Early loan repayment hits Dynagas bottom line

Thursday, 28 November 2019
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Dynagas LNG Partners suffered a net loss of $4.7 mill for the three months ended 30th September, 2019, compared to a net loss of $0.7 mill in 3Q18. 

The 3Q19 net loss included a $7.5 mill one-off non-cash write-off expense from the accelerated amortisation of the deferred loan fees, as a result of the early prepayment of the Term Loan B facility.

Adjusted net income and distributable cash flow for the quarter were $2.8 mill and $7 mill, respectively, compared to $3.3 mill and $7.5 mill, respectively, for 3Q18, which represents a net decrease of $0.5 mill in both, or 15.2% and 6.7%, respectively, mainly due to increased financing expenses.

Voyage revenues for the quarter were $34.4 mill, compared to $31.3 mill for the corresponding period of 2018, which represents an increase of $3.1 mill.

Excluding amortisation of fair value of acquired timecharters and amortisation of deferred revenue, voyage revenues quarter on quarter increased by $1.5 mill, mainly as a result of - the increase of the voyage revenues earned on the ‘Clean Energy in 3Q19, which was delivered to its eight-year charter with Gazprom Marketing and Trading Singapore in the middle of July, 2018.

Prior to the delivery to Gazprom, the vessel was trading in the spot market at a lower charter rate for the corresponding period in 3Q18.

In addition, the higher revenues earned on the ‘Yenisei River in the 3Q19, as the vessel had its scheduled drydock, special survey and no revenues earned for the corresponding period in 3Q18.

The increase in voyage revenues was partially offset by the lower revenues earned on the ‘Arctic Aurora, which in August 2018, rolled-over into its new charter with Equinor at a lower charter rate compared to its previous contract.

The Partnership reported average daily hire gross of commissions of around $62,200 per day per vessel in 3Q19, compared to about $59,800 per day per vessel in the corresponding period of 2018.

Adjusted EBITDA for 3Q19 was $23.8 mill, compared to $23.5 mill for the corresponding period of 2018. The increase of $0.3 mill, or 1.3%, was mainly due to the net effect of the increase in the revenues and increase in the vessel’s operating expenses.

As of 30th September, 2019, the Partnership reported total cash of $317.6 mill (including $300 mill of restricted cash of which $250 mill was earmarked for the repayment of the notes) and a working capital deficit of $45.8 mill - as of 31st December, 2018 the working capital deficit was $159.8 mill.

The Partnership’s outstanding debt as of the same date was $925 mill, which included $675 mill under its credit facility and the notes, which were repaid in full on 30th October, 2019.

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