DLNG - Earnings call transcript Q2 2024

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Operator

Thank you for standing by, ladies and gentlemen, and welcome to the Dynagas LNG Partners Conference Call on the Second Quarter 2024 Financial Results.

We have with us today Mr. Tony Lauritzen, Chief Executive Officer; and Mr. Michael Gregos, Chief Financial Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today.

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

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

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

sir. Mr. like the Lauritzen. ahead, go over would back turn to And I to now Please floor

Tony Lauritzen

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

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

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

XXXX. move for to today ending on present and the start June Slide the We results months X XX the presentation Let's #X. on

pleased companies. all the are our esteemed announce that fleet international LNG gas operating on X to in carriers We long-term chances with were

second unit reported income and net 'XX, $X.XX. common of earnings million, quarter the per For of of we $XX.X

stood of income per to net translating adjusted adjusted earnings $XX.X common at million, $X.XX. Our unit

adjusted The our the $XX.X Bank EBITDA million. agreement with were new of reached million the financing conclusion for with cash We facility of million Furthermore, was $XXX.X the credit Financial financing period same from September X LNG with Leasing lease XX, our ahead 'XX. carriers. Development of maturity used our its previous China for pleased million of $XX.X on $XXX.X reserves partnership's existing fully June repay along to in the

of reduced of partnership substantially flexible Following the the phase. will LNG comments X financial we further provide now I a turn a well with deleveraging, is sustained strategic our debt structure. now period debt-free, With presentation a results. Michael, levels will to and who you more financing over for to now carriers positioned secured have next the its

Michael Gregos

you, Tony. Thank

of negative of of the for with compared and $XX [ time X of the valuable me second scheduled $XX,XXX the vessels million X to ] per the the utilization previous fleet numbers by quarter. portion $XX,XXX across affected fleet day the first maintained vessels the Average compared of summary variation is was our during to contained X, Slide Revenue and revenues down to in start in line small the from quarter. the quarter second of quarter. Turning headline let our a million $XX.X charter in We first at a XXX% TCE quarter.

for expenses. and during the $X.XX primarily related earlier for ] variation and slightly was million, X.X% prior the and revenue million to decrease of as rate million by unit our $XX.X [ quarter $X.X This from $XX.XX the gains first G&A or the the the for mark-to-market million $XX.X September was in lower swap second quarter the from income XX, realized purchases unrealized the XXX,XXX slightly second this income swap the which on Operating to XXXX. interest a USD year, per Net is up interest maturity common increased mentioned was operating reported rates a primarily reduction quarter. on relating quarter

was common income million debt in quarter of loss a of the net additional $XXX,XXX million on $XX.X In unchanged $XX of quarter, as per facility this the result our or Adjusted second the to quarter $XX.X $X.XX compared prior quarter. EBITDA from in quarter. early for for unit, our million [ and one-off adjusted prepayment was ] the first P&L extinguishment the prior credit

$XX,XXX average our average realized swap the deducted gains amounted and once breakeven G&A service per TCE. cost per daily vessel day Our expenses, day, resulting surplus into of for from per taking a account operating day debt vessel quarter, our cash per $XX,XXX day of per expenses net in per to

Turning X. to Slide We quarter a the of bridge with total cash million. began our on $XX

right in And on cash million chart second leaseback $XX.X $XXX.X repaid. first on was utilized $XX and secured own senior cover carriers, the new we million under the million our cash the had proceeds from the the flow, left fully quarter. in we the Following to prior $XXX and X on the difference between of of outstanding to our adjusted million our which facilities facility, sale LNG EBITDA

unitholders, with million our fees the cash. proceeds the $X.X in a interest working ended of sale swap rate plus million quarter benefit million we preferred about and less leaseback distributions of and $XX.X financing our $X.X new our from for After capital to

balance million, improved $XXX as our Meanwhile, $XXX total reduced by we our on since at X. Slide leverage debt to December debt and metrics stands XXXX. million our have Moving

reduced to by adjusted leverage, year-end from financial X.Xx. last adjusted has XX X.Xx Our net at EBITDA XXXX debt now divided months

our necessary create unitholders. foundation to the to to add financial our continue enhance to We value balance common and more sheet flexibility

LNG remaining X million facility $XXX are debt sale leaseback carriers refinanced old free. we carriers, of our on our million $XXX advised, with previously and As LNG credit X and

floating prior the amortization facility, we credit our expected have is XX average interest our $XX rates Over our is than XXXX, program will XX, full next weighted in Since cumulative swap million, but less in as and realized be inception swap September months, rate million $XX quite to our September X.XX%, matures. gains work our interest our $X debt from with to realized spread million the of exposure been significant gains. have

our off program extremely hedging well. So paid

million gain $X approximately additional XX. at maturity an received expect on realized to be the of September We

per to per our leverage result, by swap a Going for service on resulting pro based slightly our rates amortization quarter expenses day, forward, increase interest to matures and our is as our are today, lower of we our expect lower when where debt and sulfur increase in breakeven a fourth anticipated XXXX. approximately per $XX,XXX day about cash QX day forma $X,XXX despite

as reduce we getting of projected lower Obviously, rates time. interest we to to are benefit the over be expect

XXXX our Our our remaining maturity in is LNG vessel. of nearest debt June for XXXX June X for carriers and

summary, quarter, a full quarter of a in this had good and utilization XXX% without So we for any surprises.

my presentation from side. will to Tony. over it That's pass the I

Tony Lauritzen

you, Thank Michael.

with approximately comprises X. XX.X to Currently, years. and move carriers LNG X fleet on average of an Let's Slide age our continue

as Our Equinor, present charters and SEFE gas such multiple companies Yamal Trade. include

forward our next decade a Clean of the has Aurora. and Energy Rio vessels Arctic Additionally, Grande chartered subsidiary LLC,

The average backlog translates vessel. at also into of approximately stands $X.XX X.X an about years. billion, As of September which fleets our an period million charter contracted remaining XX, enjoys per fleet of $XXX XXXX, approximately average

profile We years are is partnership ahead. confident our that the charter income in stable positioning for our robust, and reliable

Moving Slide X. on to

securing on charters stable is centered long-term companies, strategy Our current commercial a ensuring prominent gas stream. with revenue

the Energy have Amur we And accumulated the will backlog. of when River River barring and we As contractual have a XXXX, approach, be availability a until no solid available. unforeseeable result Ob events, any this contract vessel year Clean

Aurora and in XXXX, Following a Arctic will do up this, for LNG provided Rio options. charters available the contracts the not Lena Grand exercise that River expansion River with Yenisie XXXX, their come in coming

The In and shipping delivery carriers existing a these of at XX% new committed the may expanded Most of for fleet demand. these about medium term, are charterers. the orders short to majority with of fleet. order have scheduled global already specific capacity between the being now to LNG significant newbuilds have been of and 'XX exceed book building rapidly

to long book term, replaced incremental will we increases. production LNG absorbed anticipate are that the for aging current order the as the medium vessels be in and transporting However, global demand

Given these our with strategically believe positioned we is factors, no portfolio well until XXXX. contractual availability

comparable energy fuels, the infrastructure power expect scale. lack to includes to for plants strong, global a and well-established We factors. demand combined efficiency long-term a gas the electrification, demand of its cycle the powered fossil at of key traditional several for superior distribution by the emissions production for by natural global low alternative LNG This and rising and remain compared driven

to Let's move on X. Slide

comes low our new A also are financial been in cost, significantly long the with major management flexible initiatives. debt. our strategic enhancing future tenors in arrangements and low Our has financing leverage, flexibility achievement reduction only substantial not for but

free debt successfully down lowered -- it XXXX outstanding September today. ratio, from amounting in of XX% operates Also, have our from a debt-to-EBITDA base foundation. $XXX has and reduction in our of $XXX our now also XXXX. improved September This to debt, million strengthening We September XXXX million portion fleet bringing in net thereby providing X.Xx to X.Xx asset to robust our a June notable by

in maintaining by supported and a organic been of financial contracted is stable has deleveraging predictable strategy profile. Our flow instrumental cash

contracted a average revenue of ensuring of per and sustained financial In foundation quarter, that evaluate the flows, allocation reduced $XXX in solid its maintain we broadened the a vessel, leverage believe flexibility a summary, backlog strategic partnership today, of capital and vision, income strategy. next cash new with Directors expect In is Board As we million streams. stable and phase. announce of the we will contracted

attention. for you Thank your

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

Operator

reached the for end back comments. and to question closing floor of over the session, like to further Instructions] [Operator any turn We've I'd answer our CEO

Tony Lauritzen

and to and we participation, you and Thank our look your for your forward attentiveness. Well, connecting Thank next time appreciate you with call. again on goodbye. we

Operator

webcast. does That Thank teleconference conclude you. today's

you line participation this a time, have You day. thank and at may for wonderful your disconnect your We today.

Dynagas LNG Partners (DLNG) 10 Sep 242024 Q2 Earnings call transcript