GasLog Partners post higher profit in Q2

July 28, 2016

GasLog Partners, a master limited partnership formed by GasLog, on Thursday reported a US$17.4 profit on IFRS basis for the second quarter of this year, a 10 percent increase compared to the same period last year.

The Partnership’s revenue for the quarter, in accordance with IFRS, reached $49.6 million, a 3 percent increase compared to the second quarter in 2015, according to the report.

Andrew Orekar, CEO of GasLog Partners, said the results remained positive despite the drydocking effect of Methane Rita Andrea LNG carrier.

The increase in the results during the second quarter is attributed to the additional vessel operating days in GasLog Partners’ fleet resulting from the acquisition of the Methane Alison Victoria, the Methane Shirley Elisabeth and the Methane Heather Sally on July 1, 2015, from GasLog, the Partnership’s general partner sponsor.

Orekar also noted that in July GasLog, struck a charter deal with Total for an LNG carrier scheduled for delivery in 2018.

“GasLog Partners has rights to acquire this vessel pursuant to the omnibus agreement with GasLog, and this charter increases the Partnership’s potential dropdown pipeline from twelve to thirteen vessels,” Orekar said.

Market outlook

The Partnership is keeping a positive outlook on the demand for LNG carriers with long-term charters.

A number of tenders for multi-year charters for vessels, set to transport volumes from new liquefaction facilities coming online over the coming years, are still emerging, the report reads.

“On the demand side, there have been sizeable year-on-year increases in import volumes from many new and existing nations looking to take advantage of low cost LNG,” the Partnership said.

New importers like Jordan, Egypt, Pakistan, and Lithuania began imports by using the FSRU options, which can be developed faster, and according to the Partnership these create “additional demand in both new and existing markets for the new LNG coming online.”

In the shorter term market, spot market rates through 2016 have plateaued around multi-year lows.

“Whilst it is too early to predict a sustained increase in the spot market, there has been a marked uptick in spot charter terms in recent weeks, with slightly improved freight rates”, GasLog Partners said.