Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q4 2018 Earnings Presentation
22 slides from Dynagas LNG Partners LP's earnings presentation, Mar 22, 2019
Slide 1: Q4 2018 Financial Results Presentation
s Q4 2018 Financial Results Presentation 22 March 2019
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: Forward Looking Statements and Disclaimer
Forward Looking Statements and Disclaimer 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 th
Slide 4: Recent Developments
Recent Developments Quarter Highlights On October 23, 2018 the Partnership completed a public offering of 2.2 million 8.75% Fixed to Floating Cumulative Redeemable Perpetual Preferred Units (the “Series B Preferred Units”) resulting in net proceeds of $53.0 million; The Lena River completed its sche
Slide 5: Q4'18 Financial Highlights
Q4’ 18 Financial Highlights USD in thousands (except for unit, average daily hire and other operational data) Q4 2018 Q3 2018 Q4 2017 Revenues 31,019 31,320 34,452 Adjusted Net Income (1) 1,292 3,275 7,559 Adjusted EBITDA (1) 21,587 23,474 26,919 Distributable Cash Flow (1) 5,522 7,506 11,793 Annual
Slide 6: Distributable Cash Flow and Cash Coverage Ratio
Distributable Cash Flow and Cash Coverage Ratio (USD in thousands) Q4’ 18 Distribution Coverage Q4’ 18 Cash Coverage Net loss (924) Net loss (924) Depreciation 7,646 Depreciation 7,646 Amortization of deferred financing fees 817 Amortization of deferred financing fees 817 Net interest and finance co
Slide 7: Debt Profile
Debt Profile Debt maturity profile Secured Term Loan B maturity: May 2023 $451 ($) millions Amortization of $4.8 million per annum. Partnership currently working on $250 refinancing its non amortizing 6.25% USD 250 million senior unsecured notes due October 2019 (the “Notes”). Refinancing of Notes i
Slide 8: Partnership Highlights
Partnership Highlights Best-in class contracted revenue backlog of $230 million per vessel. (1) Optimized operational performance for the fourth quarter with vessel operating expenses of $11,558 per day and fleet utilization of 100%. All Partnership scheduled dry-docks performed on time and on budge
Slide 9: Fleet Profile
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 ~8.6 years(1) Average remaining charter duration ~9.5 years(1)(2) Equinor, Yamal (Total, CNPC, Silkro
Slide 10: Long Term Contracts Provide Stable, Visible Cash Flows
Long Term Contracts Provide Stable, Visible Cash Flows L NG Carrier Year Capacity Name Built (cbm) Charterer 2019 2020 2021 2022 Clean Energy 2007 149,700 2026 Ob River 2007 149,700 (1) 2028 Am ur 2008 149,700 2028 River (1) (1) Arctic 2013 155,000 Aurora Yenis ei 2013 155,000 2033/34 River Undisclo
Slide 11: 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 to sail through
Slide 12: Appendix
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Slide 13: Industry Overview
Industry Overview
Slide 14: Composition of the LNG Fleet & Orderbook
Composition of the LNG Fleet & Orderbook 1. Existing Fleet LNG Fleet by Propulsion Type (Existing plus Orderbook) • Number of vessels: 524 # of Vessels Capacity % Average Existing Fleet # of Vessels (m3) of Fleet Age 185 -266,000 m3 46 10,585,300 13% 10 167- 185,000 m3 122 21,160,940 25% 2 150- 167,
Slide 15: LNG Trade to increase by 31% by 2022
LNG Trade to increase by 31% by 2022 Global LNG trade reached 321 mt in 2018, up 10% from Global LNG Supply / Exports by Region, 2013-2022 the year before By 2022 LNG supply is projected to rise by 99 mt or 31% +31% (new projects and existing projects increasing/ramping up capacity) to 419 mtpa with
Slide 16: Strong LNG Exports Growth in 2018
Strong LNG Exports Growth in 2018 Total LNG exports for 2018 reached 321 mt of LNG, up 10% from 2017 Incremental LNG Exports by Region, 2018 vs 2017 (mt) • The U.S., Australia and Russia exported an incremental 29 mt. This trend is expected to continue with trains ramping-up capacity and new project
Slide 17: LNG Hungry Asia pulls LNG Demand Growth
LNG Hungry Asia pulls LNG Demand Growth The main driver on the demand side remains Far East fueled by the Incremental LNG Imports by Region, 2018 vs 2017 (mt) sustained increase in South Korean and Chinese imports mainly pushed by government pollution policies to switch from coal to gas. • China & S
Slide 18: U.S. Export Trading Patterns – Q4 2018
U.S. Export Trading Patterns – Q4 2018 Recent trading patterns1 from U.S. exports that delivered in Q4 2018 Importers from Sabine Pass (LNG tonnes) – Q4 2018 indicate that 1.92 vessels (160,000 m3) were required on average for each million ton of LNG exported • 75 cargos from Sabine Pass, 13 cargos
Slide 19: U.S. Export Annual Trading Patterns – 2018
U.S. Export Annual Trading Patterns – 2018 Recent trading patterns1 (as of 01-Jan-18 through 31-Dec-18) from Importers from Sabine Pass (LNG tonnes) – 2018 Sabine Pass exports indicate 1.94 vessels (160,000 m3) are required on average for each million tonne of LNG exported • Far Eastern markets have
Slide 20: 2018 Fixtures Witness More Term Charters
2018 Fixtures Witness More Term Charters Annual Fixtures by Charter Length Fixture activity in the LNG charter market continues to increase. However, average charter duration increased in 2018 as a result of more term charters. • Spot chartering activity (<180 days) has continued to make up a large
Slide 21: Reconciliation of net (loss)/income to adjusted Net Income and Adjusted Earnings per Common Unit
Reconciliation of net (loss)/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) 31 December 2018 2017 Net (loss)/income $ (924) $ 5,625 Amortization of deferred revenue (201) 141 Amortization of de
Slide 22: Reconciliation of Net (loss)/income to Adjusted EBITDA
Reconciliation of Net (loss)/income to Adjusted EBITDA 1 Three Months Ended Reconciliation to Net (loss)/income 31 December (In thousands of U.S dollars) 2018 2017 Net (loss)/income $ (924) $ 5,625 Armortization and write-off of deferred finance fees 817 825 Net interest and finance costs, excluding