GasLog Partners LP (“GasLog Partners” or the “Partnership”) (NYSE:
GLOP), an international owner and operator of liquefied natural gas
(“LNG”) carriers, today reported its financial results for the
three-month period ended March 31, 2021.
Highlights
- Repaid $36.0 million of debt during the first quarter of
2021.
- Quarterly Revenues, Profit, Adjusted Profit(1) and Adjusted
EBITDA(1) of $87.1 million, $35.4 million, $31.8 million and $64.1
million, respectively.
- Quarterly Earnings per unit (“EPU”) of $0.57 and Adjusted
EPU(1) of $0.50.
- Declared cash distribution of $0.01 per common unit for the
first quarter of 2021.
CEO Statement
Paul Wogan, Chief Executive Officer, commented: “I am pleased to
report another strong operational quarter for the Partnership with
fleet uptime of 100%. A robust spot market for LNG carriers during
the 2020/21 Northern Hemisphere winter, combined with our focus on
cost reductions and lower interest expense bolstered the
Partnership’s financial results in the first quarter of 2021,
largely offsetting the impact from the expiration of three initial
multi-year steam turbine propulsion (“Steam”) vessel charters.
During the first quarter, we improved our charter coverage to
75% for the remainder of 2021. This fixed charter coverage, along
with the Adjusted EBITDA delivered in the first quarter, more than
covers all the Partnership’s operating, overhead and debt service
requirements as well as expenses related to our five dry-dockings
scheduled for this year.
Although the Partnership has covered its fixed expenses for the
year, we still retain a meaningful exposure to any recovery in LNG
shipping spot rates during the second half of 2021. We anticipate
that our capital allocation in 2021 will continue to focus on debt
repayment with repayments of $36.0 million in the quarter, we
continue to reduce the fleet’s breakeven levels and improve its
free cash flow capacity over time.”
Financial Summary
|
|
For the three months ended |
|
% Change |
|
(All amounts expressed
in thousands of U.S. dollars, except per unit
amounts) |
|
March
31,
2020 |
|
March
31,
2021 |
|
|
Revenues |
|
91,353 |
|
87,088 |
|
(5 |
% |
) |
Profit |
|
14,169 |
|
35,360 |
|
150 |
% |
|
EPU, common (basic) |
|
0.14 |
|
0.57 |
|
307 |
% |
|
Adjusted Profit(1) |
|
27,821 |
|
31,753 |
|
14 |
% |
|
Adjusted EBITDA(1) |
|
64,201 |
|
64,131 |
|
(0 |
% |
) |
Adjusted EPU, common (basic)(1) |
|
0.42 |
|
0.50 |
|
19 |
% |
|
Cash distributions declared |
|
5,967 |
|
485 |
|
(92 |
% |
) |
There were 1,311 revenue operating days for the three months
ended March 31, 2021, as compared to 1,273 revenue operating days
for the three months ended March 31, 2020. The year-over-year
increase in revenue operating days is attributable to the increased
utilization of our spot fleet, as defined below, and decreased
off-hire days for scheduled dry-dockings.
Management classifies the Partnership’s vessels from a
commercial point of view into two categories: (a) spot fleet and
(b) long-term fleet. The spot fleet includes all vessels under
charter party agreements with an initial duration of less than (or
equal to) five years (excluding optional periods), while the
long-term fleet comprises all vessels with charter party agreements
of an initial duration of more than five years (excluding optional
periods).
For the three months ended March 31, 2020 and 2021, an analysis
of available days, revenue operating days, revenues and voyage
expenses and commissions per category is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31, 2020 |
|
For the three months ended March 31, 2021 |
|
Amounts
in thousands of U.S. dollars |
|
Spot fleet |
|
Long-term fleet |
|
Spot fleet |
|
Long-term fleet |
|
Available days (*) |
|
453 |
|
887 |
|
698 |
|
638 |
|
Revenue operating days (**) |
|
386 |
|
887 |
|
673 |
|
638 |
|
Revenues |
|
23,708 |
|
67,645 |
|
37,054 |
|
50,034 |
|
Voyage expenses and commissions |
|
(2,389 |
) |
(1,499 |
) |
(1,248 |
) |
(831 |
) |
(*) Available days represent total calendar days in the period
after deducting off-hire days where vessels are undergoing
dry-dockings and unavailable days (i.e. days before and after a
dry-docking where the vessel has limited practical ability for
chartering opportunities). (**) Revenue operating days represent
total available days after deducting off-charter days and
unscheduled off-hire days.
Revenues decreased by $4.3 million, from $91.4 million for the
quarter ended March 31, 2020, to $87.1 million for the same
period in 2021. The decrease in revenues is mainly attributable to
the expirations of the initial multi-year time charters of the
Methane Rita Andrea and the Methane Shirley Elisabeth with a
subsidiary of Royal Dutch Shell (“Shell”) in 2020, at rates higher
than their current contracted rates, partially offset by increased
revenues from the operation of the Methane Heather Sally in the
spot market after the expiration of its initial multi-year charter
with Shell in January 2021, and a net increase in revenues due to
decreased off-hire days for scheduled dry-dockings.
Vessel operating costs decreased by $1.3 million, from $19.1
million for the quarter ended March 31, 2020, to $17.8 million for
the same period in 2021. The decrease in vessel operating costs is
mainly attributable to increased technical maintenance expenses
incurred in the first three months of 2020 in connection with the
dry-docking of the Methane Shirley Elisabeth completed in the same
period. As a result, daily operating costs per vessel (after
excluding calendar days for the Solaris, the operating costs of
which are covered by the charterers) decreased from $14,987 per day
for the three-month period ended March 31, 2020 to $14,132 per day
for the three-month period ended March 31, 2021.
Voyage expenses and commissions decreased by $1.8 million,
from $3.9 million for the quarter ended March 31, 2020,
to $2.1 million for the quarter ended March 31, 2021. The
decrease in voyage expenses and commissions is mainly attributable
to a decrease in bunker consumption costs due to the increased
utilization of the Methane Alison Victoria in the first three
months of 2021, as compared to the same period in 2020.
General and administrative expenses decreased by $1.1 million,
from $4.2 million for the three-month period ended March 31, 2020,
to $3.1 million for the same period in 2021. The decrease in
general and administrative expenses is mainly attributable to a
decrease of $0.8 million in administrative services fees, in
connection with the decrease of the annual fee payable to GasLog in
2021 by approximately $0.2 million per vessel per year. As a
result, daily general and administrative expenses decreased from
$3,056 per vessel ownership day for the quarter ended March 31,
2020, to $2,275 per vessel ownership day for the quarter ended
March 31, 2021.
The decrease in Adjusted EBITDA of $0.1 million, from $64.2
million in the first quarter of 2020 as compared to $64.1 million
in the same period in 2021, is attributable to the decrease in
revenues of $4.3 million, as described above, which was almost
entirely offset by an aggregate increase of $4.2 million from
savings in operating, voyage and general and administrative
expenses.
Financial costs decreased by $6.1 million, from $15.5 million
for the quarter ended March 31, 2020, to $9.4 million for the same
period in 2021. The decrease in financial costs is attributable to
a decrease of $5.6 million in interest expense on loans, primarily
due to the lower London Interbank Offered Rate (“LIBOR”) rates in
the first three months of 2021 as compared to the same period in
2020. During the three-month period ended March 31, 2020, we had an
average of $1,352.2 million of outstanding indebtedness with a
weighted average interest rate of 3.9%, compared to an average of
$1,287.8 million of outstanding indebtedness with a weighted
average interest rate of 2.4% during the three-month period ended
March 31, 2021.
Loss on derivatives decreased by $15.4 million, from a loss of
$14.1 million for the quarter ended March 31, 2020, to a gain of
$1.3 million for the same period in 2021. The decrease is
attributable to a $17.3 million decrease in unrealized loss from
the mark-to-market valuation of derivatives held for trading (in
2021, interest rate swaps only) which were carried at fair value
through profit or loss, partially offset by a net increase of $1.9
million in realized loss on derivatives held for trading.
The increase in profit of $21.2 million from $14.2 million in
the first quarter of 2020 to $35.4 million in the first quarter of
2021 is mainly attributable to the decrease of $6.1 million in
financial costs and the decrease of $15.4 million in loss/(gain) on
derivatives analyzed above.
The increase in Adjusted Profit of $4.0 million, from $27.8
million in the first quarter of 2020 to $31.8 million in the first
quarter of 2021, is mainly attributable to the decrease in interest
expense on loans of $5.6 million, partially offset by a net
increase in realized loss on derivatives held for trading of $1.9
million, also discussed above.
As of March 31, 2021, we had $95.1 million of cash and cash
equivalents, out of which $43.2 million was held in current
accounts and $51.9 million was held in time deposits with an
original duration of less than three months.
As of March 31, 2021, we had an aggregate of $1,250.8 million of
borrowings outstanding under our credit facilities, of which $105.0
million was repayable within one year. In addition, as of March 31,
2021, we had unused availability under our revolving credit
facility with GasLog of $30.0 million, which matures in March
2022.
As of March 31, 2021, our current assets totaled $118.2 million
and current liabilities totaled $170.2 million, resulting in a
negative working capital position of $52.0 million. Current
liabilities include $19.8 million of unearned revenue in relation
to hires received in advance (which represents a non-cash liability
that will be recognized as revenues after March 31, 2021 as the
services are rendered). Management monitors the Partnership’s
liquidity position throughout the year to ensure that it has access
to sufficient funds to meet its forecast cash requirements,
including debt service commitments, and to monitor compliance with
the financial covenants within its loan facilities. Considering the
volatile commercial and financial market conditions experienced
over the last twelve months, we anticipate that our primary sources
of funds for at least twelve months from the date of this report
will be available cash, cash from operations and existing debt
facilities. We believe that these anticipated sources of funds, as
well as our decision in 2020 to decrease the common unit
distributions and preserve liquidity, will be sufficient to meet
our liquidity needs and to comply with our banking covenants for at
least twelve months from the date of this report. Our long-term
ability to repay our debts and maintain compliance with our debt
covenants for at least twelve months from the date of this report
without reliance on additional sources of finance is also dependent
on a sustainable longer-term recovery in the LNG charter market
from the market disruption observed in 2020 as a result of the
COVID-19 outbreak.
(1) Adjusted Profit, Adjusted EBITDA and
Adjusted EPU are non-GAAP financial measures and should not be used
in isolation or as substitutes for GasLog Partners’ financial
results presented in accordance with International Financial
Reporting Standards (“IFRS”). 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.
Preference Unit
Distributions
On February 19, 2021, the board of directors of GasLog Partners
approved and declared a distribution on the 8.625% Series A
Cumulative Redeemable Perpetual Fixed to Floating Rate Preference
Units (the “Series A Preference Units”) of $0.5390625 per
preference unit, a distribution on the 8.200% Series B Cumulative
Redeemable Perpetual Fixed to Floating Rate Preference Units (the
“Series B Preference Units”) of $0.5125 per preference unit and a
distribution on the 8.500% Series C Cumulative Redeemable Perpetual
Fixed to Floating Rate Preference Units (the “Series C Preference
Units”) of $0.53125 per preference unit. The cash distributions
were paid on March 15, 2021 to all unitholders of record as of
March 8, 2021.
Common Unit Distribution
On April 28, 2021, the board of directors of GasLog Partners
approved and declared a quarterly cash distribution of $0.01 per
common unit for the quarter ended March 31, 2021. The cash
distribution is payable on May 13, 2021 to all unitholders of
record as of May 10, 2021.
LNG Market Update and
Outlook
Poten estimates LNG demand of 99 million tonnes (“mt”) in the
first quarter of 2021 compared to 98 mt in the first quarter of
2020, an increase of approximately 1%. Demand growth varied
considerably between the major consuming regions of Europe and
Asia. For example, demand from China, Japan and South Korea grew by
approximately 5 mt, 2 mt and 1 mt (or 34%, 9% and 8%)
year-over-year, respectively, primarily due to a cold winter. In
contrast, European demand declined by 28% (or approximately 6 mt)
as the region entered the winter with higher-than-average storage
levels of natural gas and ended the winter with stocks well below
the 5-year average.
According to Poten, global LNG supply was approximately 100 mt
in the first quarter of 2021, approximately in line with the first
quarter of 2020; however, there were regional differences in output
between the two periods. Supply from the United States (“U.S.”)
increased by approximately 3 mt or 20%, following the start-up of
the third trains at Cameron and Freeport as well as Elba Island
during 2020. Supply from the Middle East also grew by approximately
2 mt, primarily due to a ramp-up in exports from Egypt. This growth
was offset by declines from Trinidad, Australia and Norway where
Hammerfest LNG remains offline following a fire. Looking ahead,
approximately 133 mt of new LNG capacity is currently under
construction and scheduled to come online between 2021 and
2026.
In the LNG shipping spot market, Clarksons’ tri-fuel diesel
electric (“TFDE”) headline rates averaged $79,000 per day in the
first quarter of 2021, a 44% increase over the $55,000 per day
average in the first quarter of 2020. Headline spot rates for Steam
vessels averaged $60,000 per day in the first quarter of 2021, 50%
higher than the average of $40,000 per day in the first quarter of
2020. Headline spot rates in the first quarter were bolstered by a
combination of demand growth from Asia and supply growth in the
U.S. as detailed above as well as delays at the Panama Canal.
As of April 30, 2021, Clarksons assesses headline spot rates for
TFDE and Steam LNG carriers at $69,000 per day and $57,000 per day,
respectively. In addition, forward assessments for LNG carrier spot
rates indicate rising levels through the remainder of the year.
However, the magnitude and pace of any sustained upward movement in
spot rates will depend on the pace of any recovery in global
economic activity following the COVID-19 outbreak as well as the
forecasted growth of the global LNG carrier fleet. Together, these
factors have the potential to create volatility in the spot and
short-term markets over the near- and medium-term.
As of May 5, 2021, Poten estimates that the orderbook totals 104
dedicated LNG carriers (>100,000 cubic meters, or “cbm”),
representing 18% of the on-the-water fleet. Of these, 90 vessels
(or 87%) have multi-year charters. Only 4 LNG carriers have been
ordered in 2021 as of May 5, 2021 compared with 34 for all of
2020.
Conference Call
GasLog Partners will host a conference call to discuss its
results for the first quarter of 2021 at 8.30 a.m. EDT (3.30 p.m.
EEST) on Thursday, May 6, 2021. The Partnership’s senior management
will review the 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:
+1 888 771 4371 (USA)+44 20 3147 4818 (United Kingdom)+33 1 72
25 34 66 (France)+852 800 933 544 (Hong Kong)+47 800 15463
(Oslo)
Conference ID: 50150595
A live webcast of the conference call will be available on the
Investor Relations page of the GasLog Partners website
(http://www.gaslogmlp.com/investors).
For those unable to participate in the conference call, a replay
of the webcast will be available on the Investor Relations page of
the GasLog Partners website
(http://www.gaslogmlp.com/investors).
About GasLog PartnersGasLog Partners is a
growth-oriented owner, operator and acquirer of LNG carriers. The
Partnership’s fleet consists of 15 LNG carriers with an average
carrying capacity of approximately 158,000 cbm. GasLog Partners is
a publicly traded master limited partnership (NYSE: GLOP) but has
elected to be treated as a C corporation for U.S. income tax
purposes and therefore its investors receive an Internal Revenue
Service Form 1099 with respect to any distributions declared and
received. The Partnership’s principal executive offices are located
at 69 Akti Miaouli, 18537, Piraeus, Greece. 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 distributions, and the
impact of changes to cash distributions on the Partnership’s
business and growth prospects, plans, strategies 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 multi-year charter rates, ship values, factors affecting
supply and demand of LNG and LNG shipping, including geopolitical
events, technological advancements and opportunities for the
profitable operations of LNG carriers;
- fluctuations in charter hire rates, vessel utilization and
vessel values;
- our ability to secure new multi-year charters at economically
attractive rates;
- our ability to maximize the use of our vessels, including the
re-deployment or disposition of vessels which are not operating
under multi-year charters, including the risk that certain of our
vessels may no longer have the latest technology at such time which
may impact our ability to secure employment for such vessels as
well as the rate at which we can charter such vessels;
- changes in our operating expenses, including crew wages,
maintenance, dry-docking and insurance costs and bunker
prices;
- number of off-hire days and dry-docking requirements, including
our ability to complete scheduled dry-dockings on time and within
budget;
- planned capital expenditures and availability of capital
resources to fund capital expenditures;
- disruption to the LNG, LNG shipping and financial markets
caused by the global shutdown as a result of the COVID-19
pandemic;
- business disruptions resulting from measures taken to reduce
the spread of COVID-19, including possible delays due to the
quarantine of vessels and crew, as well as government-imposed
shutdowns;
- fluctuations in prices for crude oil, petroleum products and
natural gas, including LNG;
- fluctuations in exchange rates, especially the U.S. dollar and
the Euro;
- our ability to expand our portfolio by acquiring vessels
through our drop-down pipeline with GasLog or by acquiring other
assets from third parties;
- 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 and major LNG producers, marketers and
consumers;
- 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;
- 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 distributions;
- our distribution policy and our ability to make cash
distributions on our units or the impact of cash distribution
reductions on our financial position;
- our ability to obtain debt and equity financing on acceptable
terms to fund capital expenditures, acquisitions and other
corporate activities, funding by banks of their financial
commitments, funding by GasLog of the revolving credit facility 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;
- risks inherent in ship operation, including the discharge of
pollutants;
- the impact on us and the shipping industry of environmental
concerns, including climate change;
- any malfunction or disruption of information technology systems
and networks that our operations rely on or any impact of a
possible cybersecurity event;
- the expected cost of and our ability to comply with
environmental and regulatory requirements, including with respect
to emissions of air pollutants and greenhouse gases, as well as
future changes in such requirements or other actions taken by
regulatory authorities, governmental organizations, classification
societies and standards imposed by our charterers applicable to our
business;
- potential disruption of shipping routes due to accidents,
diseases, pandemics, 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 March 2, 2021,
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, except as required by
applicable law. New factors emerge from time to time, and it is not
possible for us to predict all 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:
Joseph NelsonHead of Investor RelationsPhone:
+1-212-223-0643
E-mail: ir@gaslogmlp.com
EXHIBIT I – Unaudited Interim Financial
Information
Unaudited condensed consolidated
statements of financial positionAs of December 31,
2020 and March
31, 2021(All
amounts expressed in thousands of U.S. Dollars, except unit
data)
|
|
|
|
December
31,2020 |
|
March
31,2021 |
|
Assets |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Other non-current assets |
|
|
|
186 |
|
273 |
|
Tangible fixed assets |
|
|
|
2,206,618 |
|
2,188,109 |
|
Right-of-use assets |
|
|
|
516 |
|
380 |
|
Total non-current assets |
|
|
|
2,207,320 |
|
2,188,762 |
|
Current assets |
|
|
|
|
|
|
|
Trade and other receivables |
|
|
|
16,265 |
|
15,837 |
|
Inventories |
|
|
|
3,036 |
|
4,246 |
|
Due from related parties |
|
|
|
— |
|
571 |
|
Prepayments and other current assets |
|
|
|
2,691 |
|
2,429 |
|
Cash and cash equivalents |
|
|
|
103,736 |
|
95,094 |
|
Total current assets |
|
|
|
125,728 |
|
118,177 |
|
Total assets |
|
|
|
2,333,048 |
|
2,306,939 |
|
Partners’ equity and liabilities |
|
|
|
|
|
|
|
Partners’
equity |
|
|
|
|
|
|
|
Common unitholders (47,517,824 units issued and outstanding as of
December 31, 2020 and March 31, 2021) |
|
|
|
594,901 |
|
621,690 |
|
General partner (1,021,336 units issued and outstanding as of
December 31, 2020 and March 31, 2021) |
|
|
|
11,028 |
|
11,604 |
|
Preference unitholders (5,750,000 Series A Preference Units,
4,600,000 Series B Preference Units and 4,000,000 Series C
Preference Units issued and outstanding as of December 31, 2020 and
March 31, 2021) |
|
|
|
347,889 |
|
347,889 |
|
Total partners’ equity |
|
|
|
953,818 |
|
981,183 |
|
Current liabilities |
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
13,578 |
|
11,825 |
|
Due to related parties |
|
|
|
7,525 |
|
2,181 |
|
Derivative financial instruments—current portion |
|
|
|
8,185 |
|
8,031 |
|
Other payables and accruals |
|
|
|
50,679 |
|
42,939 |
|
Borrowings—current portion |
|
|
|
104,908 |
|
104,987 |
|
Lease liabilities—current portion |
|
|
|
332 |
|
265 |
|
Total current liabilities |
|
|
|
185,207 |
|
170,228 |
|
Non-current liabilities |
|
|
|
|
|
|
|
Derivative financial instruments—non-current portion |
|
|
|
12,152 |
|
8,699 |
|
Borrowings—non-current portion |
|
|
|
1,180,635 |
|
1,145,763 |
|
Lease liabilities—non-current portion |
|
|
|
112 |
|
56 |
|
Other non-current liabilities |
|
|
|
1,124 |
|
1,010 |
|
Total non-current liabilities |
|
|
|
1,194,023 |
|
1,155,528 |
|
Total partners’ equity and liabilities |
|
|
|
2,333,048 |
|
2,306,939 |
|
Unaudited condensed consolidated statements of profit or
lossFor the three months
ended March 31,
2020 and
2021(All amounts
expressed in thousands of U.S.
Dollars, except per unit
data)
|
|
|
|
|
|
|
For the three months
ended |
|
|
|
|
|
|
|
|
|
|
March
31,
2020 |
|
March
31,
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
91,353 |
|
87,088 |
|
Voyage expenses and commissions |
|
|
|
|
|
|
|
|
(3,888 |
) |
(2,079 |
) |
Vessel operating costs |
|
|
|
|
|
|
|
|
(19,093 |
) |
(17,807 |
) |
Depreciation |
|
|
|
|
|
|
|
|
(20,598 |
) |
(20,686 |
) |
General and administrative expenses |
|
|
|
|
|
|
|
|
(4,171 |
) |
(3,071 |
) |
Profit from operations |
|
|
|
|
|
|
|
|
43,603 |
|
43,445 |
|
Financial costs |
|
|
|
|
|
|
|
|
(15,513 |
) |
(9,416 |
) |
Financial income |
|
|
|
|
|
|
|
|
199 |
|
12 |
|
(Loss)/gain on derivatives |
|
|
|
|
|
|
|
|
(14,120 |
) |
1,319 |
|
Total other expenses, net |
|
|
|
|
|
|
|
|
(29,434 |
) |
(8,085 |
) |
Profit and total comprehensive income for the
period |
|
|
|
|
|
|
|
|
14,169 |
|
35,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit, basic
and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
Common unit, basic |
|
|
|
|
|
|
|
|
0.14 |
|
0.57 |
|
Common unit, diluted |
|
|
|
|
|
|
|
|
0.13 |
|
0.55 |
|
General partner unit |
|
|
|
|
|
|
|
|
0.14 |
|
0.57 |
|
Unaudited condensed consolidated statements of cash
flowsFor the three
months ended March
31,
2020 and
2021(All amounts expressed in
thousands of U.S. Dollars)
|
|
|
|
For the three months
ended |
|
|
|
|
|
March 31,2020 |
|
|
March
31,2021 |
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Profit for the period |
|
|
|
14,169 |
|
|
35,360 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
20,598 |
|
|
20,686 |
|
Financial costs |
|
|
|
15,513 |
|
|
9,416 |
|
Financial income |
|
|
|
(199 |
) |
|
(12 |
) |
Loss/(gain) on derivatives (excluding realized loss on forward
foreign exchange contracts held for trading) |
|
|
|
13,945 |
|
|
(1,319 |
) |
Share-based compensation |
|
|
|
297 |
|
|
73 |
|
|
|
|
|
64,323 |
|
|
64,204 |
|
Movements in working capital |
|
|
|
(20,019 |
) |
|
(8,778 |
) |
Net cash provided by
operating activities |
|
|
|
44,304 |
|
|
55,426 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Payments for tangible fixed assets additions |
|
|
|
(5,466 |
) |
|
(5,685 |
) |
Financial income received |
|
|
|
217 |
|
|
12 |
|
Net cash used in investing activities |
|
|
|
(5,249 |
) |
|
(5,673 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Borrowings drawdowns |
|
|
|
25,940 |
|
|
— |
|
Borrowings repayments |
|
|
|
(32,675 |
) |
|
(36,017 |
) |
Interest paid |
|
|
|
(17,247 |
) |
|
(14,468 |
) |
Payments of cash collateral for interest rate swaps |
|
|
|
(15,000 |
) |
|
— |
|
Release of cash collateral for interest rate swaps |
|
|
|
— |
|
|
280 |
|
Payment of loan issuance costs |
|
|
|
(156 |
) |
|
— |
|
Repurchases of common units |
|
|
|
(996 |
) |
|
— |
|
Distributions paid |
|
|
|
(34,336 |
) |
|
(8,067 |
) |
Payments for lease liabilities |
|
|
|
(107 |
) |
|
(123 |
) |
Net cash used in financing activities |
|
|
|
(74,577 |
) |
|
(58,395 |
) |
Decrease in cash and cash equivalents |
|
|
|
(35,522 |
) |
|
(8,642 |
) |
Cash and cash equivalents, beginning of the period |
|
|
|
96,884 |
|
|
103,736 |
|
Cash and cash equivalents, end of the period |
|
|
|
61,362 |
|
|
95,094 |
|
EXHIBIT II
Non-GAAP Financial Measures:
EBITDA is defined as earnings before financial income and costs,
gain/loss on derivatives, taxes, depreciation and amortization.
Adjusted EBITDA is defined as EBITDA before impairment loss on
vessels and restructuring costs. Adjusted Profit represents
earnings before (a) non-cash gain/loss on derivatives that includes
unrealized gain/loss on derivatives held for trading, (b) write-off
and accelerated amortization of unamortized loan fees, (c)
impairment loss on vessels and (d) restructuring costs. Adjusted
EPU, represents earnings attributable to unitholders before (a)
non-cash gain/loss on derivatives that includes unrealized
gain/loss on derivatives held for trading, (b) write-off and
accelerated amortization of unamortized loan fees, (c) impairment
loss on vessels and (d) restructuring costs. EBITDA, Adjusted
EBITDA, Adjusted Profit and Adjusted EPU, 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, Adjusted Profit and Adjusted EPU
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 and Adjusted EBITDA, financial
costs, gain/loss on derivatives, taxes, depreciation and
amortization; in the case of Adjusted EBITDA, impairment loss on
vessels and restructuring costs and, in the case of Adjusted Profit
and Adjusted EPU, non-cash gain/loss on derivatives, write-off and
accelerated amortization of unamortized loan fees, impairment loss
on vessels and restructuring costs, which items are affected by
various and possibly changing financing methods, financial market
conditions, general shipping market conditions, capital structure
and historical cost basis and which items may significantly affect
results of operations between periods. Restructuring costs are
excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU
because restructuring costs represent charges reflecting specific
actions taken by management to improve the Partnership’s future
profitability and therefore are not considered representative of
the underlying operations of the Partnership. Impairment loss is
excluded from Adjusted EBITDA, Adjusted Profit and Adjusted EPU
because impairment loss on vessels represents the excess of their
carrying amount over the amount that is expected to be recovered
from them in the future and therefore is not considered
representative of the underlying operations of the Partnership.
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU 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 and Adjusted EBITDA do not
reflect any cash requirements for such replacements. EBITDA,
Adjusted EBITDA, Adjusted Profit and Adjusted EPU 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 to how we do, limiting their
usefulness as comparative measures. EBITDA, Adjusted EBITDA,
Adjusted Profit and Adjusted EPU exclude some, but not all, items
that affect profit or loss and these measures may vary among other
companies. Therefore, EBITDA, Adjusted EBITDA, Adjusted Profit and
Adjusted EPU as presented herein may not be comparable to similarly
titled measures of other companies. The following tables reconcile
EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPU to
Profit, the most directly comparable IFRS financial measure, for
the periods presented.
In evaluating EBITDA, Adjusted EBITDA, Adjusted Profit and
Adjusted EPU you should be aware that in the future we may incur
expenses that are the same as or similar to some of the adjustments
in this presentation. Our presentation of EBITDA, Adjusted EBITDA,
Adjusted Profit and Adjusted EPU should not be construed as an
inference that our future results will be unaffected by the
excluded items.
Reconciliation of Profit to
EBITDA and Adjusted
EBITDA:
(Amounts expressed in thousands
of U.S. Dollars)
|
|
For the three months ended |
|
|
|
|
|
|
March 31,
2020 |
|
March 31,
2021 |
|
Profit for the period |
|
|
|
|
14,169 |
|
35,360 |
|
Depreciation |
|
|
|
|
20,598 |
|
20,686 |
|
Financial costs |
|
|
|
|
15,513 |
|
9,416 |
|
Financial income |
|
|
|
|
(199 |
) |
(12 |
) |
Loss/(gain) on derivatives |
|
|
|
|
14,120 |
|
(1,319 |
) |
EBITDA and Adjusted EBITDA |
|
|
|
|
64,201 |
|
64,131 |
|
Reconciliation of Profit to Adjusted
Profit:
(Amounts expressed in thousands of U.S.
Dollars)
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
|
March 31,
2020 |
|
March 31, 2021 |
|
Profit for the period |
|
|
|
|
14,169 |
|
35,360 |
|
Non-cash loss/(gain) on derivatives |
|
|
|
|
13,652 |
|
(3,607 |
) |
Adjusted Profit |
|
|
|
|
27,821 |
|
31,753 |
|
Reconciliation of Profit to EPU and Adjusted
EPU:
(Amounts expressed in thousands of U.S.
Dollars)
|
|
|
For the three months ended |
|
|
|
|
|
|
March 31,
2020 |
|
March 31, 2021 |
|
Profit for the period |
|
|
|
|
14,169 |
|
35,360 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Paid and accrued preference unit distributions |
|
|
|
|
(7,582 |
) |
(7,582 |
) |
Partnership’s profit
attributable to: |
|
|
|
|
6,587 |
|
27,778 |
|
Common units |
|
|
|
|
6,446 |
|
27,194 |
|
General partner units |
|
|
|
|
141 |
|
584 |
|
Weighted average units
outstanding (basic) |
|
|
|
|
|
|
|
|
Common units |
|
|
|
|
46,764,077 |
|
47,517,824 |
|
General partner units |
|
|
|
|
1,021,336 |
|
1,021,336 |
|
EPU (basic) |
|
|
|
|
|
|
|
|
Common units |
|
|
|
|
0.14 |
|
0.57 |
|
General partner units |
|
|
|
|
0.14 |
|
0.57 |
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
|
March 31, 2020 |
|
March 31, 2021 |
|
Profit for the period |
|
|
|
|
14,169 |
|
35,360 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Paid and accrued preference unit distributions |
|
|
|
|
(7,582 |
) |
(7,582 |
) |
Partnership’s profit used in EPU
calculation |
|
|
|
|
6,587 |
|
27,778 |
|
Non-cash loss/(gain) on derivatives |
|
|
|
|
13,652 |
|
(3,607 |
) |
Adjusted Partnership’s profit used in EPU
calculation attributable to: |
|
|
|
|
20,239 |
|
24,171 |
|
Common units |
|
|
|
|
19,805 |
|
23,662 |
|
General partner units |
|
|
|
|
434 |
|
509 |
|
Weighted average units
outstanding (basic) |
|
|
|
|
|
|
|
|
Common units |
|
|
|
|
46,764,077 |
|
47,517,824 |
|
General partner units |
|
|
|
|
1,021,336 |
|
1,021,336 |
|
Adjusted EPU (basic) |
|
|
|
|
|
|
|
|
Common units |
|
|
|
|
0.42 |
|
0.50 |
|
General partner units |
|
|
|
|
0.42 |
|
0.50 |
|
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