GLOP - GasLog Partners: Solid Progress Makes This Coiled Spring Ready To Surge

• Whilst GasLog Partners surprised by reducing their distributions to almost nothing, thankfully they have been making solid progress following this painful decision.
• They saw a solid start to 2021, but the story right now remains deleveraging since their medium-term outlook has come down to a binary outcome between surviving and bankruptcy.
• Their leverage has decreased noticeably and their liquidity is now strong, which combined with their free cash flow generation means that bankruptcy is not looking realistic.
• It was quite interesting that their preferred units have recognized this and rallied strongly but their common units remain depressed and well below their balance sheet equity value.
• This seems to point towards the latter being a proverbial coiled spring ready to surge once the market recognizes their solid progress and thus I believe that maintaining my bullish rating is appropriate.

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