GasLog Partners reported record results for the fourth quarter of 2018, but volatility in equities markets is pushing the LNG carrier owner to buyback shares.
The Andrew Orekar-led shipowner reported adjusted profit of $42.2m for the last three months of 2018, a 4% year over year gain.
Operating revenue of $86.6m and $68.7m in EBITDA were also new records in what Orekar called a "transformative year" which positions GasLog for a drop down acquisition in the first quarter.
But he also said the company's stock price — up nearly 5% to $22.67 in early trading Wednesday — was not reflective of the company's performance, while announcing a $25m buyback program expiring December 2021.
"While we consider 2018 to have been a very successful year, the last few months have seen significant volatility in the unit prices of the partnership’s equity securities, which we feel does not reflect our track record of operational and financial delivery, consistent annual distribution growth and the positive outlook for LNG shipping markets," Orekar said.
The buyback announcement follows a $0.55 fourth quarter distribution reveled on Tuesday.
GasLog's fourth quarter results were met with praise from analysts.
Earnings per share came in at $0.30, lower than the $0.47 consensus estimate.
However, fourth quarter EBITDA beat estimates from Deutsche Bank and Berenberg.
"While we view [GasLog Partners] to be well positioned to drive growth, we remain hold rated on the stock given our preference for more spot exposed peers with 2019 expected to be the strongest year on record for LNG shipping demand," Deutsche Bank's Chris Snyder said.
Berenberg analyst Donald McLee called the results "mixed," but reiterated a buy rating with a $29 target.
