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The NYSE-listed limited partnership formed by Greek shipowner Dynagas posted a net income of $15.7 million for the fourth quarter of last year.
This represents an 11.3 percent increase compared to $14.1 million in the same quarter last year.
Net income dropped compared to $18.7 million in the third quarter of this year.
Dynagas LNG attributed the year-on-year rise in net income to the increase in other income due to adjustments to revenue relating to the variable hire of the LNG carriers Yenisei River and the Lena River in the prior years, and the decrease in net interest and finance costs.
Moreover, 2025 net income of $61.6 million rose compared to $51.6 million in 2024.
Voyage revenues down
The company said that its adjusted net income of $14.3 million in the fourth quarter last year decreased 6 percent compared to the same quarter in the year before.
Dynagas LNG attributed this to the decrease in cash revenues due to the lower time charter rate of Arctic Aurora compared to the corresponding period in 2024 and the increase in vessel operating expenses.
Voyage revenues for the fourth quarter were $40 million.
This compares to $41.7 million in the corresponding period in 2024, a drop of 4.1 percent.
Dynagas LNG said this decrease is mainly attributable to the decrease of the value of the EU ETS emissions allowances (EUAs) owed to the partnership by the charterers of its vessels.
Dynagas LNG reported average daily hire gross of commissions of approximately $69,920 per day per vessel for the three-month period, compared to approximately $71,460 per day per vessel for the corresponding period of 2024.
The company’s vessels operated at 98.8 percent and 100 percent fleet utilization during the three-month periods ended December 31, 2025 and 2024, respectively.
Yamal charters
Novatek-led Yamal Trade employs two of Dynagas LNG vessels, Yenisei River and Lena River, on existing long-term charters which extend to 2033 and 2034, respectively.
Dynagas LNG said these vessels, since commencement of the Yamal charters, have been engaged in the transportation of LNG produced in Russia for discharge at destinationsm worldwide in compliance with applicable sanctions regulations.
However, under the New E.U. sanctions regulations, commencing January 1, 2027, the vessels will be restricted from transporting LNG from Russia which would affect the charterers’ ability to continue to employ the vessels in the manner currently conducted, according to Dynagas LNG.
“The partnership and the charterers are evaluating the potential impact of the new E.U. sanctions regulations on the operation of the vessels under the Yamal charters,” it said.
For the year ended December 31, 2025, these charterers accounted for 36 percent of Dynagas LNG total revenues.
“The partnership believes the Yamal charters remain enforceable notwithstanding the new E.U. sanctions regulations, however there can be no assurance that the charterers will share this interpretation, and any disagreement could result in disputes, nonperformance, litigation, or early termination of the Yamal yharters, among other things,” Dynagas LNG said.
The loss of revenue under either or both of the Yamal charters would have a “material adverse effect on our business, results of operations, financial condition, and ability to make distributions to our unitholders, and could result in an event of default under our debt agreements.”
“Strong” results
Chief executive Tony Lauritzen said that the company reported “strong financial results for the fourth quarter and full year 2025, which demonstrated the resilience and stability of our business model.”
“We remain focused on creating value for our common unitholders through disciplined deleveraging and sustainable capital returns,” he said.
Consistent with this focus, Dynagas LNG’s board of directors declared a quarterly cash distribution of $0.050 per common unit which was paid on February 27, 2026.
In addition, on November 24, 2025, the company’s board authorized a new $10 million common unit repurchase program to replace the prior program which expired on November 21, 2025.
No direct exposure to recent developments
Lauritzen said that recent geopolitical tensions in the Middle East, including the escalation of hostilities involving Iran and increased security risks around the Strait of Hormuz, have introduced “significant volatility” into global LNG markets.
“Disruptions to regional LNG production and reduced vessel transits through the strait have raised concerns over potential supply interruptions affecting a substantial portion of global LNG trade. As a result, LNG prices and shipping markets have strengthened, with LNG carrier charter rates increasing sharply amid tightening vessel availability and shifting global trade flows,” he said.
“However, the Partnership’s fleet is fully contracted under long-term charters, and therefore the partnership does not have direct exposure to these short-term market developments,” Lauritzen said.
As of December 31, 2025, the partnership had estimated contracted time charter coverage for 100 percent, 100 percent, and 64 percent of its fleet estimated available days for 2026, 2027, and 2028, respectively, with an estimated contracted revenue backlog of $0.84 billion and an average remaining contract term of 5.1 years.
“With respect to charter developments, Clean Energy is expected to be redelivered from her current charter with SEFE in early April 2026 and will enter into her new time charter with Rio Grande LNG at approximately the same time. The new charter with Rio Grande LNG is at a higher daily rate than the current SEFE charter and is expected to be accretive to the partnership’s revenues and cash flows,” he said.
