Dynagas LNG Partners (NYSE: DLNG) reported Q3 EPS of $0.00, $0.05 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $34.36 million versus the consensus estimate of $33.05 million.

CEO Commentary:

“We are pleased to report the results for the quarter ended September 30, 2019.

“Our underlying charter business remains healthy. Upon the commencement of the employment of the Lena River under its new multi-year charter on July 01, 2019, each of our six LNG carriers are now fully delivered and operating under their respective term charters with international gas producers with an average remaining contract term of 8.9 years. The earliest possible re-chartering availability is in the third quarter of 2021, which is the earliest contracted re-delivery date for one of our six LNG carriers with the next carrier becoming available at the earliest in the first quarter of 2026.

“The fleet performed well during the quarter with a utilization of 99%. The Partnership reported a Net Loss of $4.7 million after accounting for a $7.5 million one time non cash write off from the accelerated amortization of the deferred loan fees due to the early prepayment of the Term Loan B. Adjusted Net Income and Adjusted EBITDA was reported at $2.8 million and $23.8 million, respectively.

“On September 25, 2019, the Partnership closed a syndicated $675 million senior secured term loan, or the Credit Facility, which together with cash on hand was used to repay in full all of the Partnership’s existing debt under the Term Loan B and the Notes. The reported Adjusted EBITDA of $23.8 million for the quarter is in line with the Partnership’s previous estimate of an annualized EBITDA of $95.0 million, which assumed that all of the Partnerships’s vessels had been delivered pursuant to their respective long term charters, including the Lena River.

“As noted above, the Partnership has in place long term charter contracts with international energy companies for each of its vessels that generates cash flows that may be used towards the increased amortization requirements of the Credit Facility, which builds equity value over time.

“As a result of the Partnership’s new financial profile, which is intended to deleverage its debt over time, the Partnership expects to be better positioned for future growth initiatives as we expect global LNG markets to continue their robust development.”

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