Dynagas LNG Partners Reports Financial Results for the Third Quarter Ended September 30, 2013
(firmenpresse) - ATHENS, GREECE -- (Marketwired) -- 12/12/13 -- Dynagas LNG Partners LP (NASDAQ: DLNG) ("Dynagas Partners" or the "Partnership") today announced results (unaudited) for the third quarter ended September 30, 2013, which was the last quarter before the Partnership completed its initial public offering ("IPO") in November 2013.
Net income attributable to unitholders was $11.9 million for the third quarter of 2013 demonstrating an increase of 78.6% compared to the third quarter of 2012. Operating income was $14.1 million for the third quarter of 2013 demonstrating an increase of 51.1% compared to the third quarter of 2012.
Adjusted EBITDA was $17.5 million for the third quarter of 2013 demonstrating an increase of 37.1% compared to the third quarter of 2012.
In November 2013, the Partnership completed its IPO of 12,500,000 common units representing limited partner interests, including 8,250,000 common units sold by the Partnership and 4,250,000 common units sold by Dynagas Holding Ltd., its sponsor ("Dynagas Holding"). This offering resulted in gross proceeds of $148.5 million for the Partnership. In connection with this offering, the underwriters exercised in full the option to purchase from Dynagas Holding an additional 1,875,000 common units. The Partnership currently has outstanding 14,985,000 common units and 14,985,000 subordinated units, of which Dynagas Holding owns 610,000 common units and all of the subordinated units (together representing a 52.0% limited partner interest in the Partnership).
In connection with the IPO, the Partnership listed its common units on the NASDAQ Global Select Market and trading commenced on November 13, 2013.
The Partnership entered into a new Senior Secured Revolving Credit Facility for an aggregate amount up to $262.13 million. In connection with the closing of the IPO, the Partnership repaid all of its then outstanding indebtedness of $346.1 million with borrowings of $214.1 million from the new Senior Secured Revolving Credit Facility and a portion of the net proceeds from the IPO.
For the results and the selected financial data presented herein, Dynagas Partners has compiled consolidated statements of income for the three and nine month periods ended September 30, 2013 and 2012, which were derived from the unaudited condensed consolidated financial statements for the periods presented.
Net income attributable to unitholders was $11.9 million for the third quarter of 2013, compared to $6.7 million in the same period of 2012, representing an increase of 78.6%. Operating income was $14.1 million for the third quarter of 2013 compared to $9.3 million for the same period in the prior year, representing an increase of 51.1%. Operating results improved primarily due to an increase in revenues attributable to the higher charter rate earned by the LNG carrier Ob River, after entering its current five year time charter contract in September, 2012, and an increase in revenue earning days of 14 days, or 5.3%, in the third quarter of 2013 compared to the same period in 2012. The increase was also attributable in part to the lack of special survey and dry-dock expenses and associated voyage and vessel operating expenses in the third quarter of 2013 compared to the same period in 2012, when one of our vessels underwent its scheduled special survey and dry-dock and incurred approximately $1.3 million of additional drydocking related expenses.
We incurred $2.8 million in vessel operating expenses in the third quarter of 2013 compared to $4.3 million in the same period in 2012, representing a decrease of 33.9%. Daily average operating expenses during the third quarter of 2013 was $10,254 per vessel, compared to $15,518 per vessel in the same period in 2012. The reduction is primarily due to our having not incurred special survey and dry-dock expenses in 2013.
The average daily time charter equivalent rate earned by our vessels in the third quarter of 2013 was $76,638, compared to $70,515 in the same period in 2012. During the three and nine month periods ended September 30, 2013 all of our vessels operated at 100% utilization.
In the third quarter of 2013, we incurred $0.69 million in technical management fees payable to our manager, compared to $0.67 million in technical management fees incurred during the same period in 2012. The increase in fees is attributable to the increase in the daily management fees to $2,500 per day per vessel in accordance with the terms of the technical management agreements effective January 1, 2013, as compared to management fees payable during the same period in 2012, which ranged from $2,340 to $2,433 per day per vessel.
Interest and finance costs, which do not reflect costs under the new Senior Secured Revolving Credit Facility, were $2.2 million during the third quarter of 2013, as compared to $2.6 million during the same period in 2012, representing a decrease of 16.3%, which was due to lower average outstanding debt throughout the third quarter of 2013.
(*) Amounts relating to variations in period-on-period comparisons shown in this section are derived from the actual numbers in our books and records.
Dynagas LNG Partners LP. (NASDAQ: DLNG) is a growth-oriented partnership formed by Dynagas Holding Ltd. to own, and operate liquefied natural gas (LNG) carriers initially employed on multi-year charters. The current fleet of Dynagas Partners consists of three LNG carriers, each of which has a carrying capacity of approximately 150,000 cbm and is employed on a multi-year charter."
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Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Partnership desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Partnership's management of historical operating trends, data contained in its records and other data available from third parties. Although the Partnership believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Partnership's control, the Partnership cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Partnership's view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for liquefied natural gas (LNG) shipping capacity, changes in the Partnership's operating expenses, including bunker prices, drydocking and insurance costs, the market for the Partnership's vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Partnership disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
Adjusted EBITDA is defined as earnings before interest and finance costs, net of interest income, gains/losses on derivative financial instruments, taxes (when incurred), depreciation and amortization (when incurred). Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as our investors, to assess our liquidity and our operating performance.
The Partnership believes that Adjusted EBITDA assists our management and investors by providing useful information that increases the comparability of our performance operating from period to period and against the operating performance of other companies in our industry that provide Adjusted EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. We believe that including Adjusted EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in us and other investment alternatives and (b) monitoring our ongoing financial and operational strength in assessing whether to continue to hold common units.
Adjusted EBITDA is not a measure of financial performance under U.S. GAAP, does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and these measures may vary among other companies. Therefore, Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies. The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable U.S. GAAP financial measures, for the periods presented:
Dynagas LNG Partners LP
97 Poseidonos Avenue & 2 Foivis Street
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Greece
Attention: Michael Gregos
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Datum: 12.12.2013 - 21:05 Uhr
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