- 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.
For further details see:
GasLog Partners: Solid Progress Makes This Coiled Spring Ready To Surge