Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q3 2017 Earnings Presentation
25 slides from Dynagas LNG Partners LP's earnings presentation, Dec 6, 2017
Slide 1: Q3 2017 Results Presentation
s Q3 2017 Results Presentation 6 December 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 Fleet Update Amur River completed her scheduled 5 year class special survey in Q3 17 Next special survey & dry docking in about 5 years Clean Energy now trading in the short-term market until she delivers into her ~8 year contract with Gazprom in July 2018 Q3 2017 Adjusted EBITDA
Slide 4: Q3 2017 Financial Highlights
Q3 2017 Financial Highlights USD in thousands (except per unit, average daily hire and other operational data) Q3 2017 Q2 2017 Q3 2016 Revenues 33,471 31,975 43,087 Adjusted Net Income (1) 7,047 4,220 19,091 Adjusted EBITDA (1) 26,434 22,921 35,436 Distributable Cash Flow (1) 11,295 8,200 22,999 Ann
Slide 5: Distributable Cash Flow and Coverage Ratio
Distributable Cash Flow and Coverage Ratio (USD in thousands) Q3 2017 Q3 2016 Net income 3,983 17,278 Depreciation 7,642 7,642 Amortization of deferred financing fees 839 499 Net interest and finance costs, excluding amortization 10,906 8,204 Class survey costs 1,096 - Amortization of fair value of
Slide 6: Debt Profile
Debt Profile Debt maturity profile Firstdebt maturity: Non amortizing ($ in millions) 6.25% senior unsecured notes due October 2019 $451 Secured Term Loan B maturity: May 2023 $250 Low amortization of $4.8 million per annum fully supported by long-term contract coverage. $5 $5 $5 $5 Contract
Slide 7: Strong Liquidity and Healthy Capital Structure
Strong Liquidity and Healthy Capital Structure (USD in million) As at 5 December 2017 Selected Balance Sheet Data (USD in million) 30 September 2017 Term Loan B 479 Vessels’ book value 985 Cash 71 Unsecured Notes 250 Total Assets 1,068 Total Debt 729 Gross debt 729 Partners’ Equity 329 Market Value
Slide 8: Cash Distributions historical profile
Cash Distributions historical profile USD in million Q3 17 Since IPO Declared and paid Cash Distributions (1) 15.0 223.3 Distributable Cash Flow 11.3 266.1 Annual Cash Distributions per common unit (amounts in USD) 1.69 1.46 Q3 2017 IPO November 2013 Total cash distributions of $ 6.36 per common uni
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 ~7.3 years(1) Average remaining charter duration ~10 years(1)(2) Gazprom, Statoil, Yamal, Petrochina
Slide 10: 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 11: 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 12: Market Share: Leader in Ice Class Trades
Market Share: Leader in Ice Class Trades Dynagas Group (DLNG and Sponsor) has an 75% 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 carry cargoes
Slide 13: Industry Overview
Industry Overview
Slide 14: LNG Shipping Capacity to increase by 22% within 2020
LNG Shipping Capacity to increase by 22% within 2020 1. Existing Fleet LNG Vessel Deliveries by Propulsion Type • Number of vessels: 474 # of Vessels Average 70 Existing Fleet # of Vessels % of Fleet Age Q3 2017 Fleet Composition 60 185 -266,000 m3 46 14% 9 Yrs 167- 185,000 m3 77 18% 3 Yrs 50 144 –
Slide 15: LNG Trade to increase by over 50% by 2022
LNG Trade to increase by over 50% by 2022 • LNG exports are estimated to grow by 11% from 2016 (263 Global LNG Supply/Exports by Region, 2012-2023 mtpa) to 2017. Middle East Atlantic Asia-Pacific In million tons of • LNG exports are forecasted to reach 292 mtpa in 2017 and LNG +48% 432 mtpa by 2022
Slide 16: LNG Exports Growth Remains Strong
LNG Exports Growth Remains Strong • The industry is keeping on track with projections. In the first three Incremental LNG Exports by Region, Q1-3 2017 vs Q1-3 2016 quarters of 2017 ~218 mt of LNG were exported, up ~12% from (million tons) the first three quarters of 2016. • The U.S. and Australia ex
Slide 17: U.S. Exports Are Currently Boosting Vessel Demand
U.S. Exports Are Currently Boosting Vessel Demand – Set to Continue Recent trading patterns1 (as of 13 October 2017) from Sabine Importers from Sabine Pass (LNG tonnes) 2016 – 2017 Pass exports indicate 1.69 vessels (160,000 m3) are required on YTD average for each million tonne of LNG exported • Fa
Slide 18: Early 1990s – 9 LNG Country to Country Routes
Early 1990s – 9 LNG Country to Country Routes Export Markets Import Markets Source: Reuters, Poten & Partners 17
Slide 19: 2016 – 255 Country to Country Trading Routes
2016 – 255 Country to Country Trading Routes - Complex Environment Export Markets Countries with blue fill outlined in red Import Markets are both import and export markets Source: Reuters, Poten & Partners 18
Slide 20: Increasingly Liquid Chartering Market – Expect Period Market to Rebound
Increasingly Liquid Chartering Market – Expect Period Market to Rebound Spot LNG Sales Versus all Sold LNG Activity in the LNG charter market continues to increase as a result of more LNG, more LNG sold spot and a larger fleet. 100% • Since 2012 every year results in a new record in fixture liquidit
Slide 21: 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 22: Appendix
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Slide 23: Key Partnership Summary
Key Partnership Summary 1 • Modern (average age: 7.3 years)(1) and flexible fleet of 6 LNG carriers 1 Pure-play LNG shipping Partnership owning premium • Owns 5 out of a total of 12 LNG carriers in the global fleet with ice class 1A FS or equivalent notations LNG carriers (Sponsor (2) owns an additi
Slide 24: 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) 30 September 2017 2016 Net income $ 3,983 $ 17,278 Charter hire amortization 142 (14) Class survey costs 1,096 — Amortizatio
Slide 25: Reconciliation of Net income to Adjusted EBITDA
Reconciliation of Net income to Adjusted EBITDA Three Months Ended 1 Reconciliation to Net Income 30 September (In thousands of U.S dollars) 2017 2016 Net income $ 3,983 $ 17,278 Net interest and finance costs 11,745 8,703 Depreciation 7,642 7,642 Class survey costs 1,096 - Amortization of fair valu