Business context and reporting period
GasLog Partners LP’s Form 20-F covers the fiscal year ended December 31, 2022; it is an annual filing, not a standalone fourth-quarter report. The Marshall Islands partnership owns and operates LNG carriers and reports under IFRS. At year-end, it operated 14 vessels, including two held under sale-and-leaseback arrangements. Five vessels were on long-term charters and nine were exposed to the short-term or spot market.
Key financial metrics
| Metric | 2022 | 2021 |
|---|---|---|
| Revenue | $371.0 million | $326.1 million |
| Operating profit | $154.6 million | $40.5 million |
| Operating margin | 41.7% | 12.4% |
| Profit for the year | $119.0 million | $5.7 million |
| Net margin | 32.1% | 1.8% |
| Net cash from operating activities | $277.7 million | $233.4 million |
| Net cash from investing activities | $76.4 million | $98.2 million |
| Net cash used in financing activities | $302.3 million | $289.8 million |
| Cash and cash equivalents | $198.1 million | $145.5 million |
| Short-term cash deposits | $25.0 million | None reported |
| Borrowings | $921.9 million | $1,085.8 million |
| Lease liabilities | $62.6 million | $55.9 million |
At December 31, 2022, current assets of $243.0 million exceeded current liabilities of $177.2 million, giving positive working capital of $65.8 million. The reported total-indebtedness-to-total-assets covenant ratio was 48.7%, down from 54.0%. The weighted-average borrowing rate increased to 3.9% from 2.4%; interest expense on loans was $40.9 million versus $30.1 million. The filing reports a 2022 average daily hire rate of $69,756, up from $62,265.
Material changes versus 2021
- Revenue rose 13.8%, mainly from stronger spot and short-term charter markets; spot-charter revenue increased to $183.2 million from $104.3 million, while long-term charter revenue declined to $187.8 million from $221.8 million.
- Profit increased substantially, reflecting higher revenue and a lower vessel impairment charge. Impairment losses were $32.5 million in 2022 versus $104.0 million in 2021; the 2022 charge related to Steam vessels, including write-downs associated with vessel sale transactions.
- Operating cash flow increased by $44.4 million. Financing cash use remained substantial, including $49.2 million spent repurchasing preference units.
- Borrowings fell by $163.8 million. Vessel sales and sale-and-leasebacks included the Methane Shirley Elisabeth, sold for approximately $54 million, and the Methane Heather Sally, sold for $50 million and leased back through mid-2025.
- General and administrative expenses increased 30.6% to $17.5 million, mainly because of higher administrative-services fees. Financial costs increased 27.6%, primarily due to higher interest rates.
Outlook, risks and unusual items
Management’s stated capital-allocation priorities remain balance-sheet strength, deleveraging, reducing fleet break-even rates and opportunistic preference-unit repurchases. The common-unit distribution remained $0.01 per unit quarterly, a policy maintained since 2020; the filing gives no assurance of an increase or continuation. Contracted revenues at year-end were $339.9 million for 2023 and $388.8 million thereafter, subject to charterer performance and contract terms.
Charter expirations create material rechartering exposure: the GasLog Sydney, GasLog Geneva and GasLog Gibraltar had charters due to expire in 2023, and six of the nine short-term-market vessels were expected to come off charter during 2023. Management highlighted the risk of volatile rates and utilization, particularly for older, less efficient Steam vessels. Other key risks include customer concentration (Shell subsidiaries provided 44.2% of 2022 revenue), floating-rate debt, refinancing and covenant requirements, environmental rules, vessel-value impairment, and dependence on GasLog for management and commercial services.
Subsequent to year-end, GasLog made a non-binding proposal to acquire the common units it did not already own for total stated value of $7.70 per unit, including a proposed $2.33 special distribution. The conflicts committee was reviewing the proposal; no transaction was assured. The filing also describes a proposed GasLog Sydney sale-and-leaseback subject to final documentation and a potential ten-year FSRU charter for the Methane Jane Elizabeth subject to final terms and project conditions. The company reported no material pending or threatened legal proceedings and no material debt defaults or preference-distribution arrears. Deloitte issued an unqualified opinion on the financial statements and internal controls.
Important facts for investors to verify
- Charter renewals, actual employment and rates for vessels coming off contract, including any Shell extension options and the 2023 open-day exposure.
- Progress on debt reduction, refinancing maturities, interest-rate exposure and compliance with minimum-liquidity and collateral-value covenants.
- Assumptions behind Steam-vessel impairment tests, especially long-term rechartering rates and the 8.4% discount rate; management reported these estimates are sensitive to changes.
- Whether the proposed GasLog acquisition, Sydney sale-and-leaseback and Methane Jane Elizabeth FSRU project proceed, and their final terms and effects on cash and unit holders.
- Common and preference distributions: common distributions were only $0.01 per unit quarterly, while preference distributions remain subject to available funds and debt restrictions; Series B moved to a floating-rate period in March 2023, with LIBOR transition also relevant.