GasLog Partners LP Common Units representing limited partnership interests

Good morning. My name is Myra, and I'll be your conference operator today. At this time, I would like to welcome everyone to the GOSLOG Partners Third Quarter 2021 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. And as a reminder, this conference call is being recorded. On today's call, our Paolo and Noisy Chief Executive Officer, and Acleas Tasioulis, Chief Financial Officer. Joseph Nelson, Head of Investor Relations, will begin your conference.

Good morning or good afternoon, and thank you for joining the GasLog Partners Third Quarter 2021 Earnings Conference Call. For your convenience, this 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 two 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 third quarter earnings press release. In addition, some of our remarks contain non-GAAP financial measures as defined by the SEC. A reconciliation of these measures is included in the appendix to this presentation. Paola will begin today's call with a review of the partnership's third quarter and outlook for 2022, following which Achilleus will walk you through the partnership's financials. Paolo will then provide an update on the LNG shipping and LNG commodity markets. We will then take questions on the partnership's third quarter. With that, I will now turn it over to Paolo Inoisi, CEO of Gaslog Partners. Paolo Inoisi Thank you, Joe, and welcome, everyone.

Please turn to slide four for Gaslog Partners' third quarter highlights. I'm pleased to report strong operational and financial performances under a tight backdrop for the energy shipping market. The fleet performed at approximately 100% availability, despite the continued challenges of COVID and the resulting crew change issues. Our revenues and cash flow improved significantly on a year-on-year basis, following four new charter agreements announced in recent months, as well as ongoing cost control efforts. With a purchase of over $12 million of our preference units in the open market at a discount to par, further supporting a reduction in our fleet crash break-even rate. The Gaslow Shanghai was sold and leased back to China Development Bank Leasing, releasing $20 million of incremental liquidity. And finally, we retired another $36 million of debt during the quarter, bringing the total to $91 million during the first nine months of the year. Turn into slide five and look at how the landscape for LNG shipping has changed over the last 12 months. Looking back at the last year and the LNG commodity market was expected to have an excess of supply until at least mid-2020, with persistent low prices and regional price differentials. LNG inventories were high around the world. The shipping market was expected to be oversupplied due to a heavy delivery schedule. The term charter market wasn't very active, and both terms and spot rates were well below the mid-cycle. Today, we're in a completely different market. Energy commodity demand is moving as many regions around the world cope with an energy crisis. Energy prices and differentials are consequently at record high. Term charter durations and rates are at levels not seen in seven years. A charter seeks security of shipping capacity to meet end-user demand. Against this backdrop, we expect the partnership open vessels to be well positioned to benefit from stronger rates in the coming months. Turning to slide six, which summarizes our operational upside to the strong Shiba market. As you can see from the chart on the left, the partnership has a balanced charter portfolio. Our fixed charter coverage, shown in dark blue, more than covers our fixed expenses through at least 2022. Meanwhile, our open days, showing light gray, display a significant leverage to the tight shipping market. You'll note we also have one vessel on spot market link contract, which will also benefit from the higher spot rates. On these open days, every $10,000 per day of revenue earned above our operating and overhead expenses will generate an incremental $7 million of EBITDA for the partnership. Slide seven. shows global gas price differentials and the forecast supply and demand balance for LNG. The chart on the left displays the future market, which presently implies a wide differential between US exports and Asian import prices to at least 2023. This should ensure a high level of liquidification utilization. On the right, you'll note that the Pacific Basin is expected to have an LNG shortfall of approximately 129 million tons in 2022, according to Wood-McKenzie. These two dynamics combined, interbasing gas price and volume differentials, should continue to support strong shipping ton-mile demand. Slide 8 sets out our 2022 capital allocation plan, focusing on debt repayment and further reductions in the breakeven rates for our fleet. On this slide, we demonstrate how amortizing our debt builds balance sheet capacity and equity value, using the Gas Block Glasgow as an example. All the partnership debt is at vessels level, and this debt amortizes at roughly twice the rate of our ship's depreciate. As you can see from the left-hand chart, our loan-to-value ratio on the Glasgow declines by over 15% during the three years period, from the end of 2020 through to the end of 2023. During the same period, our book equity for the vessel net depreciation as shown on the right-hand chart, is projected to increase by 20 million, which represents a 9% compound annual growth rate in the equity value. As this compelling value creation demonstrates, we believe that prioritizing debt reduction supports the partnership's future growth in equity value. Slide now presents our three-step approach to unit-holder value creation over the medium term. As we've discussed on this in previous calls, our strategy is strengthening the partnership to be financially resilient and support the business through cycles, as we've seen in 2020, by strengthening our balance sheets and reducing our breakeven costs. We've given ourselves targets to reduce our net debt to below four times our trading 12-month EBITDA and to have a total debt to capitalization below 40%. In addition, we will continue to reduce our fleet crash break-even rate, which we accelerated in the third quarter by repurchasing preference units in the open market as Achilles, we'll discuss later. It is our view that achieving this target will be aided greatly by the sustained strong shipping market we expect in the coming quarters. The partnership, in fact, is one of the few remaining U.S.-listed PurePlay LNG carrier owner, and we're getting stronger and stronger as we will seek to grow and modernize our fleet over time. Lastly, as we execute on the partnership capital allocation strategy of balancing its operational and financial leverage, we enhance unit order returns and unlock the equity value of our business. With that, I'll hand over to Achilles to take you through the partnership Q3 financials.