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Dynagas LNG Partners LP(DLNG) - 2024 Q2 - Earnings Call Presentation
2024-09-10 14:05
Q2 2024 Financial Results Presentation 10 September, 2024 Forward Looking Statements and Disclaimer This presentation contains certain statements that may be deemed to be "forward-looking statements" within the meaning of applicable federal securities laws. All statements included in this presentation which are not historical or current facts (including our financial forecast and any other statements concerning plans and objectives of management for future operations, cash flows, financial position and econ ...
Dynagas LNG Partners LP(DLNG) - 2024 Q1 - Earnings Call Transcript
2024-06-28 15:35
Financial Data and Key Metrics Changes - For Q1 2024, the company reported a net income of $11.8 million and earnings per common unit of $0.23, with adjusted net income at $12.4 million and adjusted earnings per common unit at $0.25, reflecting an increase of 87.7% in adjusted net income compared to the previous period [13][15] - Adjusted EBITDA for the same period reached $29 million, indicating a 23% increase, primarily driven by higher voyage revenues from the Arctic Aurora following a new charter agreement [15][28] - The company’s total debt outstanding decreased to $345 million, down from $408 million, marking a reduction of $75 million compared to the prior quarter [25][28] Business Line Data and Key Metrics Changes - The fleet consists of six LNG carriers with an average age of approximately 13.9 years, and the contracted backlog stood at approximately $1.07 billion, averaging about $178.3 million per vessel [2][28] - The average remaining charter period for the fleet is approximately 6.6 years, ensuring stable revenue streams [2] Market Data and Key Metrics Changes - The global fleet of energy carriers has expanded rapidly, with the new building order book exceeding 50% of existing fleets, indicating a strong market demand for LNG transportation [16][34] - The company anticipates that the long-term demand for energy will remain strong due to various factors, including the favorable emission profile of natural gas compared to traditional fossil fuels [34] Company Strategy and Development Direction - The company’s commercial strategy focuses on securing long-term charters with prominent gas companies to ensure stable revenue streams, with no contractual vessel availability until 2028 [16][34] - The recent refinancing has provided the company with greater financial flexibility, allowing for a focus on utilizing free cash flow and exploring new opportunities [3][25] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s stable phase, supported by reduced leverage and a solid foundation of contracted cash flows, positioning the partnership well for future growth [3][28] - The management highlighted the importance of evaluating cash flow utilization on a quarter-by-quarter basis, considering both growth and distributions to unitholders [36][37] Other Important Information - The company successfully closed a $345 million lease financing agreement for four LNG carriers, which has enabled the full repayment of existing debt before maturity [25][28] - The equity book value increased from $311 million in September 2019 to $457 million as of March 2024, reflecting significant growth [28] Q&A Session Summary Question: Future cash flow utilization and distribution announcements - Management indicated that cash flow utilization will be evaluated quarterly, and no specific timeline for distribution announcements can be committed to at this moment [36][37] Question: Financing of unencumbered assets - Management stated that while it is theoretically possible to finance the unencumbered assets, the current strategy is to keep them unencumbered to align with the deleveraging strategy [38]
Dynagas LNG Partners LP(DLNG) - 2024 Q1 - Earnings Call Presentation
2024-06-28 14:39
Q1 2024 Financial Results Presentation 28 June, 2024 This presentation of the Dynagas LNG Partners LP (the "Partnership") also includes forecasts, projections and other predictive statements that represent the Partnership's assumptions and expectations in light of currently available information. Forecasts and projections are inherently subject to numerous risks, variables, uncertainties and other market influences which may be outside of the Partnership's control. Therefore, the actual results that the Par ...
Dynagas LNG Partners LP Reports Results For the Three Months Ended March 31, 2024
Newsfilter· 2024-06-27 20:05
The Partnership defines Adjusted EBITDA as earnings before interest and finance costs, net of interest income (if any), gains/losses on derivative financial instruments, taxes (when incurred), depreciation and amortization (when incurred), dry-docking and special survey costs and significant non-recurring items (if any). Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess the Partnership's operating performance. T ...
Dynagas LNG Partners LP Announces Date for the Release of the First Quarter 2024 Results, Conference Call and Webcast
Newsfilter· 2024-06-21 16:30
On the next day, Friday, June 28, 2024 at 10:00 a.m. Eastern Time, the Company's management will host a conference call and webcast to discuss the earnings results. Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 877- 405-1226 (US Dial-In), or +1 201-689-7823 (US International Dial-In). Please quote "Dynagas" to the operator and/or conference ID 13746983. For additional participant International Toll- Free access numbers, click here. Audio Webcast - S ...
3 Penny Stocks Ready to Make Fortunes for Bold Investors
Investor Place· 2024-06-19 02:17
In this article, I have selected three penny stocks that either showcase convincing growth narratives or are too cheap on fundamentals. While they carry various risks, these penny stocks could have the potential to generate substantial returns for daring investors if their bullish investment theses materialize. The main issue the company has been facing that has hampered its investment case is its razor-thin margins. In recent years, Latham has either lost money or posted barely positive margins. Combined w ...
Dynagas LNG Partners LP(DLNG) - 2023 Q4 - Annual Report
2024-04-26 21:24
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Poseidonos & Foivis 2 Street 16674 Glyfada, Athens, Greece (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [ X ] Form 40-F [ ] INFORMATION CONTAINED IN THIS FORM 6-K REPORT Attached as Exhibit 99.1 to this report on Form 6-K (this "Report") is a copy of the press release of Dynagas LNG Partners LP (the "Partn ...
Dynagas LNG Partners LP Announces Filing of Form 20-F With the SEC
Newsfilter· 2024-04-26 20:05
ATHENS, Greece, April 26, 2024 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (the "Partnership") (NYSE:DLNG), an owner and operator of liquefied natural gas ("LNG") carriers, announced today that it has filed its Annual Report on Form 20-F for the year ended December 31, 2023 (the "Annual Report") with the U.S. Securities and Exchange Commission (the "SEC"). The Annual Report is available through the Partnership's website. Alternatively, unitholders may also receive a hard copy of the Annual Report, including ...
Dynagas LNG Partners LP(DLNG) - 2023 Q4 - Annual Report
2024-04-26 13:28
Financial Management and Expenses - The company incurred an aggregate expense of approximately $8.2 million for commercial and technical management of its fleet for the year ended December 31, 2023 [109]. - The management fee for each vessel is $3,005 per day, with an annual increase of 3% unless otherwise agreed [109]. - The executive services fee under the Executive Services Agreement is €538,000 per annum, with approximately $0.6 million incurred as of December 31, 2023 [112]. - The company pays a monthly fee of $10,000 under the Administrative Services Agreement, with $0.1 million incurred as of December 31, 2023 [113]. - The company’s management fees and costs are payable regardless of profitability, potentially reducing cash available for distributions [114]. - As of December 31, 2023, the company had total outstanding long-term debt of approximately $420.6 million, with a fully drawn $675 million Credit Facility [257]. - The company expects a significant portion of its cash flow from operations to be used for repaying principal and interest on its outstanding indebtedness [258]. - The $675 million Credit Facility requires repayments to be amortized over five years, with a final balloon payment of $396.6 million due in September 2024 [259]. - The company is restricted from paying distributions to its common unitholders while borrowings are outstanding under the $675 million Credit Facility [258]. - The company must maintain a consolidated leverage ratio of total liabilities to the aggregate market value of its total assets of no more than 0.7:1.0 [267]. - The company’s existing and future debt agreements impose operating and financial restrictions that may limit its ability to finance future operations or capital needs [260]. - The company’s Series A and Series B Preferred Units are subordinate to all existing and future indebtedness, affecting cash available for distributions [272]. - The company may face challenges in obtaining additional financing or refinancing existing debt on acceptable terms due to market conditions and creditworthiness [259]. - The company’s ability to service its debt will depend on future financial and operating performance, which may be affected by various external factors [259]. - A breach of covenants in the company’s debt agreements could result in a default, limiting its ability to borrow additional funds [269]. Regulatory and Compliance Risks - The company is classified as a "non-accelerated filer," which may affect the attractiveness of its common stock to investors [96]. - The General Partner may transfer its interest without unitholder consent, potentially impacting control [98]. - The company’s Partnership Agreement limits unitholder voting rights, particularly for those owning more than 4.9% of common units [101]. - The company is dependent on its affiliated Manager for the management of its Fleet, and any failure by the Manager could materially affect operations [122]. - The company may face challenges in obtaining adequate insurance coverage, which could expose it to substantial losses from uninsured events [169]. - The company is affected by global economic sanctions, particularly those related to Russia, which may limit trading activities and impact business operations [177]. - The company must comply with anti-corruption laws, with potential violations leading to fines and operational restrictions [224]. - The company has not operated vessels in sanctioned jurisdictions in 2023, but future violations could result in penalties and reputational damage [225]. - The company believes it has been in compliance with all applicable sanctions and embargo laws in 2023, but future compliance is uncertain due to potential changes in laws and interpretations [227]. - The company has a chartering relationship with Yamal Trade Pte, which may be indirectly owned 50% or more by an entity on the Sectoral Sanctions Identifications List, potentially affecting operations and revenues [228]. - The company’s financial condition and results of operations could be materially adversely affected by the imposition of additional sanctions [228]. - The company’s ability to access U.S. capital markets may be impacted by compliance with sanctions, potentially affecting investor interest and unit trading prices [227]. Market and Industry Conditions - The company relies exclusively on cash flow from LNG carriers, making it vulnerable to adverse developments in the LNG shipping industry [133]. - Future growth depends on continued growth in LNG production and demand, which has been fluctuating due to various economic factors [143]. - The ability to secure future multi-year time charters may be negatively impacted by reduced demand for LNG and LNG shipping [146]. - Global LNG trade grew by 6.5% year over year in 2021, driven by recovery in the global economy and higher LNG demand [147]. - In 2022, global LNG trade increased by 7.8% year over year to 401.4 million tons, primarily due to rising imports from Europe [147]. - LNG prices surged in 2022 due to high European demand and low inventory levels, but declined in 2023 because of high inventory levels and improved global supply [152]. - The global fleet of LNG carriers grew from 360 to 719 vessels from 2011 to March 2024, indicating significant market expansion [155]. - New orders for LNG vessels surged to 175 in 2022, with Qatar's mega-LNG carrier order comprising 66 of these [156]. - The company may face challenges in securing multi-year time charters if an active spot LNG shipping market continues to develop [151]. - Political instability and global conflicts, including the war in Ukraine, could adversely affect shipping demand and operations [215]. - Trade tensions between the U.S. and China may depress shipping demand, with tariffs impacting trade flows [217]. Environmental and Technological Challenges - Increasing scrutiny regarding Environmental, Social, and Governance (ESG) policies may impose additional costs and risks on the company [158]. - The new SEC rules on climate-related disclosures may have a material adverse effect on the company's future performance and financial position [160]. - Technological advancements in LNG carriers could reduce charter hire rates and adversely impact the value of the company's assets [162]. - The company faces risks related to quality and compliance requirements from charterers, which could adversely affect future financial performance [163]. - Volatile economic conditions, including rising inflation and interest rates, may hinder the company's ability to secure financing on acceptable terms [172]. - Compliance with safety and classification requirements is costly and failure to maintain compliance could adversely affect the company's financial condition and operations [183]. - The LNG shipping industry faces substantial environmental regulations that may significantly limit operations or increase expenses [185]. - Compliance with environmental laws may lead to increased costs for maintenance, inspections, and insurance coverage, potentially affecting financial performance [190]. - New legislation regarding emissions and ship recycling could require additional capital expenditures, impacting operational costs [187]. - The International Maritime Organization (IMO) aims to reduce greenhouse gas emissions from international shipping by at least 50% by 2050 compared to 2008 levels [196]. - The introduction of the EU Emission Trading Scheme (ETS) starting January 1, 2024, will impose additional compliance costs on shipowners [199]. - The company may incur significant costs related to procuring low-sulfur fuel oil due to regulatory changes and market demand [198]. - The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships may lead to increased costs and affect vessel residual values [191]. - Climate change poses both immediate and long-term risks, potentially disrupting operations and affecting demand for LNG services [204]. - The company is subject to strict liability for pollution under various laws, which may result in substantial financial penalties [189]. - Compliance with evolving environmental regulations may adversely affect the company's financial position and operational capabilities [200]. - Compliance with the IMO's ISM Code is critical; failure may lead to increased liability and insurance coverage issues [205]. - The company faces potential significant costs due to compliance with evolving international and national environmental regulations [208]. - The IMO's D-2 standard for ballast water management requires installation of treatment systems, impacting operational costs [213]. - The U.S. EPA is developing national standards under VIDA, which may necessitate new equipment installations and incur substantial costs [214]. Ownership and Governance Issues - The General Partner owns approximately 42.4% of the outstanding common units, making it difficult for unitholders to remove it without consent [117]. - The Sponsor owns approximately 42.4% of the outstanding common units, totaling 15,595,000 units [280]. - The General Partner has limited its liability regarding obligations, which may not be in the best interest of unitholders [282]. - Conflicts of interest may arise due to the relationships between the General Partner and its affiliates, potentially affecting decision-making [281]. - The company has granted registration rights to the Sponsor, which could lead to substantial future sales of common units and a decline in their price [285]. - The General Partner may exercise its limited call right to purchase common units without obtaining a fairness opinion, potentially disadvantaging unitholders [288]. - Agreements between the company and its General Partner are not the result of arm's-length negotiations, which may affect the terms of transactions [287]. - Holders of Series A and Series B Preferred Units have limited rights to enforce obligations of the General Partner and its affiliates [286]. Market Performance and Equity - The price of the company's common units has fluctuated between $2.50 and $3.69 over the last six months, indicating significant volatility [240]. - The company may issue additional equity securities without the approval of common unitholders, which could dilute existing ownership interests [244]. - The company may face reputational harm and operational impacts if required to terminate contracts due to sanctions or if charterers violate applicable laws [228]. - The company could experience loss of earnings if vessels are requisitioned by governments during periods of war or emergency [230]. - The company may be subject to maritime claims that could interrupt cash flows and require significant payments to lift vessel arrests [231]. - The company operates under the laws of the Marshall Islands, which may provide fewer rights and protections for unitholders compared to jurisdictions like Delaware [247]. - Tax obligations are computed based on various accounting and reporting positions that may not be fully agreed upon by governing authorities [292]. - A successful challenge by a tax authority could lead to additional taxes imposed on the company or its subsidiaries, further reducing cash available for distribution [292]. - Changes in operations or ownership could result in additional tax liabilities in jurisdictions where the company operates [292].
Dynagas LNG Partners LP Declares Cash Distribution on Its Series A Preferred Units
Newsfilter· 2024-04-22 20:05
ATHENS, Greece, April 22, 2024 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (the "Partnership") (NYSE: "DLNG"), an owner and operator of LNG carriers, today announced that its Board of Directors has declared a cash distribution of $0.5625 per unit on its Series A Cumulative Redeemable Perpetual Preferred Units (the "Series A Preferred Units") (NYSE:DLNG) for the period from February 12, 2024 to May 11, 2024. The cash distribution is payable on May 13, 2024 to all preferred unit holders of record as of May 6, ...