Dynagas LNG Partners (DLNG) Q2 2024 earnings summary

Executive summary

• Reported Q2 2024 net income of $10.7 million and adjusted net income of $12.4 million, with adjusted EBITDA of $28.6 million and 100% fleet utilization; all six LNG carriers operated on long-term charters averaging 6.4 years remaining.

• Entered $345 million sale and leaseback agreements for four vessels, using proceeds and $63.7 million in cash to fully prepay the previous $675 million credit facility ahead of maturity.

• 33% of the fleet is now debt free, with significant deleveraging since 2019 and net debt to EBITDA ratio reduced to 2.9x by June 2024.

• Declared and paid quarterly cash distributions on Series A and B Preferred Units.

• Contracted backlog stands at $1.04 billion, with no vessel availability until 2028.

Financial highlights

• Q2 2024 voyage revenues were $37.6 million, operating income $18.8 million, and adjusted EBITDA $28.6 million.

• Adjusted net income rose to $12.4 million from $5.8 million in Q2 2023, mainly due to higher cash revenues from new charters.

• Net interest and finance costs decreased 10.9% year-over-year to $8.2 million in Q2 2024.

• Vessel operating expenses for Q2 2024 were $7.7 million, or $14,141 per vessel per day, down from $8.1 million in Q2 2023.

• Ended the quarter with $35.6 million in cash after refinancing and related payments.

Outlook and guidance

• Debt service per day is expected to rise by $5,200 in Q4 2024 as the interest rate swap matures, increasing pro forma cash breakeven to ~$50,000 per day.

• Board of directors will evaluate and announce capital allocation strategy in the next quarter.

• Estimated contract backlog as of September 10, 2024, is $1.04 billion, with no vessel availability until 2028.

• Long-term demand for LNG expected to remain strong, supporting stable income.

• Two vessels are now debt-free, positioning for future growth.