Dynagas LNG Partners LP (DLNG) 2024 Q2 法說會逐字稿

Thank you for standing by, ladies and gentlemen, and welcome to the Dynagas LNG Partners conference call on the second quarter 2024 financial results.

女士們、先生們，感謝大家的支持，歡迎參加 Dynagas LNG 合作夥伴關於 2024 年第二季財務表現的電話會議。

We have with us today Mr. Tony Lauritzen, Chief Executive Officer; and Mr. Michael Gregos, Chief Financial Officer of the company. (Operator Instructions) I must advise you this conference is being recorded today.

今天我們有執行長 Tony Lauritzen 先生；以及公司財務長 Michael Gregos 先生。（操作員指示）我必須告訴您，今天正在錄製這次會議。

Please be reminded that the company announced its results with a press release that has been publicly distributed. At this time, I'd like to remind everyone that in today's presentation and conference call, Dynagas LNG Partners will be making forward-looking statements. These statements are within the meaning of the federal securities laws. This conference call and slide presentation of the webcast contains certain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.

請注意，該公司透過公開發布的新聞稿公佈了其業績。此時，我想提醒大家，在今天的簡報和電話會議中，Dynagas LNG Partners 將做出前瞻性聲明。這些聲明符合聯邦證券法的涵義。本次電話會議和網路廣播投影片簡報包含 1995 年《私人證券訴訟改革法案》安全港條款意義內的某些前瞻性陳述。

The statements in today's conference call are not historical facts, including, among others, the expected financial performance of Dynagas LNG Partners' business, Dynagas Partners LNG ability to pursue growth opportunities, Dynagas Partners LNG expectations or objectives regarding future and market charter rate expectations, and in particular, the effects of COVID-19 on the financial condition and operations of Dynagas Partners LNG and the LNG industry in general. May be forward-looking statements as such as defined in Section 21E of the Securities Exchange Act of 1934 as amended.

今天電話會議中的陳述並非歷史事實，其中包括 Dynagas LNG Partners 業務的預期財務業績、Dynagas Partners LNG 追求成長機會的能力、Dynagas Partners LNG 關於未來和市場租船費率預期的預期或目標，特別是COVID -19 對Dynagas Partners LNG 以及整個液化天然氣產業的財務狀況和營運的影響。可能是經修訂的 1934 年證券交易法第 21E 條中定義的前瞻性陳述。

Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not to be realized -- not being realized. I kindly draw your attention to slide 2 of the webcast presentation, which has the full forward-looking statement and the same statement, which is also included in the press release. Please take a moment to go through the whole statement and read it.

討論的事項可能是前瞻性陳述，這些陳述基於當前管理層的預期，涉及可能導致此類預期無法實現的風險和不確定性。請您注意網路廣播簡報的幻燈片 2，其中包含完整的前瞻性聲明和新聞稿中也包含的相同聲明。請花一點時間瀏覽並閱讀整個聲明。

And now I would like to turn the floor back over to Mr. Lauritzen. Please go ahead, sir.

現在我想把發言權交還給 Lauritzen 先生。請繼續，先生。

Good morning, everyone, and thank you for joining us in our three months ended 30 June, 2024, earnings conference call. I'm joined today by our CFO, Michael Gregos. We have issued a press release announcing our results for the said period. Certain non-GAAP measures will be discussed on this call. We have provided a description of those measures as well as a discussion of why we believe this information to be useful in our press release.

大家早安，謝謝您參加我們截至 2024 年 6 月 30 日的三個月收益電話會議。今天我們的財務長 Michael Gregos 也加入了我的行列。我們已發布新聞稿，宣布上述期間的業績。本次電話會議將討論某些非公認會計準則措施。我們在新聞稿中提供了這些措施的描述，並討論了為什麼我們認為這些資訊有用。

Let's start the presentation and move on to slide number 3. We today present the results for the three months ending on 30 June, 2024. We are pleased to announce that all six LNG carriers in our fleet were operating on the long-term charters with esteemed international gas companies.

讓我們開始簡報並轉到第 3 張投影片。我們今天公佈截至 2024 年 6 月 30 日的三個月的結果。我們很高興地宣布，我們船隊中的所有六艘液化天然氣運輸船均與知名國際天然氣公司簽訂了長期租約。

For the second quarter of '24, we reported net income of $10.7 million, and earnings per common unit of $0.20. Our adjusted net income stood at $12.4 million, translating to adjusted earnings per common unit of $0.25.

2024 年第二季度，我們報告淨利潤為 1,070 萬美元，每普通單位收益為 0.20 美元。我們調整後的淨利潤為 1240 萬美元，換算為調整後每普通單位收益為 0.25 美元。

Furthermore, our adjusted EBITDA for the same period reached $28.6 million. We were pleased with the conclusion of the new lease financing agreements with China Development Bank Financial Leasing for four of our LNG carriers. The $344.9 million financing along with $63.7 million from the partnership's existing cash reserves was used to fully repay our previous credit facility of $408.6 million on June 27, ahead of its maturity in September '24.

此外，我們同期調整後的 EBITDA 達到 2,860 萬美元。我們很高興與國開金融租約就我們的四艘液化天然氣運輸船簽訂了新的租賃融資協議。3.449 億美元的融資以及合夥企業現有現金儲備的 6,370 萬美元用於全額償還我們於 6 月 27 日提供的 4.086 億美元的信貸安排，提前於 2024 年 9 月到期。

Following a sustained period of strategic deleveraging, we now have a substantially reduced debt levels and secured a more flexible financing structure. With two of our LNG carriers now debt-free, the partnership is well positioned for its next phase.

經過持續的策略去槓桿，我們的債務水準大幅下降，融資結構更加靈活。我們的兩艘液化天然氣運輸船現已擺脫債務，雙方的合作關係已為下一階段做好了準備。

I will now turn the presentation over to Michael, who will provide you with further comments to the financial results.

我現在將把演示文稿交給邁克爾，他將為您提供對財務業績的進一步評論。

Thank you, Tony. Turning to slide 4, and let me start with a summary of the headline numbers for the second quarter. We maintained 100% scheduled fleet utilization during the second quarter. Revenue was in line at $37.6 million, compared to $38 million in the first quarter, average TCE of 67,300 per day is down from 68,100 in the first quarter across our fleet of six vessels affected by a small negative variation in the variable portion of the revenues contained in the current charters of two of our vessels compared to the previous quarter.

謝謝你，托尼。轉到投影片 4，讓我先總結第二季的整體數據。第二季我們維持了 100% 的預定機隊利用率。收入為 3,760 萬美元，而第一季為 3,800 萬美元，我們的六艘船船隊的平均 TCE 為每天 67,300 艘，低於第一季的 68,100 艘，受到收入可變部分小幅負變化的影響與上一季相比，包含在我們兩艘船舶的當前租船合約中。

Operating income for the second quarter was $18.8 million, a 2.6% decrease from the $19.3 million during the prior quarter. This was primarily related to the revenue variation mentioned earlier and slightly increased operating and G&A expenses.

第二季營業收入為 1,880 萬美元，比上一季的 1,930 萬美元下降 2.6%。這主要與前面提到的收入變化以及營運和一般管理費用略有增加有關。

Net income for the second quarter was $10.7 million or $0.20 per common unit, which is slightly lower from the $11.75 million reported for the first quarter of this year, primarily relating to a reduction in the realized and unrealized gains on our mark-to-market interest rate swap by USD850,000 as the interest rate swap approaches maturity on September 18, 2024.

第二季淨利為 1,070 萬美元，每普通單位 0.20 美元，略低於今年第一季報告的 1,175 萬美元，主要與按市值計價的已實現和未實現收益減少有關利率互換將於2024年9 月18 日到期，增加85 萬美元。

In addition, a one-off loss on debt extinguishment of $331,000 as a result of the early prepayment of our prior credit facility with our P&L this quarter. Adjusted EBITDA for the second quarter was $28.6 million compared to $29 million in the first quarter, and adjusted net income for the quarter was $12.4 million or $0.25 per common unit, unchanged from the prior quarter.

此外，由於本季我們的損益表提前預付了先前的信貸額度，因此產生了 331,000 美元的一次性債務清償損失。第二季調整後 EBITDA 為 2,860 萬美元，而第一季調整後淨利為 1,240 萬美元，即每普通單位 0.25 美元，與上一季持平。

Our average cash breakeven cost per vessel per day for the quarter, taking into account our daily operating expenses, G&A expenses and debt service per vessel per day, net of realized swap gains, amounted to $44,881 per day, resulting in a surplus of $22,450 per day once deducted from our average TCE.

本季每艘船每天的平均現金損益平衡成本，考慮到我們的日常營運費用、一般管理費用和每艘船每天的債務還本付息，扣除已實現的掉期收益，每天每艘船的平均現金損益平衡成本為44,881 美元，每艘船的盈餘為22,450 美元天一次從我們的平均 TCE 中扣除。

Turning to our cash bridge on slide 5. We began the quarter with a total of $76 million. Following on the chart from the left to right on the cash flows, we first had $28.5 million in adjusted EBITDA in the second quarter. And we utilized $64 million of our own cash to cover the difference between the proceeds of our $345 million new sale and leaseback facilities on four of our LNG carriers, and the $408.6 million outstanding under our prior senior secured facility, which was fully repaid.

轉向幻燈片 5 上的現金橋。本季開始時我們的總額為 7,600 萬美元。按照現金流圖表從左到右，我們首先看到第二季調整後的 EBITDA 為 2850 萬美元。我們利用6,400 萬美元的自有現金來彌補四艘液化天然氣運輸船3.45 億美元的新售後回租設施的收益與我們先前高級擔保設施下未償還的4.086 億美元之間的差額，該設施已全額償還。

After a working capital benefit of about $1.8 million-plus proceeds of $6.1 million from our interest rate swap less the fees for our new sale and leaseback financing and distributions to our preferred unitholders, we ended the quarter with $35.6 million in cash.

在獲得約180 萬美元的營運資本收益，加上利率互換帶來的610 萬美元收益，減去新的售後回租融資以及向優先單位持有人分配的費用後，本季度結束時，我們擁有3560 萬美元的現金。

Moving on to slide 6. Meanwhile, our total debt stands at $345 million, and our leverage metrics have improved as we have reduced our debt balance by $378 million since December 2018. Our financial leverage, adjusted net debt divided by last 12 months' adjusted EBITDA has reduced from 6.6 times at year-end 2018 to now 2.9 times. We continue to enhance our balance sheet to create the foundations and financial flexibility necessary to add more value to our common unitholders.

繼續看投影片 6。同時，我們的總債務為 3.45 億美元，自 2018 年 12 月以來，我們的債務餘額減少了 3.78 億美元，槓桿指標也有所改善。我們的財務槓桿（調整後淨債務除以過去 12 個月調整後 EBITDA）已從 2018 年底的 6.6 倍降至目前的 2.9 倍。我們繼續增強我們的資產負債表，以創造必要的基礎和財務靈活性，為我們的普通單位持有者增加更多價值。

As previously advised, we refinanced $408 million of our old credit facility with a $345 million sale and leaseback on four LNG carriers, and our remaining two LNG carriers are debt-free. Over the next 12 months, our debt amortization is expected to be $44 million, $4 million less than our prior credit facility, and our weighted average spread is 2.18%, but from September 18, we will have full exposure to floating interest rates as our interest rate swap matures.

正如先前所建議的，我們透過對四艘液化天然氣運輸船進行了3.45 億美元的售後回租，為舊信貸額度的4.08 億美元進行了再融資，而我們剩下的兩艘液化天然氣運輸船沒有債務。未來12 個月，我們的債務攤銷預計為4,400 萬美元，比我們之前的信貸額度少400 萬美元，我們的加權平均利差為2.18%，但從9 月18 日起，我們將全面採用浮動利率作為我們的利率互換到期。

Since the inception of our swap program in September 2020, our cumulative realized swap gains have been quite significant with $42 million in realized gains, so our hedging program paid off extremely well. We expect an additional approximately $5 million of realized gain to be received at its maturity on September 18.

自 2020 年 9 月啟動掉期計畫以來，我們的累計已實現掉期收益相當可觀，已實現收益達到 4,200 萬美元，因此我們的對沖計畫獲得了非常好的回報。我們預計在 9 月 18 日到期時將額外收到約 500 萬美元的已實現收益。

Going forward, based on where SOFR rates are today, we expect our interest expenses to increase when our swap matures despite our lower leverage and our slightly lower amortization. And as a result, our fourth quarter debt service per day is anticipated to increase by about $5,200 per day, resulting in a pro forma cash breakeven of approximately $50,000 per day for Q4 2024.

展望未來，根據今天的 SOFR 利率，儘管我們的槓桿率較低且攤銷率略低，但我們預計當掉期到期時我們的利息支出將會增加。因此，我們第四季的每日償債額預計將增加約 5,200 美元，使 2024 年第四季的預期現金收支平衡達到每天約 5 萬美元。

Obviously, we expect to be getting the benefit of lower interest rates as we are projected to reduce over time. Our nearest debt maturity is in June 2029 for three of our LNG carriers and June 2034 for our remaining vessel. So, in summary, for this quarter, we had a full utilization of 100% and a good quarter without any surprises.

顯然，我們預計將受益於較低的利率，因為我們預計利率會隨著時間的推移而降低。我們的三艘液化天然氣運輸船最近的債務到期日為 2029 年 6 月，其餘船舶的債務到期日為 2034 年 6 月。因此，總而言之，本季我們的利用率為 100%，是一個好的季度，沒有任何意外。

That's it from my side. I will pass the presentation over to Tony.

從我這邊來說就是這樣。我會將簡報轉交給東尼。

Thank you, Michael. Let's continue and move on to slide 7. Currently, our fleet comprises six LNG carriers with an average age of approximately 14.1 years. Our present charters include multiple gas companies such as Equinor, SEFE and Yamal Trade. Additionally, Rio Grande LNG, a subsidiary of NextDecade has forward chartered our vessels, Clean Energy and Arctic Aurora.

謝謝你，麥可。讓我們繼續看投影片 7。目前，我們的船隊由六艘液化天然氣運輸船組成，平均船齡約 14.1 年。我們目前的特許經營權包括多家天然氣公司，例如 Equinor、SEFE 和 Yamal Trade。此外，NextDecade 的子公司 Rio Grande LNG 已遠期包租了我們的清潔能源號和北極極光號船舶。

As of September 10, 2024, our fleets' contracted backlog stands at approximately $1.04 billion, which translates into an average of about $173 million per vessel. The fleet also enjoys an average remaining charter period of approximately 6.4 years. We are confident that our charter profile is robust, positioning our partnership for stable and reliable income in the years ahead.

截至 2024 年 9 月 10 日，我們船隊的合約積壓約為 10.4 億美元，相當於每艘船平均約 1.73 億美元。該船隊的平均剩餘租期約為 6.4 年。我們相信，我們的包機概況是穩健的，有助於我們的合作關係在未來幾年獲得穩定可靠的收入。

Moving on to slide 8. Our current commercial strategy is centered on securing long-term charters with prominent gas companies, ensuring a stable revenue stream. As a result of this approach, we have accumulated a solid contract backlog. And barring any unforeseeable events, we have no contractual vessel availability until the year 2028, when the Clean Energy, Ob River and Amur River will be available.

繼續看投影片 8。我們目前的商業策略集中於與知名天然氣公司獲得長期特許，確保穩定的收入來源。透過這種方法，我們累積了堅實的合約積壓。除非發生任何不可預見的事件，否則我們在 2028 年之前都沒有合約船舶可用，屆時清潔能源、鄂畢河和阿穆爾河將可用。

Following these, the Arctic Aurora will come up for Rio Grande LNG contracts until 2033, with the Yenisei River and the Lena River becoming available in 2034, provided that the charters do not exercise their extension options.

在此之後，Arctic Aurora 將在 2033 年之前簽訂裡奧格蘭德液化天然氣合同，而葉尼塞河和勒拿河則將在 2034 年提供合同，前提是租船合同不行使延期選擇權。

The global fleet of LNG carriers has expanded rapidly with the new building order books being at about 50% of the existing fleet. Most of these new builds are scheduled for delivery between now and '28, and a significant majority of these orders have already been committed to specific charterers.

全球液化天然氣運輸船船隊規模迅速擴大，新建造訂單約佔現有船隊的 50%。大多數新造船計劃從現在到 28 年交付，其中大部分訂單已經交付給特定的承租人。

In the short to medium term, shipping capacity may exceed demand. However, in the medium to the long term, we anticipate that the current order book will be absorbed as aging vessels are replaced and global demand for transporting incremental LNG production increases.

中短期內，運能可能超過需求。然而，從中長期來看，我們預計，隨著老化船舶的更換以及全球運輸增量液化天然氣產量的需求增加，目前的訂單將被吸收。

Given these factors, we believe our portfolio is strategically well positioned with no contractual availability until 2028. We expect long-term demand for energy to remain strong, driven by several key factors. This includes its low emissions compared to traditional fossil fuels, the rising global demand for electrification, the efficiency of combined cycle power plants powered by natural gas, the well-established global infrastructure for LNG production and distribution and the lack of a superior alternative at a comparable scale.

考慮到這些因素，我們相信我們的投資組合在策略上處於有利位置，直到 2028 年才會簽訂合約。我們預計，在幾個關鍵因素的推動下，能源的長期需求將保持強勁。這包括與傳統化石燃料相比，其排放量較低、全球對電氣化的需求不斷增長、天然氣驅動的聯合循環發電廠的效率、完善的全球液化天然氣生產和分配基礎設施以及在全球範圍內缺乏優質替代品。

Let's move on to slide 9. Our new financing arrangements are not only low leverage, flexible and low cost, but also comes with long tenors, significantly enhancing our strategic flexibility for future initiatives. A major achievement in our financial management has been the substantial reduction in debt.

讓我們繼續看投影片 9。我們的新融資安排不僅槓桿率低、彈性、成本低，而且期限長，大大增強了我們未來措施的策略彈性。我們財務管理的一項重大成就是債務大幅減少。

We have successfully lowered our outstanding debt from $675 million in September 2019 to $345 million today. This reduction has also improved our net debt-to-EBITDA ratio, bringing it down from 6.6 times in September 2019 to 2.9 times by June 2024. Also, a notable portion of our fleet amounting to 33% now operates free of debt, thereby strengthening our asset base and providing a robust foundation.

我們已成功將未償債務從 2019 年 9 月的 6.75 億美元降低到今天的 3.45 億美元。這一減少也改善了我們的淨債務與 EBITDA 比率，從 2019 年 9 月的 6.6 倍降至 2024 年 6 月的 2.9 倍。此外，我們機隊中很大一部分（33%）現在無債務運營，從而加強了我們的資產基礎並提供了堅實的基礎。

Our strategy of organic deleveraging, supported by contracted cash flow, has been instrumental in maintaining a stable and predictable financial profile. As of today, we maintain a contracted average revenue backlog of $173 million per vessel, ensuring sustained income streams.

我們的有機去槓桿化策略在合約現金流的支持下，對於維持穩定和可預測的財務狀況發揮了重要作用。截至目前，我們每艘船的合約平均積壓收入為 1.73 億美元，確保了持續的收入流。

In summary, with new found financial flexibility and solid foundation of contracted cash flows, reduced leverage and a broadened strategic vision, we believe the partnership is in a stable phase. In the next quarter, we expect that the Board of Directors will evaluate and announce its capital allocation strategy.

總之，憑藉新發現的財務靈活性和堅實的合約現金流基礎、降低的槓桿率和更廣泛的策略願景，我們相信合作夥伴關係處於穩定階段。在下個季度，我們預計董事會將評估並宣布其資本配置策略。

Thank you for your attention. We have now concluded the presentation, and we invite you to ask any questions you may have. Thank you.

感謝您的關注。我們的演示現已結束，我們邀請您提出任何問題。謝謝。

We'll now be conducting a question-and-answer session.

我們現在將進行問答環節。

(Operator Instructions) .

（操作員說明）。

We have reached the end of our question-and-answer session. I'd like to turn the floor back over to the CEO for any further closing comments.

我們的問答環節已經結束。我想將發言權交還給首席執行官，以徵求進一步的結論。

Well, we appreciate your time and attentiveness. Thank you for your participation, and we look forward to connecting with you again on our next call. Take care, and goodbye.

好的，我們感謝您的時間和細心。感謝您的參與，我們期待在下次通話中再次與您聯繫。保重，再見。

Thank you. That does conclude today's teleconference webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。