Dynagas LNG Partners has reported net income of $11.1 mill for the three months ended 30th June, 2022, compared to $9.1 mill for the corresponding period of 2021, an increase of 22%.
This rise was mainly attributable to the increase in the gain on an interest rate swap transaction, compared to the corresponding period of 2021, which was partly offset by increases in vessel drydockings and special survey costs, attributable to the scheduled dockings of the ’Clean Energy’ and ’Amur River’, which commenced on 16th March and 25th June, 2022, respectively.
Adjusted net income for 2Q22 was $9.1 mill, compared to $10.4 mill for the corresponding period of 2021, which represented a net decrease of 12.5%.
This decrease was mainly attributable to a fall in the vessels’ revenue, as well as to the increase of interest and finance costs, compared to the corresponding period of 2021.
Dynagas reported average daily hire gross of commissions of around $62,860 per day per vessel in 2Q22, compared to about $62,440 per day per vessel for 2Q21. During both three-month periods, the Partnership’s vessels operated at 100% utilisation.
OPEX drop
Vessel operating expenses were $7.4 mill, which corresponds to a daily rate per vessel of $13,588 in 2Q22, compared to $7.6 mill, or a daily rate per vessel of $13,945 in 2Q21.
This decrease is mainly attributable to the vessels’ lower planned technical maintenance and crewing costs.
Adjusted EBITDA for 2Q22 was $22.9 mill, compared to $23.6 mill for the corresponding period of 2021. The 3% decrease was mainly attributable to ‘Clean Energy’ and ‘Amur River’ offhire periods, due to the their scheduled drydockings.
As of 30th June, 2022, the Partnership had total cash of $100.2 mill (including $50 mill of restricted cash). The Partnership’s outstanding debt under the $675 mill credit facility amounted to $543 mill, gross of unamortised deferred loan fees and including $48 mill, which was repayable within a year.
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 6.4 years.
“As of 22nd September, 2022, our estimated contracted revenue backlog was $0.95 bill. The earliest contracted re-delivery date for any of our six LNG carriers is in the third quarter of 2023 (for the ’Arctic Aurora’), with the second earliest contracted re-delivery date in the first quarter of 2026 (for the ’Clean Energy’), both subject to the terms of the applicable charter.
“For the second quarter of 2022, we reported net income of $11.1 mill, earnings per common unit of $0.22, adjusted net income of $9.1 mill and adjusted EBITDA of $22.9 mill. While future results may vary, we are pleased to report 100% utilisation for our fleet for the ninth quarter in a row.
“During the second quarter of 2022 and the subsequent period to date, we successfully completed the scheduled drydocks of the ’Clean Energy’, the ’Amur River’ and the ’Ob River’, including a ballast water treatment equipment installation in all three vessels in accordance with current regulatory requirements.
“We are in a period of high demand for LNG shipping, which we believe will benefit the Partnership. We continue our strategy of using our cash flow generation to deleverage our balance sheet and reinforce our liquidity so as to build equity value. This, we believe, will enhance our ability to pursue future growth initiatives,” he said.
