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Dynagas LNG Partners announces reduction in quarterly distribution

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LNG Industry,

Dynagas LNG Partners LP has announced that its board of directors has reduced its quarterly cash distribution to US$0.0625 per common unit with respect to the quarter ended 31 December 2018 from US$0.25 per common unit in prior quarters.

According to the statement, the cash distribution to common unit-holders is payable on 14 February 2019 to all common unit-holders of record on 7 February 2019. Dynagas claims that there are no changes to the quarterly cash distributions relating to any of the partnership’s outstanding preferred units.

The CEO of Dynagas LNG Partners LP, Tony Lauritzen, said: “Our Board of Directors believes that the decision to reduce our cash distribution to common unit-holders is necessary in order to retain more of the cash generated from the Partnership’s long-term contracts to maintain a steady cash balance and to facilitate the refinancing of the Partnership’s US$250 million notes which mature on 30 October 2019 (the ‘notes’).

“The level of future cash distributions to common unit holders, which may be further reduced or eliminated by the Board of Directors of the Partnership, will be subject to, among other factors, the final terms of the refinancing of the notes, including the level of indebtedness incurred (if any) or new securities issued (if any) by the Partnership in connection with such refinancing. The Partnership believes that the reduction of the cash distribution described above is not reflective of the Partnership’s underlying operational performance, with our LNG carriers continuing to generate stable and predictable long-term cash flows from long-term contracts with high quality counterparties.”

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