Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q3 2018 Earnings Presentation
21 slides from Dynagas LNG Partners LP's earnings presentation, Nov 16, 2018
Slide 1: Q3 2018 Financial Results Presentation
s Q3 2018 Financial Results Presentation 16 November 2018
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 Fleet Update August 2018: The Yenisei River completed its scheduled dry-docking and special survey and subsequently entered earlier than anticipated into its multi-year charter with Yamal, which was extended from 15 years to 15.5 years. August 2018: The Arctic Aurora rolled over
Slide 5: Q3'18 Financial Highlights
Q3’ 18 Financial Highlights USD in thousands (except for unit, average daily hire and other operational data) Q3 2018 Q2 2018 Q3 2017 Revenues 31,320 30,892 33,471 Adjusted Net Income (1) 3,275 4,526 7,047 Adjusted EBITDA (1) 23,474 24,443 26,434 Distributable Cash Flow (1) 7,506 8,670 11,295 Annual
Slide 6: Distributable Cash Flow and Cash Coverage Ratio
Distributable Cash Flow and Cash Coverage Ratio (USD in thousands) Q3’ 18 Distribution Coverage Q3’ 18 Cash Coverage Net loss (654) Net loss (654) Depreciation 7,645 Depreciation 7,645 Amortization of deferred financing fees 819 Amortization of deferred financing fees 819 Net interest and finance co
Slide 7: Simplified Capital Structure and Debt Profile
Simplified Capital Structure and Debt Profile ($) millions 1,000 800 Net Debt to Total Capitalization 62% 600 Net Debt to LTM EBITDA 6.6x ~ USD 1 $474 million Billion Market $89.5 million of available liquidity 400 $ 55m Preferred (1) TLB Value of $ 75m Preferred Vessels Non amortizing 6.25% USD 250
Slide 8: 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 ~8.3 years(1) Average remaining charter duration ~9.9 years(1)(2) Gazprom, Equinor, Yamal & undisclos
Slide 9: 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 2018 2019 2020 2021 2022 Clean Energy 2007 149,700 2026 Ob River 2007 149,700 2028 (1) Am ur 2008 149,700 2028 River (1) Arctic Aurora 2013 155,000 2023 Yenis ei 2013 155,000 2033/34 River Un
Slide 10: 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 11: Appendix
x ae} c 7 2. 2. <x
Slide 12: Industry Overview
Industry Overview
Slide 13: 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: 512 # of Vessels # of Capacity % Average Existing Fleet Vessels (m3) of Fleet Age 185 -266,000 m3 46 10,585,300 13% 9 167- 185,000 m3 110 19,081,920 24% 2 150- 167,5
Slide 14: LNG Trade to increase by over 40% by 2022
LNG Trade to increase by over 40% by 2022 Global LNG trade reached 291 mt in 2017, up 11% from the Global LNG Supply / Exports by Region, 2012-2022 year before. By 2022 LNG supply is projected to rise by 123 mt or 42% (new projects and existing projects increasing/ramping up +42% capacity) to 414 mt
Slide 15: LNG Exports Growth Remains Strong
LNG Exports Growth Remains Strong In the first three quarters of 2018, 234 mt of LNG were exported, Incremental LNG Exports by Region, Q1-3 18 vs Q1-3 17 (mt) up 9% from the first three quarters of 2017 • The U.S., Australia and Russia exported an incremental 20 mt. This -0.6 +4.9 trend is expected
Slide 16: Asia keeps driving LNG Demand Growth
Asia keeps driving LNG Demand Growth LNG demand continues to be fueled by Far East growth with a Incremental LNG Imports by Region, Q1-3 18 vs Q1-3 17 (mt) sustained increase in South Korean and Chinese imports, mainly pushed by government pollution policies to switch from coal to gas • China and So
Slide 17: U.S. Export Trading Patterns – Q3 2018
U.S. Export Trading Patterns – Q3 2018 Recent trading patterns1 from U.S. exports that delivered in Q3 2018 Importers from Sabine Pass (LNG tonnes) – Q3 2018 indicate that 1.80 vessels (160,000 m3) were required on average for each million ton of LNG exported • 60 cargoes from Sabine Pass and 17 car
Slide 18: Liquidity in the LNG Charter Market Continues to Grow
Liquidity in the LNG Charter Market Continues to Grow Annual Fixtures by Charter Length Fixture activity in the LNG charter market continues to increase. • Spot chartering activity (<180 days) has continued to make up a growing proportion of the charter market, accounting for 89% of fixtures over 20
Slide 19: Key Investment Highlights
Key Investment Highlights Purified Asset Mix: Pure Play LNG marine transportation MLP Compelling Market Fundamentals: Fixed Rate Contracts Strong Growth in LNG production Simplified Capital Structure: Premier Assets Market: Preferred Units (Series A & B) Leader in rapidly growing Ice Unsecured Notes
Slide 20: 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) 30 September 2018 2017 Net (loss)/income $ (654) $ 3,983 Amortization of deferred revenue (121) 142 Amortization of d
Slide 21: 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 30 September (In thousands of U.S dollars) 2018 2017 Net (loss)/income $ (654) $ 3,983 Net interest and finance costs 12,554 11,745 Depreciation 7,645 7,642 Class survey costs 2,346 1,096