Dynagas LNG Partners’ Q1 earnings up

Monaco-based Dynagas LNG Partners posted a rise in its first-quarter earnings due to the acquisition of the LNG tanker Lena River.

Adjusted net income for the three months ended March 31 was $18.9 million, up 24 percent as compared to $15.2 million in the corresponding period in 2015.

According to Dynagas LNG Partners, the rise was mainly attributable to the contribution of net revenues relating to the Lena River to operating results. The Lena River was acquired from Dynagas Holding, the Partnership’s sponsor, late in December 2015.

Adjusted EBITDA for the quarter increased by 25 percent to $35.2 million, while the Partnership’s cash flow for the three-month period  was $22.7 million, compared to $18 million in the corresponding period.

Dynagas LNG Partners also said that average daily hire gross of commissions on a cash basis was about $81,300 per day per vessel in the quarter, compared to approximately $79,700 per day per vessel in the same period of 2015.

“Our current fleet of six LNG carriers performed at 100% utilization for the quarter. Our adjusted earnings per common unit amounted to $0.48 per common unit for the first quarter of 2016,” said Tony Lauritzen, chief executive officer.

During the first quarter, the company secured three new long-term charter contracts and the charter extension for the LNG tanker Ob River .

The company entered in March into a time charter contract with Gazprom Marketing and Trading Singapore, an affiliate of Gazprom Global LNG Limited, for the Ob River for a firm charter period of 10 years. This charter will be in direct continuation of the current charter with Gazprom, which was extended to the second quarter of 2018.

“Two of the long-term charters are with Yamal for the Yenisei River and the Lena River, each with an initial term of 15 years and one-year delivery windows starting January 1, 2019, and June 30, 2019, respectively. The third long-term charter is with Gazprom for the Ob River for a firm charter period of 10 years, which commences in direct continuation of the charter extension described above,” Lauritzen said.

“As a result, our total contract revenue backlog has increased to $1.6 billion with an average remaining contract duration of 10.3 years, including the Yenisei River time charter contract,” he concluded.