Shares of GasLog Partners jumped over 6% in Monday’s pre-market trading session after the operator of liquefied natural gas (LNG) carriers reported fourth-quarter results that came in ahead of analysts’ expectations.
GasLog (GLOP) posted 4Q adjusted earnings of $0.38 per share, which exceeded analysts’ estimates of $0.28 per share but declined 17% year-over-year. Revenues declined 12% year-over-year to $85 million, but topped the consensus estimates of $80.9 million.
Adjusted EBITDA fell 13% year-over-year to $59 million, due to a decline in revenues, which was partially offset by a decrease in interest expenses and operating expenses.
The company said that “LNG demand was 93 million tonnes (mt) in the fourth quarter of 2020, according to Poten, compared to 94 mt in the fourth quarter of 2019, or a decrease of approximately 1%.” (See GasLog Partners stock analysis on TipRanks)
Earlier on Jan. 29, Jefferies analyst Randy Giveans raised the stock’s price target to $4 (19.1% upside potential) from $3.25 and maintained a Hold rating. In a note to investors, the analyst said that LNG carrier spot rates rose during the quarter, driven by strong demand from Asia. However, dry bulk rates were “highly volatile on choppy Brazilian iron ore production,” while crude and refined products tanker rates remained under pressure.
Overall, consensus among analysts is a Hold based on 2 Holds. The average analyst price target of $4 implies upside potential of about 19.1% to current levels. Shares have dropped by about 18.3% over the past year.