Dynagas LNG Partners reported net income of $9.1 mill for the three months ended 30th June, 2021, compared to $6.4 mill in the corresponding period of 2020, an increase of $2.7 mill, or 42.2%.
This rise was mainly attributable to the decrease in finance costs, as well as to a drop in the loss on the interest rate swap transaction entered into in May, 2020, which was slightly offset by an increase in operating and general and administrative expenses, compared to 2Q20.
Adjusted net income for 2Q21 was $10.4 mill, compared to $9.9 mill in the corresponding period in 2020, representing a net increase of $0.5 mill.
Voyage revenues for both periods were $33.9 mill. The Partnership also reported an average daily hire gross of commissions of around $62,440 per day per vessel in 2Q21, compared with about $62,200 in 2Q20.
Vessel operating expenses were $7.6 mill, which corresponds to daily operating costs per vessel of $13,945 in 2Q21, compared to $6.9 mill, or daily operating expenses of $12,630 per vessel in the corresponding period in 2020.
This increase was mainly due to higher crewing and supply costs in 2Q21, compared to 2Q20, due to the effects of the outbreak of the pandemic.
Adjusted EBITDA for 2Q21 was $23.6 mill, compared to $24.1 mill for the corresponding period in 2020.
During 2Q21, the Partnership generated net cash from operating activities of $15.8 mill, compared to $8.1 mill in the corresponding period in 2020, which represents an increase of $7.7 mill, or 95.1%.
As of 30th June, 2021, Dynagas reported total cash of $86.8 mill (including $50 mill of restricted cash). The outstanding debt under the $675 mill credit facility was $591 mill, gross of unamortised deferred loan fees and including $48 mill, which was repayable within one year.
As of 7th September, 2021, the Partnership had estimated contracted timecharter coverage for 100% of its fleet for 2021, 100% for 2022 and 95% of the available days for 2023. The estimated contracted revenue backlog was $1.09 bill, with an average remaining contract term of 7.4 years.
CEO, Tony Lauritzen, said; “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 7.4 years.
“As of 7th September, 2021, our estimated contracted revenue backlog is approximately $1.09 bill. We were pleased to announce on 21st April, 2021 a new two-year charter for the ‘Arctic Aurora’ with Equinor, which has had the ice classed 1A and winterised vessel on continuous charter since her delivery from builders in 2013.
“After securing the 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 (‘Arctic Aurora’), with the next carrier (‘Clean Energy’) becoming available for re-chartering in the first quarter of 2026.
“For the second quarter of 2021, we reported net income of $9.1 mill, earnings per common unit of $0.17, adjusted net income of $10.4 mill, adjusted earnings per common unit of $0.20 and adjusted EBITDA of $23.6 mill.
“The COVID19 outbreak is still causing operational and logistical challenges for the industry. Despite these challenges, we are pleased to report 100% utilisation for our fleet for the second quarter of 2021.
“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.
