Dynagas Partners Secures Work for All Carriers until 2021

Natural gas carrier owner and operator Dynagas Partners has secured work for its entire fleet of six vessels until at least 2021.

Illustration, Image Courtesy: LNG Carrier/ Flickr-Kees Torn under CC BY-SA 2.0 license

In its 2018 earnings report, the company said all of its LNG carriers are already, or will be, employed on long-term contracts with an average contract duration of approximately ten years.

The first potential vessel could be available in the year 2021 and thereafter in the year 2026, the company noted.

Despite a strong LNG carrier market, the Monaco-based company reported weaker 2018 results compared to the year before. Net income for full year 2018 was USD 3.6 million, compared to USD 17.3 million in 2017.

In the fourth quarter, Dynagas Partners reported a loss of USD 0.9 million. During the same period in 2017, the company reported a net income of USD 5.6 million.

The company explained that its fourth quarter 2018 results were impacted by the decrease in revenues as result of the Arctic Aurora and the Ob River starting employment under extended charter contracts at lower rates compared with previous ones.

Additional factors were the cost and off-hire associated with scheduled special survey and dry-docking of the Lena River and the increase in U.S. Libor which raised the interest and finance costs of the company’s Term Loan B.

“Our reported earnings for the fourth quarter ended December 31, 2018 were in line with our expectations,” Tony Lauritzen, Chief Executive Officer of the Partnership, commented.

“We believe that our revenue backlog estimate of approximately USD 1.4 billion is driven in part by our dominant market share in the ownership and operation of ice class LNG carriers.”