Where GLOP’s Earnings Margin Places It among Top MLPs




GasLog Partners (GLOP), which owns, acquires, and operates LNG (liquefied natural gas) carriers, comes in ninth place in terms of EBITDA (earnings before interest, tax, depreciation, and amortization) margin among the MLPs (master limited partnerships) today.

GLOP posted a TTM (trailing-12-month) EBITDA margin of 75.3% for 3q17. Similar to Golar LNG Partners (GMLP) and Höegh LNG Partners (HMLP), GLOP’s high EBITDA margins have been driven by its low operating expenses.

However, GasLog Partners strong EBITDA margins have not translated into a high net income margin due to its high-interest expenses. The partnership reported a net income margin of 28.6% in 3Q17.

Analyst recommendations

GLOP was last upgraded by Morgan Stanley to “overweight,” which is an equivalent to a “buy,” in June 2017. Overall, GLOP has seen two ratings update in 2017, including one upgrade and one new coverage.

Now, 83.3% of the analysts tracking GLOP recommend a “buy,” and 16.7% recommend a “hold.” GLOP is now trading below the low range ($25.0) of the analysts’ target price. GLOP’s average target price of $26.8 implies a ~22% upside potential from its current price level.

In the next and final part of this series, we’ll assess Valero Energy Partners’ (VLP) EBITDA margin.

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