GasLog Partners LP (NYSE:GLOP) Q4 2018 Earnings Conference Call - Final Transcript
Jan 30, 2019 • 08:30 am ET
Good morning. My name is Joelle and I'll be your conference operator today. At this time I would like to welcome everyone to GasLog Partners Fourth 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 conference call is being recorded.
Today's speakers are Andy Orekar, Chief Executive Officer; Alastair Maxwell Chief Financial Officer; and to commence the call, Joseph Nelson, Deputy Head of Investor Relations.
Mr. Nelson you may begin your conference.
Good morning and thank you for joining GasLog Partners Fourth 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.
Please now turn to Slide 2 of the presentation. Many of our remarks contain forward looking statements. For factors that could cause actual results to differ materially from these forward looking statements, please refer to our fourth quarter earnings press release.
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.
Andrew J. Orekar
Thank you, Joe. Good morning and thanks to everyone for joining GasLog Partners fourth quarter earnings call. I'll begin today's call with our highlights for the quarter and 2018. 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 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 3, you can see our highlights of the fourth quarter. Following the strong operating performance and continued fleet growth, today I'm delighted to report our highest ever quarterly and annual Partnership performance results for revenues, EBITDA and distributable cash flow.
We declared a distribution of $0.55 per unit for the fourth quarter or $2.20 on an annualized basis, an increase of 3.8% over the third quarter of 2018 and an increase of 5.1% over the fourth quarter if '17, meeting our guidance of 5% to 7% growth that we established for the year.
Our coverage ratio for the quarter was 1.17 times or 1.22 times when adjusting for the drydocking of the GasLog Seattle. During the quarter, GasLog Partners and GasLog Limited agreed to modify the Partnership agreement with respect to GasLog's IDRs, permanently reducing our expected cost of equity capital of the Partnership.
In addition, we completed the drop-down acquisition of the Methane Becki Anne, with an attached charter to Shell through March 2024. In November, we raised a $100 million of growth proceeds through the issuance of 8.5% Series C preferred equity, which positions the Partnership to announce a further drop-down acquisition in the first quarter of 2019.
And lastly, we