|
GasLog Partners LP Reports Financial Results for the Three-Month Period Ended September 30, 2015 and Increases Quarterly Cash Distribution by 10%
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 September 30, 2015.
Highlights
-
Record quarterly results attributable to the Partnership for Revenues(1),
Profit(1), EBITDA(1), Adjusted EBITDA(1)
and Distributable cash flow(1).
-
Increased quarterly cash distribution by 10% to $0.478 per unit for
the third quarter of 2015, equivalent to $1.912 per unit on an annual
basis.
-
Acquired three LNG carriers from GasLog Ltd. (“GasLog”) for $483.0
million ($480.0 million net of working capital) with attached
multi-year charters to a subsidiary of BG Group plc (“BG Group”).
-
EBITDA(1) of $37.25 million and Adjusted EBITDA(1)
of $37.31 million.
-
Distributable cash flow(1) of $21.47 million.
-
Distribution coverage ratio of 1.37x(2).
|
(1) Revenues, Profit, EBITDA, Adjusted EBITDA and
Distributable cash flow are non-GAAP financial measures. For
definitions and reconciliations of these measurements to the most
directly comparable financial measures calculated and presented in
accordance with International Financial Reporting Standards
(“IFRS”), please refer to Exhibits II and III at the end of this
press release.
|
|
(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: “GasLog Partners’
operating and financial performance this quarter has been strong. We
achieved our highest ever quarterly results following the second
successful drop-down acquisition since our initial public offering
(“IPO”). As a result, we are increasing our cash distribution by 10%.
With this increase, we have grown our distribution by a total of 27.5%
since our IPO, or a 21% compound annual growth rate. Furthermore, our
conservative coverage ratio of 1.37x for the quarter provides us the
opportunity to consider future distribution increases without raising
new capital.
This performance highlights the strength of GasLog Partners’ business
model – long-term, fixed-rate charters with strong counterparties. We
take no commodity price risk, and our fleet is 100% contracted through
May 2018, when we expect significantly increased demand for LNG
shipping. With the recently announced $1.3 billion credit facility at
GasLog, our parent company does not require additional financing for its
newbuilding program of 8 vessels, 7 of which have long-term charters and
are eligible for drop-down into GasLog Partners. In total, we have a
drop-down pipeline of 12 vessels, each with attractive contracts for
future acquisition by the Partnership.
Despite energy market volatility, we are pleased with the strong
performance of GasLog Partners for the quarter and continued stability
of cash flow that supports our cash distribution.”
Cash Distribution
On October 28, 2015, the board of directors of GasLog Partners approved
and declared a quarterly cash distribution of $0.478 per unit for the
quarter ended September 30, 2015. The cash distribution is payable on
November 12, 2015, to all unitholders of record as of November 9, 2015.
Acquisition of the Methane Alison Victoria, the
Methane Shirley Elisabeth and the Methane Heather Sally and
Completion of Equity Offering
On July 1, 2015, GasLog Partners acquired three LNG carriers, the Methane
Alison Victoria, the Methane Shirley Elisabeth and the Methane
Heather Sally from GasLog for $483.0 million, including $3.0 million
of positive net working capital. To partially fund the acquisition,
GasLog Partners completed an equity offering of 7,500,000 common units
and issued 153,061 general partner units to GasLog. The public offering
price was $23.90 per common unit. The total net proceeds after deducting
underwriting discounts and other offering expenses were $175.52 million.
The proceeds were used to partially finance the acquisition, with the
balance financed through the assumption of the outstanding indebtedness
secured by the acquired vessels.
GasLog originally acquired the Methane Alison Victoria, the Methane
Shirley Elisabeth and the Methane Heather Sally from Methane
Services Limited (“MSL”), a subsidiary of BG Group, on June 4, 2014,
June 11, 2014 and June 25, 2014, respectively.
Results Attributable to the Partnership
The results and summary financial data presented below exclude amounts
related to 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 financial
statements because the transfers to the Partnership were accounted for
as a reorganization of entities under common control, (i) GAS-sixteen
Ltd. and GAS-seventeen Ltd. were not owned by the Partnership prior to
their transfer to the Partnership on September 29, 2014 and (ii)
GAS-nineteen Ltd., GAS-twenty Ltd. and GAS-twenty one Ltd. were not
owned by the Partnership prior to their transfer to the Partnership on
July 1, 2015, and accordingly the Partnership was not entitled to the
cash or results generated in the period prior to such transfers. The
results and summary financial data presented below are non-GAAP
financial measures that are used as supplemental financial measures by
management and external users of financial statements, such as
investors, to assess the financial and operating performance of the
Partnership excluding the effect of the common control accounting
treatment. For a reconciliation with our unaudited condensed combined
and consolidated financial statements, please refer to Exhibits II and
III at the end of this press release.
|
|
|
|
For the three months ended
|
|
|
% Change from
|
|
|
(All amounts expressed in thousands of U.S. dollars)
|
|
|
September 30,
2014
|
|
June 30,
2015
|
|
September 30,
2015
|
|
|
September 30,
2014
|
|
June 30,
2015
|
|
|
Revenues
|
|
|
21,335
|
|
32,943
|
|
51,453
|
|
|
141%
|
|
56%
|
|
|
Profit
|
|
|
9,575
|
|
12,614
|
|
19,230
|
|
|
101%
|
|
52%
|
|
|
Adjusted Profit
|
|
|
8,410
|
|
12,672
|
|
19,293
|
|
|
129%
|
|
52%
|
|
|
EBITDA
|
|
|
15,895
|
|
23,531
|
|
37,247
|
|
|
134%
|
|
58%
|
|
|
Adjusted EBITDA
|
|
|
15,829
|
|
23,588
|
|
37,310
|
|
|
136%
|
|
58%
|
|
|
Distributable cash flow
|
|
|
9,426
|
|
14,111
|
|
21,466
|
|
|
128%
|
|
52%
|
|
|
Cash distributions declared
|
|
|
9,239
|
|
14,046
|
|
15,712
|
|
|
70%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increased results are attributable to the additional operating days
in the Partnership’s fleet deriving from the acquisitions of the Methane
Rita Andrea and the Methane Jane Elizabeth on September 29,
2014 and the Methane Alison Victoria, the Methane Shirley
Elisabeth and the Methane Heather Sally on July 1, 2015.
Fleet
Our fleet currently consists of eight LNG carriers, including three
vessels with modern tri-fuel diesel electric propulsion technology and
five Steam vessels that operate under long-term charters with MSL.
GasLog has a pipeline of 12 vessels which are eligible for future
drop-down into GasLog Partners. This visible pipeline of assets provides
multiple years of future potential distribution growth at the
Partnership.
We believe that such options and acquisition rights provide us with
significant built-in growth opportunities. We may also acquire vessels
from shipyards or other third parties.
Liquidity and Financing
As of September 30, 2015, we had $78.20 million of cash and cash
equivalents, of which $7.01 million was held in time deposits with
original duration of less than three months.
As of September 30, 2015, we had an aggregate of $778.63 million of
indebtedness outstanding under our credit facilities, including $30.0
million outstanding under the Partnership’s revolving credit facility
with GasLog. An amount of $338.0 million of outstanding debt is
repayable within one year. Current debt includes $315.50 million from
the outstanding indebtedness of GAS-nineteen Ltd., GAS-twenty Ltd. and
GAS-twenty one Ltd., assumed on their acquisition. We are currently in
active discussions with a number of banks for its refinancing. We expect
this to be completed in the coming 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 in the future by entering
into new interest rate swap contracts.
LNG Market Update and Outlook
There have been a number of positive developments within the LNG sector
despite weaker market conditions. The Santos-backed Gladstone facility
shipped its first gas cargo earlier this month with Korean Gas taking
the first commissioning cargo. BG’s Curtis Train 2 also started up
during the period following the successful launch of its first train at
the end of 2014, where GasLog took the first cargo. The Australia
Pacific project, backed by Origin, ConocoPhillips and Sinopec, is also
expected to come online by the end of 2015. Chevron indicated first LNG
from its Gorgon project may be delayed to early 2016 due to non-market
related issues.
In the US, those projects that have taken final investment decision
(“FID”) continue to make positive progress with Sabine Pass, the first
US LNG export project, expected to start up by the end of 2015. After
the quarter end, there was also news of the new $11 billion “G2” project
in Louisiana, which is intending to file for Federal Energy Regulatory
Commission (“FERC”) approval, having already received Department of
Environment (“DOE”) approval to export gas to countries with free-trade
agreements with the US. The project will have a nameplate capacity of 14
million tonnes per annum.
We expect LNG liquefaction projects that are under construction, have
firm offtake agreements and committed financing to come online in a
lower oil and gas price environment. Projects that have reached FID
stage, but are yet to start production, represent over 100 million
tonnes per annum of new LNG capacity.
Henry Hub is currently trading below $3 per million British Thermal
Units (“mmbtu”), making US natural gas an attractively-priced fuel
source for countries and companies looking to diversify away from
dirtier fossil fuels such as oil and coal, often to comply with newly
introduced carbon emission targets. With the price of LNG declining over
the last year, particularly in Asia, we are seeing new demand centers
emerging and growing requirements from existing importing nations
looking to take advantage of cheaper gas, such as India. The number of
importing countries is expected to rise rapidly as the next wave of LNG
supply starts to gather momentum.
We remain confident for the long-term supply and demand outlook for LNG
and LNG shipping.
Conference Call
GasLog Partners will host a conference call to discuss its results for
the third quarter of 2015 at 8:30 a.m. EDT (12:30 p.m. London Time) on
Thursday, October 29, 2015. 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:
|
|
+1 866 427 2608 (USA)
|
|
+44 (0) 20 3107 0289 (United Kingdom)
|
|
+33 (0) 1 70 80 71 53 (France)
|
|
Passcode: 44965505
|
|
|
A live webcast of the conference call will also be available on the
investor relations page of the Partnership’s website at:
http://www.gaslogmlp.com/investor-relations
For those unable to participate in the conference call, a replay will
also be available from 2:00 p.m. EDT (6:00 p.m. London Time) on
Thursday, October 29, 2015 until 11:59 p.m. EDT (4:59 a.m. London Time)
on Thursday, November 5, 2015.
|
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: 44965505
|
|
|
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.
|
|
|
|
|
|
|
EXHIBIT I – Unaudited Interim Financial Information
|
|
|
|
|
|
Unaudited condensed combined and consolidated statements
of financial position
As of December 31, 2014 and September 30, 2015
(All amounts expressed in U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
September 30, 2015
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Other non-current assets
|
|
|
|
2,063,026
|
|
|
2,088,174
|
|
|
Vessels
|
|
|
|
1,311,857,369
|
|
|
1,285,826,918
|
|
|
Total non-current assets
|
|
|
|
1,313,920,395
|
|
|
1,287,915,092
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
1,404,423
|
|
|
9,582,141
|
|
|
Due from related parties
|
|
|
|
925,398
|
|
|
1,539,265
|
|
|
Inventories
|
|
|
|
1,822,818
|
|
|
1,670,263
|
|
|
Prepayments and other current assets
|
|
|
|
1,148,951
|
|
|
1,080,047
|
|
|
Short-term investments
|
|
|
|
21,700,000
|
|
|
—
|
|
|
Cash and cash equivalents
|
|
|
|
47,241,742
|
|
|
78,202,672
|
|
|
Total current assets
|
|
|
|
74,243,332
|
|
|
92,074,388
|
|
|
Total assets
|
|
|
|
1,388,163,727
|
|
|
1,379,989,480
|
|
|
Partners’ equity and liabilities
|
|
|
|
|
|
|
|
|
|
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
September 30, 2015)
|
|
|
|
324,967,226
|
|
|
505,059,460
|
|
|
Subordinated unitholders (9,822,358 units issued and outstanding
as of
December 31, 2014 and September 30, 2015)
|
|
|
|
77,087,950
|
|
|
58,705,445
|
|
|
General partner (492,750 units issued and outstanding as of
December 31,
2014 and 645,811 units issued and outstanding
as of September 30,
2015)
|
|
|
|
6,085,438
|
|
|
8,748,725
|
|
|
Incentive distribution rights
|
|
|
|
—
|
|
|
1,049,739
|
|
|
Total partners’ equity
|
|
|
|
554,303,681
|
|
|
573,563,369
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
|
|
3,300,909
|
|
|
3,078,633
|
|
|
Due to related parties
|
|
|
|
10,333,093
|
|
|
1,099,942
|
|
|
Other payables and accruals
|
|
|
|
23,635,954
|
|
|
30,753,494
|
|
|
Borrowings – current portion
|
|
|
|
20,999,800
|
|
|
335,395,748
|
|
|
Total current liabilities
|
|
|
|
58,269,756
|
|
|
370,327,817
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
Borrowings – non-current portion
|
|
|
|
775,537,142
|
|
|
435,953,330
|
|
|
Other non-current liabilities
|
|
|
|
53,148
|
|
|
144,964
|
|
|
Total non-current liabilities
|
|
|
|
775,590,290
|
|
|
436,098,294
|
|
|
Total partners’ equity and liabilities
|
|
|
|
1,388,163,727
|
|
|
1,379,989,480
|
|
|
|
|
|
|
|
|
Unaudited condensed combined and consolidated statements
of profit or loss
For the three and nine months ended September 30, 2014 and
September 30, 2015
(All amounts expressed in U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
For the nine months ended
|
|
|
|
|
|
September 30,
2014
|
|
|
September 30,
2015
|
|
|
September 30,
2014
|
|
|
September 30,
2015
|
|
|
Revenues
|
|
|
51,121,634
|
|
|
|
51,452,562
|
|
|
|
106,720,681
|
|
|
|
147,735,540
|
|
|
|
Vessel operating costs
|
|
|
(10,649,286
|
)
|
|
|
(10,791,334
|
)
|
|
|
(21,593,584
|
)
|
|
|
(34,279,878
|
)
|
|
|
Depreciation
|
|
|
(11,175,757
|
)
|
|
|
(11,098,875
|
)
|
|
|
(22,547,311
|
)
|
|
|
(33,097,312
|
)
|
|
|
General and administrative expenses
|
|
|
(2,335,343
|
)
|
|
|
(3,414,873
|
)
|
|
|
(4,300,432
|
)
|
|
|
(8,321,836
|
)
|
|
|
Profit from operations
|
|
|
26,961,248
|
|
|
|
26,147,480
|
|
|
|
58,279,354
|
|
|
|
72,036,514
|
|
|
|
Financial costs
|
|
|
(7,083,677
|
)
|
|
|
(6,922,543
|
)
|
|
|
(19,455,166
|
)
|
|
|
(20,315,817
|
)
|
|
|
Financial income
|
|
|
14,757
|
|
|
|
4,818
|
|
|
|
25,502
|
|
|
|
23,998
|
|
|
|
Gain/(loss) on interest rate swaps
|
|
|
342,816
|
|
|
|
—
|
|
|
|
(3,273,022
|
)
|
|
|
—
|
|
|
|
Total other expenses, net
|
|
|
(6,726,104
|
)
|
|
|
(6,917,725
|
)
|
|
|
(22,702,686
|
)
|
|
|
(20,291,819
|
)
|
|
|
Profit for the period
|
|
|
20,235,144
|
|
|
|
19,229,755
|
|
|
|
35,576,668
|
|
|
|
51,744,695
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to GasLog’s operations
|
|
|
(10,660,084
|
)
|
|
|
—
|
|
|
|
(22,178,644
|
)
|
|
|
(7,003,443
|
)
|
|
|
Profit attributable to Partnership’s operations
|
|
|
9,575,060
|
|
|
|
19,229,755
|
|
|
|
13,398,024
|
|
|
|
44,741,252
|
|
|
|
Partnership’s profit attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units
|
|
|
5,566,215
|
|
|
|
12,250,657
|
|
|
|
7,590,014
|
|
|
|
30,394,017
|
|
|
|
Subordinated units
|
|
|
3,817,343
|
|
|
|
5,514,085
|
|
|
|
5,540,049
|
|
|
|
12,371,992
|
|
|
|
General partner units
|
|
|
191,502
|
|
|
|
384,595
|
|
|
|
267,961
|
|
|
|
894,825
|
|
|
|
Incentive distribution rights
|
|
|
—
|
|
|
|
1,080,418
|
|
|
|
—
|
|
|
|
1,080,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit for the period, basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unit
|
|
|
0.56
|
|
|
|
0.56
|
|
|
|
0.77
|
|
|
|
1.79
|
|
|
|
Subordinated unit
|
|
|
0.39
|
|
|
|
0.56
|
|
|
|
0.56
|
|
|
|
1.26
|
|
|
|
General partner unit
|
|
|
0.48
|
|
|
|
0.60
|
|
|
|
0.67
|
|
|
|
1.64
|
|
|
|
|
|
|
|
Unaudited condensed combined and consolidated statements of
cash flows
For the nine months ended September 30, 2014 and September 30,
2015
(All amounts expressed in U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended
|
|
|
|
|
|
September 30,
2014
|
|
|
September 30,
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
35,576,668
|
|
|
|
51,744,695
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
22,547,311
|
|
|
|
33,097,312
|
|
|
Financial costs
|
|
|
|
19,455,166
|
|
|
|
20,315,817
|
|
|
Financial income
|
|
|
|
(25,502
|
)
|
|
|
(23,998
|
)
|
|
Unrealized gain on interest rate swaps held for trading
|
|
|
|
(1,029,988
|
)
|
|
|
—
|
|
|
Recycled loss of cash flow hedges reclassified to profit or loss
|
|
|
|
2,320,723
|
|
|
|
—
|
|
|
Recognition of share-based compensation
|
|
|
|
—
|
|
|
|
136,298
|
|
|
|
|
|
|
78,844,378
|
|
|
|
105,270,124
|
|
|
Movements in working capital
|
|
|
|
16,976,990
|
|
|
|
(6,150,540
|
)
|
|
Cash provided by operations
|
|
|
|
95,821,368
|
|
|
|
99,119,584
|
|
|
Interest paid
|
|
|
|
(10,647,865
|
)
|
|
|
(16,288,804
|
)
|
|
Net cash provided by operating activities
|
|
|
|
85,173,503
|
|
|
|
82,830,780
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Payments for vessels
|
|
|
|
(787,591,288
|
)
|
|
|
(5,314,747
|
)
|
|
Financial income received
|
|
|
|
20,458
|
|
|
|
28,878
|
|
|
Purchase of short-term investments
|
|
|
|
(20,694,481
|
)
|
|
|
(4,000,000
|
)
|
|
Maturity of short-term investments
|
|
|
|
4,502,327
|
|
|
|
25,700,000
|
|
|
Net cash (used in)/provided by investing activities
|
|
|
|
(803,762,984
|
)
|
|
|
16,414,131
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Borrowings drawdowns
|
|
|
|
542,500,000
|
|
|
|
—
|
|
|
Borrowings repayments
|
|
|
|
(98,232,618
|
)
|
|
|
(26,875,000
|
)
|
|
Payment of loan issuance costs
|
|
|
|
(6,410,294
|
)
|
|
|
(916,454
|
)
|
|
Proceeds from public offering and issuance of general partner units,
net of underwriters’ discount
|
|
|
|
322,797,097
|
|
|
|
176,533,158
|
|
|
Cash distribution to GasLog in exchange for contribution of net
assets
|
|
|
|
(183,897,158
|
)
|
|
|
(172,626,653
|
)
|
|
Payment of offering costs
|
|
|
|
(35,186
|
)
|
|
|
(1,068,297
|
)
|
|
Distributions paid
|
|
|
|
(4,130,202
|
)
|
|
|
(35,480,735
|
)
|
|
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
|
|
|
|
781,622,990
|
|
|
|
(68,283,981
|
)
|
|
Increase in cash and cash equivalents
|
|
|
|
63,033,509
|
|
|
|
30,960,930
|
|
|
Cash and cash equivalents, beginning of the period
|
|
|
|
14,403,785
|
|
|
|
47,241,742
|
|
|
Cash and cash equivalents, end of the period
|
|
|
|
77,437,294
|
|
|
|
78,202,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT II
Non-GAAP Financial Measures:
Comparison of Financial Statements and Results Attributable to the
Partnership:
Our results and summary financial data 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. 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.
The results attributable to the Partnership presented below exclude
amounts related to GAS-sixteen Ltd. and GAS-seventeen Ltd. 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. for the period prior to their transfer to the
Partnership on July 1, 2015. While such amounts are reflected in the
Partnership’s financial statements because the transfers to the
Partnership were accounted for as a reorganization of entities under
common control, (i) GAS-sixteen Ltd. and GAS-seventeen Ltd. were not
owned by the Partnership prior to their transfer to the Partnership in
September 2014 and (ii) 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.
The results attributable to the Partnership are non-GAAP financial
measures that are used as supplemental financial measures by management
and external users of financial statements, such as investors, to assess
the financial and operating performance of the Partnership since our
IPO. The results attributable to the Partnership should not be
considered as an alternative to the measures of financial performance
presented in accordance with IFRS.
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2014
|
|
|
(All amounts expressed in U.S. dollars)
|
|
|
Attributable to
GasLog’s
operations
|
|
|
Attributable to
the Partnership
|
|
|
Total
|
|
|
Revenues
|
|
|
29,786,179
|
|
|
|
21,335,455
|
|
|
|
51,121,634
|
|
|
|
Vessel operating costs
|
|
|
(7,003,340
|
)
|
|
|
(3,645,946
|
)
|
|
|
(10,649,286
|
)
|
|
|
Depreciation
|
|
|
(7,092,747
|
)
|
|
|
(4,083,010
|
)
|
|
|
(11,175,757
|
)
|
|
|
General and administrative expenses
|
|
|
(540,440
|
)
|
|
|
(1,794,903
|
)
|
|
|
(2,335,343
|
)
|
|
|
Profit from operations
|
|
|
15,149,652
|
|
|
|
11,811,596
|
|
|
|
26,961,248
|
|
|
|
Financial costs
|
|
|
(4,495,760
|
)
|
|
|
(2,587,917
|
)
|
|
|
(7,083,677
|
)
|
|
|
Financial income
|
|
|
6,192
|
|
|
|
8,565
|
|
|
|
14,757
|
|
|
|
Gain on interest rate swaps
|
|
|
—
|
|
|
|
342,816
|
|
|
|
342,816
|
|
|
|
Total other expenses, net
|
|
|
(4,489,568
|
)
|
|
|
(2,236,536
|
)
|
|
|
(6,726,104
|
)
|
|
|
Profit for the period
|
|
|
10,660,084
|
|
|
|
9,575,060
|
|
|
|
20,235,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2015
|
|
|
(All amounts expressed in U.S. dollars)
|
|
|
Attributable to
GasLog’s
operations
|
|
|
Attributable to
the Partnership
|
|
|
Total
|
|
|
Revenues
|
|
|
15,105,935
|
|
|
|
32,942,771
|
|
|
|
48,048,706
|
|
|
|
Vessel operating costs
|
|
|
(4,734,232
|
)
|
|
|
(7,098,887
|
)
|
|
|
(11,833,119
|
)
|
|
|
Depreciation
|
|
|
(4,037,656
|
)
|
|
|
(6,895,122
|
)
|
|
|
(10,932,778
|
)
|
|
|
General and administrative expenses
|
|
|
(366,873
|
)
|
|
|
(2,312,982
|
)
|
|
|
(2,679,855
|
)
|
|
|
Profit from operations
|
|
|
5,967,174
|
|
|
|
16,635,780
|
|
|
|
22,602,954
|
|
|
|
Financial costs
|
|
|
(2,752,000
|
)
|
|
|
(4,030,068
|
)
|
|
|
(6,782,068
|
)
|
|
|
Financial income
|
|
|
—
|
|
|
|
8,355
|
|
|
|
8,355
|
|
|
|
Total other expenses, net
|
|
|
(2,752,000
|
)
|
|
|
(4,021,713
|
)
|
|
|
(6,773,713
|
)
|
|
|
Profit for the period
|
|
|
3,215,174
|
|
|
|
12,614,067
|
|
|
|
15,829,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts reflected in the Partnership’s unaudited condensed combined and
consolidated financial statements for the three months ended September
30, 2015 are fully attributable to the Partnership:
|
|
|
|
For the three months ended September 30, 2015
|
|
|
(All amounts expressed in U.S. dollars)
|
|
|
Attributable to
GasLog’s
operations
|
|
|
Attributable to
the Partnership
|
|
|
Total
|
|
|
Revenues
|
|
|
—
|
|
|
51,452,562
|
|
|
|
51,452,562
|
|
|
|
Vessel operating costs
|
|
|
—
|
|
|
(10,791,334
|
)
|
|
|
(10,791,334
|
)
|
|
|
Depreciation
|
|
|
—
|
|
|
(11,098,875
|
)
|
|
|
(11,098,875
|
)
|
|
|
General and administrative expenses
|
|
|
—
|
|
|
(3,414,873
|
)
|
|
|
(3,414,873
|
)
|
|
|
Profit from operations
|
|
|
—
|
|
|
26,147,480
|
|
|
|
26,147,480
|
|
|
|
Financial costs
|
|
|
—
|
|
|
(6,922,543
|
)
|
|
|
(6,922,543
|
)
|
|
|
Financial income
|
|
|
—
|
|
|
4,818
|
|
|
|
4,818
|
|
|
|
Total other expenses, net
|
|
|
|
|
|
(6,917,725
|
)
|
|
|
(6,917,725
|
)
|
|
|
Profit for the period
|
|
|
—
|
|
|
19,229,755
|
|
|
|
19,229,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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 Adjusted Profit to Profit
(Amounts expressed in U.S. Dollars)
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
|
Attributable to the Partnership
|
|
|
|
|
|
September 30, 2014 (1)
|
|
|
June 30, 2015 (1)
|
|
|
September 30, 2015 (2)
|
|
|
Profit for the period
|
|
|
9,575,060
|
|
|
12,614,067
|
|
|
19,229,755
|
|
|
Depreciation
|
|
|
4,083,010
|
|
|
6,895,122
|
|
|
11,098,875
|
|
|
Financial costs
|
|
|
2,587,917
|
|
|
4,030,068
|
|
|
6,922,543
|
|
|
Financial income
|
|
|
(8,565
|
)
|
|
(8,355
|
)
|
|
(4,818
|
)
|
|
Gain on interest rate swaps
|
|
|
(342,816
|
)
|
|
—
|
|
|
—
|
|
|
EBITDA
|
|
|
15,894,606
|
|
|
23,530,902
|
|
|
37,246,355
|
|
|
Foreign exchange (gains)/losses, net
|
|
|
(65,679
|
)
|
|
57,587
|
|
|
63,290
|
|
|
Adjusted EBITDA
|
|
|
15,828,927
|
|
|
23,588,489
|
|
|
37,309,645
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Profit to Profit
(Amounts expressed in U.S. Dollars)
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
|
Attributable to the Partnership
|
|
|
|
|
|
September 30, 2014 (1)
|
|
|
June 30, 2015 (1)
|
|
|
September 30, 2015 (2)
|
|
|
Profit for the period
|
|
|
9,575,060
|
|
|
12,614,067
|
|
|
19,229,755
|
|
|
Foreign exchange (gains)/losses, net
|
|
|
(65,679
|
)
|
|
57,587
|
|
|
63,290
|
|
|
Non-cash gain on interest rate swaps
|
|
|
(1,099,577
|
)
|
|
—
|
|
|
—
|
|
|
Adjusted Profit
|
|
|
8,409,804
|
|
|
12,671,654
|
|
|
19,293,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes amounts related to GAS-sixteen Ltd. and
GAS-seventeen Ltd. 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. for the
period prior to their transfer to the Partnership on July 1, 2015.
While such amounts are reflected in the Partnership’s financial
statements because the transfers to the Partnership were accounted
for as a reorganization of entities under common control, (i)
GAS-sixteen Ltd. and GAS-seventeen Ltd. were not owned by the
Partnership prior to their transfer to the Partnership in September
2014 and (ii) 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 September 30, 2015 are fully attributable to the
Partnership.
|
|
|
Distributable Cash Flow
Distributable cash flow with respect to any quarter means Adjusted
EBITDA, as defined above, 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
|
|
|
|
|
|
September 30, 2014 (1)
|
|
|
June 30, 2015(1)
|
|
|
September 30, 2015 (2)
|
|
|
Partnership’s profit for the period
|
|
|
9,575,060
|
|
|
12,614,067
|
|
|
19,229,755
|
|
|
Depreciation
|
|
|
4,083,010
|
|
|
6,895,122
|
|
|
11,098,875
|
|
|
Financial costs
|
|
|
2,587,917
|
|
|
4,030,068
|
|
|
6,922,543
|
|
|
Financial income
|
|
|
(8,565
|
)
|
|
(8,355
|
)
|
|
(4,818
|
)
|
|
Gain on interest rate swaps
|
|
|
(342,816
|
)
|
|
—
|
|
|
—
|
|
|
EBITDA
|
|
|
15,894,606
|
|
|
23,530,902
|
|
|
37,246,355
|
|
|
Foreign exchange (gains)/losses, net
|
|
|
(65,679
|
)
|
|
57,587
|
|
|
63,290
|
|
|
Adjusted EBITDA
|
|
|
15,828,927
|
|
|
23,588,489
|
|
|
37,309,645
|
|
|
Cash interest expense excluding amortization of loan fees
|
|
|
(2,982,447
|
)
|
|
(3,637,833
|
)
|
|
(6,159,395
|
)
|
|
Drydocking capital reserve
|
|
|
(727,016
|
)
|
|
(1,499,068
|
)
|
|
(2,669,872
|
)
|
|
Replacement capital reserve
|
|
|
(2,693,884
|
)
|
|
(4,340,466
|
)
|
|
(7,014,530
|
)
|
|
Distributable cash flow
|
|
|
9,425,580
|
|
|
14,111,122
|
|
|
21,465,848
|
|
|
Other reserves (3)
|
|
|
(186,531
|
)
|
|
(64,838
|
)
|
|
(5,754,183
|
)
|
|
Cash distribution declared
|
|
|
9,239,049
|
|
|
14,046,284
|
|
|
15,711,665
|
|
|
|
|
(1) Excludes amounts related to GAS-sixteen Ltd. and
GAS-seventeen Ltd. 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. for the
period prior to their transfer to the Partnership on July 1, 2015.
While such amounts are reflected in the Partnership’s financial
statements because the transfers to the Partnership were accounted
for as a reorganization of entities under common control, (i)
GAS-sixteen Ltd. and GAS-seventeen Ltd. were not owned by the
Partnership prior to their transfer to the Partnership in September
2014 and (ii) 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 September 30, 2015 are fully attributable to the
Partnership.
|
|
|
|
(3) 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).
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151029005384/en/ Copyright Business Wire 2015
Source: Business Wire
(October 29, 2015 - 6:59 AM EDT)
News by QuoteMedia
www.quotemedia.com
|
