Dynagas LNG Partners announced that the net Income for the three months ended 31st March, 2019 was $1.9 mill, compared to $4.8 mill in the corresponding period of 2018, a decrease of 60.4%.
This drop was mainly attributable to a decrease in revenues and an increase in operating expenses during the period; and the increases in US Libor rates, which correspondingly, increased the Partnership’s interest and finance costs regarding the Partnership’s $480 mill senior secured term loan.
Adjusted net Income was $1.7 mill, compared with $7.2 mill in the corresponding period of 2018, which was a drop of 76.4%. Adjusted EBITDA for 1Q19 was $21.7 mill, compared to $26.6 mill for 1Q18, which was a decrease of 18.4%.
Voyage revenues were $31.4 mill for 1Q19, compared to $33.9 mill for the corresponding period of 2018, which represented a fall of 7.4%.
This decrease was mainly due to:lower revenues earned on the ‘Arctic Aurora’, which, in August 2018 rolled-over into a new charter with Equinor at a lower charter rate; lower revenues earned on the ‘Ob River’, which completed employment under its multi-year charter contract with Gazprom Global LNG in April, 2018 and subsequently, began employment under a 10-year charterparty with a Gazprom company at a lower charter rate; and lower revenues earned on the ‘Lena River’, which completed its employment under its multi-year charter contract with Gazprom in October, 2018 and in the same month, was delivered into its multi-month charter with a major energy company at a lower charter rate, pending its delivery to its multi-year charter with Yamal.
This was partly offset by the increase in 1Q19 voyage revenues on the steam turbine LNGC, ‘Clean Energy’, which was delivered to its eight-year charter party with Gazprom in July, 2018. The vessel was trading in the spot market in 1Q18 at a lower charter rate.
Dynacom reported average gross daily hire rate of about $57,700 per day per vessel in 1Q19, compared to around $66,300 per day per vessel in the corresponding period of 2018.
CEO, Tony Lauritzen, commented:“Our fleet performed with 100% fleet utilisation reflecting our manager’s operational performance. Our underlying charter business remains healthy with our fleet of six LNG carriers all contracted on charters to international gas producers with an average remaining duration of 9.3 years.
“The ‘Lena River’ is expected to commence employment under its long term charter with Yamal LNG in July, 2019, following which, all of our LNG carriers will be fully contracted with the earliest potential availability in the third quarter of 2021, which is the earliest contracted re-delivery date for one of our six LNG carriers.
“We continue to be focused on the refinancing of our 6.25% $250 mill senior unsecured, non-amortising notes, which are due on 30th October, 2019. In this respect, we are in an advanced stage with commercial banks and other capital sources for a potential financing transaction which, among other things, may provide funding for the payment due on the maturity date of our 2019 notes, and/or Term Loan B, or a combination of the foregoing.
“Although we believe we will be successful in raising the requisite capital, we have not yet and may not enter into definitive binding documentation.
“We believe in the positive long term fundamentals of the LNG shipping industry as the production of LNG continues to grow and natural gas continues to gain market share as a reliable, abundant, price competitive and relatively cleaner energy resource. We are looking forward to concluding our above-mentioned refinancing and thereafter, focusing on new projects in the future,” he said.