Dynagas LNG Partners LP Q3 FY2023 earnings call

• Fleet composition: The fleet consists of six LNG carriers with an average age of approximately 13.3 years, all operating under long-term charters with esteemed international gas companies.
• Operational activities: Completed scheduled dry docks of Yenisei River, Lena River, and Arctic Aurora, including ballast water treatment equipment installation; Arctic Aurora delivered to Equinor ASA in September 2023.
• Financials: Net income decreased due to lower unrealized gain on interest rate swap and higher loan interest, but offset by realized gain and time charter reimbursements; adjusted EBITDA stable at $20.4 million; TCE for the quarter was close to $72,000 per day.
• Debt reduction: Since December 2019, repaid $242 million in debt, reducing net leverage from 6.6 times to 4.1 times, and book equity value increased to $441 million as of September 30, 2023.

For the third quarter of 2023, Dynagas LNG Partners reported net income of $1.4 million and a loss per common unit of $0.04. Adjusted net income stood at $3.1 million (adjusted earnings per common unit of $0.01) and adjusted EBITDA was $20.4 million. Voyage revenues increased by 23.7% from $29.9 million to $37 million. As of September 30, 2023, debt outstanding under the current credit facility was $432 million, operating cash flow for the quarter was $21 million, and cash balance increased from $52.9 million to $64.9 million. Revenue contribution: All six LNG carriers in the fleet were under long-term charters with international gas companies, contributing to the overall financial performance.

• Plan to refinance current credit facility: In discussions for refinancing the current credit facility, aiming to sign, close, and fund within Q1 2024.
• Charter profile: Confident in the strong charter profile with the fleet fully employed throughout 2027 to eliminate exposure to market uncertainty.
• Long-term outlook: Positive outlook on LNG shipping long-term due to the shift away from coal and other pollutants towards cleaner energy sources like natural gas.

• Industry uncertainties: LNG carriers under construction delivered on time while LNG trades under construction delayed; potential market uncertainty during parts of the period if not fully employed.
• Refinancing risks: Uncertainties in the refinancing process of the credit facility could impact debt management.

Q: About the refinancing of the debt, specifically if there's a holdup and if Yamal vessels are a factor.

A: No, there's no holdup. We're trying to find the optimal financing, and there's demand for our assets. The Yamal vessels aren't a problem as our fleet has a strong contract backlog in totality