Dynagas LNG Partners, listed on the US stock exchange, and owned by George Prokopiou, announced that it plans to sell securities worth up to 350 million dollars.
More specifically, in a statement to the stock market, the company informed about its intention to gradually sell the company’s securities up to the amount of 350 million dollars.
This move comes after the company’s big deal a few months ago, when it sold four of the six LNG carriers in its fleet, with leaseback, succeeding in paying off a large part of its credits.
In fact, after the deal, the company’s CEO Tony Laurtizen said that, with new financial flexibility, a stable base of contractual cash flows and reduced borrowing, the company is exploring new opportunities for growth.
Recently, Dynagas LNG Partners maintained a “Buy” rating and 4.5-dollar target price from Stifel.
The rating agency expects the company to announce a new capital allocation policy soon, which will include the return of dividends to shareholders.
This development is also a result of the successful refinancing of the company’s fleet, which was completed last quarter, in line with the announcement of its results.
The refinancing was a critical step toward restoring the distribution policy, a move expected by investors for years.
Stifel predicts that Dynagas LNG Partners can now comfortably support annual dividends of 0.40-dollar per share.
Stifel’s analysis suggested that once dividends are restored, this could lead to a re-rating of the shares.
The company posted a net profit of 10.7 million dollars in the second quarter of the year compared to 14.4 million dollars last year.
The decrease was primarily due to lower gains from the interest rate swap transaction that expired on September 18, 2024 and an increase in the loss on debt repayment as a result of the full prepayment under the credit facility of 675 million dollars on June 27, 2024.
