Financial Data and Key Metrics Changes - For Q2 2024, the company reported net income of $10.7 million and earnings per common unit of $0.20, with adjusted net income at $12.4 million or $0.25 per common unit [4][7] - Adjusted EBITDA for the quarter reached $28.6 million, slightly down from $29 million in Q1 2024 [8] - Revenue was $37.6 million, compared to $38 million in the previous quarter, with an average TCE of $67,300 per day, down from $68,100 [6][8] - Operating income decreased by 2.6% to $18.8 million from $19.3 million in Q1 2024 [7] Business Line Data and Key Metrics Changes - The company maintained 100% fleet utilization during Q2 2024, with all six LNG carriers operating on long-term charters [4][6] - The average cash break-even cost per vessel per day was $44,881, resulting in a surplus of $22,450 per day after deducting from average TCE [8] Market Data and Key Metrics Changes - The fleet's contracted backlog stands at approximately $1.04 billion, averaging about $173 million per vessel, with an average remaining charter period of approximately 6.4 years [14] - The global LNG carrier fleet is expanding rapidly, with new builds scheduled for delivery between now and 2028, potentially leading to a short-term oversupply [15][16] Company Strategy and Development Direction - The company's strategy focuses on securing long-term charters with prominent gas companies to ensure stable revenue streams [14] - The partnership has successfully reduced its outstanding debt from $675 million in September 2019 to $345 million today, improving its financial leverage [17][18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for LNG, driven by low emissions compared to traditional fossil fuels and rising global demand for electrification [16] - The company anticipates that the current order book will be observed as aging vessels are replaced and global demand for LNG transport increases [15] Other Important Information - The company concluded a new lease financing agreement for $344.9 million, which was used to repay a previous credit facility of $408.6 million ahead of maturity [5][10] - The company expects an increase in interest expenses when its interest rate swap matures, projecting a pro-forma cash rate of approximately $50,000 per day for Q4 2024 [11] Q&A Session Summary - The Q&A session concluded without any specific questions being recorded, and the CEO thanked participants for their time and attention [19][20]
Dynagas LNG Partners LP(DLNG) - 2024 Q2 - Earnings Call Transcript