Dynagas LNG Partners LP : Fourth Quarter 2024 Financial Results

Published: 2025-03-06 08:54:06 ET DLNG

Q4 2024 Financial Results Presentation

6 March, 2025

Forward Looking Statements and Disclaimer

borrowings and to access debt and equity markets; planned capital expenditures and availability of capital resources to fund capital expenditures; our ability to maintain long-term relationships with major LNG traders; our ability to leverage our Sponsor's relationships and reputation in the shipping industry; our ability to realize the expected benefits from acquisitions; our ability to maximize the use of our vessels, including the re-deployment or disposition of vessels no longer under long-term time charters; future purchase prices of newbuildings and secondhand vessels and timely deliveries of such vessels; our ability to compete successfully for future chartering and newbuilding opportunities; acceptance of a vessel by its charterer; termination dates and extensions of charters.

Due to the ongoing Russian conflicts with Ukraine, the United States, the European Union, 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. The full impact of the commercial and economic consequences of the Russian conflict with Ukraine are uncertain at this time. Potential consequences of the sanctions that could impact the Partnership's business in the future include but are not limited to: (1) the Partnership's counterparties being potentially limited by sanctions from performing under its agreements; and (2) a general deterioration of the Russian economy. In addition, the Partnership may have greater difficulties raising capital in the future, which could potentially reduce the level of future investment into its expansion and operations. The Partnership cannot provide any assurance that any further development in sanctions, or escalation of the Ukraine situation more generally, will not have a significant impact on its business, financial condition or results of operations.

In addition, unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements. Please read the Partnership's filings with the Securities and Exchange Commission for more information regarding these factors and the risks faced by the Partnership. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. This presentation is for informational purposes only and does not constitute an offer to sell securities of the Partnership. The Partnership expressly disclaims any intention or obligation to revise or publicly update any forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary notice to recipients.

Financial Summary q4 2024

Quarter Highlights

In USD thousands, except TCE

q4 2024

q3 2024

q4 2023

Voyage Revenues

41,664

39,069

36,950

Operating Income

19,425

19,836

17,677

Net Income

14,079

15,054

10,462

Adjusted Net Income

14,992

14,477

10,305

Adjusted EBITDA

28,523

28,901

27,399

TCE

68,408

69,261

65,772

Cash breakeven per vessel p/d

Numbers in USD per day

q4 2024

q3 2024

q4 2023

OPEX

14,732

14,656

15,172

Management Fees

3,005

2,917

G&A

841

1,024

1,018

Interest Expense(1)

10,583

2,462

5,444

Scheduled Principal Repayments

20,004

21,739

Cash breakeven per vessel p/d (2)

49,165

41,150

46,290

Adjusted Net Income ($m)

16.0

29.5

14.0

12.0

28.5

10.0

8.0

6.0

27.5

4.0

2.0

0.0

26.5

q4 2023

q1 2024

q2 2024

q3 2024

q4 2024

Adjusted EBITDA ($m)

q4 2023

q1 2024

q2 2024

q3 2024

q4 2024

Adjusted Net Income Bridge ($m)

$16

$0.91

$14.99

$14.08

$14

$12

$10

Net I ncome

Non-cash amortization

Adjusted Net Income

( (1) Interest Expense represents cash interest expense net of realized swap gains. Interest rate swap expired on 18t h September, 2024.

(2) Excludes distributions to Series A and Series B Preferred unitholders which amounts to $5,848 per vessel per day for q4 2024.

Cash Flow Generation and Capital Structure

($) thousands

$90,000

$9 240

$28,523

$80,000

$70,000

-$5 308

-$11,042

$68,156

-$5,031

-$247

$60,000

$50,000

$52 021

$40,000

$30,000

$20,000

$10,000

($) millions

$344$323

$54

$73

Senior Secured Debt

Series A Preferred Units

Series B Preferred Units

Common Book Equity

Debt Highlights

NET DEBT / EBITDA

6.0

5.0

4.0

3.0

▪ No debt maturities until 2029.

2.0

▪

$344m in common equity versus an equity market capitalization of

1.0

0.0

$143m

31/1 2/2021

31 /12/2022

31 /1 2/2023

q4 2024

SCHEDULED DEBT AMORTIZATION(1)

DEBT EVOLUTION

($) mill ions

$800.0

$723

(USDm)

$700.0

$663

Maturity of

$615

$600.0

$567

three LNG

carriers

$500

Maturity of

EOY

$500.0

one LNG

$421

carrier

Outst.

$400.0

$323

Debt

$300.0

$279

$235

$190

$200.0

$146

$100.0

$78

$66

$53

$41

$28

$0.0

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

(1) $68 million debt amortization in 2029 includes aggregate purchase obligation prices of $39.58 million for Amur River, Ob River and Clean Energy.

Fleet Profile

Fleet

◼ 6 LNG carriers

◼ 914,100 cbm (149,700 cbm for steam turbine LNG fleet, 155,000 cbm for the tri-fuel diesel

Total cbm capacity

engine LNG fleet (TFDE's))

Fleet average age

◼ ~14.6 years(1)

Average remaining charter

◼ ~5.9 years(1)(2)

duration

◼ Equinor (Norway), SEFE Marketing & Trading (Singapore), Yamal Trade (Singapore) (Total,

Counterparties

CNPC, Silkroad Fund, Novatek), Rio Grande LNG (USA)

Total estimated contract backlog

◼ $1.0 billion(1)(2)

◼ Fleet has the ability to trade as conventional LNG Carriers and in ice bound areas with no cost

Differentiation

disadvantages

(1)

As of 6 March 2025

(2)

Does not include charterer extension options, basis earliest delivery and redelivery dates. The time charter contracts withYamal are subject to OPEX variation. $0.11 billion of the revenue backlog

estimate relates to the estimated portion of the hire contained in the time charter contracts with Yamal which represents theoperating expenses of the vessels and is subject to yearly adjustments on the

basis of the actual operating costs incurred within each year.

Fleet Employment Overview

Fi rm charter peri od

Optional char ter period

Av ailable

All 6 Vessels are

100%, 100%, 100% and

Total estimated contract

Contracts for Yenisei

Leveraging on

fixed on term

innovative technical

Key Commercial

contracts with asset

64% contracted fleet

backlog of approximately

River and Lena River

solutions and in-house

$1.0 billion

(2)

~ 5.9 years

include dry-dock and

Achievements

strong LNG

for 2025,2026, 2027,

operations to generate

producers.

and 2028 (basis

remaining average duration.

OPEX pass-through

long term vessel

earliest delivery).

provisions

employment.

Appendix

Reconciliation of Net Income to adjusted Net Income and Adjusted Earnings per Common Unit

Three Months Ended

Twelve Months Ended

December 31

(In thousands of U.S. dollars except for

2024

2023

2024

2023

units and per unit data)

(unaudited)

Net Income

14 079

10 462

51 591

35 872

Amortization of deferred revenue

858

1,719

5,316

(8,343)

Amortization of deferred charges

217

216

Class survey costs net of revenue from

6 048

contracts with customers

Loss on Debt extinguishment

331

154

(Gain)/ Loss on derivative financial

951

(5,267)

instrument

(1 755)

Other income

(2 881)

(1 492)

(2 881)

Adjusted Net Income

14,992

10,305

54,208

25,799

Less: Adjusted Net Income attributable to

preferred unitholders and general partner

(3 239)

(2 898)

(13 019)

(11 577)

Common unitholders' interest in

Adjusted Net Income

11,753

7,407

41,189

14,222

Weighted average number of common units

36 802 247

outstanding basic and diluted:

36 791 279

36 799 490

36 802 247

Adjusted Earnings per common unit,

basic and diluted

0.32

0.20

1.12

0.39

Adjusted Net Income represents net income before non-recurring expenses (if any), charter hire amortization related to time charters with escalating time charter rates and changes in the fair value of derivative financial instruments. Net Income available to common unitholders represents the common unitholders interest in Adjusted Net Income for each period presented. Adjusted Earnings per common unit represents Net Income available to common unitholders divided by the weighted average common units outstanding during each period presented.

Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit, basic and diluted, are not recognized measures under U.S. GAAP and should not be regarded as substitutes for net income and earnings per unit, basic and diluted. The Partnership's definitions of Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit, basic and diluted, may not be the same at those reported by other companies in the shipping industry or other industries. The Partnership believes that the presentation of Adjusted Net Income and Net income available to common unitholders are useful to investors because these measures facilitate the comparability and the evaluation of companies in the Partnership's industry. In addition, the Partnership believes that Adjusted Net Income is useful in evaluating its operating performance compared to that of other companies in the Partnership's industry because the calculation of Adjusted Net Income generally eliminates the accounting effects of items which may vary for different companies for reasons unrelated to overall operating performance. The Partnership's presentation of Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit does not imply, and should not be construed as an inference, that its future results will be unaffected by unusual or non-recurring items and should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP.

Disclaimer

Dynagas LNG Partners LP published this content on March 06, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 06, 2025 at 13:53:01.082.