Dynagas LNG Partners LP, an owner and operator of liquefied natural gas (“LNG”) carriers, announced its results for the three and six months, says an article published on their website.
Second Quarter Highlights
- Net income and earnings per common unit of $9.1 million and $0.17, respectively;
- Adjusted Net Income(1)of $10.4 million and Adjusted Earnings per common unit of $0.20;
- Adjusted EBITDA(1) $23.6 million;
- 100% fleet utilization;
- Declared and paid cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from February 12, 2021 to May 11, 2021 and $0.546875 per unit on the Series B Preferred Units for the period from February 22, 2021 to May 21, 2021;
- Sold $2.15 million of common units at an average price per unit of $2.8769 pursuant to the Partnership’s Amended & Restated Sales Agreement, which had $26.5 million of remaining availability as of June 30, 2021; and
- Entered into a new charter party agreement with Equinor ASA (“Equinor”) for the employment of our LNG carrier Arctic Aurora.
Subsequent Events:
- Declared a quarterly cash distribution of $0.5625 on the Series A Preferred Units for the period from May 12, 2021 to August 11, 2021, which was paid on August 12, 2021 to all preferred Series A unit holders of record as of August 5, 2021;
- Declared a quarterly cash distribution of $0.546875 on the Series B Preferred Units for the period from May 22, 2021 to August 21, 2021, which was paid on August 23, 2021 to all preferred Series B unit holders of record as of August 16, 2021.
CEO Commentary:
All six LNG carriers in our fleet are operating under their respective long-term charters with international gas producers with an average remaining contract term of 7.4 years.
As of September 7, 2021, our estimated contracted revenue backlog is approximately $1.09 billion. We were pleased to announce on April 21, 2021 a new two-year charter for the Arctic Aurora with Equinor, which has had the ice classed 1A and winterized vessel on continuous charter since her delivery from builders in 2013.
The earliest contracted re-delivery date for any of our six LNG carriers is in the third quarter of 2023 (the Arctic Aurora), with the next carrier (the Clean Energy) becoming available for re-chartering in the first quarter of 2026.
For the second quarter of 2021, we reported Net Income of $9.1 million, earnings per common unit of $0.17, Adjusted Net Income of $10.4 million, Adjusted Earnings per common unit of $0.20 and Adjusted EBITDA of $23.6 million.
Three Months Ended June 30, 2021 and 2020 Financial Results
Net Income for the three months ended June 30, 2021 was $9.1 million as compared to a Net Income of $6.4 million in the corresponding period in 2020, which represents an increase of $2.7 million, or 42.2%.
Adjusted Net Income for the three months ended June 30, 2021 was $10.4 million compared to $9.9 million in the corresponding period in 2020, representing a net increase of $0.5 million or 5.1%, mainly due to the net effect of the decrease in finance costs and the increase in operating and general and administrative expenses as compared to the corresponding period in 2020.
Voyage revenues for both the three months ended June 30, 2021 and the three months ended June 30, 2020 were $33.9 million.
The Partnership reported average daily hire gross of commissions(1) of approximately $62,440 per day per vessel in the three-month period ended June 30, 2021, compared to approximately $62,200 per day per vessel in the corresponding period in 2020.
During both three-month periods ended June 30, 2021 and 2020, the Partnership’s vessels operated at 100% utilization.
Vessel operating expenses were $7.6 million, which corresponds to daily operating expenses per vessel of $13,945 in the three-month period ended June 30, 2021, as compared to $6.9 million, or daily operating expenses per vessel of $12,630 in the corresponding period in 2020.
Adjusted EBITDA for the three months ended June 30, 2021 was $23.6 million, as compared to $24.1 million for the corresponding period in 2020. The decrease of $0.5 million, or 2.1%, was mainly due to the increase in operating and general and administrative expenses as explained above.
Interest and finance costs, net, were $5.4 million in the three months ended June 30, 2021 as compared to $6.3 million in the corresponding period in 2020, which represents a decrease of $0.9 million, or 14.3% due to the lower weighted average interest and the reduction in the average interest bearing debt as compared to the corresponding period in 2020.
Liquidity/ Financing/ Cash Flow Coverage
During the three months ended June 30, 2021, the Partnership generated net cash from operating activities of $15.8 million as compared to $8.1 million in the corresponding period in 2020, which represents an increase of $7.7 million, or 95.1%.
As of June 30, 2021, the Partnership reported total cash of $86.8 million (including $50.0 million of restricted cash). The Partnership’s outstanding indebtedness as of June 30, 2021 under the $675.0 Million Credit Facility amounted to $591.0 million, gross of unamortized deferred loan fees and including $48.0 million, which were repayable within one year.
During the three months ended June 30, 2021, the Partnership sold $2.15 million of common units at an average price per unit of $2.8769 pursuant to the amended and restated ATM Sales Agreement entered into in August 2020, for the offer and sale of common units representing limited partnership interests, having an aggregate offering amount of up to $30.0 million (the “Current ATM Program”).
Following these sales, the Current ATM Program had $26.5 million of remaining availability and the Partnership has 36,802,247 units issued and outstanding, as of June 30, 2021.
As of June 30, 2021, the Partnership had unused availability of $30.0 million under its interest free $30.0 million revolving credit facility with its Sponsor, or the $30.0 Million Revolving Credit Facility, which was extended on November 14, 2018, and is available to the Partnership at any time until November 2023.
Vessel Employment
As of September 7, 2021, the Partnership had estimated contracted time charter coverage for 100% of its fleet estimated Available Days for 2021, 100% of its fleet estimated Available Days for 2022 and 95% of its fleet estimated Available Days for 2023.
As of the same date, the Partnership’s estimated contracted revenue backlog was $1.09 billion, with an average remaining contract term of 7.4 years.
Summary
- Dynagas LNG Partners LP, an owner and operator of liquefied natural gas (“LNG”) carriers, announced its results for the three and six months.
- Net income and earnings per common unit of $9.1 million and $0.17, respectively.
- All six LNG carriers in our fleet are operating under their respective long-term charters with international gas producers with an average remaining contract term of 7.4 years.
- During the three months ended June 30, 2021, the Partnership generated net cash from operating activities of $15.8 million.
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Source: dynagas partners
