Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q2 2017 Earnings Presentation
23 slides from Dynagas LNG Partners LP's earnings presentation, Sep 5, 2017
Slide 1: Q2 2017 Results Presentation
s Q2 2017 Results Presentation 5 September 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 Clean Energy and Ob River commenced and completed their scheduled 5 year class special survey in Q2. Amur River commenced its scheduled 5 year special survey in Q2, completed in Q3 17. Clean Energy now trading in the short term market until she delivers into her ~8 y
Slide 4: Q2 2017 Financial Highlights
Q2 2017 Financial Highlights USD in thousands (except per unit, average daily hire and other operational data) Q2 2017 Q1 2017 Q2 2016 Revenues 31,975 39,092 42,638 Adjusted Net Income (1) 4,220 14,685 18,758 Adjusted EBITDA (1) 22,921 31,271 35,024 Distributable Cash Flow (1) 8,200 18,634 22,585 An
Slide 5: Distributable Cash Flow and Coverage Ratio
Distributable Cash Flow and Coverage Ratio Three Months Ended Three Months Ended USD in thousands 30 June 2017 30 June 2016 Net (loss)/income (5,181) 16,966 Depreciation 7,559 7,559 Amortization & write off of deferred financing fees 3,237 501 Net interest and finance costs, excluding amortization 1
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. $2 $5 $5 $5 $5 Contr
Slide 7: Healthy Liquidity and Capital Structure
Healthy Liquidity and Capital Structure USD in millions As at 1st September 2017 Selected Balance Sheet Data (USD in million) 30 June 2017 Term Loan B 480 Vessels’ book value 993 Cash 74 Unsecured Notes 250 Total Assets 1,081 Total Debt 730 Gross debt 730 Partners’ Equity 342 Market Value of Equity
Slide 8: Cash Distributions
Cash Distributions USD in million Q2 2017 Since IPO Declared and paid Cash Distributions (1) 15.0 208.3 Distributable Cash Flow 8.2 254.8 Annual Cash Distributions per common unit (amounts in USD) 1.69 1.46 Q2 2017 IPO November 2013 Total cash distributions of $ 5.94 per common unit since IPO (1) Re
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 ~7.1 years(1) Average remaining charter duration ~10.2 years(1)(2) Gazprom, Statoil, Yamal Counterpar
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: 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 Q3 2017 Fleet Composition % Average Existing Fleet # of Vessels of Fleet Age 60 185 -266,000 m3 45 10% 8 Yrs 50 167- 185,000 m3 68 15% 2 Yrs 32% 49% 40 144 – 1
Slide 15: 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 ~407 mt, an Middle East Atlantic Asia-Pacific increase of ~54% compared to 2016. In million tons of LNG 5-Year Growth • LNG exports have increased from ~242 mt in
Slide 16: LNG production up 13%
LNG production up 13% In the first half of 2017 ~143 mt of LNG were exported, up ~12% from H1-16 Incremental LNG Exports by region, H1 17 vs H1 16 (million tons) • Australia and the U.S. produced an incremental 12 mt (H1-17 vs H1-16) • This trend is expected to continue in the second half of 2017 wi
Slide 17: Recent Sabine Pass Shipping Behaviour
Recent Sabine Pass Shipping Behaviour Ave Laden Duration Equivalent # 160k m3 Country # Cargos Total Volume (Tonnes) (Days) vessels Required Per MTPA Recent trading patterns1 (as of 02 August 2017) from Sabine Pass exports Argentina 11 723,448 22 1.74 indicate 1.70 vessels (160,000 m3) are required
Slide 18: Chinese LNG Market Overview
Chinese LNG Market Overview The Chinese LNG Market Offers Strong Growth Opportunities Chinese Natural Gas Fields and Infrastructure • The Chinese gas market is large and rapidly growing, and lacks ~40 million tonnes of regasification capacity by 2020 conventional domestic gas reserves • China became
Slide 19: 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 20: Key Partnership Summary
Key Partnership Summary 1 • Modern (average age: 7.1 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 21: Appendix
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Slide 22: Reconciliation of Net (loss)/income to Adjusted Net Income
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 June 2017 2016 Net (loss)/income $ (5,181) $ 16,966 Charter hire amortization 100 (15) Non-cash accelerated amorti
Slide 23: Reconciliation of Net (loss)/income to Adjusted EBITDA
Reconciliation of Net (loss)/income to Adjusted EBITDA Three Months Ended 1 Reconciliation to Net Income/ (loss) 30 June (In thousands of U.S dollars) 2017 2016 Net (loss)/ income $ (5,181) $ 16,966 Net interest and finance costs 13,725 8,707 Depreciation 7,559 7,559 Class survey costs 4,911 - Amort