Business Context and Reporting Period
Company: GasLog Partners LP (a Marshall Islands limited partnership and wholly-owned subsidiary of GasLog Ltd.)
Reporting Period: Fiscal Year Ended December 31, 2025
Business Overview: The Partnership owns and operates a fleet of LNG carriers. As of December 31, 2025, the fleet consisted of 11 vessels (8 wholly-owned and 3 bareboat leased). Following a 2023 transaction, GasLog Ltd. owns 100% of the Partnership's common units. The Partnership's Preference Units (Series A, B, and C) continue to trade on the NYSE.
Accounting Basis: International Financial Reporting Standards (IFRS).
Key Financial Metrics
| Metric (in thousands USD) | 2025 | 2024 |
|---|---|---|
| Revenues | $278,217 | $356,262 |
| Profit/(Loss) from Operations | $(15,195) | $155,590 |
| Net Profit/(Loss) for the Year | $(20,152) | $150,950 |
| Net Cash Provided by Operating Activities | $191,692 | $269,896 |
| Cash and Cash Equivalents (Year End) | $5,221 | $7,771 |
| Total Lease Liabilities | $64,912 | $107,593 |
| Working Capital Position | $(51,337) | $(45,985) |
Note: The filing does not provide explicit margin percentages; however, the shift from a $151M profit to a $20M loss indicates a significant compression in operating margins.
Material Changes vs. Prior Period
- Revenue Decline: Revenues decreased by $78.1 million (21.9%) to $278.2 million. This was driven by the redelivery/sale of three vessels (Methane Heather Sally, Methane Alison Victoria, Methane Jane Elizabeth), resulting in 482 fewer available days, and 610 idle days in 2025 compared to 42 in 2024. Average daily hire rates also decreased slightly.
- Impairment Charges: A significant non-cash impairment loss of $93.4 million was recognized in 2025, compared to $8.7 million in 2024. This included $58.0 million related to vessels sold in 2025 and $35.4 million related to remaining owned Steam and bareboat TFDE vessels due to declining market values and charter rates.
- Operating Costs: Vessel operating costs decreased by $7.1 million (10.2%) due to a smaller average fleet size, partially offset by unfavorable EUR/USD exchange rate movements. Voyage expenses increased by $9.2 million primarily due to bunker consumption during idle days.
- Net Loss: The combination of lower revenues and significant impairment charges resulted in a net loss of $20.2 million for 2025, a reversal from the $151.0 million profit in 2024.
Guidance, Outlook, and Risks
Management Commentary & Outlook:
- Market Conditions: The LNG shipping market faced weak demand fundamentals and vessel oversupply in 2025, with spot rates averaging $24,245/day (a 42.6% decrease year-on-year). A structural shift toward lower global gas prices is expected from 2026 onwards.
- Fleet Strategy: Six vessels are currently trading in the short-term spot market, with charters expiring in 2026. Management anticipates liquidity needs will be met through cash from operations, capital contributions from GasLog, and future sales/leasebacks.
- Geopolitical Risks: The filing highlights significant risks from conflicts in the Middle East (U.S./Israel-Iran), including the shutdown of the Strait of Hormuz and a halt in LNG production in Qatar. These events have tightened global balances but created volatility.
Key Risks & Contingencies:
- Charter Rate Volatility: Results depend heavily on securing multi-year charters at attractive rates. Failure to do so exposes the Partnership to the volatile spot market.
- Asset Impairment: Continued declines in ship values could trigger further impairment charges.
- Environmental Regulations: Compliance with IMO and EU regulations (e.g., EU ETS, Fuel EU Maritime) may increase operating costs and require capital expenditures.
- Liquidity: The Partnership has a negative working capital position of $51.3 million, though management asserts sufficient funds for the next 12 months via GasLog support and operations.
Investor Verification Checklist
- Impairment Assumptions: Verify the long-term charter rate assumptions ($35/day for Steam, $65/day for TFDE) and discount rates (8.06%) used in the $93.4 million impairment calculation.
- Charter Expirations: Monitor the re-chartering status of the six vessels trading in the spot market, particularly the Steam vessel (Methane Rita Andrea) and TFDE vessels expiring in 2026.
- Geopolitical Impact: Assess the duration of the Middle East conflict and its specific impact on the Partnership's vessels transiting the Strait of Hormuz or Red Sea.
- Related Party Dependence: Confirm the continued availability of capital support from GasLog Ltd., given the Partnership's reliance on it for liquidity and management services ($17.5 million in fees paid in 2025).
- Preference Unit Distributions: Verify the ability to maintain quarterly distributions on Series A, B, and C Preference Units given the net loss and negative working capital.