GLOP - Why Natural Gas Stock GasLog Partners Crashed Today After a Recent Rally
Liquefied natural gas (LNG) shipping stock GasLog Partners (NYSE: GLOP) crashed today and lost a whopping 23% of value as of 10:15 a.m. EDT. Today's slump is even more pronounced given the stock's jaw-dropping rally this month: It was up 42.5% until July 26. Even as the company struggles with a heavy debt load, a sharp drop in revenue and earnings in its latest quarter is to blame.
Strong dividends are a master limited partnership (MLP) stock 's biggest attraction as MLPs pass on the bulk of cash flows to shareholders in the form of cash distribution. Ironically, that's where GasLog Partners disappoints: The company decided to limit its quarterly cash distribution to only $0.01 per unit last year as it focuses on liquidity and a stronger balance sheet to ride through the challenges brought on by the COVID-19 pandemic.
To make matters worse, GasLog Partners reported a sharp drop in revenue and earnings for the second quarter this morning, triggering fear among investors about the company's future. Here are some notable numbers from the quarter:
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Why Natural Gas Stock GasLog Partners Crashed Today After a Recent Rally