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The NYSE-listed limited partnership formed by shipowner Dynagas posted a net income of $14.1 million for the fourth quarter and $51.6 million for 2024.
This marks a rise of 34.3 percent compared to $10.5 million in the same quarter in the year before and 43.8 percent compared to 2023.
Dynagas LNG attributed this rise mainly to the increase in voyage revenues and the decrease in vessel operating expenses, the decrease in interest and finance costs, and the decrease in interest rate swap losses.
Voyage revenues up
The company said its adjusted net income rose 45.6 percent to $15 million in the fourth quarter, mainly due to the increase in the cash voyage revenues and the decrease of the vessels’ operating expenses.
Voyage revenues for the fourth quarter were $41.7 million, up $12.7 percent compared to the same quarter in 2023.
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 company reported average daily hire gross of commissions of about $71,460 per day per vessel for the three-month-period ended December 31, 2024, compared to about $70,000 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 ended December 31, 2024 and 2023.
Also, vessel operating expenses were $8.1 million, which corresponds to a daily rate per vessel of $14,732 for the three-month period ended December 31, 2024, as compared to $8.4 million, or a daily rate per vessel of $15,172, in the corresponding period of 2023.
Dynagas LNG said this decrease is mainly attributable lower planned technical maintenance on the partnership’s vessels in the fourth quarter compared to the corresponding period in 2023.
No vessel availability until 2028
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 5.9 years.
“Assuming no unforeseen events, the partnership expects no vessel availability until 2028,” he said.
As of March 6, 2025, Dynagas LNG’s estimated contract backlog stands at about $1 billion.
“Following the refinancing of our outstanding debt in June 2024, our financial leverage has improved significantly with two of our vessels now debt-free and a reduced annual debt amortization of $44 million,” Lurutzen said,
“With no debt maturities until 2029 and contracted cash flows above our cash breakeven point, we continue to focus on strengthening our balance sheet to ensure enduring financial flexibility and sustained enhancement of common unitholder value,” he said.