Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q1 2017 Earnings Presentation
25 slides from Dynagas LNG Partners LP's earnings presentation, Jun 8, 2017
Slide 1: Q1 2017 Results Presentation
s Q1 2017 Results Presentation June 8, 2017
Slide 2: Forward Looking Statements and Disclaimer
Forward Looking Statements and Disclaimer This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of applicable federal securities laws. All statements included in this presentation which are not historical or current facts (including ou
Slide 3: Recent Developments
Recent Developments Balance Sheet On May 18, 2017, the Partnership successfully closed a six-year term $480 million Term Loan Strengthening Initiatives B secured by first priority mortgages on the Partnership’s six LNG carriers. The Term Loan B facility was priced at LIBOR plus 450 basis points and
Slide 4: Q1 2017 Financial Results
Q1 2017 Financial Results USD in thousands (except per unit, average daily hire and other operational data) Q1 2017 Q4 2016 Q1 2016 Revenues 39,092 41,385 42,741 Adjusted Net Income (1) 14,685 17,287 18,928 Adjusted EBITDA (1) 31,271 33,893 35,178 Distributable Cash Flow (1) 18,634 21,272 22,736 Ann
Slide 5: Distributable Cash Flow and Coverage Ratio
Distributable Cash Flow and Coverage Ratio Three Months Ended Three Months Ended USD in thousands 31 March 2017 31 March 2016 Net Income 12,912 17,135 Depreciation 7,476 7,552 Amortization of deferred financing fees 486 489 Net interest and finance costs, excluding amortization 8,404 8,209 Class sur
Slide 6: Term Loan B Transaction
Term Loan B Transaction $480m Senior Secured Term Loan B highlights: Annual Debt Service Before - After LIBOR plus 450 bp 60 Amortization 1% per annum 50 Maturity: May 2023 40 Leverage neutral transaction 30 To repay $184.4m ABN Amro Term Loan Facility, 20 $280.0m Credit Suisse Senior Se
Slide 7: Debt Maturity Profile
Debt Maturity Profile Debt maturity profile prior to Term Loan B TLB issuance maturity profile ($ in millions) ($ in millions) $451 $250 $250 $200 $137 $33 $33 $33 $33 $11 $5 $5 $5 $5 $5 $5 $2 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Principal Unsecured bond repayment up
Slide 8: Capital Structure and Liquidity
Capital Structure and Liquidity USD in millions As of 7 June 2017 Selected Balance Sheet Data Three Months ended (USD in thousands) March 31. 2017 Term Loan B 480 Vessels’ book value 1,000,141 Cash (including restricted) 75,915 Unsecured Bond 250 Total Assets 1,095,949 Total Debt 730 Debt 714,375 Pa
Slide 9: Cash Distributions
Cash Distributions USD in million Q1 2017 Since IPO Declared and paid Cash Distributions (1) 15.0 193.3 Distributable Cash Flow 18.6 246.6 Annual Cash Distributions per common unit (amounts in USD) 1.69 1.46 Q1 2017 IPO November 2013 Total cash distributions of $ 5.52 per common unit since IPO in No
Slide 10: Partnership – Fleet Profile
Partnership – Fleet Profile Fleet 6 LNG carriers 914,100 cbm (149,700 cbm for steam turbine LNG fleet, 155,000 cbm for the tri-fuel Total cbm capacity diesel engine LNG fleet (TFDE’s)) Fleet average age ~6.8 years(1) Average remaining charter duration ~10.5 years(1)(2) Gazprom, Statoil, Ya
Slide 11: Long-Term Charters Provide Steady, Predictable Cash Flows
Long-Term Charters Provide Steady, Predictable Cash Flows L NG Carrier Year Capacity Name Built (cbm) Charterer 2017 2018 2019 2020 2021 Cl ean 2007 149,700 2026 Energy Ob 2007 149,700 (1) 2028 Ri ver Amur 2008 149,700 (1) 2028 Ri ver Arcti c 2013 155,000 Aurora Yeni sei 2033/34 2013 155,000 Ri ver
Slide 12: Dropdown Opportunities
Dropdown Opportunities All LNG carriers are chartered on long-term contracts, providing multi-billion dollar contract backlog The Sponsor is a critical partner to Novatek, Total and CNPC The Sponsor and DLNG together account for 11 out of 27 ships contracted to Yamal LNG Carrier Year built / C
Slide 13: Market Share: Leader in Ice Class Trades
Market Share: Leader in Ice Class Trades Dynagas Group (DLNG and Sponsor) has an 82% market share of the vessels with ice class 1A FS or equivalent notations Limited vessel supply creates sublet opportunities for clients (Gazprom Sakhalin) First and only LNG shipping company, together with t
Slide 14: Industry Overview
Industry Overview
Slide 15: Composition of the LNG Fleet & Orderbook
Composition of the LNG Fleet & Orderbook 1. Existing Fleet LNG Vessel Deliveries by Propulsion Type • Number of vessels: 459 # of Vessels 70 % Average Existing Fleet # of Vessels of Fleet Age 60 185 -266,000 m3 45 10% 8 Yrs 50 167- 185,000 m3 63 14% 2 Yrs 40 150 - 167,500 m3 115 25% 5 Yrs 30 130-150
Slide 16: LNG Trade to increase by over 50% by 2021
LNG Trade to increase by over 50% by 2021 Global LNG Supply/Exports by Region, 2011-2023 By 2021 global LNG exports are expected to reach ~410 mt, an Middle East Atlantic Asia-Pacific increase of ~55% compared to 2016. In million tons of LNG 5-Year Growth • LNG exports have increased from ~242 mt in
Slide 17: LNG production growth up 13%
LNG production growth up 13% In the first quarter of 2017 ~72 mt of LNG were exported, up ~13% from Q1-16 Incremental LNG exports by region, Q1 17 vs Q1 16 (million tons) • Australia and the U.S. produced an incremental 5.8 mt (Q1-17 vs Q1-16) • This trend is expected to continue in the second quart
Slide 18: Recent Sabine Pass Shipping Behaviour
Recent Sabine Pass Shipping Behaviour Recent trading patterns1 (as of end March 2017) from Sabine Pass Ave Laden Equivalent # 160k m3 exports indicate 1.77 vessels (160,000 m3) are required on average for Country # Cargos Total Volume (Tonnes) Duration (Days) vessels Required Per MTPA each million t
Slide 19: LNG Trade has grown complex
LNG Trade has grown complex The LNG global trade has grown increasingly complex over Geographical Distribution of LNG Import Market Types the last 15 years • In 2000 there were only 43 country-to-country trade routes globally. By 2016, the number had expanded to 255 – This equates to an ~12% Compoun
Slide 20: The floating regas market is accelerating demand
The floating regas market is accelerating demand The FSRU market has grown steadily over the past years. By the end of FSRU Projects – Existing, Planned and Proposed 2016 floating regas capacity made up ~15% of total regas capacity, an increase of 5% from 2010 • This trend is expected to continue as
Slide 21: Appendix
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Slide 22: Key Partnership Summary
Key Partnership Summary 1 1 Pure-play LNG shipping • Modern (average age: 6.8 years)(1) and flexible fleet of 6 LNG carriers Partnership owning premium • Owns 5 out of a total of 11 LNG carriers in the global fleet with ice class 1A FS or equivalent notations LNG carriers (Sponsor(2) owns an additio
Slide 23: Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per common unit
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per common unit Three Months Ended (In thousands of U.S. Dollars, except for units and per unit data) March 31 2017 2016 Net Income $ 12,912 $ 17,135 Charter hire amortization (14) (14) Amortization of fair value of acquired t
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA 1 Three Months Ended Reconciliation to Net Income March 31 (In thousands of U.S dollars) 2017 2016 Net Income $ 12,912 $ 17,135 Net interest and finance costs 8,890 8,698 Depreciation 7,476 7,552 Class survey costs 220 - Amortization of fair value of a
Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Reconciliation to Net Income March 31 (In thousands of U.S dollars) 2017 2016 Net Income $ 12,912 $ 17,135 Net interest and finance costs 8,890 8,698 Depreciation 7,476 7,552 Class survey costs 220 - Amortization of fair value of acq