Dynagas LNG Partners (DLNG) Tops Q4 EPS by 2c, Revenues Beat

March 16, 2021 4:16 PM EDT
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Dynagas LNG Partners (NYSE: DLNG) reported Q4 EPS of $0.22, $0.02 better than the analyst estimate of $0.20. Revenue for the quarter came in at $34.44 million versus the consensus estimate of $33.62 million.

Fourth Quarter Highlights:

  • Net income and earnings per common unit of $10.6 million and $0.22, respectively;
  • Adjusted Net Income(1) of $10.7 million and Adjusted Earnings per common unit of $0.22;
  • Adjusted EBITDA(1) of $24.4 million;
  • 100% fleet utilization; and
  • Declared and paid cash distribution of $0.5625 per unit on its Series A Preferred Units (NYSE: “DLNG PR A”) for the period from August 12, 2020 to November 11, 2020 and $0.546875 per unit on the Series B Preferred Units (NYSE: “DLNG PR B”) for the period from August 22, 2020 to November 21, 2020.

CEO Commentary:

We are pleased to report the results for the three months and full year ended December 31, 2020.

All six LNG carriers in our fleet are operating under their respective long-term charters with international gas producers with an average remaining contract term of 7.5 years. Our estimated contracted revenue backlog is approximately $1.1 billion. Absent any unforeseen events or unscheduled dry dockings the earliest contracted re-delivery date for any of our six LNG carriers is in the third quarter of 2021 (the Arctic Aurora), with the next carrier (the Clean Energy) becoming available for re-chartering in the first quarter of 2026. The current short term market for LNG shipping is challenging, however, we believe this market will improve going into the second half of the year driven by seasonal demand.

For the fourth quarter of 2020, we reported Net Income of $10.6 million, earnings per common unit of $0.22, and Adjusted EBITDA of $24.4 million. This improved performance is attributable to an increase in voyage revenues and a decrease in interest and finance costs compared to the corresponding period in 2019, coupled with stable vessel operating expenses during this period.

Despite the ongoing operational challenges, the industry is facing as a result of the COVID-19 outbreak, we are pleased to report 100% utilization for our fleet for the fourth quarter of 2020. The ongoing impact of the COVID-19 outbreak has been operationally manageable due to our manager’s COVID-19 response plan which has been implemented with the support of our seafarers, charterers, and employees, for which we are grateful.

Subsequent to the quarter, we entered into an amended and restated agreement with our manager under which the technical management fee was reduced by 13%, which is equivalent to USD 417 per vessel per day effective from January 1, 2021.

Going forward, we intend to continue our strategy of using our cash flow generation to deleverage our balance sheet and reinforce our liquidity so as to build equity value over time. This, we believe, will enhance our ability to pursue future growth initiatives.

For earnings history and earnings-related data on Dynagas LNG Partners (DLNG) click here.

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