Dynagas LNG Partners LP reports results for the year ended 31 December 2017
Published by Joseph Green,
Dynagas LNG Partners LP, an owner and operator of LNG carriers, has announced its results for the three months and year ended 31 December 2017.
- Net income during the three months and year ended 31 December 2017 of US$5.6 million and US$17.3 million, respectively.
- Earnings per common unit for the three months and year ended 31 December 2017 of US$0.11 and US$0.27, respectively.
- Adjusted Net Income for the three months and year ended 31 December 2017 of US$7.6 million and US$33.7 million, respectively.
- Adjusted Earnings per common unit for the three months and year ended 31 December 2017 of US$0.16 and US$0.74, respectively.
- Distributable Cash Flow during the three months and year ended 31 December 2017 of US$11.8 million and US$49.9 million, respectively.
- Adjusted EBITDA for the three months and year ended 31 December 2017 of US$26.9 million and US$107.5 million, respectively.
- Reported cash of US$67.5 million and available liquidity of US$97.5 million each as of 31 December 2017.
- Quarterly cash distribution of US$0.4225 per common unit in respect of the fourth quarter of 2017 and US$0.5625 per preferred unit in respect of the most recent period.
New long-term time charter contract for the Arctic Aurora: On December 20, 2017, the Partnership entered into a new three year charter agreement with Statoil ASA for the employment of the Arctic Aurora, its 2013-built, 155 000 m3, tri-fuel diesel engine, ice class LNG carrier. This new charter for the Arctic Aurora is expected to commence in the third quarter of 2018 in direct continuation of the current charter with Statoil, following the vessel's mandatory statutory class five-year special survey and dry-docking and has a firm period of about 3 years +/- 30 days. Statoil will have options to extend this charter by two consecutive 12-month periods at escalated rates.
Quarterly Common and Subordinated Unit Cash Distribution: On 4 January 2018, the Partnership announced a quarterly cash distribution of US$0.4225 per common unit in respect of the fourth quarter of 2017. This cash distribution was paid on 18 January 2018 to all common unitholders of record as of 11 January 2018.
Series A Preferred Units Cash Distribution: On 24 January 2018, the Partnership’s Board of Directors also announced a cash distribution of US$0.5625 per unit of its Series A Preferred Units for the period from 12 November 2017 to 11 February 2018, which was paid on 12 February 2018 to all unitholders of record as of 5 February 2018.
Optional Vessels purchase option deadline extension: On 6 February 2018, the Partnership agreed with its Sponsor to extend the deadline for exercising the purchase options relating to both the Clean Horizon and the Clean Vision previously granted to the Partnership under the Omnibus Agreement retroactively from their initial expiration in July 2017 and January 2018, respectively, to 31 December 2018.
Tony Lauritzen, Chief Executive Officer of the Partnership, commented:
“We are pleased to report our earnings for the three months and year ended 31 December 2017.
“Our reported earnings for the fourth quarter of 2017 were, as expected, below those of the fourth quarter of 2016 and were impacted by the following: (i) the temporary employment of the Clean Energy on the spot market until July 2018, when the vessel will commence a time charter with Gazprom for a term of approximately 8 years, and (ii) the longer term nature of our contracts following our decision to reduce the charter hire rate on two vessels, the Yenisei River and the Lena River, with effect from November 2016, in exchange for securing the long-term charter with Gazprom, mentioned above, for the employment of the Clean Energy. These transactions contributed substantially to our contracted backlog, thereby enhancing significantly our revenue visibility.
“On 18 January 2018, we paid quarterly cash distribution of US$0.4225 per common unit with respect to the fourth quarter of 2017. Since our initial public offering in November 2013, we have paid total cash distributions of $6.79 per common unit. In addition, on 12 February 2018, we paid a cash distribution of US$0.5625 per unit on our Series A Preferred Units for the period from 12 November 2017 to 11 February 2018.
“Part of our strategy has been to enter into longer term charters for the employment of the vessels in our fleet. In general, based on the conditions of the charter market, long-term charters may be priced at day rates above or below shorter term charters. With our fleet 85% contracted through 2018, 92% contracted through 2019 and 100% contracted through 2020, and with an estimated fleet-wide average remaining contract duration of 10.4 years, we believe we have significant cash flow visibility. We expect to increase contract coverage going forward on the back of an improving LNG shipping market.
“Our revenues are derived from the employment of our vessels on fixed multi-year charter contracts. The revenues we earn under those charter contracts are earned on a fixed day rate basis and not linked in any way to commodity price fluctuations.
“Our intent is to seek additional contract coverage, particularly in 2018, to manage our operating expenses and to continue the safe operation of our fleet.
“We look forward to working towards meeting our goals, which we believe will continue to benefit our unitholders.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/16022018/dynagas-lng-partners-lp-reports-results-for-the-year-ended-31-december-2017/
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