Dynagas LNG Partners LP, an owner and operator of liquefied natural gas (“LNG”) carriers, announced its results for the three and six months ended June 30, 2022.
- Net income and earnings per common unit (basic and diluted) of $11.1 million and $0.22, respectively;
- Adjusted Net Income(1) of $9.1 million and Adjusted Earnings(1) per common unit (basic and diluted) of $0.17;
- Adjusted EBITDA(1) $22.9 million;
- 100% fleet utilization(2);
- Declared and paid cash distribution of $0.5625 per unit on its Series A Preferred Units (NYSE: “DLNG PR A”) for the period from
- February 12, 2022 to May 11, 2022 and $0.546875 per unit on the Series B Preferred Units (NYSE: “DLNG PR B”) for the period from February 22, 2022 to May 21, 2022; and
- Completed the scheduled dry-dock of the Clean Energy including ballast water treatment equipment in accordance with current regulations.
- Declared a quarterly cash distribution of $0.5625 on the Partnership’s Series A Preferred Units for the period from May 12, 2022 to
- August 11, 2022, which was paid on August 12, 2022 to all preferred Series A unit holders of record as of August 5, 2022;
- Declared a quarterly cash distribution of $0.546875 on the Partnership’s Series B Preferred Units for the period from May 22, 2022 to
- August 21, 2022, which was paid on August 22, 2022 to all preferred Series B unit holders of record as of August 15, 2022; and
- Completed the scheduled dry-docks of the Amur River and the OB River, including ballast water treatment equipment in accordance with current regulations.
(1) Adjusted Net Income 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.
We are pleased to report the results for the three- and six-months period ended June 30, 2022.
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 6.4 years. As of September 22, 2022, our estimated contracted revenue backlog1 2 was $0.95 billion.
The earliest contracted re-delivery date for any of our six LNG carriers is in the third quarter of 2023 (for the Arctic Aurora), with the second earliest contracted re-delivery date in the first quarter of 2026 (for the Clean Energy), both subject to the terms of the applicable charter.
For the second quarter of 2022, we reported Net Income of $11.1 million, earnings per common unit of $0.22, Adjusted Net Income of $9.1 million and Adjusted EBITDA of $22.9 million. While future results may vary, we are pleased to report 100% utilization for our fleet for the ninth quarter in a row.
During the second quarter of 2022 and the subsequent period until to date we successfully completed the scheduled dry docks of the Clean Energy, the Amur River and the Ob River, including ballast water treatment equipment installation in all three vessels in accordance with current regulatory requirements.
We are in a period of high demand for LNG shipping, which we believe will benefit the Partnership.
We continue our strategy of using our cash flow generation to deleverage our balance sheet and reinforce our liquidity so as to build equity value. This, we believe, will enhance our ability to pursue future growth initiatives.
Russian Sanctions Developments
Due to the ongoing Russian conflicts 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, and to the Partnership’s knowledge:
- Current U.S. and E.U. sanctions regimes do not materially affect the business, operations or financial condition of the Partnership and the Partnership’s counterparties are currently performing their obligations under their respective time charters in compliance with applicable U.S. and E.U. rules and regulations;
- Sanctions legislation in the E.U. continues to exclude LNG;
- The charters of the Amur River, the Ob River and the Clean Energy are effectively under the control of the German government for an indefinite period of time as of April 4th when Gazprom Germania (and all its subsidiaries), the indirect parent of Gazprom Marketing and Trading (GMT Singapore), was placed under the control of the German Government (Federal Network Agency) since Gazprom Germania operates critical energy infrastructure in Germany;
- Germany’s Federal Network Agency has prolonged its fiduciary control of Gazprom Germania GmbH (renamed to SEFE Securing Energy for Europe GmbH) and its relevant subsidiaries, including Gazprom Marketing & Trading Singapore Pte Ltd (renamed to SEFE Marketing & Trading Singapore) for as long as necessary to guarantee the security of energy supply in Europe; and
- Sanctions legislation has been changing and the Partnership continues to monitor such changes as applicable to the Partnership and its counterparties.
Source: Dynagas LNG Partners