samaan Aziz
Investor Relations Manager
Phone: +1 212 223 0643
Email: ir@gaslogltd.com

EXHIBIT I – Unaudited Fourth Quarter Financial Information: IFRS Common Control Reported Results
 
Unaudited condensed combined and consolidated statements of financial position
As of December 31, 2014 and December 31, 2015
(All amounts expressed in U.S. Dollars)
 
  December 31, 2014 December 31, 2015
Assets    
Non-current assets    
Other non-current assets 2,063,026 2,076,766
Vessels 1,311,857,369 1,274,733,866
Total non-current assets 1,313,920,395 1,276,810,632
Current assets    
Trade and other receivables 1,404,423 5,098,123
Due from related parties 925,398 2,885,676
Inventories 1,822,818 1,633,572
Prepayments and other current assets 1,148,951 339,813
Short-term investments 21,700,000
Cash and cash equivalents 47,241,742 60,402,105
Total current assets 74,243,332 70,359,289
Total assets 1,388,163,727 1,347,169,921
Owners'/partners' equity and liabilities    
Owners'/partners' equity    
Owners' capital 146,163,067
Common unitholders (14,322,358 units issued and outstanding as of December 31, 2014 and 21,822,358 units issued and outstanding as of December 31, 2015) 324,967,226 507,432,951
Subordinated unitholders (9,822,358 units issued and outstanding as of December 31, 2014 and December 31, 2015) 77,087,950 59,785,646
General partner (492,750 units issued and outstanding as of December 31, 2014 and 645,811 units issued and outstanding as of December 31, 2015) 6,085,438 8,841,527
Incentive distribution rights 2,116,965
Total owners'/partners' equity 554,303,681 578,177,089
Current liabilities    
Trade accounts payable 3,300,909 2,398,370
Due to related parties 10,333,093 137,267
Other payables and accruals 23,635,954 24,784,352
Borrowings – current portion 20,999,800 325,767,736
Total current liabilities 58,269,756 353,087,725
Non-current liabilities    
Borrowings – non-current portion 775,537,142 415,722,907
Other non-current liabilities 53,148 182,200
Total non-current liabilities 775,590,290 415,905,107
Total owners'/partners' equity and liabilities 1,388,163,727 1,347,169,921
     
Unaudited condensed combined and consolidated statements of profit or loss
For the three-month periods and the years ended December 31, 2014 and December 31, 2015
(All amounts expressed in U.S. Dollars)
 
  For the three months ended For the years ended
  December 31,
2014
December 31,
2015
December 31,
2014
December 31,
2015
Revenues 51,449,010 51,953,449 158,169,691 199,688,989
Vessel operating costs (10,552,551) (10,307,862) (30,752,272) (42,788,341)
Voyage expenses and commissions (633,519) (642,259) (2,027,382) (2,441,658)
Depreciation  (11,383,866) (11,155,470) (33,931,177) (44,252,782)
General and administrative expenses (2,081,698) (2,664,176) (6,382,130) (10,986,012)
Profit from operations 26,797,376 27,183,682 85,076,730 99,220,196
Financial costs  (13,938,152) (6,886,128) (33,393,318) (27,201,945)
Financial income  15,091 1,577 40,593 25,575
Loss on interest rate swaps (4,805,218) (8,078,240)
Total other expenses, net (18,728,279) (6,884,551) (41,430,965) (27,176,370)
Profit for the period 8,069,097 20,299,131 43,645,765 72,043,826
Less:        
Profit attributable to GasLog's operations (6,922,992) (29,101,636) (7,003,443)
Profit attributable to Partnership's operations(1) 1,146,105 20,299,131 14,544,129 65,040,383
Partnership's profit attributable to:        
Common units  1,123,183 12,803,742 8,713,197 43,197,759
Subordinated units  5,763,032 5,540,049 18,135,024
General partner units  22,922 405,983 290,883 1,300,808
Incentive distribution rights 1,326,374 2,406,792
         
Earnings per unit for the period, basic and diluted:        
Common unit  0.08 0.59 0.75 2.38
Subordinated unit  0.59 0.56 1.85
General partner unit  0.05 0.63 0.66 2.28
         
(1)  Referred to elsewhere in this earnings release as Partnership Performance Results.
 
Unaudited condensed combined and consolidated statements of cash flows
For the years ended December 31, 2014 and December 31, 2015
(All amounts expressed in U.S. Dollars)
 
 
  For the years ended
  December 31,
2014
December 31,
2015
Cash flows from operating activities:    
Profit for the year 43,645,765 72,043,826
Adjustments for:    
Depreciation 33,931,177 44,252,782
Financial costs  33,393,318 27,201,945
Financial income (40,593) (25,575)
Unrealized loss on interest rate swaps held for trading  265,822
Recycled loss of cash flow hedges reclassified to profit or loss 5,471,275
Share-based compensation 205,196
  116,666,764 143,678,174
Movements in working capital 18,123,191 (7,209,797)
Cash provided by operations 134,789,955 136,468,377
Interest paid (25,191,501) (23,238,237)
Net cash provided by operating activities 109,598,454 113,230,140
Cash flows from investing activities:    
Payments for vessels' additions  (787,600,977) (7,141,672)
Financial income received 35,317 34,167
Purchase of short-term investments (35,694,481) (4,000,000)
Maturity of short-term investments 15,494,481 25,700,000
Net cash (used in)/provided by investing activities (807,765,660) 14,592,495
Cash flows from financing activities:    
Borrowings drawdowns 1,022,500,000
Borrowings repayments (611,895,191) (57,500,000)
Payment of loan issuance costs (13,334,047) (922,080)
Proceeds from public offerings and issuance of general partner units, net of underwriting discounts and commissions 325,933,897 176,533,158
Cash distribution to GasLog in exchange for contribution of net assets (183,897,158) (172,626,653)
Payment of offering costs (3,964,438) (1,104,297)
Distributions paid (13,369,251) (51,192,400)
Dividend due to GasLog before vessels' drop-down (9,800,000) (7,850,000)
Decrease of amounts due to shareholders (13,728,649)
Capital contributions received 232,560,000
Net cash provided by/(used in) financing activities 731,005,163 (114,662,272)
Increase in cash and cash equivalents 32,837,957 13,160,363
Cash and cash equivalents, beginning of the year 14,403,785 47,241,742
Cash and cash equivalents, end of the year 47,241,742 60,402,105

EXHIBIT II

Non-GAAP Financial Measures:

Comparison of IFRS Common Control Reported Results in our Financial Statements and Partnership Performance Results:

Our IFRS Common Control Reported Results presented below are derived from the unaudited condensed combined and consolidated financial statements of the Partnership. Prior to the closing of our IPO, we did not own any vessels. The presentation in our financial statements assumes that our business was operated as a separate entity prior to its inception. The transfer of the three initial vessels from GasLog to the Partnership at the time of the IPO, the transfer of the two vessels from GasLog to the Partnership in September 2014 and the transfer of an additional three vessels from GasLog to the Partnership in July 2015 was each accounted for as a reorganization of entities under common control under IFRS. The unaudited condensed combined and consolidated financial statements include the accounts of the Partnership and its subsidiaries assuming that they are consolidated from the date of their incorporation by GasLog as they were under the common control of GasLog.

Our Partnership Performance Results presented below are non-GAAP measures and exclude amounts related to GAS-three Ltd., GAS-four Ltd. and GAS-five Ltd. (the owners of the GasLog Shanghai, the GasLog Santiago and the GasLog Sydney) for the period prior to the closing of the IPO, GAS-sixteen Ltd. and GAS-seventeen Ltd. (the owners of the Methane Rita Andrea and the Methane Jane Elizabeth, respectively) for the period prior to their transfer to the Partnership on September 29, 2014 and the amounts related to GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd. (the owners of the Methane Alison Victoria, the Methane Shirley Elisabeth and the Methane Heather Sally, respectively) for the period prior to their transfer to the Partnership on July 1, 2015. While such amounts are reflected in the Partnership's unaudited condensed combined and consolidated financial statements because the transfers to the Partnership were accounted for as a reorganization of entities under common control under IFRS, (i) GAS-three Ltd., GAS-four Ltd. and GAS-five Ltd. were not owned by the Partnership prior to the closing of the IPO, (ii) GAS-sixteen Ltd. and GAS-seventeen Ltd. were not owned by the Partnership prior to their transfer to the Partnership in September 2014 and (iii) GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd. were not owned by the Partnership prior to their transfer to the Partnership in July 2015, and accordingly the Partnership is not entitled to the cash or results generated in the period prior to such transfers.

The Partnership Performance Results are non-GAAP financial measures. GasLog Partners believes that these financial measures provide meaningful supplemental information to both management and investors regarding the financial and operating performance of the Partnership because such presentation is consistent with the calculation of the quarterly distribution and the 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.

(All amounts expressed in U.S. dollars) For the three months ended December 31, 2014 For the year ended December 31, 2014
  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 18,147,000 33,302,010 51,449,010 92,238,784 65,930,907 158,169,691
Vessel operating costs (3,861,680) (6,690,871) (10,552,551) (18,525,794) (12,226,478) (30,752,272)
Voyage expenses and commissions (219,970)  (413,549) (633,519) (1,210,151) (817,231) (2,027,382)
Depreciation  (4,272,095) (7,111,771) (11,383,866) (20,579,705) (13,351,472) (33,931,177)
General and administrative expenses (171,948)  (1,909,750) (2,081,698) (1,791,433) (4,590,697) (6,382,130)
Profit from operations 9,621,307 17,176,069 26,797,376 50,131,701 34,945,029 85,076,730
Financial costs  (2,702,315) (11,235,837) (13,938,152) (18,187,894) (15,205,424) (33,393,318)
Financial income  4,000 11,091 15,091 17,695 22,898 40,593
Loss on interest rate swaps (4,805,218) (4,805,218) (2,859,866) (5,218,374) (8,078,240)
Total other expenses, net (2,698,315) (16,029,964) (18,728,279) (21,030,065) (20,400,900) (41,430,965)
Profit for the period 6,922,992 1,146,105 8,069,097 29,101,636 14,544,129 43,645,765
     
All amounts expressed in U.S. dollars) For the three months ended December 31, 2015 For the year ended December 31, 2015
  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 51,953,449 51,953,449 30,762,151 168,926,838 199,688,989
Vessel operating costs (10,307,862) (10,307,862) (9,132,132) (33,656,209) (42,788,341)
Voyage expenses and commissions  —  (642,259)  (642,259) (339,842) (2,101,816) (2,441,658)
Depreciation  (11,155,470) (11,155,470) (8,271,776) (35,981,006) (44,252,782)
General and administrative expenses (2,664,176) (2,664,176)  (602,963)  (10,383,049)  (10,986,012)
Profit from operations 27,183,682 27,183,682 12,415,438 86,804,758 99,220,196
Financial costs  (6,886,128) (6,886,128) (5,413,406) (21,788,539) (27,201,945)
Financial income  1,577 1,577 1,411 24,164 25,575
Total other expenses, net (6,884,551) (6,884,551) (5,411,995) (21,764,375) (27,176,370)
Profit for the period 20,299,131 20,299,131 7,003,443 65,040,383 72,043,826

EXHIBIT III

Non-GAAP Financial Measures:

EBITDA, Adjusted EBITDA and Adjusted Profit

EBITDA is defined as earnings before interest income and expense, gain/loss on interest rate swaps, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before foreign exchange gains/losses. Adjusted Profit represents earnings before non-cash gain/loss on interest rate swaps that includes (if any) (a) unrealized gain/loss on interest rate swaps held for trading, (b) loss at inception, (c) recycled loss of cash flow hedges reclassified to profit or loss and (d) ineffective portion of cash flow hedges, foreign exchange gains/losses and write-off of unamortized loan fees, if any. EBITDA, Adjusted 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, Adjusted 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 and Adjusted EBITDA, interest, gains/losses on interest rate swaps, taxes, depreciation and amortization; in the case of Adjusted EBITDA, foreign exchange gains/losses; and in the case of Adjusted Profit, non-cash gain/loss on interest rate swaps, foreign exchange gains/losses and write-off of unamortized loan fees, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect results of operations between periods.

EBITDA, Adjusted 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 significant interest expense, or 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 and Adjusted EBITDA do not reflect any cash requirements for such replacements. They are 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 these measures differently than we do, limiting its usefulness as a comparative measure.

EBITDA, Adjusted 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.

Certain numerical figures included in this press release have been rounded. Discrepancies in tables between totals and the sums of the amounts listed may occur due to such rounding.

Reconciliation of EBITDA and Adjusted EBITDA to Profit:        
(Amounts expressed in U.S. Dollars)        
         
  For the three months ended
  IFRS Common Control Reported Partnership Performance
   Results  Results
  December 31,
2014
December 31,
2015
December 31,
2014(1)
December 31,
2015(2)
Profit for the period  8,069,097 20,299,131 1,146,105 20,299,131
Depreciation  11,383,866 11,155,470 7,111,771 11,155,470
Financial costs 13,938,152 6,886,128 11,235,837 6,886,128
Financial income (15,091) (1,577) (11,091) (1,577)
Loss on interest rate swaps 4,805,218 4,805,218
EBITDA 38,181,242 38,339,152 24,287,840 38,339,152
Foreign exchange (gains)/losses, net(3) (199,732) 5,173 (96,749) 5,173
Adjusted EBITDA 37,981,510 38,344,325 24,191,091 38,344,325
         
  For the year ended
  IFRS Common Control Reported Partnership Performance
  Results  Results
  December 31,
2014
December 31,
2015
December 31,
2014(1)
December 31,
2015(4)
Profit for the year  43,645,765 72,043,826 14,544,129 65,040,383
Depreciation  33,931,177 44,252,782 13,351,472 35,981,006
Financial costs 33,393,318 27,201,945 15,205,424 21,788,539
Financial income (40,593) (25,575) (22,898) (24,164)
Loss on interest rate swaps 8,078,240 5,218,374  
EBITDA 119,007,907 143,472,978 48,296,501 122,785,764
Foreign exchange (gains)/losses, net(3) (133,352) 50,033 (140,712) 56,064
Adjusted EBITDA 118,874,555 143,523,011 48,155,789 122,841,828
         
Reconciliation of Adjusted Profit to Profit        
(Amounts expressed in U.S. Dollars)        
         
  For the three months ended
  IFRS Common Control Reported  Partnership Performance 
  Results Results
  December 31,
2014
December 31,
2015
December 31,
2014(1)
December 31,
2015(2)
Profit for the period  8,069,097 20,299,131 1,146,105 20,299,131
Foreign exchange (gains)/losses, net(3) (199,732) 5,173 (96,749) 5,173
Non-cash loss on interest rate swaps(3) 4,446,362 4,446,362
Write-off of unamortized loan fees(3) 5,756,738 5,756,738
Adjusted Profit 18,072,465 20,304,304 11,252,456 20,304,304
         
  For the year ended
  IFRS Common Control Reported  Partnership Performance 
  Results Results
  December 31,
2014
December 31,
2015
December 31,
2014(1)
December 31,
2015(4)
Profit for the year  43,645,765 72,043,826 14,544,129 65,040,383
Foreign exchange (gains)/losses, net(3) (133,352) 50,033 (140,712) 56,064
Non-cash loss on interest rate swaps(3) 5,737,097 3,682,199
Write-off of unamortized loan fees(3) 9,018,651 5,756,738
Adjusted Profit 58,268,161 72,093,859 23,842,354 65,096,447

Distributable Cash Flow

Distributable cash flow with respect to any quarter means Adjusted EBITDA, as defined above for the Partnership Performance Results, after considering cash interest expense for the period, including realized loss on interest rate swaps (if any) and excluding amortization of loan fees, estimated drydocking and replacement capital reserves established by the Partnership. Estimated drydocking 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 U.S. Dollars)
         
  For the three months ended For the year ended
  December 31, 2014(1) December 31, 2015(2) December 31, 2014(1) December 31, 2015(4)
Partnership's profit for the period 1,146,105 20,299,131 14,544,129 65,040,383
Depreciation 7,111,771 11,155,470 13,351,472 35,981,006
Financial costs 11,235,837 6,886,128 15,205,424 21,788,539
Financial income (11,091) (1,577) (22,898) (24,164)
Loss on interest rate swaps 4,805,218 5,218,374
EBITDA 24,287,840 38,339,152 48,296,501 122,785,764
Foreign exchange (gains)/losses, net (96,749) 5,173 (140,712) 56,064
Adjusted EBITDA 24,191,091 38,344,325 48,155,789 122,841,828
Cash interest expense excluding amortization of loan fees (5,323,785) (6,113,938) (9,912,293) (19,484,260)
Drydocking capital reserve (1,499,068) (2,669,872) (2,620,882) (8,337,880)
Replacement capital reserve (4,340,466) (7,014,530) (8,504,564) (22,709,992)
Distributable cash flow 13,027,772 22,545,985 27,118,050 72,309,696
Other reserves(5) (2,310,547) (6,834,320) (3,031,574) (16,122,857)
Cash distribution declared 10,717,225 15,711,665 24,086,476 56,186,839
         
(1)  Excludes amounts related to GAS-three Ltd., GAS-four Ltd. and GAS-five Ltd. (the owners of the GasLog Shanghai, the GasLog Santiago and the GasLog Sydney) for the period prior to the closing of the IPO, GAS-sixteen Ltd. and GAS-seventeen Ltd. (the owners of the Methane Rita Andrea and the Methane Jane Elizabeth, respectively) for the period prior to their transfer to the Partnership on September 29, 2014 and the amounts related to GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd. (the owners of the Methane Alison Victoria, the Methane Shirley Elisabeth and the Methane Heather Sally, respectively) for the period prior to their transfer to the Partnership on July 1, 2015. While such amounts are reflected in the Partnership's unaudited condensed combined and consolidated financial statements because the transfers to the Partnership were accounted for as a reorganization of entities under common control under IFRS, (i) GAS-three Ltd., GAS-four Ltd. and GAS-five Ltd. were not owned by the Partnership prior to the closing of the IPO, (ii) GAS-sixteen Ltd. and GAS-seventeen Ltd. were not owned by the Partnership prior to their transfer to the Partnership in September 2014 and (iii) GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd. were not owned by the Partnership prior to their transfer to the Partnership in July 2015, and accordingly the Partnership was not entitled to the cash or results generated in the period prior to such transfers.
(2) Amounts reflected in the Partnership's unaudited condensed combined and consolidated financial statements for the three months ended December 31, 2015 are fully attributable to the Partnership.
(3) The difference between IFRS Common Control Reported Results and Partnership Performance Results are results attributable to GasLog.
(4)  Excludes amounts related to GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd. (the owners of the Methane Alison Victoria, the Methane Shirley Elisabeth and the Methane Heather Sally, respectively) for the period prior to their transfer to the Partnership on July 1, 2015. While such amounts are reflected in the Partnership's unaudited condensed combined and consolidated financial statements because the transfers to the Partnership were accounted for as a reorganization of entities under common control under IFRS, GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd. were not owned by the Partnership prior to their transfer to the Partnership in July 2015, and accordingly the Partnership was not entitled to the cash or results generated in the period prior to such transfers.
(5) Refers to reserves (other than the drydocking 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).

Source: GlobeNewswire (January 28, 2016 - 7:00 AM EST)

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