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GasLog Partners LP 20-F Analysis & Summary – 3/14/2025

⚠️This is not investment advice.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️

GasLog Partners LP 8.200% Serie

Filing date:

03/14/2025

TLDR:

ELI5:

GasLog Partners, a company that ships liquid natural gas, made less money in 2024, but their profits actually went up because they spent less on certain expenses. They face risks like unstable shipping prices and rely on a few big customers, but they could grow if demand for natural gas increases and they use better technology.

Accession #:

0001104659-25-023694

Published on

Analyst Summary

  • Revenues decreased by $41.5 million (10.4%) from 2023 to 2024, primarily due to lower charter rates and idle days; the average daily hire rate decreased from $80,927 in 2023 to $71,238 in 2024.
  • Profit for the year increased by $12.3 million (8.9%) from 2023 to 2024, reaching $150.9 million, driven by lower financial costs, partially offset by decreased revenue and an impairment loss.
  • Net cash provided by operating activities increased by $7.5 million, from $262.4 million in 2023 to $269.9 million in 2024.
  • Gross Profit Margin decreased from 80.19% to 78.98%, Operating Profit Margin decreased from 49.43% to 43.66%, while Net Profit Margin increased from 34.87% to 42.36%.
  • Current Ratio decreased from 0.75 to 0.45, indicating potential liquidity challenges.
  • Debt-to-Equity Ratio increased from 0.096 to 0.115, and Interest Coverage Ratio decreased from 51.95 to 33.37.
  • Management attributes the decrease in revenue to lower charter rates and idle days and emphasizes the impact of environmental regulations and climate change on the LNG shipping industry.

Opportunities and Risks

  • LNG Carrier Market Volatility: Dependence on charter rates, which are subject to fluctuations outside the company’s control.
  • Oversupply of LNG Carriers: Excessive new ordering may lead to reduced charter hire rates.
  • Environmental Regulations: Increasingly stringent environmental regulations may result in substantial compliance costs.
  • Customer Concentration: Reliance on a limited number of customers poses a risk if any customer is lost.
  • Relationship with GasLog: Dependence on GasLog for capital support and potential conflicts of interest.
  • LNG Demand Growth: Continued growth in LNG production and demand for LNG shipping.
  • Technological Advancements: Adoption of new technologies to improve vessel efficiency and reduce emissions.
  • Strategic Relationships: Leveraging GasLog’s relationships and reputation in the shipping industry.

Potential Implications

Company Performance

  • Continued pressure on revenue due to market volatility and charter rate fluctuations.
  • Potential for increased profitability through cost management and operational efficiencies.
  • Exposure to regulatory risks and compliance costs related to environmental regulations.
  • Dependence on strategic relationships and capital support from GasLog.
  • Opportunity to capitalize on growing LNG demand and technological advancements.

Stock Price

  • Potential negative impact from revenue decline and market volatility.
  • Potential positive impact from increased profitability and efficient asset utilization.
  • Sensitivity to changes in charter rates and LNG demand.
  • Influence of GasLog’s performance and strategic decisions.

SEC Filing Report: GasLog Partners LP – Form 20-F (2024)

Executive Summary

This report analyzes GasLog Partners LP’s Form 20-F filing for the fiscal year ended December 31, 2024. Key findings include a decrease in revenue, an impairment loss, and ongoing risks related to the LNG carrier business. The overall assessment suggests a cautious approach due to market volatility and dependence on a limited number of customers. Recommendations include close monitoring of charter rates, risk management, and diversification efforts.

Company Overview

GasLog Partners LP is a Marshall Islands-based limited partnership focused on owning, operating, and acquiring LNG carriers. The company’s fleet consists of 14 LNG carriers, including vessels with TFDE and Steam propulsion technology. GasLog Partners operates in a competitive market, relying on time charters for revenue generation. Recent developments include the completion of the GasLog Partners Transaction, making it a wholly-owned subsidiary of GasLog Ltd., and the GIC Transaction, where GIC acquired GEPIF’s ownership interest in GasLog.

Financial Statement Analysis

Revenue

Revenues decreased by $41.5 million (10.4%) from 2023 to 2024, primarily due to lower charter rates and idle days. The average daily hire rate decreased from $80,927 in 2023 to $71,238 in 2024.

Expenses

Vessel operating costs increased slightly by $1.9 million (2.8%), mainly due to increased scheduled technical and maintenance costs. General and administrative expenses decreased by $6.4 million (28.1%), primarily due to lower legal and professional fees and amortization of share-based compensation.

Profitability

Profit for the year increased by $12.3 million (8.9%) from 2023 to 2024, reaching $150.9 million. This increase was driven by lower financial costs, partially offset by decreased revenue and an impairment loss.

Key Ratios

Ratio 2023 2024 Trend
Average Daily Hire Rate $80,927 $71,238 Decreasing
Daily Operating Costs per Vessel $13,264 $13,609 Increasing

Cash Flow

Net cash provided by operating activities increased by $7.5 million, from $262.4 million in 2023 to $269.9 million in 2024. Net cash used in financing activities decreased by $185.0 million, from $598.4 million in 2023 to $413.4 million in 2024, mainly due to lower bank loan repayments and distributions paid.

Management’s Discussion and Analysis (MD&A) Insights

Management attributes the decrease in revenue to lower charter rates and idle days. They highlight the importance of securing new multi-year charters at economically attractive rates. The MD&A also emphasizes the impact of environmental regulations and climate change on the LNG shipping industry.

Risk Assessment

Key Risks Identified:

  • LNG Carrier Market Volatility: Dependence on charter rates, which are subject to fluctuations outside the company’s control.
  • Oversupply of LNG Carriers: Excessive new ordering may lead to reduced charter hire rates.
  • Environmental Regulations: Increasingly stringent environmental regulations may result in substantial compliance costs.
  • Customer Concentration: Reliance on a limited number of customers poses a risk if any customer is lost.
  • Relationship with GasLog: Dependence on GasLog for capital support and potential conflicts of interest.

Opportunity Assessment

Potential Opportunities:

  • LNG Demand Growth: Continued growth in LNG production and demand for LNG shipping.
  • Technological Advancements: Adoption of new technologies to improve vessel efficiency and reduce emissions.
  • Strategic Relationships: Leveraging GasLog’s relationships and reputation in the shipping industry.

Conclusion & Actionable Insights

GasLog Partners LP faces challenges related to market volatility, environmental regulations, and customer concentration. While opportunities exist in LNG demand growth and technological advancements, a cautious approach is warranted. Recommendations include:

  • Monitor Charter Rates: Closely track LNG carrier charter rates and market conditions.
  • Manage Risks: Implement robust risk management strategies to mitigate the impact of market fluctuations and regulatory changes.
  • Diversify Customer Base: Explore opportunities to diversify the customer base and reduce reliance on a limited number of clients.
  • Focus on Efficiency: Invest in technologies and operational improvements to enhance vessel efficiency and reduce emissions.

Overall Assessment: Hold. The company’s performance is subject to significant market risks, but potential opportunities exist for future growth.

Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis is based on publicly available information and assumptions, which may be subject to change. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.

Financial Analysis of GasLog Partners LP

1. Commentary

GasLog Partners LP’s financial performance shows mixed results. Revenues decreased from $397.84 million in 2023 to $356.26 million in 2024, while profit for the year increased from $138.71 million to $150.95 million. The company experienced a significant decrease in financial costs, contributing to the increased profit. Impairment losses also increased, reflecting potential challenges in asset valuation. The company’s strategic focus appears to be shifting towards optimizing profitability amidst revenue fluctuations.

2. Financial Ratio and Metric Analysis

Profitability

Gross Profit Margin

  • Metric: Calculated as (Revenue – Voyage Expenses and Commissions – Vessel Operating Costs) / Revenue.
  • 2023: ($397,838 – $10,998 – $67,753) / $397,838 = 80.19%
  • 2024: ($356,262 – $9,141 – $69,731) / $356,262 = 78.98%
  • Trend: Decreased from 80.19% to 78.98%, a change of -1.51%.
  • Industry: The average gross profit margin for the marine transportation industry typically ranges from 20% to 50%. GasLog Partners LP’s gross profit margin is significantly higher, indicating strong operational efficiency and pricing strategies.

Operating Profit Margin

  • Metric: Calculated as Profit from Operations / Revenue.
  • 2023: $319,087 / $397,838 = 49.43%
  • 2024: $278,800 / $356,262 = 43.66%
  • Trend: Decreased from 49.43% to 43.66%, a change of -11.67%.
  • Industry: A good operating margin for the marine transportation industry is typically between 10% and 20%. GasLog Partners LP’s operating margin is substantially higher, suggesting effective cost management relative to its peers, although the decrease indicates a potential erosion of this advantage.

Net Profit Margin

  • Metric: Calculated as Profit for the Year / Revenue.
  • 2023: $138,709 / $397,838 = 34.87%
  • 2024: $150,950 / $356,262 = 42.36%
  • Trend: Increased from 34.87% to 42.36%, a change of 21.48%.
  • Industry: The average net profit margin for the marine transportation industry is typically between 5% and 15%. GasLog Partners LP’s net profit margin is significantly higher, indicating strong overall profitability.

Return on Assets (ROA)

  • Metric: Calculated as Profit for the Year / Total Assets.
  • 2023: $138,709 / $1,666,239 = 8.32%
  • 2024: $150,950 / $1,446,117 = 10.44%
  • Trend: Increased from 8.32% to 10.44%, a change of 25.48%.
  • Industry: The average ROA for the marine transportation industry is typically between 2% and 5%. GasLog Partners LP’s ROA is substantially higher, indicating efficient asset utilization.

Return on Equity (ROE)

  • Metric: Calculated as Profit for the Year / Total Partners’ Equity.
  • 2023: $138,709 / $1,520,416 = 9.12%
  • 2024: $150,950 / $1,296,703 = 11.64%
  • Trend: Increased from 9.12% to 11.64%, a change of 27.63%.
  • Industry: The average ROE for the marine transportation industry is typically between 5% and 15%. GasLog Partners LP’s ROE is within this range, indicating reasonable returns to equity holders.

Earnings Per Share (EPS) – Basic and Diluted

  • Metric: Calculated as Profit for the Year / Number of Common Units Outstanding.
  • 2023: $138,709 / 16,036,602 = $8.65
  • 2024: $150,950 / 16,036,602 = $9.41
  • Trend: Increased from $8.65 to $9.41, a change of 8.79%.
  • Industry: EPS varies significantly within the marine transportation industry. A higher EPS generally indicates better profitability and value for shareholders.

Liquidity

Current Ratio

  • Metric: Calculated as Total Current Assets / Total Current Liabilities.
  • 2023: $60,244 / $80,349 = 0.75
  • 2024: $38,273 / $84,258 = 0.45
  • Trend: Decreased from 0.75 to 0.45, a change of -40%.
  • Industry: A current ratio between 1.5 and 2.0 is generally considered healthy for the marine transportation industry. GasLog Partners LP’s current ratio is below this range, indicating potential liquidity challenges.

Quick Ratio (Acid-Test Ratio)

  • Metric: Calculated as (Total Current Assets – Inventories) / Total Current Liabilities.
  • 2023: ($60,244 – $2,912) / $80,349 = 0.71
  • 2024: ($38,273 – $2,725) / $84,258 = 0.42
  • Trend: Decreased from 0.71 to 0.42, a change of -40.85%.
  • Industry: A quick ratio of 1.0 or higher is generally considered ideal. GasLog Partners LP’s quick ratio is below this benchmark, suggesting potential short-term liquidity concerns.

Cash Ratio

  • Metric: Calculated as Cash and Cash Equivalents / Total Current Liabilities.
  • 2023: $11,887 / $80,349 = 0.15
  • 2024: $7,771 / $84,258 = 0.09
  • Trend: Decreased from 0.15 to 0.09, a change of -40%.
  • Industry: A cash ratio of 0.5 or higher is generally considered strong. GasLog Partners LP’s cash ratio is significantly below this level, indicating limited immediate liquidity to cover current liabilities.

Solvency/Leverage

Debt-to-Equity Ratio

  • Metric: Calculated as Total Liabilities / Total Partners’ Equity. Total Liabilities = Total Assets – Total Partners’ Equity
  • 2023: ($1,666,239 – $1,520,416) / $1,520,416 = 0.096
  • 2024: ($1,446,117 – $1,296,703) / $1,296,703 = 0.115
  • Trend: Increased from 0.096 to 0.115, a change of 19.79%.
  • Industry: A debt-to-equity ratio between 0.5 and 1.5 is common in the marine transportation industry. GasLog Partners LP’s ratio is significantly lower, indicating conservative leverage.

Debt-to-Assets Ratio

  • Metric: Calculated as Total Liabilities / Total Assets.
  • 2023: ($1,666,239 – $1,520,416) / $1,666,239 = 0.087
  • 2024: ($1,446,117 – $1,296,703) / $1,446,117 = 0.103
  • Trend: Increased from 0.087 to 0.103, a change of 18.39%.
  • Industry: A debt-to-assets ratio below 0.6 is generally considered healthy. GasLog Partners LP’s ratio is well below this level, indicating low financial risk.

Interest Coverage Ratio (Times Interest Earned)

  • Metric: Calculated as Profit from Operations / Interest Expense on Leases.
  • 2023: $196,645 / $3,785 = 51.95
  • 2024: $155,590 / $4,662 = 33.37
  • Trend: Decreased from 51.95 to 33.37, a change of -35.77%.
  • Industry: An interest coverage ratio above 3.0 is generally considered strong. GasLog Partners LP’s ratio is very high, indicating a strong ability to meet its interest obligations.

Activity/Efficiency

Asset Turnover

  • Metric: Calculated as Revenue / Total Assets.
  • 2023: $397,838 / $1,666,239 = 0.24
  • 2024: $356,262 / $1,446,117 = 0.25
  • Trend: Increased from 0.24 to 0.25, a change of 4.17%.
  • Industry: The average asset turnover ratio for the marine transportation industry is typically between 0.2 and 0.5. GasLog Partners LP’s asset turnover is within this range, indicating moderate efficiency in asset utilization.

Valuation

Note: Valuation ratios require market capitalization data, which is not provided in the filing. Therefore, these ratios cannot be accurately calculated.

Price-to-Earnings Ratio (P/E)

  • Metric: Market Cap / Net Income.
  • Limitation: Market Cap data not provided.

Price-to-Book Ratio (P/B)

  • Metric: Market Cap / Total Partners’ Equity.
  • Limitation: Market Cap data not provided.

Price-to-Sales Ratio (P/S)

  • Metric: Market Cap / Revenue.
  • Limitation: Market Cap data not provided.

Enterprise Value to EBITDA (EV/EBITDA)

  • Metric: (Market Cap + Total Debt – Cash) / EBITDA.
  • Limitation: Market Cap data not provided.

Growth Rates

Revenue Growth

  • Metric: (Current Year Revenue – Previous Year Revenue) / Previous Year Revenue.
  • 2024: ($356,262 – $397,838) / $397,838 = -10.45%
  • Trend: Revenue decreased by 10.45%.
  • Industry: Revenue growth varies significantly in the marine transportation industry, depending on market conditions and charter rates.

Net Income Growth

  • Metric: (Current Year Net Income – Previous Year Net Income) / Previous Year Net Income.
  • 2024: ($150,950 – $138,709) / $138,709 = 8.82%
  • Trend: Net income increased by 8.82%.
  • Industry: Net income growth varies significantly in the marine transportation industry, depending on market conditions and charter rates.

EPS Growth

  • Metric: (Current Year EPS – Previous Year EPS) / Previous Year EPS.
  • 2024: ($9.41 – $8.65) / $8.65 = 8.79%
  • Trend: EPS increased by 8.79%.
  • Industry: EPS growth varies significantly in the marine transportation industry, depending on market conditions and charter rates.

Other Relevant Metrics

No company-specific KPIs or non-GAAP metrics were provided in the filing.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️