Earnings call transcript Q1 2023

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Operator

Thank you for standing by. Ladies and gentlemen, and welcome to the Dynagas LNG Partners Conference Call on the First Quarter 2023 Financial Results.

We have with us Mr. Tony Lauritzen, Chief Executive Officer; and Mr. Michael Gregos, Chief Financial Officer of the company. participants a all mode. time, this are listen-only in At question-and-answer presentation There a by session. will be followed [Operator Instructions] advise today. I must being conference recorded is you that this

be presentation today's this be This time, results within would like Partners of announced that are Please the meaning the will everyone conference forward-looking call making certain been the slide provision conference I the of the that call, remind meaning press laws. LNG in has statements These At statements. a and release its distributed. publicly the to Litigation that reminded federal statements and XXXX. Private of of presentation of harbor forward-looking with the contains webcast company Securities securities within Act Reform safe Dynagas

in today’s pursue Section Exchange not business, The Partners opportunities, other of and as conference statements and COVID-XX including, among and financial are on to LNG the Partners’ Partners in effects LNG particular, Dynagas the of market defined or LNG regarding call ability facts, growth that things, LNG future historical expected and LNG of performance XXXX, condition objectives charter Dynagas industry rate Dynagas expectations Partners of statements as in such may Dynagas the be operations as general, Act the forward-looking of XXE Securities financial the amended. expectations, in

moment also are release. on was draw full and may management webcast the slide and current presentation, kindly same based statement, which Please to included to statement whole expectations through risks statements, realized. forward-looking such the the in it. result has that statement in the two be expectations and attention press read go involve forward-looking may uncertainties discussed not Matters of which take a your I the that being

the floor Please pass go And Lauritzen. Mr. ahead. to I now,

Tony Lauritzen

everyone, our three call. conference ended Gregos. morning, today CFO, March I'm by joined for our joining in months thank us XXXX Michael and you Good XXst earnings

for results non-GAAP the discussed our call. announcing will be release this press a on measures Certain same issued have We period.

a We have useful why provided a we believe description of in as information release. be those this our press as discussion of well metrics, to

of Let's the presentation. move slide to on three

We for March the ending results XXst period on XXXX. are present delighted three to the months

all our operating are charters gas carriers companies. pleased six its fleet LNG were that team’s under with in announce to long-term We international

In net amounted unit the $X.X common with per reaching quarter first $X.XX. of ‘XX, income our to earnings million

income same for $X.XX. Our at of EBITDA $X.X into which earnings adjusted $XX.X Furthermore, adjusted stood million, period translates the adjusted per common our reached net million. unit

reached which of and Partnership agreement collateral was credit equal it’s These made Moreover, An prepayment facility the amount the lenders of a $XX.X million on the payment. members. March with relationships partners all performance order million. maintaining in XX to and showcase $XXX a aforementioned an solid under to XXXX, we voluntarily strong the released financial dedication to our achievements with our account from cash make prepayment

I will now on results. presentation comments Michael, further provide with you to who the financial will turn the over

Michael Gregos

Thank Tony. you,

XXXX, offset XX% decreased which income of and realized in primarily finance in interest our $X.X interest on million $X.X gain increase which mentioned the the changes rate due increase cash unrealized partially in costs, or our from rate gain compared received transaction due million, swap. million on Moving interest $XX.X four, for with of to was QX realized the swap offset slide gain a million, was net $XX.X and the to by the in swap quarter to in of $X.X to decrease above million interest first rate an to our effectively

$X.X million increase fourth million, for special survey net amounted million voyage quarter decrease $X.X income costs and floating the by the of mainly of The of $X under counterbalanced aforementioned Adjusted year, interest the $XX of were $X.X being higher paid our the a and the of as to to and same result the expense of increase revenues. compared time the decrease to leg finance interest attributable last in credit costs million million drydocking facility.

relatively net prior unrealized rate gains $X.XX. the or and million from be cash to net unit Adjusted swap income first with our adjusted our income in of that we million excludes gain EBITDA year. quarter quarter's If flow $X.X this $XX.X cash consistency statement, swap. interest realized $X.X For amounted of receipts as for interest million last seen million, compared quarter's instead rate per to common was adjusted would stable included $X.XX on at the $XX have can

commence of In prepayment amortization the to prior revenue deferred voluntary quarter quarters of the the actual the restricted all about in reconciled with which is and Equinor, due to for day. and receipts $XX,XXX cash TCE with Arctic $XX.X per Aurora from the TCE cash to straight our to funds with cash related flow the will amounted first account elevated relative in contract utilized line a The million. make of non-cash September approval quarter flow to our which new we the lenders, is collateral the the statement.

distribution first to $XX,XXX aforementioned voluntary per including the to and preferred the from the quarter amounted day for breakeven the gain with of swap. per quarter rate vessel $XX,XXX cash for prepayment unitholders, interest day, a OpEx per realized excluding the

debt of as $XXX had five, outstanding. end of slide million March, we to Moving

at are a in a times today steady X.X X.X continuing of million. comprehensive net We deleveraging to from in of our the power, increase leverage first equity, decrease XXXX, value the in and which times in our stands resulting $XXX commenced book quarter our which

about the million common flow, be this that operating to in we reminded of equivalent cash $X.XX in $XX.X excludes unit. flow cash per For gains. swap $X.X please operating Again, quarter, realized million generated

$XX the as for million quarter six, of million, million Moving result on slide prepayment. by to $XX to our cash $XX balance primarily was a aforementioned reduced voluntary the

drydocks We have in which third expected XXXX, the for three are quarter.

and OpEx are drydock on carriers pass-through LNG our time of charters. two However,

Tony. I wraps over presentation up my That to side. from it the will pass

Tony Lauritzen

Thank you, Michael.

slide the of on presentation. let's to seven So move

compromises companies, Norway, of fleet LNG with currently SEFE The chartered trade of and age carriers Yamal approximately Equinor an years. average XX.X including six by of Singapore. vessels are Our prominent

June As fleet approximately $XXX remaining it about translating the per average period of $XXX about an X.X Further million has to million backlog an of average XXXX, charter notice contracted amounted vessel. backlog of years. to

Moving on to slide eight.

due Our when strategy Currently ago around with gas charters LNG reached hubs in Russian-Ukraine to pricing long-term main a new producers. the results than securing remained situation. lower the year significantly they highs prices

continues sustainability However, global of the growth, as as this and prices prices both energy favorable. be between and Far positive gas as for consumers feed gas well economic producers. view in spread the and LNG East to We for U.S. Europe a

of managing Final for the emissions LNG security While Decisions importance in recognized. the shipping the is positive. the energy agreements. of the global and LNG Consequently, projects execution anticipate mature purchase long-term demand for long-term We Investment and remains LNG LNG of and in increasingly sales continuation

we the compared anticipate to the opportunities European we managing to in the is import explore further sizes, will implementation factors, land-based for terminals. cargo With in the storage large these future in is we have often Considering land-based market segment supplying both XXX,XXX limited flexibility for relevant terminals a well especially fleet for our LNG for which of conditions and leverage and fleet. This our healthy that the strong demand, FSRU less cubic FSRU LNG believe suited to capacity favorable demand terminals, to XXX,XXX carrier and terminals Europe.

million to Let's debt successfully times. March move from debt to significantly we demonstrated its strategy. XXXX has ‘XX, commitment times until X.X in nine. on of slide $XXX repaid Since partnership its to the The December leverage lowering net production end X.X

has partnership achieved ‘XX. in book $XXX.X value, the million standing equity of at March the XX% Additionally, at increase a end

LNG The ongoing is reduce We shifts future work further of a value as Looking firmly and through to sources. fossil favor stable equity from projected energy cash in ahead, the flow in LNG with a away of reduced ultimate we believe pivotal progressively cleaner building parts efforts are long-term the continue emissions. confident that other visibility. for the that current fuels demand role [Indiscernible] plays to partnership's

striving by These enhance integrate volatility. sustained may outlook shipping a for on energy are driven developments, positive prospects demand shipping. rates the by the which LNG the Considering countries remained asset security is and we for LNG Moreover, for from price long-term find to shipping, promising bolstered these long-term SPAs LNG robust. their rates

Thank you for your attention.

any We have now you may invite ask concluded have. questions the to you presentation and

Operator

you. Thank Lauritzen I'll Mr. questions at no this any for now time. There back call are pass to remarks. closing the

Tony Lauritzen

connecting We Thank time your with you participation look for effectiveness. goodbye. care call. our to and forward on Take again next your appreciate and you and

Operator

This concludes today's teleconference.

lines disconnect We your this participation. at your You for thank you time. may

Dynagas LNG Partners (DLNG) 21 Jun 232023 Q1 Earnings call transcript