Dynagas LNG Partners LP(DLNG) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net income for Q3 2023 decreased by $6 million or 81% to $1.4 million compared to $7.4 million in Q3 2022, primarily due to a decrease in unrealized gains on interest rate swaps and an increase in loan interest [2] - Adjusted net income for Q3 2023 was $3.1 million, down from $4.5 million in the same period last year, mainly due to increased interest and finance costs [19] - Adjusted EBITDA for Q3 2023 reached $20.4 million, indicating stability compared to previous quarters [28] - Operating cash flow generated in the quarter was $21 million [12] Business Line Data and Key Metrics Changes - Voyage revenues increased by 23.7% from $29.9 million to $37 million, attributed to deferred revenue amortization from a new time charter agreement with Equinor [11] - Operating expenses (OpEx) increased by $3.6 million, with $3 million of this increase related to two LNG carriers contracted on an OpEx pass-through basis [11] Market Data and Key Metrics Changes - The fleet consists of six LNG carriers with an average age of approximately 13.3 years, all under long-term charters with international gas companies [6][17] - The fleet's contracted backlog amounts to approximately $1.16 billion, equating to an average backlog of about $193 million per vessel [30] Company Strategy and Development Direction - The company focuses on securing long-term charters with gas companies, with no contractual vessel availability until 2028 [21] - The current liquefaction capacity is approximately 473 million tonnes per annum, with an additional 205 million tonnes per annum under construction, representing a total increase of about 40% [21] - The company has demonstrated a commitment to debt reduction, successfully repaying $242 million in debt since December 2019, lowering net leverage from 6.6 times to 4.1 times [31] Management Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on the long-term prospects of LNG shipping, emphasizing its role in reducing emissions and the demand for cleaner energy sources [14] - The company is in discussions for refinancing its current credit facility, expected to conclude in Q1 2024 [29] Other Important Information - The average remaining charter period for the fleet is approximately 7.2 years, positioning the partnership for stable income [30] - The company completed scheduled dry docks for three vessels, resulting in increased costs, but with a significant portion reimbursed under time charter contracts [18] Q&A Session Summary Question: What is the status of the debt refinancing? - Management indicated that there is demand for financing vessels and that they are working towards an optimal conclusion for refinancing [32][33] Question: Is the Yamal project a factor in the refinancing delay? - Management clarified that the Yamal project is not a problem and that they are focused on finding suitable financing options [34][38]