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, 2024.
Business Overview: The Partnership owns and operates a fleet of 14 LNG carriers (10 owned, 4 bareboat leased). As of December 31, 2024, six vessels operated under long-term time charters (>3 years) and eight traded in the short-term spot market. The Partnership is a foreign private issuer with Preference Units listed on the NYSE; common units were delisted in July 2023 following a merger with GasLog Ltd.
Key Financial Metrics (Year Ended Dec 31, 2024)
| Metric | 2024 Value (USD) | 2023 Value (USD) |
|---|---|---|
| Revenues | $356.3 million | $397.8 million |
| Profit for the Year | $151.0 million | $138.7 million |
| Profit from Operations | $155.6 million | $196.6 million |
| Net Cash from Operating Activities | $269.9 million | $262.4 million |
| Net Cash from Investing Activities | $139.4 million | $149.4 million |
| Net Cash Used in Financing Activities | ($413.4 million) | ($598.4 million) |
| Cash and Cash Equivalents (Year End) | $7.8 million | $11.9 million |
| Total Lease Liabilities | $107.6 million | $93.9 million |
| Working Capital | ($46.0 million) | ($20.1 million) |
Note: The filing does not provide explicit margin percentages; however, operating profit margin decreased from 49.4% in 2023 to 43.7% in 2024.
Material Changes vs. Prior Period
- Revenue Decline: Revenues decreased by $41.6 million (10.4%) primarily due to lower charter rates and 85 idle days in 2024. The average daily hire rate fell from $80,927 in 2023 to $71,238 in 2024.
- Profit Increase: Despite lower operating profit, net profit increased by $12.2 million (8.9%) driven by a significant reduction in financial costs.
- Financial Costs: Decreased by $62.3 million (from $67.1M to $4.8M) due to the prepayment of all Partnership loans in November 2023 and subsequent write-offs of deferred loan issuance costs.
- Impairment Losses: Increased significantly to $8.7 million in 2024 (from $0.1M in 2023) due to declining fair values of two owned Steam vessels and one bareboat TFDE vessel.
- Asset Disposal: Recognized a gain of $8.2 million on the sale and leaseback of the GasLog Santiago in August 2024, compared to a $1.0 million loss on the GasLog Sydney transaction in 2023.
- Liquidity: Working capital turned more negative ($46.0M deficit) due to increased lease liabilities ($107.6M total) from sale-and-leaseback transactions, though cash flow from operations remained robust.
Guidance, Outlook, and Risks
- Market Outlook: Management notes a surplus in vessel supply and declining spot charter rates (down 56% year-on-year for 160k cbm TFDE vessels). Eight vessels are currently in the spot market, with six due to come off charter between March and July 2025.
- Contracted Revenue: As of December 31, 2024, the Partnership had contracted revenues of $260.5 million for 2025 and $432.4 million thereafter.
- Key Risks:
- Re-chartering Risk: Inability to secure long-term charters at attractive rates for vessels expiring in 2025 could lead to volatility and reduced cash flows.
- Environmental Regulations: Stricter IMO and EU regulations (e.g., EU ETS, Fuel EU Maritime) may increase operating costs and reduce the value of older Steam vessels.
- Geopolitical Factors: Conflicts in the Red Sea and Middle East have forced rerouting (Cape of Good Hope), increasing voyage times and costs.
- Asset Impairment: Continued decline in ship values, particularly for older Steam and TFDE vessels, may trigger further impairment charges.
- Capital Structure: The Partnership has no outstanding credit facilities as of December 31, 2024. It relies on cash flow, sale-and-leaseback proceeds, and capital support from GasLog Ltd. for liquidity.
Investor Verification Checklist
- Re-chartering Status: Verify the status of the six vessels coming off charter between March and July 2025 and the rates secured for any new contracts.
- Impairment Sensitivity: Review the sensitivity analysis regarding charter rate assumptions ($5/day variance) and discount rates used in the $8.7M impairment calculation.
- Lease Liability Maturity: Confirm the repayment schedule for the $107.6M in lease liabilities, of which $42.7M is due within one year.
- Related Party Fees: Assess the impact of $19.8M in total fees paid to GasLog affiliates (Administrative, Commercial, and Ship Management) on distributable cash flow.
- Preference Unit Distributions: Verify the sustainability of quarterly distributions on Series A, B, and C Preference Units given the shift to floating rates (SOFR) for Series B and C.