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Snapshot: Dynagas LNG Partners’ Q2 Results

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Q2 2018 results

Dynagas LNG Partners (DLNG) released its second-quarter results on July 27 before the markets opened. The company reported second-quarter net income of $0.4 million and adjusted net income of $4.5 million. The company’s adjusted EBITDA for the quarter was $24.4 million. 

Dynagas LNG Partners’ second-quarter earnings were in line with its expectations and were higher than those in the second quarter of 2017. However, the company’s earnings fell below its first-quarter earnings due to the following factors:

  • temporary employment of clean energy in the short-term market
  • completion of a multiyear contract with Gazprom for the Ob River in April and subsequent employment of the vessel with the same company at a lower rate
  • scheduled dry-docking of Arctic Aurora in May
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Distribution

Dynagas LNG Partners had distributable cash flow of $8.7 million in the second quarter. The company declared and paid a quarterly cash distribution of $0.25 per share to all common unitholders. For Series A Preferred units, the company announced a cash distribution of $0.5625 per unit from May 12 to August 11, which is expected to be paid on August 13.

Dynagas LNG Partners has a dividend yield of 12.58%. Following are the dividend yields of other LNG carrier companies:

  • Hoegh LNG Partners (HMLP): 9.75%
  • Teekay LMN Partners (TGP): 3.43%
  • Golar LNG Partners (GMLP): 14.16%
  • GasLog Partners (GLOP): 8.58%

Liquidity financing and cash flow

On June 30, Dynagas LNG Partners (DLNG) reported free cash flow of $57.8 million. Its total debt outstanding was $725.2 million. 

DLNG reported a working capital surplus of $42.3 million. The company generated net cash flow from operating activities of $8.6 million compared to $11.4 million in the second quarter of 2017.

Vessel employment

On July 27, Dynagas LNG Partners has contracted time charter coverage for 85% of its available days for 2018, 99% of its fleet estimated available days for 2019, and 100% of its fleet estimated available days for 2020. The company has ~$1.44 billion in revenue backlog with an average remaining contract term of 10.1 years.

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