Dynagas LNG Partners LP (NYSE: “DLNG”) (“Dynagas Partners” or the
“Partnership”), an owner and operator of liquefied natural gas
(“LNG”) carriers, today announced its results for the three and
nine months ended September 30, 2022.
Quarter Highlights:
- Net income and
earnings per common unit (basic and diluted) of $7.4 million and
$0.12, respectively;
- Adjusted Net
Income(1) of $4.5 million and Adjusted Earnings(1) per common unit
(basic and diluted) of $0.04;
- Adjusted
EBITDA(1) of $20.0 million;
- 100% fleet
utilization(2);
- Declared and
paid cash distribution of $0.5625 per unit on its Series A
Preferred Units (NYSE: “DLNG PR A”) for the period from May 12,
2022 to August 11, 2022 and $0.546875 per unit on the Series B
Preferred Units (NYSE: “DLNG PR B”) for the period from May 22,
2022 to August 21, 2022; and
- Completed the scheduled dry-dock of
the Amur River and OB River including the installation of ballast
water treatment equipment in accordance with current
regulations.
Subsequent Events:
- Declared a
quarterly cash distribution of $0.5625 on the Partnership’s Series
A Preferred Units for the period from August 12, 2022 to November
2022, which was paid on November 14, 2022 to all preferred Series A
unit holders of record as of November 7, 2022;
- Declared a
quarterly cash distribution of $0.546875 on the Partnership’s
Series B Preferred Units for the period from August 22, 2022 to
November 21, 2022, which was paid on November 22, 2022 to all
preferred Series B unit holders of record as of November 15, 2022;
and
- On October 12,
2022 and pursuant to the designation of Amsterdam Trade Bank
(“ATB”) by the Office of Foreign Assets Control as a Specially
Designated National, the Partnership, in agreement with all lenders
of the $675 Credit Facility, made a voluntary prepayment of $18,73
million which was applied in prepayment of the entire participation
of ATB to the $675 Million Credit Facility. An amount equal to the
above mentioned prepayment was released from the Cash Collateral
Account in order to make the prepayment.
(1) Adjusted Net Income and Adjusted EBITDA are
not recognized measures under U.S. GAAP. Please refer to Appendix B
of this press release for the definitions and reconciliation of
these measures to the most directly comparable financial measures
calculated and presented in accordance with U.S. GAAP and other
related information.(2) Please refer to Appendix B.
CEO Commentary:
We are pleased to report the results for the
three and nine months period ended September 30, 2022.
All six LNG carriers in our fleet are operating
under their respective long-term charters with international gas
producers with an average remaining contract term of 6.2 years. As
of December 12, 2022, our estimated contracted revenue backlog1 2
was $0.91 billion.
The earliest contracted re-delivery date for any
of our six LNG carriers is in the third quarter of 2023 (for the
Arctic Aurora), with the second earliest contracted re-delivery
date in the first quarter of 2026 (for the Clean Energy), both
subject to the terms of the applicable charter.
For the third quarter of 2022, we reported Net
Income of $7.4 million, earnings per common unit of $0.12, Adjusted
Net Income of $4.5 million and Adjusted EBITDA of $20.0 million.
While future results may vary, we are pleased to report 100%
utilization for our fleet for the tenth quarter in a row.
We are optimistic for the outlook of LNG
shipping in the long term. Sellers and buyers of LNG have on the
back of a surging demand for natural gas, reverted to a large
extent to long term sale and purchase agreements, which also
underlines the long term demand for LNG shipping.
Russian Sanctions
Developments
Due to the ongoing Russian conflicts with
Ukraine, the United States (“U.S.”), European Union (“E.U.”),
Canada and other Western countries and organizations have announced
and enacted numerous sanctions against Russia to impose severe
economic pressure on the Russian economy and government.
As of today’s date, and to the Partnership’s
knowledge:
- Current U.S. and E.U. sanctions regimes do not materially
affect the business, operations or financial condition of the
Partnership and the Partnership’s counterparties are currently
performing their obligations under their respective time charters
in compliance with applicable U.S. and E.U. rules and
regulations;
- Sanctions legislation in the E.U. continues to exclude
LNG;
- The charters of the Amur River, the Ob River and the Clean
Energy are under the control of the German government as of April
4th when Gazprom Germania (and all its subsidiaries), the indirect
parent of Gazprom Marketing and Trading (GMT Singapore), was placed
under the control of the German Government (Federal Network Agency)
since Gazprom Germania operates critical energy infrastructure in
Germany;
- By a press statement released by the German Ministry of
Economic Affairs and Climate Action on November 14, 2022, the
ownership of SEFE GmbH and all of its subsidiaries, including SEFE
Marketing & Trading Singapore Pte Ltd, has transitioned to the
German Federal Government, via the Federal Ministry for Economic
Affairs and Climate Action; and
- Sanctions legislation has been changing and the Partnership
continues to monitor such changes as applicable to the Partnership
and its counterparties.
The full impact of the commercial and economic
consequences of the Russian conflict with Ukraine is uncertain at
this time. The Partnership cannot provide any assurance that
any further development in sanctions, or escalation of the Ukraine
situation more generally, will not have a significant impact on its
business, financial condition or results of operations. Please
see the section of this report entitled “Forward Looking
Statements”.
______________________1 The Partnership
calculates its estimated contracted revenue backlog by multiplying
the contractual daily hire rate by the expected number of days
committed under the contracts (assuming earliest delivery and
redelivery and excluding options to extend), assuming full
utilization. The actual amount of revenues earned and the actual
periods during which revenues are earned may differ from the
amounts and periods disclosed due to, for example, dry-docking
and/or special survey downtime, maintenance projects, off-hire
downtime and other factors that result in lower revenues than the
Partnership’s average contract backlog per day.
2 The $0.13 billion of the revenue backlog
estimate relates to the estimated portion of the hire contained in
certain time charter contracts with Yamal which represents the
operating expenses of the respective vessels and is subject to
yearly adjustments on the basis of the actual operating costs
incurred within each year. The actual amount of revenues earned in
respect of such variable hire rate may therefore differ from the
amounts included in the revenue backlog estimate due to the yearly
variations in the respective vessels’ operating costs.
Financial Results Overview:
|
Three Months Ended |
|
Nine Months Ended |
(U.S. dollars in thousands, except per unit
data) |
|
September30, 2022(unaudited) |
|
September30, 2021(unaudited) |
|
|
September30, 2022(unaudited) |
|
September30, 2021(unaudited) |
Voyage revenues |
$ |
29,914 |
$ |
34,691 |
|
$ |
96,593 |
$ |
102,068 |
Net Income |
$ |
7,393 |
$ |
11,339 |
|
$ |
42,392 |
$ |
36,319 |
Adjusted Net Income(1) |
$ |
4,530 |
$ |
11,554 |
|
$ |
23,631 |
$ |
32,493 |
Operating income |
$ |
4,421 |
$ |
16,802 |
|
$ |
29,093 |
$ |
47,881 |
Adjusted EBITDA(1) |
$ |
19,998 |
$ |
24,820 |
|
$ |
65,876 |
$ |
72,315 |
Earnings per common unit |
$ |
0.12 |
$ |
0.23 |
|
$ |
0.92 |
$ |
0.76 |
Adjusted Earnings per common
unit(1) |
$ |
0.04 |
$ |
0.24 |
|
$ |
0.41 |
$ |
0.65 |
|
|
|
|
|
|
|
|
|
|
(1) Adjusted Net Income, Adjusted EBITDA and
Adjusted Earnings per common unit are not recognized measures under
U.S. GAAP. Please refer to Appendix B of this press release for the
definitions and reconciliation of these measures to the most
directly comparable financial measures calculated and presented in
accordance with U.S. GAAP.
Three Months Ended September 30, 2022
and 2021 Financial Results
Net Income for the three months ended September
30, 2022 was $7.4 million as compared to a Net Income of $11.3
million for the corresponding period of 2021, which represents a
decrease of $3.9 million, or 35.0%. The decrease in net income for
the three months ended September 30, 2022 was mainly attributable
to the decrease in voyage revenues and the increase in the vessels
dry-docking and special survey costs, attributable to the scheduled
dry-docks of the Amur River and the OB River, which were completed
on July 29, 2022 and August 27, 2022, respectively, as well as to
the increase in interest and finance costs, which were partly
offset by the increase in the gain on our interest rate swap
transaction compared to the corresponding period of 2021. The
realized gain on the interest rate swap transaction which was
received during the third quarter of 2022 amounted to $2,528
(realized loss of $399 paid during the corresponding period of
2021).
Adjusted Net Income for the three months ended
September 30, 2022 was $4.5 million compared to $11.6 million in
the corresponding period of 2021, which represents a net decrease
of $7.1 million or 61%. This decrease is mainly attributable to the
decrease in the vessels’ revenue, as well as to the increase of
interest and finance costs compared to the corresponding period of
2021 and excludes the effect of the realized gain on our interest
rate swap transaction mentioned above.
Voyage revenues for the three months ended
September 30, 2022 were $29.9 million compared to $34.7 million for
the corresponding period of 2021, which represents a net decrease
of $4.8 million or 13.8%, which is mainly attributable to the
decrease in the revenue earning days for the three months ended
September 30, 2022 compared to the corresponding period of 2021,
due to the abovementioned scheduled dry-docks of the Amur River and
the OB River.
The Partnership reported average daily hire
gross of commissions(1) of approximately $61,560 per day per vessel
in the three-month period ended September 30, 2022, compared to
approximately $62,800 per day per vessel for the corresponding
period of 2021. During both three-month periods ended September 30,
2022 and 2021, the Partnership’s vessels operated at 100%
utilization.
Vessel operating expenses were $7.0 million in
both three-month periods ended September 30, 2022 and 2021, which
corresponds to a daily rate per vessel of $12,743 in the
three-month period ended September 30, 2022, as compared a daily
rate per vessel of $12,641 in the corresponding period of 2021.
Adjusted EBITDA for the three months ended September 30, 2022 was
$20.0 million, as compared to $24.8 million for the corresponding
period of 2021. The decrease of $4.8 million, or 19.4%, was mainly
attributable to the effect of the abovementioned decrease in
revenues of the Amur River and the OB River due to the off hire
period during their scheduled dry-dock in the three months ended
September 30, 2022.
Interest and finance costs, net were $7.4
million in the three months ended September 30, 2022 as compared to
$5.3 million in the corresponding period of 2021, which represents
an increase of $2.1 million, or 40% due to the increase in the
weighted average interest rate in the three months period ending
September 30, 2022, compared to the corresponding period in 2021,
which was partly counterbalanced by the reduction in interest
bearing debt as compared to the corresponding period of 2021.
For the three months ended September 30, 2022,
the Partnership reported basic and diluted Earnings per common unit
and Adjusted Earnings per common unit, of $0.12 and $0.04
respectively, after taking into account the distributions relating
to the Series A Preferred Units and the Series B Preferred Units on
the Partnership’s Net income/Adjusted Net Income. Earnings per
common unit and Adjusted Earnings per common unit, basic and
diluted, are calculated on the basis of a weighted average number
of 36,802,247 common units outstanding during the period and in the
case of Adjusted Earnings per common unit after reflecting the
impact of the non-cash items presented in Appendix B of this press
release.
Adjusted Net Income, Adjusted EBITDA and
Adjusted Earnings per common unit are not recognized measures under
U.S. GAAP. Please refer to Appendix B of this press release for the
definitions and reconciliation of these measures to the most
directly comparable financial measures calculated and presented in
accordance with U.S. GAAP.
Amounts relating to variations in
period–on–period comparisons shown in this section are derived from
the condensed financials presented below.
(1) Average daily hire gross of commissions
represents voyage revenue excluding the non-cash time charter
deferred revenue amortization, divided by the Available Days in the
Partnership’s fleet as described in Appendix B.
Liquidity/ Financing/ Cash Flow
Coverage
During the three months ended September 30,
2022, the Partnership generated net cash from operating activities
of $10.9 million as compared to $19.8 million in the corresponding
period of 2021, which represents a decrease of $8.9 million, or
44.9% mainly as a result of working capital changes.
As of September 30, 2022, the Partnership
reported total cash of $97.7 million (including $50.0 million of
restricted cash). The Partnership’s outstanding indebtedness as of
September 30, 2022 under the $675.0 Million Credit Facility
amounted to $531.0 million, gross of unamortized deferred loan fees
and including $48.0 million, which was repayable within one
year.
As of September 30, 2022, the Partnership had
unused availability of $30.0 million under its interest free $30.0
million revolving credit facility with its Sponsor, or the $30.0
Million Revolving Credit Facility, which was extended on November
14, 2018, and is available to the Partnership at any time until
November 2023.
Vessel Employment
As of December 12, 2022, the Partnership had
estimated contracted time charter coverage(1) for 100% of its fleet
estimated Available Days (as defined in Appendix B) for 2022, 96%
of its fleet estimated Available Days for 2023 and 83% of its fleet
estimated Available Days for 2024.
As of the same date, the Partnership’s estimated
contracted revenue backlog (2) (3) was $0.91 billion, with an
average remaining contract term of 6.2
years.
(1) Time charter coverage for the Partnership’s
fleet is calculated by dividing the fleet contracted days on the
basis of the earliest estimated delivery and redelivery dates
prescribed in the Partnership’s current time charter contracts, net
of scheduled class survey repairs by the number of expected
Available Days during that period.
(2) The Partnership calculates its estimated
contracted revenue backlog by multiplying the contractual daily
hire rate by the expected number of days committed under the
contracts (assuming earliest delivery and redelivery and excluding
options to extend), assuming full utilization. The actual amount of
revenues earned and the actual periods during which revenues are
earned may differ from the amounts and periods disclosed due to,
for example, dry-docking and/or special survey downtime,
maintenance projects, off-hire downtime and other factors that
result in lower revenues than the Partnership’s average contract
backlog per day.
(3) $0.13 billion of the revenue backlog
estimate relates to the estimated portion of the hire contained in
certain time charter contracts with Yamal which represents the
operating expenses of the respective vessels and is subject to
yearly adjustments on the basis of the actual operating costs
incurred within each year. The actual amount of revenues earned in
respect of such variable hire rate may therefore differ from the
amounts included in the revenue backlog estimate due to the yearly
variations in the respective vessels’ operating costs.
Conference Call and Webcast:
As announced, the Partnership’s management team
will host a conference call on December 12, 2022 at 10:00 a.m.
Eastern Time to discuss the Partnership’s financial results.
Conference Call details:
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: 877-
405-1226 (US Toll Free Dial-In), or +1201- 689-7823 (US
International Dial-In). To access the conference call, please
reference call ID number [13734800] or "Dynagas" to the operator.
For additional participant International Toll-Free access numbers,
click here. Alternatively, participants can register for the call
using the call me option for a faster connection to join the
conference call. You can enter your phone number and let the system
call you right away. Click here for the call me option.
Audio Webcast - Slides
Presentation:
There will be a live and then archived webcast
of the conference call and accompanying slides, available through
the Partnership’s website. To listen to the archived audio file,
visit our website http://www.dynagaspartners.com and click on
Webcast under our Investor Relations page. Participants to the live
webcast should register on the website approximately 10 minutes
prior to the start of the webcast.
The slide presentation on the third quarter
ended September 30, 2022 financial results will be available in PDF
format 10 minutes prior to the conference call and webcast,
accessible on the Partnership’s website
http://www.dynagaspartners.com on the webcast page.
Participants to the webcast can download the PDF presentation.
About
Dynagas
LNG
Partners
LP
Dynagas LNG Partners LP. (NYSE: DLNG) is a
master limited partnership which owns and operates liquefied
natural gas (LNG) carriers employed on multi-year charters. The
Partnership’s current fleet consists of six LNG carriers, with
aggregate carrying capacity of approximately 914,000 cubic
meters.
Visit the Partnership’s website at
www.dynagaspartners.com. The Partnership’s website and its contents
are not incorporated into and do not form a part of this
release.
Contact Information:Dynagas LNG
Partners LP Attention: Michael Gregos Tel. +30 210 8917960 Email:
management@dynagaspartners.com
Investor Relations / Financial Media: Nicolas
Bornozis Markella KaraCapital Link, Inc. 230 Park Avenue, Suite
1540 New York, NY 10169 Tel. (212) 661-7566 E-mail:
dynagas@capitallink.com
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Partnership desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words “believe,”
“anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “project”, “will”, “may,” “should,” “expect,”
“expected,” “pending” and similar expressions identify
forward-looking statements. These forward -looking are not intended
to give any assurance as to future results and should not be relied
upon.
The forward-looking statements in this press
release are based upon various assumptions and estimates, many of
which are based, in turn, upon further assumptions, including
without limitation, examination by the Partnership’s management of
historical operating trends, data contained in its records and
other data available from third parties. Although the Partnership
believes that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond the Partnership’s control, the
Partnership cannot assure you that it will achieve or accomplish
these expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in the Partnership’s view, could cause
actual results to differ materially from those discussed, expressed
or implied, in the forward- looking statements include, but are not
limited to, the strength of world economies and currency
fluctuations, general market conditions, including fluctuations in
charter rates, ownership days, and vessel values, changes in supply
and demand for Liquefied Natural Gas (LNG) shipping capacity,
changes in the Partnership’s operating expenses, including bunker
prices, drydocking and insurance costs, the market for the
Partnership’s vessels, availability of financing and refinancing,
changes in governmental laws, rules and regulations or actions
taken by regulatory authorities, economic, regulatory, political
and governmental conditions that affect the shipping and the LNG
industry, potential liability from pending or future litigation,
and potential costs due to environmental damage and vessel
collisions, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessel breakdowns, instances of
off-hires, the length and severity of epidemics and pandemics,
including COVID-19, the impact of public health threats and
outbreaks of other highly communicable diseases, the impact of the
expected discontinuance of the London Interbank Offered Rate, or,
LIBOR, after June 30, 2023 on any of our debt referencing LIBOR in
the interest rate, the amount of cash available for distribution,
and other factors. Due to the ongoing Russian conflicts with
Ukraine, the United States, the European Union, Canada and other
Western countries and organizations have announced and enacted
numerous sanctions against Russia to impose severe economic
pressure on the Russian economy and government. The full impact of
the commercial and economic consequences of the Russian conflict
with Ukraine are uncertain at this time. Potential consequences of
the sanctions that could impact the Partnership’s business in the
future include but are not limited to: (1) limiting and/or banning
the use of the SWIFT financial and payment system that would
negatively affect payments under the Partnership’s existing vessel
charters; (2) the Partnership’s counterparties being potentially
limited by sanctions from performing under its agreements; and (3)
a general deterioration of the Russian economy. In addition, the
Partnership may have greater difficulties raising capital in the
future, which could potentially reduce the level of future
investment into its expansion and operations. The Partnership
cannot provide any assurance that any further development in
sanctions, or escalation of the Ukraine situation more generally,
will not have a significant impact on its business, financial
condition or results of operations.
Please see the Partnership’s filings with the
Securities and Exchange Commission for a more complete discussion
of these and other risks and uncertainties. The information set
forth herein speaks only as of the date hereof, and the Partnership
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this communication.
APPENDIX A
DYNAGAS LNG PARTNERS
LPCondensed Consolidated Statements of
Income
(In thousands of U.S. dollars
except units and per unit data) |
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2022(unaudited) |
|
2021(unaudited) |
|
2022(unaudited) |
|
2021(unaudited) |
REVENUES |
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
29,914 |
|
$ |
34,691 |
|
$ |
96,593 |
|
$ |
102,068 |
|
EXPENSES |
|
|
|
|
|
|
|
|
Voyage expenses (including
related party) |
|
(876 |
) |
|
(727 |
) |
|
(2,252 |
) |
|
(2,097 |
) |
Vessel operating expenses |
|
(7,034 |
) |
|
(6,978 |
) |
|
(22,012 |
) |
|
(21,471 |
) |
Dry-docking and special survey
costs |
|
(7,406 |
) |
|
— |
|
|
(12,791 |
) |
|
— |
|
General and administrative
expenses (including related party) |
|
(586 |
) |
|
(674 |
) |
|
(2,039 |
) |
|
(2,397 |
) |
Management fees -related
party |
|
(1,564 |
) |
|
(1,518 |
) |
|
(4,640 |
) |
|
(4,505 |
) |
Depreciation |
|
(8,027 |
) |
|
(7,992 |
) |
|
(23,766 |
) |
|
(23,717 |
) |
Operating
income |
|
4,421 |
|
|
16,802 |
|
|
29,093 |
|
|
47,881 |
|
Interest and finance costs,
net |
|
(7,441 |
) |
|
(5,274 |
) |
|
(18,479 |
) |
|
(16,105 |
) |
Gain/ (Loss) on derivative
instruments |
|
10,243 |
|
|
(188 |
) |
|
31,474 |
|
|
4,575 |
|
Other, net |
|
170 |
|
|
(1 |
) |
|
304 |
|
|
(32 |
) |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
7,393 |
|
$ |
11,339 |
|
$ |
42,392 |
|
$ |
36,319 |
|
Earnings per common
unit (basic and diluted) |
$ |
0.12 |
|
$ |
0.23 |
|
$ |
0.92 |
|
$ |
0.76 |
|
Weighted average
number of units outstanding, basic and diluted: |
|
|
|
|
|
|
|
|
Common units |
|
36,802,247 |
|
|
36,802,247 |
|
|
36,802,247 |
|
|
36,403,652 |
|
DYNAGAS LNG PARTNERS LP
Consolidated Condensed Balance
Sheets(Expressed in thousands of U.S.
Dollars—except for unit data)
|
|
September 30,2022(unaudited) |
|
December 31,2021(audited) |
ASSETS: |
|
|
|
|
Cash and cash equivalents and
restricted cash (current and non-current) |
$ |
97,734 |
$ |
97,015 |
Derivative financial
instrument (current and non-current) |
|
37,124 |
|
8,824 |
Due from related party
(current and non-current) |
|
1,350 |
|
2,494 |
Other current assets |
|
3,687 |
|
2,453 |
Vessels, net |
|
833,127 |
|
853,190 |
Other non-current assets |
|
1,344 |
|
1,505 |
Total
assets |
$ |
974,366 |
$ |
965,481 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Total long-term debt, net of
deferred financing costs |
$ |
527,523 |
$ |
561,966 |
Total other current
liabilities |
|
28,013 |
|
18,734 |
Due to related party (current
and non-current) |
|
816 |
|
247 |
Total other non-current
liabilities |
|
2,810 |
|
3,050 |
Total
liabilities |
$ |
559,162 |
$ |
583,997 |
|
|
|
|
|
PARTNERS’
EQUITY |
|
|
|
|
General partner (35,526 units
issued and outstanding as at September 30, 2022 and December 31,
2021) |
|
70 |
|
36 |
Common unitholders (36,802,247
units issued and outstanding as at September 30, 2022 and December
31, 2021) |
|
288,420 |
|
254,734 |
Series A Preferred
unitholders: (3,000,000 units issued and outstanding as at
September 30, 2022 and December 31, 2021) |
|
73,216 |
|
73,216 |
Series B Preferred
unitholders: (2,200,000 units issued and outstanding as at
September 30, 2022 and December 31, 2021) |
|
53,498 |
|
53,498 |
Total partners’
equity |
$ |
415,204 |
$ |
381,484 |
|
|
|
|
|
Total liabilities and
partners’ equity |
$ |
974,366 |
$ |
965,481 |
DYNAGAS LNG PARTNERS LP
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months EndedSeptember
30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Cash flows from
Operating Activities: |
|
|
|
|
|
|
|
|
Net income: |
$ |
7,393 |
|
$ |
11,339 |
|
$ |
42,392 |
|
$ |
36,319 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
8,027 |
|
|
7,992 |
|
|
23,766 |
|
|
23,717 |
|
Amortization and write-off of
deferred financing fees |
|
511 |
|
|
568 |
|
|
1,558 |
|
|
1,730 |
|
Deferred revenue
amortization |
|
(81 |
) |
|
(27 |
) |
|
(240 |
) |
|
303 |
|
Amortization and write-off of
deferred charges |
|
55 |
|
|
54 |
|
|
162 |
|
|
446 |
|
(Gain)/ Loss on derivative
financial instrument |
|
(10,243 |
) |
|
188 |
|
|
(31,474 |
) |
|
(4,575 |
) |
Dry-docking and special survey
costs |
|
7,406 |
|
|
— |
|
|
12,791 |
|
|
— |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
(243 |
) |
|
(259 |
) |
|
(806 |
) |
|
79 |
|
Prepayments and other
assets |
|
(211 |
) |
|
(282 |
) |
|
(766 |
) |
|
(599 |
) |
Inventories |
|
1,842 |
|
|
31 |
|
|
89 |
|
|
1 |
|
Due from/ to related
parties |
|
3,049 |
|
|
(979 |
) |
|
1,713 |
|
|
(2,067 |
) |
Deferred charges |
|
— |
|
|
— |
|
|
— |
|
|
(9 |
) |
Trade accounts payable |
|
(5,099 |
) |
|
860 |
|
|
(4,551 |
) |
|
1,572 |
|
Accrued liabilities |
|
566 |
|
|
(90 |
) |
|
1,370 |
|
|
(50 |
) |
Unearned revenue |
|
(2,103 |
) |
|
431 |
|
|
(2,103 |
) |
|
1,727 |
|
Net cash from
Operating Activities |
|
10,869 |
|
|
19,826 |
|
|
43,901 |
|
|
58,594 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
Investing Activities |
|
|
|
|
|
|
|
|
Ballast water treatment system
installation |
|
(1,005 |
) |
|
— |
|
|
(1,590 |
) |
|
— |
|
Net cash used in
Investing Activities |
|
(1,005 |
) |
|
— |
|
|
(1,590 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Cash flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Issuance of common units, net
of issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
3,407 |
|
Payment of securities
registration and other filing costs |
|
— |
|
|
(1 |
) |
|
— |
|
|
(14 |
) |
Distributions declared and
paid |
|
(2,891 |
) |
|
(2,891 |
) |
|
(8,672 |
) |
|
(8,672 |
) |
Repayment of long-term
debt |
|
(12,000 |
) |
|
(12,000 |
) |
|
(36,000 |
) |
|
(36,000 |
) |
Receipt/ (Payment) of
derivative instruments |
|
2,528 |
|
|
(399 |
) |
|
3,080 |
|
|
(978 |
) |
Net cash used in
Financing Activities |
|
(12,363 |
) |
|
(15,291 |
) |
|
(41,592 |
) |
|
(42,257 |
) |
|
|
|
|
|
|
|
|
|
Net increase /
(decrease) in cash and cash equivalents |
|
(2,499 |
) |
|
4,535 |
|
|
719 |
|
|
16,337 |
|
Cash and cash equivalents and
restricted cash at beginning of the period |
|
100,233 |
|
|
86,781 |
|
|
97,015 |
|
|
74,979 |
|
Cash and cash
equivalents and restricted cash at end of the period |
$ |
97,734 |
|
$ |
91,316 |
|
$ |
97,734 |
|
$ |
91,316 |
|
|
|
|
|
|
|
|
|
|
APPENDIX B
Fleet statistics
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
(expressed in United states dollars except for operational
data) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Number of vessels at the end
of period |
|
6 |
|
|
6 |
|
|
6 |
|
|
6 |
|
Average number of vessels in
the period(1) |
|
6 |
|
|
6 |
|
|
6 |
|
|
6 |
|
Calendar Days(2) |
|
552 |
|
|
552 |
|
|
1,638 |
|
|
1,638 |
|
Available Days(3) |
|
485 |
|
|
552 |
|
|
1,535 |
|
|
1,638 |
|
Revenue earning days(4) |
|
485 |
|
|
552 |
|
|
1,535 |
|
|
1,638 |
|
Time Charter
Equivalent(5) |
$ |
59,917 |
|
$ |
61,529 |
|
$ |
61,453 |
|
$ |
61,032 |
|
Fleet Utilization(4) |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
Vessel daily operating
expenses(6) |
$ |
12,743 |
|
$ |
12,641 |
|
$ |
13,438 |
|
$ |
13,108 |
|
(1) Represents the number of vessels that
constituted the Partnership’s fleet for the relevant period, as
measured by the sum of the number of days that each vessel was a
part of the Partnership’s fleet during the period divided by the
number of Calendar Days (defined below) in the period.
(2) “Calendar Days” are the total days that the
Partnership possessed the vessels in its fleet for the relevant
period.
(3) “Available Days” are the total number of
Calendar Days that the Partnership’s vessels were in its possession
during a period, less the total number of scheduled off-hire days
during the period associated with major repairs, or
dry-dockings.
(4) The Partnership calculates fleet utilization
by dividing the number of its Revenue earning days, which are the
total number of Available Days of the Partnership’s vessels net of
unscheduled off-hire days (which do not include
positioning/repositioning days for which compensation has been
received) during a period by the number of Available Days. The
shipping industry uses fleet utilization to measure a company’s
efficiency in finding employment for its vessels and minimizing the
amount of days that its vessels are off-hire for reasons such as
unscheduled repairs but excluding scheduled off-hires for vessel
upgrades, dry-dockings or special or intermediate surveys.
(5) Time charter equivalent rate (“TCE rate”),
is a measure of the average daily revenue performance of a vessel.
For time charters, we calculate TCE rate by dividing total voyage
revenues, less any voyage expenses, by the number of Available Days
during the relevant time period. Under a time charter, the
charterer pays substantially all vessel voyage related expenses.
However, the Partnership may incur voyage related expenses when
positioning or repositioning vessels before or after the period of
a time charter, during periods of commercial waiting time or while
off-hire during dry-docking or due to other unforeseen
circumstances. The TCE rate is not a measure of financial
performance under U.S. GAAP (non-GAAP measure), and should not be
considered as an alternative to voyage revenues, the most directly
comparable GAAP measure, or any other measure of financial
performance presented in accordance with U.S. GAAP. However, the
TCE rate is a standard shipping industry performance measure used
primarily to compare period-to-period changes in a company’s
performance despite changes in the mix of charter types (such as
time charters, voyage charters) under which the vessels may be
employed between the periods and to assist the Partnership’s
management in making decisions regarding the deployment and use of
the Partnership’s vessels and in evaluating their financial
performance. The Partnership’s calculation of TCE rates may not be
comparable to that reported by other companies due to differences
in methods of calculation. The following table reflects the
calculation of the Partnership’s TCE rates for the three and nine
months ended September 30, 2022 and 2021 (amounts in thousands of
U.S. dollars, except for TCE rates, which are expressed in U.S.
dollars, and Available Days):
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(In thousands of U.S. dollars,
except for Available Days and TCE rate) |
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
29,914 |
|
$ |
34,691 |
|
$ |
96,593 |
|
$ |
102,068 |
|
Voyage Expenses* |
|
(876 |
) |
|
(727 |
) |
|
(2,252 |
) |
|
(2,097 |
) |
Time Charter
equivalent revenues |
$ |
29,038 |
|
$ |
33,964 |
|
$ |
94,341 |
|
$ |
99,971 |
|
Available Days |
|
485 |
|
|
552 |
|
|
1,535 |
|
|
1,638 |
|
Time charter
equivalent (TCE) rate |
$ |
59,917 |
|
$ |
61,529 |
|
$ |
61,453 |
|
$ |
61,032 |
|
*Voyage expenses include commissions of 1.25%
paid to Dynagas Ltd., the Partnership’s Manager, and third-party
ship brokers, when defined in the charter parties, bunkers, port
expenses and other minor voyage expenses.
(6) Daily vessel operating expenses, which
include crew costs, provisions, deck and engine stores, lubricating
oil, insurance, spares and repairs, flag taxes and other
miscellaneous expenses, are calculated by dividing vessel operating
expenses by fleet Calendar Days for the relevant time period.
Reconciliation of U.S. GAAP Financial Information to
Non-GAAP Financial Information
Reconciliation of Net Income to Adjusted
EBITDA
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
(In thousands of U.S. dollars) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income |
$ |
7,393 |
|
|
$ |
11,339 |
|
|
$ |
42,392 |
|
|
$ |
36,319 |
|
Net interest and finance
costs(1) |
|
7,441 |
|
|
|
5,274 |
|
|
|
18,479 |
|
|
|
16,105 |
|
Depreciation |
|
8,027 |
|
|
|
7,992 |
|
|
|
23,766 |
|
|
|
23,717 |
|
(Gain)/ Loss on derivative
financial instrument |
|
(10,243 |
) |
|
|
188 |
|
|
|
(31,474 |
) |
|
|
(4,575 |
) |
Class survey costs |
|
7,406 |
|
|
|
— |
|
|
|
12,791 |
|
|
|
— |
|
Amortization of deferred
revenue |
|
(81 |
) |
|
|
(27 |
) |
|
|
(240 |
) |
|
|
303 |
|
Amortization and write-off of
deferred charges |
|
55 |
|
|
|
54 |
|
|
|
162 |
|
|
|
446 |
|
Adjusted
EBITDA |
$ |
19,998 |
|
|
$ |
24,820 |
|
|
$ |
65,876 |
|
|
$ |
72,315 |
|
(1) Includes interest and finance costs and interest income, if
any.
The Partnership defines Adjusted EBITDA as
earnings before interest and finance costs, net of interest income
(if any), gains/losses on derivative financial instruments, taxes
(when incurred), depreciation and amortization (when incurred),
class survey costs and significant non-recurring items (if any).
Adjusted EBITDA is used as a supplemental financial measure by
management and external users of financial statements, such as
investors, to assess the Partnership’s operating performance.
The Partnership believes that Adjusted EBITDA
assists its management and investors by providing useful
information that increases the ability to compare the Partnership’s
operating performance from period to period and against that of
other companies in its industry that provide Adjusted EBITDA
information. This increased comparability is achieved by excluding
the potentially disparate effects between periods or against
companies of interest, other financial items, depreciation and
amortization and taxes, which items are affected by various and
possible changes in financing methods, capital structure and
historical cost basis and which items may significantly affect net
income between periods. The Partnership believes that including
Adjusted EBITDA as a measure of operating performance benefits
investors in (a) selecting between investing in the Partnership and
other investment alternatives and (b) monitoring the Partnership’s
ongoing financial and operational strength.
Adjusted EBITDA is not intended to and does not
purport to represent cash flows for the period, nor is it presented
as an alternative to operating income. Further, Adjusted EBITDA is
not a measure of financial performance under U.S. GAAP and does not
represent and should not be considered as an alternative to net
income, operating income, cash flow from operating activities or
any other measure of financial performance presented in accordance
with U.S. GAAP. Adjusted EBITDA excludes some, but not all, items
that affect net income and these measures may vary among other
companies. Therefore, Adjusted EBITDA, as presented above, may not
be comparable to similarly titled measures of other businesses
because they may be defined or calculated differently by those
other businesses. It should not be considered in isolation or as a
substitute for a measure of performance prepared in accordance with
GAAP. Any Non-GAAP measures should be viewed as supplemental to,
and should not be considered as alternatives to, GAAP measures
including, but not limited to net earnings (loss), operating profit
(loss), cash flow from operating, investing and financing
activities, or any other measure of financial performance or
liquidity presented in accordance with GAAP.
Reconciliation of Net Income to Adjusted Net Income
available to common unitholders and Adjusted Earnings per common
unit
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
(In thousands of U.S. dollars except for units and per unit
data) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net Income |
$ |
7,393 |
|
|
$ |
11,339 |
|
|
$ |
42,392 |
|
|
$ |
36,319 |
|
Amortization of deferred
revenue |
|
(81 |
) |
|
|
(27 |
) |
|
|
(240 |
) |
|
|
303 |
|
Amortization and write- off of
deferred charges |
|
55 |
|
|
|
54 |
|
|
|
162 |
|
|
|
446 |
|
Class survey costs |
|
7,406 |
|
|
|
— |
|
|
|
12,791 |
|
|
|
— |
|
(Gain)/ Loss on derivative
financial instrument |
|
(10,243 |
) |
|
|
188 |
|
|
|
(31,474 |
) |
|
|
(4,575 |
) |
Adjusted Net
Income |
$ |
4,530 |
|
|
$ |
11,554 |
|
|
$ |
23,631 |
|
|
$ |
32,493 |
|
Less: Adjusted Net Income
attributable to preferred unitholders and general partner |
|
(2,892 |
) |
|
|
(2,899 |
) |
|
|
(8,687 |
) |
|
|
(8,696 |
) |
Common unitholders’
interest in Adjusted Net Income |
$ |
1,638 |
|
|
$ |
8,655 |
|
|
$ |
14,944 |
|
|
$ |
23,797 |
|
Weighted average number of
common units outstanding, basic and diluted: |
|
36,802,247 |
|
|
|
36,802,247 |
|
|
|
36,802,247 |
|
|
|
36,403,652 |
|
Adjusted Earnings per
common unit, basic and diluted |
$ |
0.04 |
|
|
$ |
0.24 |
|
|
$ |
0.41 |
|
|
$ |
0.65 |
|
Adjusted Net Income represents net income before
non-recurring expenses (if any), charter hire amortization related
to time charters with escalating time charter rates and changes in
the fair value of derivative financial instruments. Adjusted Net
Income available to common unitholders represents the common
unitholders interest in Adjusted Net Income for each period
presented. Adjusted Earnings per common unit represents Adjusted
Net Income attributable to common unitholders divided by the
weighted average common units outstanding during each period
presented.
Adjusted Net Income, Adjusted Net Income per
common unit and Adjusted Earnings per common unit, basic and
diluted, are not recognized measures under U.S. GAAP and should not
be regarded as substitutes for net income and earnings per unit,
basic and diluted. The Partnership’s definitions
of Adjusted Net Income, Adjusted Net Income per common unit and
Adjusted Earnings per common unit, basic and diluted, may not be
the same at those reported by other companies in the shipping
industry or other industries. The Partnership believes that the
presentation of Adjusted Net Income and Adjusted Earnings per unit
available to common unitholders are useful to investors because
these measures facilitate the comparability and the evaluation of
companies in the Partnership’s industry. In addition, the
Partnership believes that Adjusted Net Income is useful in
evaluating its operating performance compared to that of other
companies in the Partnership’s industry because the calculation of
Adjusted Net Income generally eliminates the accounting effects of
items which may vary for different companies for reasons unrelated
to overall operating performance. The Partnership’s presentation of
Adjusted Net Income available to common unitholders and Adjusted
Earnings per common unit does not imply, and should not be
construed as an inference, that its future results will be
unaffected by unusual or non-recurring items and should not be
considered in isolation or as a substitute for a measure of
performance prepared in accordance with GAAP.
Grafico Azioni Dynagas LNG Partners (NYSE:DLNG)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Dynagas LNG Partners (NYSE:DLNG)
Storico
Da Giu 2023 a Giu 2024