Dynagas LNG: European Sanctions And The Loss Of Qatar LNG Creates An Interesting Cocktail

Ronald Ferrie3.71K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryDynagas LNG faces heightened risk from EU sanctions threatening two Yamal LNG contracts, representing a significant portion of backlog and operating income.Geopolitical disruptions, including the Iran conflict, have created short-term rate spikes but worsen vessel oversupply, undermining DLNG’s long-term charter prospects.DLNG’s aging, ice-class fleet is less competitive in a crowded spot market, especially with nearly 100 new builds arriving by 2026.With 2027 drydocks, likely contract losses, and squeezed free cash flow, I downgrade DLNG to SELL due to elevated risk and limited upside. igorr1/iStock via Getty Images Thesis Dynagas LNG (DLNG) has six vessels that transport LNG on multi-year contracts. The company’s vessels are also on the older side, with an average age of 16 years. These vessels have consistently generated healthyThis article was written byRonald Ferrie3.71K FollowersFollowI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.