GasLog Partners LP (NYSE:GLOP) Q2 2018 Earnings Conference Call - Final Transcript
Jul 26, 2018 • 08:30 am ET
Good morning, my name is Brian, and I will be your conference operator today. At this time, I would like to welcome everyone to GasLog Partners Second Quarter 2018 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be question-and-answer session. As a reminder, this conference call is being recorded. Today's speakers are Andy Orekar, CEO; Alastair Maxwell, CFO; and to commence the call, Joseph Nelson, Deputy Head of IR.
Mr. Nelson, you may begin your conference.
Good morning, and thank you for joining GasLog Partners Second Quarter 2018 Earnings Conference Call. For your convenience, this call, webcast and presentation are available on the IR section of our website, www.gaslogmlp.com, where a replay will also be available. Please now turn to Slide 2 of the presentation. (Forward-Looking Cautionary Statements) I will now hand over to Andy Orekar, CEO of GasLog Partners.
Thank you, Joe. Good morning, and thanks to everyone for joining GasLog Partners second quarter earnings call. I'll begin today's call with our highlights for the quarter. Our CFO, Alastair Maxwell, will follow with a review of our financial performance and drop-down pipeline. After which, I'll conclude with an update on the LNG and LNG shipping markets and our distribution growth outlook. Following our presentation, we'd be very happy to take any questions you may have.
Turning to Slide 3, you can see our highlights. In the second quarter, we closed our previous acquisition of the GasLog Gibraltar and its attached multi-year charter to Shell for $207 million. The drop-down was partially funded by the issuance of $45 million of new common units to our parent and GP sponsor, GasLog Limited. We completed the dry-dockings of the GasLog Santiago and the GasLog Sydney, which included the installation of reliquefaction modules on both vessels, ahead of their commencing new charters later this year. The dry-dockings were completed on time and on budget and the reliquefaction units should improve the future marketability of both vessels.
During the quarter, we successfully rechartered the GasLog Sydney for 18 months with Cheniere. This charter agreement is the partnership's second multi-year charter award this year with the new, high quality counterparty and increases our contracted days to 91% in both 2018 and 2019. Our partnership performance results for revenue, EBITDA and profit delivered annual growth of approximately 20%, 18% and 18%, respectively. We declared a distribution at $0.53 per unit for second quarter or $2.12 on an annualized basis, which is unchanged from the first quarter and represents approximately 4% growth over the second quarter of 2017.
Our distribution coverage for the quarter was 0.94 times due to the scheduled dry dockings of the GasLog Santiago and GasLog Sydney, but increases to 1.18 times when adjusted for the days when those two vessels were off hire. Lastly, with current liquidity available to fund our next acquisition and the GasLog Shanghai exposed to the anticipated strength in the spot market, today, we are reiterating our