Dynagas LNG Partners LP Reports Results for the Three Months and Year Ended December 31, 2021
Dynagas LNG Partners LP, an owner and operator of liquefied natural gas (“LNG”) carriers, announced its results for the three months and year ended December 31, 2021.
Fourth Quarter Highlights:
Net income and earnings per common unit (basic and diluted) of $16.9 million and $0.38, respectively;
Adjusted Net Income(1)of $11.4 million and Adjusted Earnings(1) per common unit (basic and diluted) of $0.23;
Adjusted EBITDA(1) $24.7 million;
100% fleet utilization(2); 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, 2021 to November 11, 2021 and $0.546875 per unit on the Series B Preferred Units (NYSE: “DLNG PR B”) for the period from August 22, 2021 to November 21, 2021.
Declared a quarterly cash distribution of $0.5625 on the Series A Preferred Units for the period from November 12, 2021 to February 11, 2022, which was paid on February 14, 2022 to all preferred Series A unit holders of record as of February 7, 2022; and
Declared a quarterly cash distribution of $0.546875 on the Series B Preferred Units for the period from November 22, 2021 to February 21, 2022, which was paid on February 22, 2022 to all preferred Series B unit holders of record as of February 14, 2022.
(1) Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP and other related information.
(2) Please refer to Appendix B.
Our thoughts go out to everyone affected and suffering as a result of the crisis in Ukraine. We continue to closely monitor this ongoing situation, including the implications of economic sanctions, trading restrictions and other considerations that may affect our business. Please see section of this report entitled “Russian Sanctions Developments”.
We are pleased to report the results for the three months and full year ended December 31, 2021. 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 6.9 years. As of March 17, 2022, our estimated contracted revenue backlog is $1.02 billion.
All six of our LNG carriers are contracted with major international energy companies. The earliest contracted re-delivery date for any of our six LNG carriers, subject to the terms of the applicable charter, is in the third quarter of 2023 (the Arctic Aurora), with the second earliest contracted re-delivery date (for the Clean Energy) in the first quarter of 2026.
For the fourth quarter of 2021, we reported Net Income of $16.9 million, Earnings per common unit of $0.38, Adjusted Net Income of $11.4 million, Adjusted Earnings per common unit of $0.23 and Adjusted EBITDA of $24.7 million. We are also pleased to report 100% utilization of our fleet for the seventh quarter in a row.
Going forward, we intend to continue our strategy of using our cash flow generation to deleverage our balance sheet and reinforce our liquidity to build equity value over time and enhance our ability to pursue future growth initiatives.
Russian Sanctions Developments
Due to the ongoing Russian conflicts with Ukraine, the United States (“U.S.”), European Union (“E.U.”), Canada and other Western countries and organizations have announced and enacted numerous sanctions against Russia to impose severe economic pressure on the Russian economy and government.
As of today’s date and to the Partnership’s knowledge:
The Partnership is in compliance with all applicable U.S. and E.U. sanctions;
Current U.S. and E.U. sanctions regimes have exempted certain LNG shipping operations and do not materially affect the business, operations or financial condition of the Partnership;
The Partnership’s counterparties are currently performing their obligations under their respective time charters in compliance with applicable U.S. and E.U. rules and regulations;
Sanctions legislation is changing rapidly and the Partnership is continuously monitoring the ongoing situation.
The full impact of the commercial and economic consequences of the Russian conflict with Ukraine are uncertain at this time. The Partnership cannot provide any assurance that any further development in sanctions, or escalation of the Ukraine situation more generally, will not have a significant impact on its business, financial condition or results of operations.
Source: Dynagas LNG Partners