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:
Source Fool.com
