Dynagas LNG Partners (DLNG) Q1 2024 earnings summary

Executive summary

• Reported Q1 2024 net income of $11.8 million and adjusted net income of $12.4 million, with adjusted EBITDA at $29 million and 100% fleet utilization.

• All six LNG carriers are on long-term charters with major international gas companies, averaging 6.6 years remaining and no vessel availability until 2028.

• Contracted revenue backlog stands at $1.07 billion as of June 27, 2024.

• Secured $345 million lease financing for four vessels, enabling full prepayment of a $675 million credit facility and leaving two vessels debt-free.

• The partnership is positioned for its next phase with lower leverage and increased financial flexibility.

Financial highlights

• Q1 2024 voyage revenues reached $38.1 million; net income was $11.8 million, and adjusted EBITDA was $29 million, up 22.9% year-over-year.

• Adjusted net income rose 90.8% year-over-year to $12.4 million, with adjusted earnings per common unit at $0.25.

• Net cash from operating activities was $11.6 million; cash as of March 31, 2024, was $76.2 million.

• Debt outstanding at quarter-end was $408.6 million, repaid in June.

• Time charter equivalent was $68,128 per day; OPEX was $14,103 per day.

Outlook and guidance

• Free cash flow to common equity after preferred distributions is projected at $8 million per quarter, subject to SOFR rates and utilization.

• No contractual vessel availability until 2028, ensuring stable revenue streams and 100% contracted fleet for 2024 and 2025.

• Management will evaluate cash flow allocation for growth or distributions on a quarter-by-quarter basis.

• Reduced leverage positions the partnership to consider future growth initiatives.