GasLog Partners LP (NYSE:GLOP) Q3 2018 Earnings Conference Call Transcript

Oct 25, 2018 • 08:30 am ET

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GasLog Partners LP (NYSE:GLOP) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to GasLog Partners Third Quarter 2018 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. As a reminder, this 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.

Executive
Joseph Nelson

Good morning, and thank you for joining GasLog Partners third quarter 2018 earnings conference call. For your convenience, this call, webcast and presentation are available on the Investor Relations section of our website, www.gaslogmlp.com, where a replay will also be available.

(Forward-Looking Cautionary Statements)

In addition, some of our remarks contain non-GAAP financial measures as defined by the SEC. A reconciliation of these is included in the appendix of this presentation.

I will now hand over to Andy Orekar, CEO of GasLog Partners.

Executive
Andrew Orekar

Thank you, Joe. Good morning, and thanks to everyone for joining GasLog Partners third quarter earnings call. I'll begin today's call with our highlights for the quarter. Our CFO, Alastair Maxwell, will follow with the review of our financial performance and drop-down pipeline. After which, I'll conclude with an update on the LNG and LNG shipping market as well as our distribution growth outlook. Following our presentation, we'd be very happy to take any questions you may have.

Turning to slide three. You can see our highlights for the third quarter. Following strong operating performance across our fleet, today I'm delighted to report our highest ever quarterly partnership performance results for revenues and EBITDA. Since the end of the second quarter, we've raised approximately $58 million in common equity through our at-the-market program, including $53 million of funds managed by Tortoise Capital Advisors, a leading investor in energy infrastructure.

This morning, we announced the acquisition of the Methane Becki Anne from our parent GasLog Ltd. The Methane Becki Anne is operating on a multi-year charter with a subsidiary of Royal Dutch Shell and we expect this accretive acquisition to close in the fourth quarter. We declared a distribution of $0.53 per unit for the third quarter or $2.12 on an annualized basis, unchanged from the second quarter and an increase of 2.4% from the third quarter of 2017. Our coverage ratio for the quarter was 1.06 times. Lastly, today we are reiterating our year-over-year distribution growth guidance of 5% to 7% for 2018, and I'm pleased to present our guidance of an additional 2% to 4% distribution growth in 2019.

Turning now to slide four, where I will discuss our most recent vessel acquisition. As shown on the right-hand panel, today we've announced the acquisition of the Methane Becki Anne for $207.4 million, which will be funded with cash on hand plus the assumption of the vessel's existing debt. The Methane Becki Anne is 170,000 cubic meter modern TFDE