EX-99.3 4 tm2131005d1_ex99-3.htm EXHIBIT 99.3

 

Exhibit 99.3

 

GASLOG PARTNERS LP

 

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

  Page
Unaudited condensed consolidated statements of financial position as of December 31, 2020 and September 30, 2021 F-2
Unaudited condensed consolidated statements of profit or loss and total comprehensive income for the three and nine months ended September 30, 2020 and 2021 F-3
Unaudited condensed consolidated statements of changes in partners’ equity for the nine months ended September 30, 2020 and 2021 F-4
Unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2020 and 2021 F-5
Notes to the unaudited condensed consolidated financial statements F-6

 

F-1

 

 

GasLog Partners LP

 

Unaudited condensed consolidated statements of financial position

As of December 31, 2020 and September 30, 2021

(All amounts expressed in thousands of U.S. Dollars, except unit data)

 

    Note     December 31,  
2020  		     September 30,
2021  		  
Assets                        
Non-current assets                        
Other non-current assets             186       109  
Tangible fixed assets     4       2,206,618       2,011,079  
Right-of-use assets             516       439  
Total non-current assets             2,207,320       2,011,627  
Current assets                        
Vessel held for sale     4       —       145,564  
Trade and other receivables             16,265       11,988  
Inventories             3,036       3,024  
Prepayments and other current assets             2,691       1,245  
Cash and cash equivalents             103,736       110,208  
Total current assets             125,728       272,029  
Total assets             2,333,048       2,283,656  
Partners’ equity and liabilities                        
Partners’ equity                        
Common unitholders (47,517,824 units issued and outstanding as of December 31, 2020 and 51,137,201 units issued and outstanding as of September 30, 2021)     5       594,901       656,365  
General partner (1,021,336 units issued and outstanding as of December 31, 2020 and 1,077,494 units issued and outstanding as of September 30, 2021)     5       11,028       12,338  
Preference unitholders (5,750,000 Series A Preference Units, 4,600,000 Series B Preference Units and 4,000,000 Series C Preference Units issued and outstanding as of December 31, 2020 and 5,750,000 Series A Preference Units, 4,265,664 Series B Preference Units and 3,844,999 Series C Preference Units issued and outstanding as of September 30, 2021)     5       347,889       335,310  
Total partners’ equity             953,818       1,004,013  
Current liabilities                        
Trade accounts payable             13,578       16,592  
Due to related parties     3       7,525       3,881  
Derivative financial instruments—current portion     11       8,185       6,764  
Other payables and accruals     7       50,679       46,673  
Borrowings—current portion     6       104,908       195,653  
Lease liabilities—current portion             332       255  
Total current liabilities             185,207       269,818  
Non-current liabilities                        
Derivative financial instruments—non-current portion     11       12,152       6,217  
Borrowings—non-current portion     6       1,180,635       1,002,685  
Lease liabilities—non-current portion             112       154  
Other non-current liabilities             1,124       769  
Total non-current liabilities             1,194,023       1,009,825  
Total partners’ equity and liabilities             2,333,048       2,283,656  
                         

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-2

 

 

GasLog Partners LP

 

Unaudited condensed consolidated statements of profit or loss and total comprehensive income or loss

For the three and nine months ended September 30, 2020 and 2021

(All amounts expressed in thousands of U.S. Dollars, except per unit data)

 

       For the three months ended   For the nine months ended 
      Note   September 30, 2020   September 30, 2021   September 30, 2020   September 30, 2021 
Revenues   8    72,813    80,535    248,614    237,975 
Voyage expenses and commissions        (2,246)   (1,371)   (8,916)   (5,302)
Vessel operating costs   10    (19,327)   (18,555)   (55,315)   (56,406)
Depreciation   4    (20,577)   (21,281)   (61,850)   (62,765)
General and administrative expenses   9    (5,379)   (3,295)   (13,971)   (9,854)
Impairment loss on vessels        —    —    (18,841)   — 
Profit from operations        25,284    36,033    89,721    103,648 
Financial costs   12    (12,437)   (9,373)   (41,017)   (27,904)
Financial income        9    9    285    32 
(Loss)/gain on derivatives   12    (990)   (182)   (14,741)   734 
Total other expenses, net        (13,418)   (9,546)   (55,473)   (27,138)
Profit and total comprehensive income for the period        11,866    26,487    34,248    76,510 
                          
Earnings per unit, basic and diluted:   13                     
Common unit, basic        0.09    0.37    0.24    1.08 
Common unit, diluted        0.08    0.36    0.23    1.04 
General partner unit        0.09    0.37    0.24    1.09 
                          

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-3

 

 

GasLog Partners LP

 

Unaudited condensed consolidated statements of changes in partners’ equity

For the nine months ended September 30, 2020 and 2021

(All amounts expressed in thousands of U.S. Dollars, except unit data)

 

   General partner   Common unitholders   Class B unitholders   Preference  
unitholders		   Total
Partners’ 		 
   Units   Amounts   Units   Amounts   Units   Units   Amounts   equity 
Balance as of January 1, 2020   1,021,336    11,271    46,860,182    606,811    2,490,000    14,350,000    347,889    965,971 
Equity offering costs   —    —    —    (142)   —    —    —    (142)
Settlement of awards vested during the period   —    —    434,132    —    —    —    —    — 
Repurchases of common units   —    —    (191,490)   (996)   —    —    —    (996)
Conversion of Class B units to common units   —    —    415,000    —    (415,000)   —    —    — 
Distributions declared   —    (829)   —    (37,914)   —    —    (22,746)   (61,489)
Share-based compensation, net of accrued distribution   —    34    —    1,565    —    —    —    1,599 
Partnership’s profit and total comprehensive income (Note 13)   —    246    —    11,256    —    —    22,746    34,248 
Balance as of September 30, 2020   1,021,336    10,722    47,517,824    580,580    2,075,000    14,350,000    347,889    939,191 
                                         
Balance as of January 1, 2021   1,021,336    11,028    47,517,824    594,901    2,075,000    14,350,000    347,889    953,818 
Net proceeds from public offerings of common units and issuances of general partner units (Note 5)   56,158    205    3,195,401    9,637    —    —    —    9,842 
Settlement of awards vested during the period   —    —    8,976    —    —    —    —    — 
Repurchases of preference units (Notes 5, 13)   —    3    —    132    —    (489,337)   (12,496)   (12,361)
Conversion of Class B units to common units   —    —    415,000    —    (415,000)   —    —    — 
Distributions declared (Note 5)   —    (31)   —    (1,461)   —    —    (22,576)   (24,068)
Share-based compensation, net of accrued distribution   —    6    —    266    —    —    —    272 
Partnership’s profit and total comprehensive income (Note 13)   —    1,127    —    52,890    —    —    22,493    76,510 
Balance as of September 30, 2021   1,077,494    12,338    51,137,201    656,365    1,660,000    13,860,663    335,310    1,004,013 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-4

 

 

GasLog Partners LP

 

Unaudited condensed consolidated statements of cash flows

For the nine months ended September 30, 2020 and 2021

(All amounts expressed in thousands of U.S. Dollars)

 

          For the nine months ended  
    Note     September 30,  
2020  		     September
 30, 2021  		  
              (restated)(1)          
Cash flows from operating activities:                        
Profit for the period             34,248        76,510  
Adjustments for:                        
Depreciation     4       61,850        62,765  
Impairment loss on vessels             18,841       —  
Financial costs     12       41,017       27,904  
Financial income             (285 )     (32 )
Loss/(gain) on derivatives (excluding realized loss on forward foreign exchange contracts held for trading)     12       14,448       (734 )
Share-based compensation     9       1,833       266  
              171,952       166,679  
Movements in working capital             (11,736 )     7,897  
Net cash provided by operating activities             160,216        174,576  
Cash flows from investing activities:                        
Payments for tangible fixed asset additions             (19,002 )     (15,419 )
Financial income received             316       32  
Maturity of short-term investments             —       2,500  
Purchase of short-term investments             —       (2,500 )
Net cash used in investing activities             (18,686 )     (15,387 )
Cash flows from financing activities:                        
Borrowings drawdowns     6       479,984       —  
Borrowings repayments     6       (521,880 )     (90,853 )
Interest paid             (42,906 )     (35,277 )
Payments of cash collateral for interest rate swaps             (16,730 )     —  
Release of cash collateral for interest rate swaps             9,170       280  
Payment of loan issuance costs             (6,914 )     —  
Proceeds from entering into interest rate swaps             16,056       —  
Payments for interest rate swaps termination             (13,210 )     —  
Proceeds from public offerings of common units and issuances of general partner units (net of underwriting discounts and commissions)     5       —       10,205  
Repurchases of common and preference units     5       (996 )     (12,361 )
Payment of offering costs             (119 )     (333 )
Distributions paid     5       (61,489 )     (24,068 )
Payments for lease liabilities             (419 )     (310 )
Net cash used in financing activities             (159,453 )     (152,717 )
(Decrease)/increase in cash and cash equivalents             (17,923 )     6,472  
Cash and cash equivalents, beginning of the period             96,884       103,736  
Cash and cash equivalents, end of the period             78,961       110,208  
                         
Non-cash investing and financing activities:                        
Capital expenditures included in liabilities at the end of the period             10,772        10,279  
Financing costs included in liabilities at the end of the period             7        51  
Offering costs included in liabilities at the end of the period             37        30  

 

 

(1)Restated so as to reflect a change in accounting policy introduced on January 1, 2021, with respect to the reclassification of interest paid and movements of cash collateral for interest rate swaps (Note 2).

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-5

 

 

 

GasLog Partners LP

 

Notes to the unaudited condensed consolidated financial statements 

For the nine months ended September 30, 2020 and 2021 

(All amounts expressed in thousands of U.S. Dollars, except unit data)

 

1. Organization and Operations

 

GasLog Partners LP (“GasLog Partners” or the “Partnership”) was formed as a limited partnership under the laws of the Marshall Islands on January 23, 2014, as a wholly owned subsidiary of GasLog Ltd. (“GasLog” or the “Parent”) for the purpose of initially acquiring the interests in three liquefied natural gas (“LNG”) carriers (or the “Initial Fleet”) that were contributed to the Partnership by GasLog in connection with the initial public offering of its common units (the “IPO”).

 

As of September 30, 2021, GasLog holds a 33.3% ownership interest in the Partnership (including 2.0% through its general partner interest). As a result of its 100% ownership of the general partner, and the fact that the general partner elects the majority of the Partnership’s directors in accordance with the Partnership Agreement, GasLog has the ability to control the Partnership’s affairs and policies.

 

The Partnership’s principal business is the acquisition and operation of LNG vessels, providing LNG transportation services on a worldwide basis primarily under multi-year charters. GasLog LNG Services Ltd. (“GasLog LNG Services” or the “Manager”), a related party and a wholly owned subsidiary of GasLog, incorporated under the laws of Bermuda, provides technical and commercial services to the Partnership. As of September 30, 2021, the Partnership owned 15 LNG vessels.

 

The accompanying unaudited condensed consolidated financial statements include the financial statements of GasLog Partners and its subsidiaries, which are 100% owned by the Partnership. No new subsidiaries were established or acquired in the nine months ended September 30, 2021.

  

 

2. Basis of Presentation

  

These unaudited condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). Certain information and footnote disclosures required by IFRS for a complete set of annual financial statements have been omitted, and, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the Partnership’s annual consolidated financial statements for the year ended December 31, 2020, filed on an Annual Report on Form 20-F with the Securities Exchange Commission on March 2, 2021.

  

The unaudited condensed consolidated financial statements have been prepared on the historical cost basis, except for the revaluation of derivative financial instruments. The same accounting policies and methods of computation have been followed in these unaudited condensed consolidated financial statements as applied in the preparation of the Partnership’s consolidated financial statements for the year ended December 31, 2020, with the exception of (a) a reclassification in the consolidated statements of cash flows and (b) the implementation of the “Non-current assets held for sale” accounting policy, which are both set out below. On October 27, 2021, the Partnership’s board of directors authorized the unaudited condensed consolidated financial statements for issuance.

 

(a) Reclassification in the consolidated statements of cash flows

 

Until December 31, 2020, interest paid and movements of cash collateral were presented in the consolidated statement of cash flows under cash provided by operating activities. IAS 7 Cash Flow Statement does not dictate how interest cash flows should be classified, but rather allows an entity to determine the classification appropriate to its business. The standard permits entities to present payments for interest under either operating or financing activities, provided that the elected presentation is applied consistently from period to period. In 2021, management, after reviewing the Exposure Draft General Presentation and Disclosures issued by the IASB in December 2019, elected to reclassify interest paid including cash paid for interest rate swaps held for trading and the movements of cash collateral related to the Partnership’s interest rate swaps under cash used in financing activities, in conformity with the proposal of the Exposure Draft to reduce presentation alternatives and classify interest paid as a cash flow arising from financing activities. Management believes that the revised classification provides more relevant information to users, as it better reflects management’s view of the financing nature of these transactions. Comparative figures have been retrospectively adjusted to reflect this change in policy in the statement of cash flows, as follows:

 

   Nine months ended September 30, 2020 
   As previously reported   Adjustments   As restated 
Net cash provided by operating activities   109,750    50,466    160,216 
Net cash used in investing activities   (18,686)   —    (18,686)
Net cash used in financing activities   (108,987)   (50,466)   (159,453)
Decrease in cash and cash equivalents   (17,923)   —    (17,923)

 

(b) Non-current assets held for sale

  

Non-current assets (such as vessels) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell. An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less costs to sell. A

 

F-6

 

 

gain is recognized for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset is recognized at the date of derecognition. Non-current assets held for sale are presented separately from the other assets in the statement of financial position and are not depreciated or amortized while they are classified as held for sale.

 

The critical accounting judgments and key sources of estimation uncertainty were disclosed in the Partnership’s annual consolidated financial statements for the year ended December 31, 2020 and remain unchanged.

 

The unaudited condensed consolidated financial statements are expressed in thousands of U.S. Dollars (“USD”), which is the functional currency of the Partnership and each of its subsidiaries because their vessels operate in international shipping markets, in which revenues and expenses are primarily settled in USD and the Partnership’s most significant assets and liabilities are paid for and settled in USD.

 

As of September 30, 2021, the Partnership’s current assets totaled $272,029 while current liabilities totaled $269,818, resulting in a positive working capital position of $2,211. In considering going concern, management has reviewed the Partnership’s future cash requirements, covenant compliance and earnings projections.

 

Management monitors the Partnership’s liquidity position throughout the year to ensure that it has access to sufficient funds to meet its forecast cash requirements, including debt service commitments, and to monitor compliance with the financial covenants within its loan facilities. Management anticipates that the Partnership’s primary sources of funds for at least twelve months from the date of this report will be available cash, cash from operations and existing debt facilities, as well as the sale and lease-back transaction concluded in October 2021 that released incremental net liquidity of $20,121. Management believes that these anticipated sources of funds, as well as its ability to access the debt or equity capital markets if needed, will be sufficient for the Partnership to meet its liquidity needs and comply with its banking covenants for at least twelve months from the date of this report and therefore it is appropriate to prepare the financial statements on a going concern basis. Additionally, the Partnership may enter into new debt facilities in the future, as well as public equity or debt instruments, although there can be no assurance that the Partnership will be able to obtain additional debt or equity financing on terms acceptable to the Partnership, which will also depend on financial, commercial and other factors, as well as a significant recovery in capital market conditions and a sustainable improvement in the LNG charter market, that are beyond the Partnership’s control.

 

 

Adoption of new and revised IFRS

 

(a) Standards and interpretations adopted in the current period

 

In August 2020, the IASB issued the Phase 2 amendments to IFRS 9 Financial Instruments, IFRS 7 Financial Instruments: Disclosures, IFRS 4 and IFRS 16 in connection with the Phase 2 of the interest rate benchmark reform. The amendments address the issues arising from the implementation of the reforms, including the replacement of one benchmark with an alternative one. The amendments are effective for annual periods beginning on or after January 1, 2021 and did not have a material impact on the Partnership’s consolidated financial statements.

 

There were no other IFRS standards or amendments that became effective in the current period which were relevant to the Partnership or material with respect to the Partnership’s financial statements.

 

(b) Standards and amendments in issue not yet adopted

 

In January 2020, the IASB issued a narrow-scope amendment to IAS 1 Presentation of Financial Statements, to clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (for example, the receipt of a waiver or a breach of covenant). The amendment also defines the “settlement” of a liability as the extinguishment of a liability with cash, other economic resources or an entity’s own equity instruments. The amendment will be effective for annual periods beginning on or after January 1, 2022 and should be applied retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Earlier application is permitted. Management anticipates that this amendment will not have a material impact on the Partnership’s financial statements.

 

At the date of authorization of these unaudited condensed consolidated financial statements, there were no other IFRS standards and amendments issued but not yet adopted with an expected material effect on the Partnership’s financial statements.

  

 

3. Related party transactions

  

The Partnership has the following balances with related parties, which have been included in the unaudited condensed consolidated statements of financial position:

 

Amounts due to related parties        
   December 31, 2020   September 30, 2021 
Due to GasLog LNG Services (a)   7,361    2,775 
Due to GasLog (b)   164    1,106 
Total   7,525    3,881 

 

(a)The balances represent mainly payments made by GasLog LNG Services on behalf of the Partnership.

 

F-7

 

 

(b)The balances represent mainly payments made by GasLog on behalf of the Partnership.

 

Loans due to related parties

 

The main terms of the revolving credit facility of $30,000 with GasLog (the “Sponsor Credit Facility”) have been disclosed in the annual consolidated financial statements for the year ended December 31, 2020. Refer to Note 6 “Borrowings”.

 

As of December 31, 2020 and September 30, 2021, the amount outstanding under the Sponsor Credit Facility was nil.

  

The main terms of the Partnership’s related party transactions, including the commercial management agreements, administrative services agreement and ship management agreements with GasLog and GasLog LNG Services, have been disclosed in the annual consolidated financial statements for the year ended December 31, 2020. Refer to Note 13 “Related Party Transactions”.

 

The Partnership had the following transactions with such related parties, which have been included in the unaudited condensed consolidated statements of profit or loss for the three and nine months ended September 30, 2020 and 2021:

 

         For the three months ended   For the nine months ended 
Company  Details  Account  September 30,
2020		   September 30,
2021		   September 30,
2020		   September 30,
2021		 
GasLog/ GasLog LNG Services(i)  Commercial management fees  General and administrative expenses   1,350    1,350    4,050    4,050 
GasLog  Administrative services fees(ii)  General and administrative expenses   1,960    1,177    5,879    3,531 
GasLog LNG Services  Management fees  Vessel operating costs   1,932    1,932    5,796    5,796 
GasLog LNG Services  Other vessel operating costs  Vessel operating costs   5    —    35    10 
GasLog  Commitment fee under Sponsor Credit Facility  Financial costs   76    77    228    228 
GasLog  Realized loss on interest rate swaps held for trading (Note 12)  (Loss)/gain on derivatives   2,029    947    3,154    3,639 
GasLog  Realized (gain)/loss on forward foreign exchange contracts held for trading (Note 12)  (Loss)/gain on derivatives   (116)   —    293    — 

 

 

 

(i)Effective July 21, 2020, October 1, 2020 and November 1, 2020, the commercial management agreements between the vessel-owning entities and GasLog were novated to GasLog LNG Services as the provider of commercial management services.

 

(ii)Effective January 1, 2021, the administrative services fee was reduced to $314 per vessel per year, from $523 effective since January 1, 2020.

 

4. Tangible Fixed Assets and Vessel Held for Sale

 

The movement in tangible fixed assets (i.e. vessels and their associated depot spares) is reported in the following table:

 

 

   Vessels   Other tangible
assets		   Total tangible fixed
assets		 
Cost               
As of January 1, 2021   2,873,829    2,719    2,876,548 
Additions   11,677    760    12,437 
Fully amortized dry-docking component   (14,512)   —    (14,512)
Transfer under Vessel held for sale   (190,295)   —    (190,295)
As of September 30, 2021   2,680,699    3,479    2,684,178 
                
Accumulated depreciation               
As of January 1, 2021   669,930    —    669,930 
Depreciation expense   62,412    —    62,412 
Fully amortized dry-docking component   (14,512)   —    (14,512)
Transfer under Vessel held for sale   (44,731)   —    (44,731)
As of September 30, 2021   673,099    —    673,099 
                
Net book value               
As of December 31, 2020   2,203,899    2,719    2,206,618 
As of September 30, 2021   2,007,600    3,479    2,011,079 

 

All vessels have been pledged as collateral under the terms of the Partnership’s credit facilities.

 

F-8

 

 

As of September 30, 2021, the board of directors of the Partnership approved the sale and lease-back transaction of the GasLog Shanghai with a wholly-owned subsidiary of China Development Bank Leasing (“CDBL”), which was completed on October 26, 2021 (Note 15). All criteria outlined by IFRS 5 Non-current Assets Held for Sale and Discontinued Operations were deemed to have been met as of the reporting date. As a result, the carrying amount of the GasLog Shanghai ($145,564) was reclassified as a “Vessel held for sale” (within current assets) and remeasured at the lower of its carrying amount and fair value less costs to sell, with no impairment losses recognized.

 

As of September 30, 2021, the Partnership concluded that there were no events or circumstances triggering the existence of potential impairment or reversal of impairment of its remaining vessels.

  

 

5. Partners’ Equity

 

The Partnership’s cash distributions for the nine months ended September 30, 2021 are presented in the following table:

 

       
Declaration date  Type of units  Distribution per unit   Payment date  Amount paid 
January 27, 2021  Common     $0.01   February 11, 2021   485 
February 19, 2021  Preference (Series A, B, C)   $0.5390625, $0.5125, $0.53125   March 15, 2021   7,582 
April 28, 2021  Common     $0.01   May 13, 2021   485 
May 13, 2021  Preference (Series A, B, C)   $0.5390625, $0.5125, $0.53125   June 14, 2021   7,582 
July 26, 2021  Common     $0.01   August 12, 2021   522 
July 26, 2021  Preference (Series A, B, C)   $0.5390625, $0.5125, $0.53125   September 13, 2021   7,412 
           Total  $24,068 

 

On April 6, 2021, GasLog Partners issued 8,976 common units in connection with the vesting of 5,984 Restricted Common Units (“RCUs”) and 2,992 Performance Common Units (“PCUs”) under its 2015 Long-Term Incentive Plan (the “2015 Plan”).

  

In addition, under the Partnership’s ATM Common Equity Offering Programme (“ATM Programme”), there was an issuance of 3,195,401 additional common units in the nine months ended September 30, 2021, for total net proceeds of $9,637. During this period, the Partnership also issued 56,158 general partner units to its general partner in order for GasLog to retain its 2.0% general partner interest for net proceeds of $205.

  

On July 1, 2021, GasLog Partners issued 415,000 common units in connection with GasLog’s option to convert the second tranche of its Class B units issued upon the elimination of incentive distributions rights in June 2019.

  

Finally, under the Partnership’s preference unit repurchase programme established in March 2021 and covering the period March 11, 2021 to March 31, 2023, GasLog Partners repurchased and cancelled a total of 334,336 Series B Preference Units and 155,001 Series C Preference Units at a weighted average price below par of $24.64 per Series B Preference Unit and $24.89 per Series C Preference Unit, respectively. The aggregate amount repaid during the period for repurchases of preference units was $12,361, including commissions and an amount of $239 with respect to 9,500 Series B Preference Units, the repurchase of which was completed on October 1, 2021 (Note 15).

  

6. Borrowings

 

   December 31, 2020  

September 30, 2021

 
Amounts due within one year   109,673    200,543 
Less: unamortized deferred loan issuance costs   (4,765)   (4,890)
Borrowings – current portion   104,908    195,653 
Amounts due after one year   1,195,241    1,013,518 
Less: unamortized deferred loan issuance costs   (14,606)   (10,833)
Borrowings – non-current portion   1,180,635    1,002,685 
Total   1,285,543    1,198,338 

 

The main terms of the credit facilities, including financial covenants, and the Sponsor Credit Facility have been disclosed in the annual consolidated financial statements for the year ended December 31, 2020. Refer to Note 6 “Borrowings”.

  

In the nine months ended September 30, 2021, the Partnership repaid $90,853 in accordance with the repayment terms under its credit facilities. In connection with the de-listing of the Parent’s common shares from the New York Stock Exchange completed in June 2021, supplemental agreements have been signed with certain of the Partnership’s lenders with respect to clauses relating to its Parent, GasLog. All costs relating to such amendments have been covered by GasLog directly.

  

The current portion of borrowings includes an amount of $96,427 (debt less unamortized loan issuance costs) with respect to the GasLog Shanghai, which was classified under “Vessel held for sale” as of September 30, 2021 (Note 4).

  

GasLog Partners was in compliance with its financial covenants as of September 30, 2021.

 

F-9

 

 

 

7. Other Payables and Accruals

 

An analysis of other payables and accruals is as follows:

 

   December 31,
2020		  

September 30,
2021

Unearned revenue   25,828    25,721
Accrued off-hire   1,802    3,497
Accrued purchases   4,187    3,909
Accrued interest   10,855    6,521
Other accruals   8,007    7,025
Total   50,679    46,673

  

8. Revenues

  

The Partnership has recognized the following amounts relating to revenues:

  

   For the three months ended   For the nine months ended
   September 30,
2020		   September 30,
2021		   September 30,
2020		   September 30,
2021
Revenues from long-term time charters   54,362    39,960    185,932    132,875
Revenues from spot time charters   18,451    40,575    62,682    105,100
Total   72,813    80,535    248,614    237,975

  

The Partnership defines long-term time charters as charter party agreements with an initial duration of more than five years (excluding any optional periods), while all charter party agreements of an initial duration of less than (or equal to) five years (excluding any optional periods) are classified as spot time charters.

 

9. General and Administrative Expenses

 

An analysis of general and administrative expenses is as follows:

 

   For the three months ended   For the nine months ended
   September 30,
2020		   September 30,
2021		   September 30,
2020		   September 30,
2021
Administrative services fees (Note 3)   1,960    1,177    5,879    3,531
Commercial management fees (Note 3)   1,350    1,350    4,050    4,050
Share-based compensation   1,174    99    1,833    266
Other expenses   895    669    2,209    2,007
Total   5,379    3,295    13,971    9,854

  

10. Vessel Operating Costs

  

An analysis of vessel operating costs is as follows:

  

   For the three months ended   For the nine months ended
   September 30,
2020		   September 30,
2021		   September 30,
2020		   September 30,
2021
Crew costs   9,312    10,324    26,931    28,971
Technical maintenance expenses   5,493    4,418    15,572    14,632
Other operating expenses   4,522    3,813    12,812    12,803
Total   19,327    18,555    55,315    56,406

  

11. Derivative Financial Instruments

  

The fair value of the Partnership’s derivative liabilities is as follows:

  

   December 31,
2020		   September 30,
2021
Derivative liabilities carried at fair value through profit or loss (FVTPL)         
Interest rate swaps   20,337    12,981
Total   20,337    12,981
Derivative financial instruments, current liability   8,185    6,764
Derivative financial instruments, non-current liability   12,152    6,217
Total   20,337    12,981

 

F-10 

 

 

Interest rate swap agreements

 

The Partnership enters into interest rate swap agreements which convert the floating interest rate exposure into a fixed interest rate in order to hedge a portion of the Partnership’s exposure to fluctuations in prevailing market interest rates. Under the interest rate swaps, the counterparty effects quarterly floating-rate payments to the Partnership for the notional amount based on the three-month USD London Interbank Offered Rate (“LIBOR”), and the Partnership effects quarterly payments to the counterparty on the notional amount at the respective fixed rates.

 

Interest rate swaps held for trading

  

The principal terms of the Partnership’s interest rate swaps held for trading as of December 31, 2020 have been disclosed in the annual audited consolidated financial statements for the year ended December 31, 2020. Refer to Note 17 “Derivative Financial Instruments”.

 

The derivative instruments of the Partnership were not designated as cash flow hedging instruments as of September 30, 2021. The change in the fair value of the interest rate swaps for the three and nine months ended September 30, 2021 amounted to a gain of $1,787 and a gain of $7,356, respectively (for the three and nine months ended September 30, 2020, a gain of $1,617 and a loss of $10,531, respectively), which was recognized in profit or loss in the period incurred and is included in (Loss)/gain on derivatives. During the three and nine months ended September 30, 2021, the gain of $1,787 and $7,356, respectively (Note 12), was attributable to changes in the USD LIBOR yield curve, which was used to calculate the present value of the estimated future cash flows, resulting in a decrease in derivative liabilities from interest rate swaps held for trading.

 

Forward foreign exchange contracts

 

The Partnership uses non-deliverable forward foreign exchange contracts to mitigate foreign exchange transaction exposures in Euros (“EUR”) and Singapore Dollars (“SGD”). Under these non-deliverable forward foreign exchange contracts, the counterparties settle the difference between the fixed exchange rate and the prevailing rate on the agreed notional amounts on the respective settlement dates. All forward foreign exchange contracts are considered by management to be part of economic hedge arrangements but have not been formally designated as such.

 

Forward foreign exchange contracts held for trading

 

During the nine months ended September 30, 2021, the Partnership did not enter any new forward foreign exchange contracts and the change in the fair value of forward foreign exchange contracts for the three and nine months ended September 30, 2021 was nil. The change in the fair value of such contracts for the three and nine months ended September 30, 2020 amounted to a gain of $265 and $196, respectively, which was recognized in profit or loss in the period incurred and is included in (Loss)/gain on derivatives (Note 12).

  

12. Financial Costs and (Loss)/Gain on Derivatives

  

An analysis of financial costs is as follows:

  

   For the three months ended   For the nine months ended
   September 30,
2020		   September 30,
2021		   September 30,
2020		   September 30,
2021
Amortization and write-off of deferred loan issuance costs   3,205    1,209    6,190    3,648
Interest expense on loans   9,094    7,538    33,994    23,137
Lease expense   7    5    26    14
Commitment fees   74    77    282    228
Other financial costs including bank commissions   57    544    525    877
Total financial costs   12,437    9,373    41,017    27,904

 

An analysis of loss/(gain) on derivatives is as follows:

  

   For the three months ended   For the nine months ended 
   September 30,
2020		   September 30,
2021		   September 30,
2020		   September 30,
2021		 
Unrealized (gain)/loss on interest rate swaps held for trading (Note 11)   (1,617)   (1,787)   10,531    (7,356)
Unrealized gain on forward foreign exchange contracts held for trading (Note 11)   (265)   —    (196)   — 
Realized loss on interest rate swaps held for trading   2,988    1,969    4,113    6,622 
Realized (gain)/loss on forward foreign exchange contracts held for trading   (116)   —    293    — 
Total loss/(gain) on derivatives   990    182    14,741    (734)

  

F-11 

 

 

13. Earnings per Unit (“EPU”)

  

The Partnership calculates earnings per unit by allocating reported profit for each period to each class of units based on the distribution policy for available cash stated in the Partnership Agreement.

  

Basic earnings per unit is determined by dividing profit for the period, after deducting preference unit distributions and adding any excess of the carrying amount of preference units over the fair value of the consideration paid to settle them, by the weighted average number of units outstanding during the period. Diluted earnings per unit is calculated by dividing the profit of the period attributable to common unitholders by the weighted average number of potential ordinary common units assumed to have been converted into common units, unless such potential ordinary common units have an antidilutive effect.

  

Earnings per unit is presented for the period in which the units were outstanding, with earnings calculated as follows:

  

   For the three months ended   For the nine months ended 
   September 30,
2020		   September 30,
2021		   September 30,
2020		   September 30,
2021		 
Profit for the period and Partnership’s profit   11,866    26,487    34,248    76,510 
Adjustment for:                    
Accrued preference unit distributions   (7,582)   (7,329)   (22,746)   (22,493)
Differences on repurchase of preference units   —    135    —    135 
Partnership’s profit attributable to:   4,284    19,293    11,502    54,152 
Common unitholders   4,193    18,895    11,256    53,022 
General partner   91    398    246    1,130 
Weighted average number of units outstanding (basic)                    
Common units   47,167,488    51,132,690    46,882,894    48,950,508 
General partner units   1,021,336    1,077,494    1,021,336    1,040,467 
Earnings per unit (basic)                    
Common unitholders   0.09    0.37    0.24    1.08 
General partner   0.09    0.37    0.24    1.09 
Weighted average number of units outstanding (diluted)                    
Common units*   49,552,917    53,167,016    49,521,584    51,151,079 
General partner units   1,021,336    1,077,494    1,021,336    1,040,467 
Earnings per unit (diluted)                    
Common unitholders   0.08    0.36    0.23    1.04 
General partner   0.09    0.37    0.24    1.09 

  

* Includes unvested awards with respect to the 2015 Plan and Class B units. After the conversion of the first and second tranches of 415,000 Class B units on July 1, 2020 and 2021, respectively, the remaining 1,660,000 Class B units will become eligible for conversion on a one-for-one basis into common units at GasLog’s option in four tranches of 415,000 units per annum on July 1 of 2022, 2023, 2024 and 2025.

  

14. Commitments and Contingencies

  

Future gross minimum lease payments receivable in relation to non-cancellable time charter agreements for vessels in operation as of September 30, 2021 are as follows (30 off-hire days are assumed when each vessel will undergo scheduled dry-docking; in addition, early redelivery of the vessels by the charterers or any exercise of the charterers’ options to extend the terms of the charters are not accounted for):

  

Period  September 30,
2021
Not later than one year   216,398
Later than one year and not later than two years   135,628
Later than two years and not later than three years   64,110
Later than three years and not later than four years   50,280
Later than four years and not later than five years   29,206
Total  $495,622

 

In September 2017 and July 2018, GasLog LNG Services entered into maintenance agreements with Wartsila Greece S.A. in respect of eight of the Partnership’s LNG carriers. The agreements ensure dynamic maintenance planning, technical support, security of spare parts supply, specialist technical personnel and performance monitoring.

  

In March 2019, GasLog LNG Services entered into an agreement with Samsung Heavy Industries Co., Ltd. (“Samsung”) in respect of eleven of the Partnership’s LNG carriers. The agreement covers the supply of ballast water management systems on board the vessels by Samsung and associated field, commissioning and engineering services for a firm period of six years. As of September 30, 2021, ballast water management systems had been installed on seven out of the eleven vessels.

  

Various claims, suits and complaints, including those involving government regulations, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, environmental claims, agents and insurers and from claims with suppliers relating to the

 

F-12 

 

 

operations of the Partnership’s vessels. Currently, management is not aware of any such claims or contingent liabilities requiring disclosure in the consolidated financial statements.

 

15. Subsequent Events

  

On October 1, 2021 and October 4, 2021, GasLog Partners completed the repurchase of an additional 13,700 Series B Preference Units at a weighted average price of $25.05 per unit under its preference unit repurchase programme.

 

On October 26, 2021, GasLog Partners’ subsidiary, GAS-three Ltd., completed the sale and leaseback of the GasLog Shanghai, a 155,000 cbm tri-fuel diesel electric (“TFDE”) LNG carrier, built in 2013, with CL Gas Three Limited (‘‘CL Gas Three”), a wholly-owned subsidiary of CDBL. The vessel was sold and leased back under a bareboat charter with CL Gas Three for a period of five years, with no repurchase option or obligation. The debt associated with the vessel was prepaid on October 26, 2021. The vessel remains on its charter with a subsidiary of Gunvor Group Ltd.

  

On October 26, 2021, the board of directors of GasLog Partners approved and declared a quarterly cash distribution of $0.01 per common unit for the quarter ended September 30, 2021. The cash distribution is payable on November 12, 2021 to all unitholders of record as of November 8, 2021. The aggregate amount of the declared distribution will be $522 based on the number of units issued and outstanding as of September 30, 2021.

 

F-13