This story requires a subscription
This includes a single user license.
The NYSE-listed limited partnership formed by shipowner Dynagas posted a net income of $13.7 million for the second quarter of this year.
This represents a 28 percent increase compared to $10.7 million in the same quarter last year.
Net income also rose compared to $13.6 million in the first quarter of this year.
Dynagas LNG attributed the year-on-year rise in net income to the decrease in interest and finance costs and the increase in voyage revenues due to certain non-cash items.
Also, the rise in net income was partially offset by the increase in voyage expenses, as well as by the decrease in gain on the interest rate swap transaction which expired in September 2024 and the increase of other expenses.
Voyage revenues up
The company reported that its adjusted net income increased 16.9 percent to $14.5 million in the second quarter compared to the same period last year, primarily due to a decrease in interest and finance costs.
Voyage revenues for the second quarter were $38.6 million, up 2.7 percent compared to the same quarter in 2024.
Dynagas LNG attributed the increase to the non-cash effect of the amortization of deferred
revenues and the value of the EU ETS emissions allowances.
The company reported average daily hire gross of commissions of approximately $70,730 per
day per vessel for the three-month period compared to approximately $72,010 per day per vessel for the corresponding period of 2024.
Dynagas said its vessels operated at 99.4 percent and 100 percent fleet utilization during the three-month periods ended June 30, 2025, and 2024, respectively.
Average contract duration of 5.4 years
Chief executive Tony Lauritzen said these results “underscore the strength of our contracts-based business model, which continues to shield us from the prevailing weakness in the short-term LNG shipping market.”
All six Dynagas LNG carriers are employed under long-term charters with international gas companies, with an average remaining contract duration of 5.4 years.
“Barring any unforeseen events, we do not expect any vessel availability before 2028,” he said.
Moreover, the company’s estimated contract backlog stands at about $0.9 billion as of September 8, 2025.
“In line with our commitment to delivering unitholder value, we paid a quarterly cash distribution of $0.049 per common unit on August 29, 2025,” Lauritzen said.
He noted that Dynagas LNG also continued to execute on its repurchase program, having repurchased 156,319 common units, throughout the second quarter of 2025 to date
at an average price of $3.54 per common unit.
As of today, $9 million remains available under the repurchase program.
“Following the successful refinancing of our debt in June 2024, our balance sheet has strengthened meaningfully. Two of our vessels are now debt-free, and our annual debt amortization of $44 million represents 14.6 percent of our total outstanding debt of $300.8 million. We face no debt maturities until mid-2029,” he said.
“With contracted revenues exceeding our cash breakeven, we continue to generate cash each quarter, further improving our liquidity. As of June 30, 2025, our cash balance stood at $77.9 million,” Lauritzen said.
“While we remain insulated from short-term volatility in the LNG market, our strategy remains focused on disciplined capital allocation—prioritizing deleveraging, returning capital to common unitholders, and reducing cash outflows through initiatives such as the Series B preferred redemption,” he said.