GasLog Partners LP · NYSE:GLOP/PA
GasLog Partners LP — GasLog Ltd. and GasLog Partners — Q2 2020 Earnings Presentation
34 slides from GasLog Partners LP's earnings presentation, Aug 5, 2020
Slide 1: GasLog Ltd. and GasLog Partners LP Q2 2020 results
GASLOG LTD. AND GASLOG PARTNERS LP Q2 2020 results 5 August 2020
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: GasLog Ltd. Q2 2020 Review and Outlook
GASLOG LTD. Q2 2020 REVIEW AND OUTLOOK PAUL WOGAN, CHIEF EXECUTIVE OFFICER, GASLOG LTD 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 3
Slide 4: GasLog Ltd. Q2 2020 Highlights
GASLOG LTD. Q2 2020 HIGHLIGHTS 1 Refinancing of 2021 maturities, common equity private placement and cash collateral release enhance liquidity 2 Growing revenues and cost reductions delivered adjusted EBITDA growth in Q2 2020, declared $0.05/sh dividend 3 80% charter coverage in H2 2020 provides rev
Slide 5: Resilient business model manages the challenges presented by COVID-19
RESILIENT BUSINESS MODEL MANAGES THE CHALLENGES PRESENTED BY COVID-19 1 FOCUSED ON DELIVERING FOR OUR CUSTOMERS ▪ All available vessels are currently on charter through at least H2 August ▪ Fleet uptime of 100% in Q2 2020 excluding GasLog Savannah ▪ Singapore lockdown delayed completion of dry-docki
Slide 6: Strategic decision to further reduce costs, streamline decision making
STRATEGIC DECISION TO FURTHER REDUCE COSTS, STREAMLINE DECISION MAKING CONSOLIDATED G&A ($M) $50 1 Following rapid growth our focus is now on execution and cost reductions $45 2 Closure of Stamford office, reduction in headcount and board size $40 3 GasLog senior leadership to be based in Greece $35
Slide 7: Stable financial performance in Q2 from fleet growth, cost reductions
STABLE FINANCIAL PERFORMANCE IN Q2 FROM FLEET GROWTH, COST REDUCTIONS REVENUES ($M) ADJUSTED EBITDA ($M) GASLOG LTD. ADJUSTED EPS ($M) $200 $150 $0.10 $160 $120 $0.05 $0.03 $0.02 $120 $84 $90 $92 $60 $0.00 $75 $68 Q2 Q2 Q2 $53 2018 2019 2020 $80 $60 -$0.05 $40 $74 $30 $62 $51 -$0.07 $58 $40 $40 -$0.
Slide 8: Revenue and cash flow visibility in H2 from 80% charter coverage
REVENUE AND CASH FLOW VISIBILITY IN H2 20 FROM 80% CHARTER COVERAGE TOTAL CONTRACTED REVENUES ($M) GLOG CONTRACTED REVENUES ($M) GLOP CONTRACTED REVENUES ($M) $700 100% $500 100% $300 100% $525 75% $375 75% $225 75% $350 50% $250 50% $150 50% $175 25% $125 25% $75 25% $0 0% $0 0% $0 0% H2 20 2021 20
Slide 9: Our inbuilt growth continues to deliver on time and on budget
OUR INBUILT GROWTH CONTINUES TO DELIVER ON TIME AND ON BUDGET GASLOG LTD.’S X-DF VESSEL FLEET 12 Latest generation X-DF vessels in our fully delivered fleet 3 Newbuild X-DFs delivered year to date 4 Newbuild X-DFs delivering Q3 2020 through Q3 2021 October 2020 Next newbuild delivery $145 million An
Slide 10: Sustainability reports underscore our commitment to ESG initiatives
SUSTAINABILITY REPORTS UNDERSCORE OUR COMMITMENT TO ESG INITIATIVES 1 Individual reports for GasLog Ltd. and GasLog Partners LP 2 Adopted Sustainability Accounting Standards Board (SASB) reporting 3 Establishes baseline for future enhancements 4 Transparent vessel-by-vessel CO2 emissions 5 Clear Sus
Slide 11: GasLog Partners Q2 2020 Review and Outlook
GASLOG PARTNERS Q2 2020 REVIEW AND OUTLOOK ANDREW OREKAR, CHIEF EXECUTIVE OFFICER, GASLOG PARTNERS LP 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 11
Slide 12: GasLog Partners LP Q2 Highlights
GASLOG PARTNERS LP Q2 HIGHLIGHTS 1 Stable financial performance in Q2 2020 despite COVID-19 challenges 2 Focused on fleet utilization and cost control 3 Capital allocation strategy prioritizes balance sheet strength 4 Significant refinancing pushes nearest debt maturity to 2024, balances our operati
Slide 13: Solid financial performance during Q2 2020 amidst a challenging market
SOLID FINANCIAL PERFORMANCE DURING Q2 2020 AMIDST A CHALLENGING MARKET REVENUES ($M) ADJUSTED EBITDA ($M) ADJUSTED EPU ($/UNIT) $100 $80 $0.60 $92 $90 $70 $0.50 $68 $84 $0.44 $60 $80 $60 $0.40 $0.38 $0.38 $75 $53 $70 $50 $0.30 $60 $40 $0.20 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2018 2019 2020 2018 2019 2020 20
Slide 14: Q2 2020 distribution represents a reduced payout of adjusted EPU
Q2 2020 DISTRIBUTION REPRESENTS A REDUCED PAYOUT OF ADJUSTED EPU DISTRIBUTION COVERAGE RATIO PAYOUT RATIO OF ADJUSTED EPU 86% 5.5x 160% Charter coverage for H2 2020 139% 4.5x 4.2x 125% 59% 120% Charter coverage for 2021 3.5x $0.125/unit Q2 2020 cash distribution 80% $6 million 2.5x Cash outflow for
Slide 15: Debt refinancing balances our operational and financial leverage
DEBT REFINANCING BALANCES OUR OPERATIONAL AND FINANCIAL LEVERAGE GASLOG PARTNERS LP DEBT PER VESSEL ($M) AND CHARTER DURATION PER VESSEL (YEARS) $160 $45 million Average debt per Steam vessel 3 3 $120 6 6 4 1 1 Spot 1 2 6 months Average charter duration of our Steam fleet $80 $111 million Spot 0.3 A
Slide 16: Continued focus on debt repayment
CONTINUED FOCUS ON DEBT REPAYMENT BALANCE SHEET METRICS SCHEDULED DEBT AMORTIZATION 2020-2023 ($M) CASH ITEMS 4.7x $150 $1,350 $56 million Net debt to trailing 12-month Debt retired in H1 2020 through EBITDA scheduled amortization 53% $100 $1,200 $425 million Net debt to total capitalization Total s
Slide 17: Q2 2020 Financial Review and Outlook
Q2 2020 FINANCIAL REVIEW AND OUTLOOK ACHILLEAS TASIOULAS, CHIEF FINANCIAL OFFICER, GASLOG LTD. AND GASLOG PARTNERS LP 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 17
Slide 18: Continued focus on cost control aided by COVID-19 related savings
CONTINUED FOCUS ON COST CONTROL AIDED BY COVID-19 RELATED SAVINGS CONSOLIDATED UNIT OPEX ($/DAY) CONSOLIDATED UNIT G&A ($/DAY)(1) INTEREST EXPENSE ON LOANS ($M) $15,000 $5,000 $90 $14,595 $14,319 $4,477 $14,250 $4,500 $63 $4,297 $60 $51 $52 $13,500 $13,384 $4,000 $3,676 $30 $12,750 $3,500 $12,000 $3
Slide 19: Consolidated balance sheet, liquidity and capex
CONSOLIDATED BALANCE SHEET, LIQUIDITY AND CAPEX BALANCE SHEET METRICS CONSOLIDATED SCHEDULED DEBT AMORTIZATION 2020-23 ($M)(1) CASH ITEMS 7.1x $300 $3,750 $173 million Net debt to trailing 12-month Cash and cash equivalents on adjusted EBITDA June 30, 2020 $225 $3,500 63% $27 million Net debt to tot
Slide 20: Refinancing enhances liquidity, reduces debt service cost
REFINANCING ENHANCES LIQUIDITY, REDUCES DEBT SERVICE COST c.$5 million 1 4 new credit facilities totaling $1.1 billion secured by 13 vessels Total reduction in annual debt service costs c.$30 million 2 Refinances all the Group’s 2021 debt maturities Total incremental liquidity received from 4 new fa
Slide 21: LNG Commodity and LNG Shipping Review and Outlook
LNG COMMODITY AND LNG SHIPPING REVIEW AND OUTLOOK PAUL WOGAN, CHIEF EXECUTIVE OFFICER, GASLOG LTD 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 21
Slide 22: LNG demand in Q2 reflects regional COVID-19 impacts
LNG DEMAND IN Q2 REFLECTS REGIONAL COVID-19 IMPACTS LNG DEMAND: Q2 2019 V. Q2 2020 (MT) LNG DEMAND: H1 2019 V. H1 2020 (MT) (2%) 4 5 LNG demand growth year-over- year in Q2 2020 9% 20% 37% 4% 3 LNG demand growth year-over- 2 year in H1 2020 7% 39% 8% 4% 2% 1 Estimated LNG demand growth in 2020, acco
Slide 23: US LNG exports grew strongly in Q2, cargo cancellations declining
US LNG EXPORTS GREW STRONGLY IN Q2, CARGO CANCELLATIONS DECLINING LNG SUPPLY: Q2 2019 V. Q2 2020 (MT) US LNG CARGOES BY MONTH 2% 5 120 LNG supply growth year-over- year in Q2 2020 39% 83 39% 80 US LNG export growth year- 3 68 61 63 62 over-year in Q2 2020 18% 40 37 c.2.0x US shipping multiplier in Q
Slide 24: Spot market liquidity reached another record high in Q2 2020
SPOT MARKET LIQUIDITY REACHED ANOTHER RECORD HIGH IN Q2 2020 NUMBER OF SPOT FIXTURES Q1 2017 – Q2 2020 150 128 Total LNGC spot fixtures in Q2 2020 125 65 TFDE spot fixtures in Q2 2020 100 24 75 Steam spot fixtures in Q2 2020 50 25 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 Spot
Slide 25: GasLog Ltd. Q2 2020 Summary and Outlook
GASLOG LTD. Q2 2020 SUMMARY AND OUTLOOK 1 Refinancing of 2021 debt maturities, common equity private placement and cash collateral release enhance liquidity 2 Growing revenues and cost control delivered adjusted EBITDA growth in Q2, declared $0.05/share dividend 3 80% charter coverage in H2 20 provi
Slide 26: Appendix
APPENDIX 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 26
Slide 27: Consolidated Q2 Financial Results
CONSOLIDATED Q2 FINANCIAL RESULTS (US$,000 unless otherwise stated) Q2 2019 Q2 2020 H1 2019 H1 2020 Vessel uptime 100% 100% 100% 100% Revenues and net pool allocation 156,909 158,861 316,718 324,758 Vessel operating and supervision costs 33,358 32,605 66,328 67,657 Unit opex ($/vessel per day) 14,09
Slide 28: Unit operating expense guidance and 2020 dry-docking schedule
UNIT OPERATING EXPENSE GUIDANCE AND 2020 DRY-DOCKING SCHEDULE CONSOLIDATED UNIT OPEX AND GUIDANCE($/DAY) 2020 DRY-DOCKING SCHEDULE $15,500 Q3 Q4 GasLog Partners $14,750 $14,595 Methane Heather Sally(1) 40 $14,500 $14,306 Methane Alison Victoria 40 $14,000 Methane Becki Anne 40 $14,000 GasLog Ltd. $1
Slide 29: Contracted and open days
CONTRACTED AND OPEN DAYS GLOG CONTRACTED AND OPEN DAYS(1) GLOP CONTRACTED AND OPEN DAYS(1) 1,600 1,600 142 471 88 292 1,200 1,200 800 800 1,220 1,202 1,064 1,088 400 400 0 0 Q3 Q4 Q3 Q4 Contracted Open Contracted Open 1. Excludes dry-docking days 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 20
Slide 30: The GasLog Ltd. wholly owned fleet
THE GASLOG LTD. WHOLLY OWNED FLEET 1. Please refer to the Appendix for the footnotes to this table Firm period Optional period Available/short-term charter 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 30
Slide 31: The GasLog Partners LP fleet
THE GASLOG PARTNERS LP FLEET Firm period Optional period Available/short-term charter 1. Please refer to the Appendix for the footnotes to this table 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 31
Slide 32: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures: EBITDA is defined as earnings before depreciation, amortization, financial income and costs, gain/loss on derivatives and taxes. Adjusted EBITDA is defined as EBITDA before foreign exchange gains/losses, impairment loss on vessels, gain/loss o
Slide 33: GasLog Partners LP - Non-GAAP Reconciliations
GASLOG PARTNERS LP - NON-GAAP RECONCILIATIONS 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 33
Slide 34: GasLog Ltd. - Non-GAAP Reconciliations
GASLOG LTD. - NON-GAAP RECONCILIATIONS 5 August 2020 | GasLog Ltd. and GasLog Partners Q2 2020 Results Presentation 34
GasLog Ltd. and GasLog Partners — Q2 2020 Earnings Presentation on 6ix