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The NYSE-listed limited partnership formed by shipowner Dynagas posted a net income of $10.7 million for the three months ended June 30, 2024.
This marks a drop of $3.7 million, or 25.7 percent, compared to $14.4 million in the same quarter last year, the LNG shipper said in a statement.
Net income also decreased compared to $11.7 million in the prior quarter.
Dynagas LNG attributed this drop mainly due the decrease in the gain on its interest rate swap transaction which matures on September 18, 2024 and the increase in the loss on debt extinguishment as a result of the full prepayment of outstanding amounts under the $675 million credit facility on June 27.
Net income for the first half decreased to $22.5 million from $24 million last year.
Voyage revenues almost flat
The company said its adjusted net income jumped 113.8 percent to $12.4 million in the second quarter mainly due to the increase in the cash voyage revenues of LNG carrier Arctic Aurora.
Voyage revenues for the three-month period reached $37.6 million, down just 0.3 percent compared to the same quarter last year.
Dynagas LNG said this is mainly due to the increase in voyage revenues of Arctic Aurora following its time charter party agreement with Equinor, which started in September 2023.
The partnership reported average daily hire gross of commissions of about $72,010 per day per vessel for the three-month period ended June 30, 2024, compared to aabout $61,800 per day per vessel for the corresponding period of 2023.
The partnership’s vessels operated at 100 percent fleet utilization during the three-month period.
Also, vessel operating expenses were $7.7 million, which corresponds to a daily rate per vessel of $14,141 for the three-month period, as compared to $8.1 million, or a daily rate per vessel of $14,824, in the second quarter of 2023.
This decrease is mainly attributable to lower planned technical maintenance on the partnership’s vessels in the second quarter this year compared to the corresponding period in 2023.
Next phase of growth
Chief executive Tony Lauritzen said all six LNG carriers in the company’s fleet are operating under their respective long-term charters with international gas companies with an average remaining contract term of about 6.4 years.
“Assuming no unforeseen events, the partnership expects no vessel availability until 2028,” he said.
Lauritzen said the company’s estimated contract backlog currently stands at about $1.04 billion equating to some $173 million per vessel as of September 10, 2024.
In June, Dynagas LNG signed a sale and leaseback deal with China Development Bank Financial Leasing (CDB Leasing) for its four LNG carriers.
The four LNG carriers in question are the 2007-built 149,700-cbm, Clean Energy and Ob River, the 2008-built 149,700-cbm, Amur River, and the 2013-built 155,000-cbm, Arctic Aurora.
“The $345 million financing, along with $63.7 million from the partnership’s existing cash reserves, was used to fully repay amounts outstanding under our previous credit facility of $408.7 million on June 27, 2024, ahead of its schedule maturity in September 2024,” Lauritzen said.
“Following a sustained period of strategic deleveraging, we now have substantially reduced our debt levels and secured a more flexible financing structure. With two of our LNG carriers now debt-free, we believe the partnership is well-positioned for the next phase of growth and development,” Lauritzen added.