Dynagas LNG Partners LP Reports Results for the Three and Nine Months Ended September 30, 2024
ATHENS, Greece, Nov. 22, 2024 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (NYSE: "DLNG") ("the "Partnership"), an owner and operator of liquefied natural gas ("LNG") carriers, today announced its results for the three and nine months ended September 30, 2024.
Nine months Highlights:
-- Net Income and Earnings per common unit (basic and diluted) of $37.5
million and $0.75, respectively;
-- Adjusted Net Income(1) of $39.2 million and Adjusted Earnings per common
unit(1) (basic and diluted) of $0.80;
-- Adjusted EBITDA(1) $86.5 million; and
-- 100% fleet utilization(2).
Quarter Highlights:
-- Net Income and Earnings per common unit (basic and diluted) of $15.1
million and $0.32, respectively;
-- Adjusted Net Income(1) of $14.5 million and Adjusted Earnings per common
unit(1) (basic and diluted) of $0.30;
-- Adjusted EBITDA(1) $28.9 million;
-- 100% fleet utilization(2); and
-- Declared and paid a cash distribution of $0.5625 per unit on the
Partnership's Series A Preferred Units (NYSE: "DLNG PR A") for the period
from May 12, 2024 to August 11, 2024 and $0.714537806 per unit on the
Series B Preferred Units (NYSE: "DLNG PR B") for the period from May 22,
2024 to August 21, 2024.
(1) Adjusted Net Income, Adjusted Earnings per common unit and Adjusted EBITDA are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP and other related information.
(2) Please refer to Appendix B for additional information on how we calculate fleet utilization.
Subsequent Events:
-- Declared a quarterly cash distribution of $0.5625 on the Partnership's
Series A Preferred Units for the period from August 12, 2024 to November
11, 2024, which was paid on November 12, 2024 to all Series A Preferred
unitholders of record as of November 5, 2024; and
-- Declared a quarterly cash distribution of $0.69999031 on the
Partnership's Series B Preferred Units for the period from August 22,
2024 to November 21, 2024, which is payable on November 22, 2024 to all
Series B Preferred unitholders of record as of August 15, 2024.
-- The Partnership's Board of Directors has declared a quarterly cash
distribution with respect to the quarter ended September 30, 2024, of $
0.049 per common unit. This cash distribution will be paid on or about
December 12, 2024, to all common unitholders of record as of the close of
business on December 9, 2024. The declaration and payment of cash
distributions to the Partnership's unitholders will be subject at all
times to the discretion of the Partnership's Board of Directors. The
timing and amount of distributions to common unitholders, if any, will
depend on the Partnership's, financial condition, cash flow, capital
requirements, growth opportunities, restrictions in its financing
agreements, the provisions of Marshall Islands law affecting the payment
of distributions, and other factors. For more information on the
Partnership's cash distribution policy, please see its most recent Annual
Report on Form 20-F.
-- On November 21, 2024, the Partnership's Board of Directors authorized the
repurchase of up to an aggregate of $10 million of the Partnership's
outstanding common units over the next 12 months (the "Program").
Repurchases of common units under the Program may be made, from time to
time, in privately negotiated transactions, in open market transactions,
or by other means, including through trading plans intended to qualify
under Rule 10b-18 and/or Rule 10b5-1 of the U.S. Securities Exchange Act
of 1934, as amended. The amount and timing of any repurchases made under
the Program will be in the sole discretion of the Partnership's
management team, and will depend on a variety of factors, including legal
requirements, market conditions, other investment opportunities,
available liquidity, and the prevailing market price of the common units.
The Program does not obligate the Partnership to repurchase any dollar
amount or number of common units and the Program may be suspended or
discontinued at any time at the Partnership's discretion.
CEO Commentary:
We are pleased to report the financial results for the three months ended September 30, 2024.
In the third quarter of 2024, we reported a Net Income of $15.1 million, with earnings per common unit of $0.32. Adjusted EBITDA and Adjusted Net Income reached $28.9 million and $14.5 million respectively.
All six LNG carriers in our fleet are currently operating under long-term charters with international gas companies. These contracts have an average remaining term of 6.2 years. Assuming no unforeseen events, the Partnership expects no vessel availability until 2028. As of November 22, 2024, our estimated contract backlog stands at approximately $1.01 billion, equating to an average of about $168 million per vessel.
We are pleased to announce the reinstatement of a quarterly cash distribution to our common unitholders which reflects our strong cash flow and improved balance sheet. This is a significant milestone for the Partnership after a period during which the Partnership was unable to pay distributions to its common unitholders due to previous financing restrictions which no longer exist after the successful completion of our refinancing in June 2024 on improved terms.
In addition to the cash distribution to our common unitholders, we are pleased with the Board's authorization of a common unit repurchase program to buy back up to an aggregate of $10 million of the Partnership's outstanding common units over the next 12 months. We believe it is in the interest of our common unitholders that the Partnership has the authorization to repurchase common units as part of our capital allocation strategy.
Our capital allocation strategy aims not only to return capital to our unitholders but also to strategically position the Partnership for growth, with the flexibility to efficiently allocate capital depending on the circumstances. Our objective is to position the Partnership to capitalize on future market opportunities across not only our core business of LNG carriers but also in other shipping sectors. Moving forward, our priorities remain to provide safe, reliable service to our customers and to effectively allocate capital for the benefit of our common unitholders.
Our robust financial position, highlighted by 100% of our fleet being under time charter until 2028 and the absence of debt maturities until 2029, positions us well for this initiative. Additionally, the current trading price of our common units, which is approximately 45% below our book value, presents a favorable opportunity for value creation through these repurchases. While approving the repurchase program, we carefully considered a variety of factors, including the need to balance returns to our common unitholders with the efficient use of capital for future opportunities while acknowledging the uncertain geopolitical landscape and regulatory environments.
As with our cash distribution to common unitholders, the common unit repurchase program is a significant part of our capital allocation strategy and underscores our confidence in the Partnership and commitment to maximizing value for our unitholders.
Russian Sanctions Developments
Due to the ongoing Russian conflict with Ukraine, the United States ("U.S."), European Union ("E.U."), Canada and other Western countries and organizations have announced and enacted numerous sanctions against Russia to impose severe economic pressure on the Russian economy and government.
As of today's date:
-- Current U.S. and E.U. sanctions regimes do not materially affect the
business, operations or financial condition of the Partnership and, to
the Partnership's knowledge, its counterparties are currently performing
their obligations under their respective time charters in compliance with
applicable U.S. and E.U. rules and regulations; and
-- Sanctions legislation continually changes and the Partnership continues
to monitor such changes as applicable to the Partnership and its
counterparties.
The full impact of the commercial and economic consequences of the Russian conflict with Ukraine is uncertain at this time. The Partnership cannot provide any assurance that any further development in sanctions, or escalation of the Ukraine conflict more generally, will not have a significant impact on its business, financial condition or results of operations. Please see the section of this press release entitled "Forward Looking Statements."
(MORE TO FOLLOW) Dow Jones Newswires
November 22, 2024 08:30 ET (13:30 GMT)
Comments