Dynagas LNG Partners reported a rise in its quarterly profit as the shipping firm’s six carriers continued to operate as usual under long-term charters.
The limited partnership formed by Greek shipowner Dynagas reported a net income of $9.1 million in the second quarter, compared to $6.4 million in the same quarter of 2020.
Dynagas LNG attributed the rise in net income to lower finance costs as well as to the decrease in loss on its interest rate swap transaction entered into in May 2020.
Net income dropped compared to $15.9 million in the first quarter.
Adjusted net income for the three months ended June 30 also rose 5.1 percent year-on-year to $10.4 million.
Moreover, voyage revenues for the April-June period reached $33.9 million, almost flat when compared to the same period a year ago.
The partnership reported average daily hire gross of commissions of about $62,440 per
day per vessel in the three-month period, compared to about $62,200 per day per vessel in the corresponding period in 2020.
“All six LNG carriers in our fleet are operating under their respective long-term charters with international gas producers with an average remaining contract term of 7.7 years,” chief executive Tony Lauritzen, said.
As of September 7, Dynagas LNG’s estimated contracted revenue backlog reached about $1.09 billion.
“After securing a new two year charter for the Arctic Aurora with Equinor, and barring any unforeseen events, the earliest contracted re-delivery date for any of our six LNG carriers is in the third quarter of 2023,” Lauritzen said.
“Going forward, we intend to continue our strategy of using our cash flow generation to
deleverage our balance sheet and reinforce our liquidity so as to build equity value over time. This, we believe, will enhance our ability to pursue future growth initiatives,” he said.