Dynagas LNG Buys Ice-class LNG Carrier

Posted by Michelle Howard
Friday, April 25, 2014
Photo courtesy of Dynagas

Dynagas LNG Partners LP announced it has entered into an agreement to purchase from Dynagas Holding Ltd., the Partnership's sponsor, 100% of the ownership interests in the entity that owns and operates the Arctic Aurora, a 2013 built ice class liquefied natural gas carrier, for an aggregate purchase price of $235 million. The Arctic Aurora acquisition is subject to the Partnership obtaining the funds necessary to pay the purchase price and the satisfaction of certain closing conditions. The Partnership expects to finance the acquisition with the net proceeds of a public offering of its common units and a portion of the borrowings under a new $340 million senior secured revolving credit facility.


The Arctic Aurora is currently operating under a time charter with Statoil ASA with an initial term of five years that expires in July 2018. Statoil has the right to extend the charter for consecutive additional one-year periods following the initial charter period. The Partnership's average remaining charter term, based on an expected delivery date for the Arctic Aurora of May 30, 2014 and taking into account the recently announced 13-year time-charter contract with Gazprom Marketing & Trading Singapore Pte. Ltd. for the Clean Force, will be 6.1 years.


The Partnership believes that the Arctic Aurora acquisition is an accretive transaction consistent with its growth strategy. The Arctic Aurora acquisition will generate, assuming full utilization, total contracted gross revenue of approximately $117.2 million, annual gross revenues of approximately $28.3 million and annual net cash from operations of approximately $21.7 million, during the initial charter period with Statoil. The Board of Directors of the Partnership and the Conflicts Committee of the Board have approved the Arctic Aurora acquisition.


Following the completion of this acquisition, the Partnership's management intends to recommend to the Board an increase in the Partnership's quarterly cash distribution per unit of between $0.0225 and $0.0275 (or annualized increase of between $0.09 and $0.11 per unit), which would become effective for the distribution with respect to the quarter ending June 30, 2014 on a pro-rata basis after giving effect to the Arctic Aurora acquisition. Any such increase would be conditioned upon, among other things, the closing of the Arctic Aurora acquisition, the approval of such increase by the Board and the absence of any material adverse developments or potentially attractive opportunities that would make such an increase inadvisable.



 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Lukoil Shipped Canadian Crude from Houston

Russian oil major Lukoil has emerged as one of the first companies to buy Canadian crude re-exported from a U.S. port, shipping one cargo last month to its refinery in Augusta,

Vestas Profit Beats Forecast

Danish wind turbine maker Vestas Wind Systems posted much higher than expected second-quarter earnings and slightly increased its guidance for the full year, signaling

MV Cape Ray Signals DTRA 'Mission Complete'

The Defense Threat Reduction Agency announces the successful completion of the Cape Ray's mission to destroy Syria's chemical weapons components at sea. The Defense Threat Reduction Agency/U.

Finance

Lukoil Shipped Canadian Crude from Houston

Russian oil major Lukoil has emerged as one of the first companies to buy Canadian crude re-exported from a U.S. port, shipping one cargo last month to its refinery in Augusta,

Vestas Profit Beats Forecast

Danish wind turbine maker Vestas Wind Systems posted much higher than expected second-quarter earnings and slightly increased its guidance for the full year, signaling

HK's COSCO International Reports Strong Profit Growth

For the  six months ended 30th June 2014, shipping services provider COSCO International has announced that its 2014 Interim Results show strong profit growth with Net Profit up 45% YOY.

Energy

Lukoil Shipped Canadian Crude from Houston

Russian oil major Lukoil has emerged as one of the first companies to buy Canadian crude re-exported from a U.S. port, shipping one cargo last month to its refinery in Augusta,

Russia Conducts High North Geophysical Surveys

For the first time, as part of the Arctic-2014 high-latitude expedition, nuclear icebreakers 'Akademik Fedorov' and 'Yamal' have conducted an entire complex of geophysical research at the North Pole,

Mærsk Putting Valuable Experience to Good Use

The Mærsk Deliverer rig team has initiated seven local acceleration programmes in Angola. The goal is to train and develop local talent to take on increasingly

LNG

Liquiline to Construct Denmark's First LNG Bunker Terminal

Liquiline says it has entered into a contract with Fjord Line to design, construct and commission an LNG ship bunkering terminal for Fjord Line AS at the Port of Hirtshals, Denmark.

Faster Approvals for LNG Export to Non-FTA Countries

Liquefied Natural Gas Limited has advised that the U.S. Department of Energy has revised procedures that could result in faster approval of applications to export

PetroChina Reviews Push for Transport LNG

China's biggest energy firm PetroChina is reviewing its multi-billion-dollar push to produce liquefied natural gas (LNG) to fuel trucks and ships in place of diesel,

News

Lukoil Shipped Canadian Crude from Houston

Russian oil major Lukoil has emerged as one of the first companies to buy Canadian crude re-exported from a U.S. port, shipping one cargo last month to its refinery in Augusta,

Shipping Industry Issues Ebola Virus Red Alert

Three global shipping organisations have issued guidance to their members on the risks posed to ships’ crews calling in countries affected by the Ebola virus, and

Port of Long Beach to the Rescue of Birds

The Port of Long Beach announced Tuesday that it is expanding its partnership with International Bird Rescue, a global expert in oiled wildlife emergencies and aquatic bird care,

Vessels

MV Cape Ray Signals DTRA 'Mission Complete'

The Defense Threat Reduction Agency announces the successful completion of the Cape Ray's mission to destroy Syria's chemical weapons components at sea. The Defense Threat Reduction Agency/U.

New Offshore Vessel Management Mobile App

Telerik says that its customer Bhagwan Marine, a leader in servicing the oil and gas industry, together with partner, Glenfield Digital Group, has released the

North Sea OSVs Liable to Detention if MLC Non-compliant

The Maritime Labour Convention (MLC), an international agreement which safeguards the employment rights, working conditions and health care of seafarers, came into force in the UK on 7 August.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Pod Propulsion Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1467 sec (7 req/sec)