GasLog Partners LP · NYSE:GLOP/PA
GasLog Partners LP — Q2 2022 Earnings Presentation
27 slides from GasLog Partners LP's earnings presentation, Jul 28, 2022
Slide 1: GasLog Partners LP Q2 2022 results
GASLOG PARTNERS LP Q2 2022 results 28 July 2022
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS All statements in this presentation 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
Slide 3: Q2 2022 Review
Q2 2022 REVIEW PAOLO ENOIZI, CHIEF EXECUTIVE OFFICER, GASLOG PARTNERS 28 July 2022 | GasLog Partners Q2 2022 Results Presentation
Slide 4: Key Takeaways for Q2 2022
KEY TAKEAWAYS FOR Q2 2022 1 DEMAND FOR ENERGY SECURITY HAS INCREASED DEMAND FOR LNG SUPPLY AND SHIPPING ▪ Increased LNG demand in Europe keeps competing with Far East, maintaining high gas prices ▪ LNG shipping spot rates were volatile in Q2, while the term market remains strong ▪ Increased ordering
Slide 5: Annual Sustainability Report
ANNUAL SUSTAINABILITY REPORT OUR COMMITMENT… …IS ALIGNED WITH UN GLOBAL COMPACT… OUR PERFORMANCE c.6% DECARBONIZATION Average Annual Efficiency Ratio (AER) 1 Net zero by 2050 improvement compared to 2020 due to higher utilization and the increased efficiency of the SAFETY AND WELLBEING vessels dry d
Slide 6: Two New Charters Signed in Recent Months on Attractive Terms
TWO NEW CHARTERS SIGNED IN RECENT MONTHS ON ATTRACTIVE TERMS REFLECT IMPROVED MARKET BACKDROP Vessel Name Methane Rita Andrea GasLog Seattle (Steam) (TFDE) Counterparty Energy Major Major Trader Term 12 months 9 months Start Date November 2022 June 2022 End Date October 2023 March 2023 Estimated EBI
Slide 7: Continued Strength in LNG Shipping Term Rates to Materially Benefit GasLog
CONTINUED STRENGTH IN LNG SHIPPING TERM RATES TO MATERIALLY BENEFIT GASLOG CONTRACTED/OPEN DAYS BY QUARTER(1) QUARTERLY ADJ. CONTRACTED EBITDA ($M)(1,2) 2022 OPEN DAYS ADJ. EBITDA SENSITIVITY ($M)(1,2) Contracted Spot-Linked Open $70 $20 1,400 93 $60 1,200 92 184 $15 367 $50 92 1,000 644 569 14 $40
Slide 8: Q2 2022 Financial Review
Q2 2022 FINANCIAL REVIEW ACHILLEAS TASIOULAS, CHIEF FINANCIAL OFFICER, GASLOG PARTNERS LP 28 July 2022 | GasLog Partners Q2 2022 Results Presentation
Slide 9: Strong Commercial Performance in Seasonally Weaker Second Quarter
STRONG COMMERCIAL PERFORMANCE IN SEASONALLY WEAKER SECOND QUARTER REVENUES ($M) ADJUSTED EBITDA ($M)(1) ADJUSTED EPU ($/UNIT)(1) $100 $75 $0.45 $0.41 $85 $85 $61 $0.37 $59 $80 $70 $50 $0.30 $45 $60 $40 $25 $0.15 $0.10 $20 $0 $0 $0.00 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 2021 2022 2021 2022 2021 2022 1. Adjust
Slide 10: Continuing to Effectively Manage Costs Despite External Factors
CONTINUING TO EFFECTIVELY MANAGE COSTS DESPITE EXTERNAL FACTORS UNIT OPEX ($/DAY)(1) UNIT G&A ($/DAY) COMMENTARY • Strong fleet performance and safety record as we continue to adhere to enhanced COVID-19 related protocols • OPEX down year over year at competitive levels and lower than prior year des
Slide 11: Preference Units Buybacks Improve Free Cash Flow Capacity
PREFERENCE UNITS BUYBACKS IMPROVE FREE CASH FLOW CAPACITY ANNUAL PREF UNIT DISTRIBUTIONS ($M) INCREASE IN FREE CASH FLOW ($/UNIT) PROGRESS ON PLAN $31 $0.06 c.$18.7 million Preference Units purchased during H1 2022 $30 $0.05 c.$37.1 million $29 $0.04 Preference units purchased at avg. price of c.$25
Slide 12: Progressing Toward Leverage Targets
PROGRESSING TOWARD LEVERAGE TARGETS DEBT TO CAPITALIZATION (%)(1) NET DEBT TO LTM ADJ. EBITDA(1),(2) LTM PROGRESS 60.0% 6.00x c.$112 million 53.9% 5.3x Debt retired during LTM, 52.3% including lease principal 50.0% 5.00x payments 40.0% <40% 4.00x 3.9x <4.0x c.$114 million Annual scheduled amortizati
Slide 13: LNG Commodity and LNG Shipping Review and Outlook
LNG COMMODITY AND LNG SHIPPING REVIEW AND OUTLOOK PAOLO ENOIZI, CHIEF EXECUTIVE OFFICER, GASLOG PARTNERS LP 28 July 2022 | GasLog Partners Q2 2022 Results Presentation
Slide 14: Strong Term Market as Charterers Seek Winter Cover
STRONG TERM MARKET AS CHARTERERS SEEK WINTER COVER AMONGST LIMITED VESSEL AVAILABILITY NUMBER OF FIXTURES 2015 – 2022 TFDE SPOT & 1-YR TC RATES ($/DAY) $100,000+ per day 600 $160,000 1-year time charter assessments for TFDEs 500 $140,000 86 $58,750 per day $120,000 Current headline spot rate 400 165
Slide 15: Strong Growth in European Demand During Q2 2022
STRONG GROWTH IN EUROPEAN DEMAND DURING Q2 2022 UNDERSCORES GLOBAL NEED FOR LNG AS STABLE ENERGY SOURCE LNG DEMAND: Q2 22V. Q2 21(MT) LNG SUPPLY: Q2 22V. Q2 21(MT) 6.9% 10.00 7 LNG supply growth 2021Q2 vs 6.9% 2022Q2 37% 8.00 6 6.00 20.5 MT 5 Total US LNG exports in Q2 4% 2022 Million Tons LNG 4.00
Slide 16: US Projects Expected to Take FID in 2022-2023
US PROJECTS EXPECTED TO TAKE FID IN 2022-2023 TO SATISFY GLOBAL ENERGY DEMAND INCREASE US PRE-FID PROJECT NAMEPLATE CAPACITY FAVORABLE FACTORS 50 140 ▪ Strong pricing (12% Brent for Pre- Fid) 45 ▪ Energy security concerns motivating Million Tons LNG per annum (cumulative) 120 40 long term contracts
Slide 17: Healthy Demand for Vessels Despite Volatile Commodity Market
HEALTHY DEMAND FOR VESSELS DESPITE VOLATILE COMMODITY MARKET LNG MARKET SNAPSHOT RECENT MARKET DEVELOPMENTS ▪ Nordstream 1 reduced flows keeps 70 $160,000 demand high for LNG supplies in 60 $140,000 Europe $120,000 ▪ Freeport LNG expected to be out of 50 service until October due to fire USD/mmbtu $
Slide 18: LNG Shipping Supply and Demand Imply High Fleet Utilization
LNG COMMODITY AND LNG SHIPPING SUPPLY AND DEMAND IMPLY HIGH FLEET UTILIZATION OVER THE NEAR-TERM QUARTERLY LNG SHIPPING DEMAND: Q2 2022 – Q4 2023 0 700 Vessel scrapping assumed 5.7% 650 Expected LNG demand growth in 2022, according to Wood Mackenzie 600 Number of Vessels 82.6 MT 550 US exports for 2
Slide 19: 86% of the Orderbook Is Committed on Multi-Year Charters
86% OF THE ORDERBOOK IS COMMITTED ON MULTI-YEAR CHARTERS; ONLY 2 UNCOMMITTED NEWBUILDS DELIVERING THROUGH 2023 NEWBUILD DELIVERY SCHEDULE AND CUMULATIVE NUMBER OF VESSELS 30+ YEARS OLD 219 Number of vessels in the 100 orderbook 10 80 19 Number of vessels 30+ years 60 old in the global fleet today 13
Slide 20: Closing Remarks
CLOSING REMARKS PAOLO ENOIZI, CHIEF EXECUTIVE OFFICER, GASLOG PARTNERS LP 28 July 2022 | GasLog Partners Q2 2022 Results Presentation
Slide 21: Strong Cash Generation and Strategic Execution Against a Favorable Market Backdrop
STRONG CASH GENERATION AND STRATEGIC EXECUTION AGAINST A FAVORABLE MARKET BACKDROP 1 LNG increasingly recognized as a reliable and flexible source of energy security 2 Strong demand growth for LNG shipping, particularly as global infrastructure enables further LNG trade Highly visible cash flows in
Slide 22: Analyst Q&A
ANALYST Q&A 28 July 2022 | GasLog Partners Q2 2022 Results Presentation 22
Slide 23: Appendix
APPENDIX 28 July 2022 | GasLog Partners Q2 2022 Results Presentation 23
Slide 24: Increased Exposure in a Tight Market Environment
INCREASED EXPOSURE IN A TIGHT MARKET ENVIRONMENT GASLOG PARTNERS LP’S FLEET(1)(2) Capacity 90% Vessel Propulsion Built (cbm) Charterer 2022 2023 2024 2025 Charter coverage for remainder GasLog Partners LP of 2022 Methane Rita Andrea Steam 2006 145,000 c.$163 million Solaris TFDE 2014 155,000 Contrac
Slide 25: 2022 High Contracted Revenues with Opportunity for Further Upside
2022 HIGH CONTRACTED REVENUES WITH OPPORTUNITY FOR FURTHER UPSIDE IN THE SPOT MARKET 2022 GASLOG PARTNERS COMMITTED CASH INFLOWS AND OUTFLOWS ($M)(1,2,3) CONTRACTED / OPEN DAYS (H2 2022) $280 $240 277 184 $200 $160 $120 2,187 $80 $40 $0 H1 2022 adj. Contracted 2022 Debt 2022 Interest Various OPEX/G&
Slide 26: Non-GAAP Financial Measures and Reconciliations
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS 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, loss on disposal of ve
Slide 27: Non-GAAP Financial Measures and Reconciliations
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS 28 July 2022 | GasLog Partners Q2 2022 Results Presentation 27