Dynagas LNG Partners Reduces Common Dividend – Again

LNG ship owner Dynagas Partners (NYSE:DLNG) has announced a reduction in the size of their common unit distribution effective with the payment due around 2/14/2019.

The payment goes from 25 cents/share to 6.5 cents/share. This reduction follows the reduction from 42.25 cents to 25 cents last April.

The press release and the given reason for the change can be seen here.

DLNG has 2 preferred outstanding with coupons of 8.75% and 9% respectively.

11 thoughts on “Dynagas LNG Partners Reduces Common Dividend – Again”

  1. With so many other options to choose from in the FI space, why put any dog into this particular fight? Are the chances higher that you’ll see these securities go up or down? I’m guessing the latter. Moving along the IG train, looking for a quality opening like with JPEEL or NI-B.

    1. Nomad, checked this out on Fido, pulled the trigger but “not in our inventory.” I’ve been w F for 20+ years but looks like yet another reason to find a 2nd broker. Or am I missing something? Thanks,
      D

  2. The last year’s #’s was not great. 30mil less in revenue, and 10 mil more in costs. Everyone writes an article about how their 6 ships are on long contracts… well those contracts must be re-written to generate less revenue? Also i never liked how they were not covering the common dividend when I looked at them last year. I do not know why so many positive articles have been written about them. I looked at their books and they MUST cut the dividend. Then again, I have different color of lens in my glasses when I saw the eye dr. last. It’s market cap is puts it at a very small company. No thanks for me.

  3. I hold some DLYN-B., which will take a hit Monday. How much at risk are the preferreds? Is it time to cut and run? Any reason(s) to keep holding? Thanks for any input.

  4. This is a cash conservation measure to put the company in a better position to refinance their 2019 bonds on reasonable terms. Probably too little too late. Too little cash flow for the debt they have to service.

  5. So the question is, are they using the saved cash because they have a cash flow problem or too much debt or are they self financing new accretive projects because they choose not to take on additional debt?

    1. Tony Lauritzen , CEO of Dynagas LNG Partners LP commented: “Our Board of Directors believes that the decision to reduce our cash distribution to common unitholders is necessary in order to retain more of the cash generated from the Partnership’s long term contracts to maintain a steady cash balance and to facilitate the refinancing of the Partnership’s $250 million notes which mature on October 30, 2019 (the “Notes”). The level of future cash distributions to common unit holders, which may be further reduced or eliminated by the Board of Directors of the Partnership, will be subject to, among other factors, the final terms of the refinancing of the Notes, including the level of indebtedness incurred (if any) or new securities issued (if any) by the Partnership in connection with such refinancing. The Partnership believes that the reduction of the cash distribution described above is not reflective of the Partnership’s underlying operational performance, with our LNG carriers continuing to generate stable and predictable long term cash flows from long term contracts with high quality counterparties.”

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