LONDON, UK / ACCESSWIRE / September 19, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for GasLog Partners L.P. (NYSE: GLOP), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=GLOP. The Company announced on September 15, 2017, with GasLog Ltd (NYSE: GLOG), that they have collectively approved an agreement for the Partnership to purchase 100% of the shares in the entity that owns and charters Solaris. The net purchase price for the agreement is reported to be $185.9 million, which includes $1 million for positive net working capital balances to be transferred with the vessel. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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The Announcement
GasLog Partners plans to finance the acquisition with the cash on hand and the assumption of $117 million debt of Solaris. Solaris is a 155,000 cubic meter (cbm) tri-fuel electric LNG carrier built in 2014. The vessel is currently on a multi-year time charter with a wholly owned subsidiary of Royal Dutch Shell Plc through June 2021. Shell has two consecutive extension options, which, if exercised, would extend the charter for a period of either five or ten years.
The Company expects the acquisition to be immediately accretive to distributable cash flow per unit and is consistent with its strategy to grow cash distributions through dropdown and third-party acquisitions. The Companies estimate that Solaris will add about $20 million to earnings before interest, tax, depreciation, and amortization (EBITDA) in the first 12 months after closing. Solaris is the ninth LNG carrier the Company will have acquired from GasLog since its IPO, and its multi-year charter to Shell will deliver incremental visible cash flows.
The acquisition will expand the Company's fleet to 12 wholly-owned LNG carriers, and increase the contract days to about 90% for 2018 and 72% for 2019. The Companies have agreed upon sharing the vessels and the capital between GasLog Partners and GasLog Ltd, respectively. The transaction, according to the Company values Solaris at a premium to book value, allowing the Companies to strengthen their respective balance sheet and providing further funding for future profitable growth. GasLog Partners' fleet will consist of 12 LNG carriers with an average carrying capacity of about 154,000 cbm. GasLog's consolidated fleet consists of about 27 LNG carriers, where it has an additional LNG Carrier which was sold to a subsidiary of Mitsui Co. Ltd and leased back under a long-term bareboat charter.
Company Growth Prospects
Prior to the announcement, on March 23, 2017, GasLog Partners announced that it had entered into an agreement for the Company to purchase from GasLog Ltd, 100% of the shares in the entity that owns and charters GasLog Greece. The aggregate purchase price for the acquisition was $219 million, which included $1 million for positive net working capital balances to be transferred with the vessel.
The Company expected to finance the acquisition with cash on hand, and the assumption of $151 million of GasLog Greece's existing debt. GasLog Greece is a 174,000 cbm tri-fuel diesel electric LNG carrier built in 2016 and operated by GasLog Ltd since its delivery. The vessel is currently on a long-term time charter with a wholly owned subsidiary of Royal Dutch Shell Plc, through March 2026.
Last Close Stock Review
At the closing bell, on Monday, September 18, 2017, GasLog Partners' stock climbed 2.66%, ending the trading session at $23.15. A total volume of 998.22 thousand shares have exchanged hands, which was higher than the 3-month average volume of 137.41 thousand shares. The Company's stock price surged 1.54% in the past one month, 4.99% in the last three months, and 18.96% in the previous twelve months. Moreover, the stock rallied 12.65% since the start of the year. The stock is trading at a PE ratio of 10.84 and has a dividend yield of 8.81%. The stock currently has a market cap of $911.65 million.
On Monday, September 18, 2017, the stock closed the trading session at $16.90, rising slightly by 0.30% from its previous closing price of $16.85. A total volume of 195.88 thousand shares have exchanged hands. GasLog's stock price soared 20.28% in the last three months, 9.74% in the past six months, and 30.80% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 4.97%. The stock has a dividend yield of 3.31%. At Monday's closing price, the stock's net capitalization stands at $1.36 billion.
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