Published Thu, 03 Jan 2019 05:28:23 -0500 on Seeking Alpha
One aspect of income investing that comes with the territory is the trade-off between risk and return, or more specifically, risk and yield. The higher the yield, the greater the risk (yield is compensation for risk - or better put, the perception of risk). As some readers know, I have exposure to the shipping sector in that I believe the risk within the sector is often mispriced and, as a result, opportunities are available.
The following note is about one such opportunity where I believe the perception of risk is greater than the actual risk and the yield available more than compensates investors.
GasLog Partners (GLOP) is a limited partnership focused on owning, operating and acquiring LNG carriers engaged in LNG transportation under long-term charters. The company's initial fleet of three LNG carriers was contributed to it by GasLog Ltd. (GLOG), which controls the company through ownership of its general partner and limited partner units.
Source: Company earnings presentation
GasLog Partners currently owns 13 LNG carriers. Most of the vessels in its fleet operate under multi-year charters with a wholly owned subsidiary of Royal Dutch Shell plc (RDS-A, RDS-B). During 2018, GLOP signed multi-year charters with Cheniere Energy, Inc. (LNG) and another counterparty. The company also has one vessel that currently operates in the LNG shipping spot market through its participation in The Cool Pool.
Source: Company earnings... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|DYNAGAS LNG PARTNERS LP||1.41||0.0||-0.24||0.25||16.89|
|TSAKOS ENERGY NAVIGATION||3.41||0.0||-1.30||0.20||5.87|
|TEEKAY OFFSHORE PARTNERS LP||1.25||0.0||-0.45||0.02||1.55|
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