Dynagas LNG Partners LP Reports Results for the Three and Twelve Months Ended December 31, 2024
Dynagas LNG Partners LP (NYSE: DLNG) has reported its financial results for Q4 and full-year 2024. The company achieved net income of $51.6 million for the full year, with earnings per unit of $1.05. Q4 highlights include net income of $14.1 million ($0.29 per unit) and Adjusted EBITDA of $28.5 million.
The company maintains 100% fleet utilization with all six LNG carriers under long-term charters averaging 5.9 years remaining. The estimated contract backlog stands at approximately $1.0 billion as of March 2025. Following June 2024 debt refinancing, two vessels are now debt-free with reduced annual debt amortization of $44 million.
Notable developments include a $10 million common unit repurchase program authorized in November 2024, with 55,118 units already repurchased at an average price of $4.45. The company declared quarterly distributions for both preferred and common units, with common unit holders receiving $0.049 per unit for Q4 2024.
Dynagas LNG Partners LP (NYSE: DLNG) ha riportato i risultati finanziari per il quarto trimestre e l'intero anno 2024. L'azienda ha raggiunto un reddito netto di 51,6 milioni di dollari per l'intero anno, con un utile per unità di 1,05 dollari. I punti salienti del quarto trimestre includono un reddito netto di 14,1 milioni di dollari (0,29 dollari per unità) e un EBITDA rettificato di 28,5 milioni di dollari.
L'azienda mantiene un utilizzo della flotta del 100% con tutte e sei le navi metaniere sotto contratti a lungo termine che hanno una durata media residua di 5,9 anni. L'ammontare stimato del backlog contrattuale è di circa 1,0 miliardo di dollari a marzo 2025. Dopo il rifinanziamento del debito di giugno 2024, due navi sono ora senza debito con una riduzione dell'ammortamento annuale del debito a 44 milioni di dollari.
Tra gli sviluppi significativi c'è un programma di riacquisto di unità comuni da 10 milioni di dollari autorizzato a novembre 2024, con 55.118 unità già riacquistate a un prezzo medio di 4,45 dollari. L'azienda ha dichiarato distribuzioni trimestrali sia per le unità privilegiate che per quelle comuni, con i detentori di unità comuni che ricevono 0,049 dollari per unità per il quarto trimestre 2024.
Dynagas LNG Partners LP (NYSE: DLNG) ha reportado sus resultados financieros para el cuarto trimestre y el año completo 2024. La compañía logró un ingreso neto de 51.6 millones de dólares para el año completo, con ganancias por unidad de 1.05 dólares. Los aspectos destacados del cuarto trimestre incluyen un ingreso neto de 14.1 millones de dólares (0.29 dólares por unidad) y un EBITDA ajustado de 28.5 millones de dólares.
La compañía mantiene una utilización de flota del 100% con los seis transportistas de GNL bajo contratos a largo plazo con un promedio de 5.9 años restantes. El backlog de contratos estimado se sitúa en aproximadamente 1.0 mil millones de dólares a marzo de 2025. Tras la refinanciación de deuda de junio de 2024, dos embarcaciones están ahora libres de deuda con una reducción en la amortización anual de deuda a 44 millones de dólares.
Desarrollos notables incluyen un programa de recompra de unidades comunes de 10 millones de dólares autorizado en noviembre de 2024, con 55,118 unidades ya recompradas a un precio promedio de 4.45 dólares. La compañía declaró distribuciones trimestrales tanto para unidades preferentes como comunes, con los tenedores de unidades comunes recibiendo 0.049 dólares por unidad para el cuarto trimestre de 2024.
Dynagas LNG Partners LP (NYSE: DLNG)는 2024년 4분기 및 연간 재무 결과를 발표했습니다. 이 회사는 연간 5,160만 달러의 순이익을 달성했으며, 주당 수익은 1.05달러입니다. 4분기의 주요 내용으로는 1,410만 달러의 순이익(주당 0.29달러)과 조정된 EBITDA 2,850만 달러가 포함됩니다.
회사는 100%의 선대 활용률을 유지하고 있으며, 6척의 LNG 운반선 모두가 평균 5.9년의 장기 계약을 체결하고 있습니다. 2025년 3월 기준으로 예상 계약 잔고는 약 10억 달러에 달합니다. 2024년 6월의 부채 재조정 이후, 두 척의 선박은 이제 부채가 없으며 연간 부채 상환액이 4,400만 달러로 줄어들었습니다.
주요 발전 사항으로는 2024년 11월에 승인된 1천만 달러의 일반 주식 매입 프로그램이 있으며, 이미 55,118주가 평균 가격 4.45달러에 매입되었습니다. 회사는 우선주와 일반주 모두에 대해 분기 배당금을 선언했으며, 일반주 주주들은 2024년 4분기에 주당 0.049달러를 받게 됩니다.
Dynagas LNG Partners LP (NYSE: DLNG) a annoncé ses résultats financiers pour le quatrième trimestre et l'année entière 2024. La société a réalisé un revenu net de 51,6 millions de dollars pour l'année complète, avec un bénéfice par unité de 1,05 dollar. Les faits marquants du quatrième trimestre incluent un revenu net de 14,1 millions de dollars (0,29 dollar par unité) et un EBITDA ajusté de 28,5 millions de dollars.
La société maintient une utilisation de la flotte de 100% avec les six transporteurs de GNL sous des contrats à long terme ayant une durée moyenne restante de 5,9 ans. Le carnet de commandes estimé s'élève à environ 1,0 milliard de dollars en mars 2025. Suite au refinancement de la dette en juin 2024, deux navires sont désormais sans dette avec une réduction de l'amortissement annuel de la dette à 44 millions de dollars.
Parmi les développements notables, on trouve un programme de rachat d'unités ordinaires de 10 millions de dollars autorisé en novembre 2024, avec 55 118 unités déjà rachetées à un prix moyen de 4,45 dollars. La société a déclaré des distributions trimestrielles tant pour les unités privilégiées que pour les unités ordinaires, les détenteurs d'unités ordinaires recevant 0,049 dollar par unité pour le quatrième trimestre 2024.
Dynagas LNG Partners LP (NYSE: DLNG) hat seine finanziellen Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht. Das Unternehmen erzielte einen Nettoertrag von 51,6 Millionen Dollar für das gesamte Jahr, mit einem Gewinn pro Einheit von 1,05 Dollar. Zu den Highlights des vierten Quartals gehören ein Nettoertrag von 14,1 Millionen Dollar (0,29 Dollar pro Einheit) und ein bereinigtes EBITDA von 28,5 Millionen Dollar.
Das Unternehmen hält eine Flottenauslastung von 100% aufrecht, wobei alle sechs LNG-Carrier unter langfristigen Verträgen mit einer durchschnittlichen Restlaufzeit von 5,9 Jahren stehen. Der geschätzte Auftragsbestand beläuft sich bis März 2025 auf etwa 1,0 Milliarden Dollar. Nach der Schuldenumstrukturierung im Juni 2024 sind zwei Schiffe nun schuldenfrei, mit einer reduzierten jährlichen Schuldenamortisation von 44 Millionen Dollar.
Bemerkenswerte Entwicklungen umfassen ein Rückkaufprogramm für Stammaktien über 10 Millionen Dollar, das im November 2024 genehmigt wurde, wobei bereits 55.118 Einheiten zu einem Durchschnittspreis von 4,45 Dollar zurückgekauft wurden. Das Unternehmen erklärte vierteljährliche Ausschüttungen sowohl für Vorzugs- als auch für Stammaktien, wobei die Stammaktionäre für das vierte Quartal 2024 0,049 Dollar pro Einheit erhalten.
- Net income increased 34.3% YoY to $14.1M in Q4 2024
- 100% fleet utilization with $1.0B contract backlog
- Voyage revenues up 12.7% to $41.7M in Q4 2024
- Reduced financial leverage with two debt-free vessels
- No debt maturities until 2029
- Vessel operating expenses at $14,732 daily rate per vessel
- Exposure to Russian sanctions risk through counterparties
Insights
Dynagas LNG Partners' Q4 and full-year 2024 results demonstrate strong financial performance and enhanced stability. The Partnership reported Q4 net income of $14.1 million (up 34.3% year-over-year) and full-year net income of $51.6 million. Revenue increased 12.7% to $41.7 million in Q4, primarily driven by higher charter rates for the Arctic Aurora under its new contract with Equinor ASA.
Several financial metrics indicate improving fundamentals: interest and finance costs decreased 38.9% following the June 2024 debt refinancing, which left two vessels debt-free and reduced annual debt amortization to $44 million. The company maintained 100% fleet utilization, reflecting operational excellence and the strength of its business model.
The Partnership's $1.0 billion contract backlog with 100% charter coverage through 2027 provides exceptional revenue visibility. With no vessel availability until 2028 and an average remaining contract term of 5.9 years, Dynagas has effectively locked in stable medium-term cash flows.
The balance sheet shows improved financial flexibility with $68.2 million in cash and no debt maturities until 2029. The implementation of a $10 million unit repurchase program signals management confidence in the company's financial position while returning value to unitholders.
The Partnership's LNG shipping fundamentals remain exceptionally strong as evidenced by their operational metrics. The 100% fleet utilization across both quarterly and annual periods demonstrates optimal fleet management in a specialized segment of maritime shipping where operational efficiency is paramount.
Daily vessel operating expenses decreased to $14,732 from $15,172 year-over-year, indicating effective cost control measures while maintaining operational excellence. The higher average daily charter rate of $71,460 represents a premium position in the LNG carrier market, reflecting both the quality of the vessels and the strategic positioning of long-term contracts.
The refinancing completed in June 2024 represents a significant structural improvement in the Partnership's maritime asset portfolio, with two vessels now completely unencumbered. This gives Dynagas extraordinary flexibility compared to industry peers who typically maintain leveraged vessel positions throughout their lifecycle.
While the Partnership appropriately acknowledges ongoing monitoring of Russian sanctions, the current regulatory environment does not materially impact operations, and counterparties continue performing contractual obligations in compliance with U.S. and E.U. regulations. This stability is critical in the geopolitically sensitive LNG transportation market.
The contracted time charter coverage through 2027 positions Dynagas advantageously compared to operators with more spot market exposure, effectively insulating the Partnership from potential rate volatility while ensuring consistent cash generation through multiple market cycles.
ATHENS, Greece, March 06, 2025 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (NYSE: “DLNG”) (the “Partnership”), an owner and operator of liquefied natural gas (“LNG”) carriers, today announced its results for the three and twelve months ended December 31, 2024.
Twelve months Highlights:
- Net Income and Earnings per common unit (basic and diluted) of
$51.6 million and$1.05 , respectively; - Adjusted Net Income(1) of
$54.2 million and Adjusted Earnings per common unit(1) (basic and diluted) of$1.12 ; - Adjusted EBITDA(1)
$115.0 million ; and 100% fleet utilization(2).
Quarter Highlights:
- Net Income and Earnings per common unit (basic and diluted) of
$14.1 million and$0.29 , respectively; - Adjusted Net Income(1) of
$15.0 million and Adjusted Earnings per common unit(1) (basic and diluted) of$0.32 ; - Adjusted EBITDA(1) of
$28.5 million ; 100% fleet utilization(2);- Declared and paid a cash distribution of
$0.56 25 per unit on the Partnership’s Series A Preferred Units (NYSE: “DLNG PR A”) for the period from August 12, 2024 to November 11, 2024 and$ 0.69 999031 per unit on the Series B Preferred Units (NYSE: “DLNG PR B”) for the period from August 22, 2024 to November 21, 2024; - Declared a quarterly cash distribution of
$0.04 9 per common unit for the quarter ended September 30, 2024, which was paid on December 12, 2024; - On November 21, 2024, the Partnership’s Board of Directors authorized the repurchase of up to an aggregate of
$10 million of the Partnership’s outstanding common units to be made over the following 12 months (the “Program”). Repurchases of common units under the Program may be made, from time to time, in privately negotiated transactions, in open market transactions, or by other means, including through trading plans intended to qualify under Rule 10b-18 and/or Rule 10b5-1 of the U.S. Securities Exchange Act of 1934, as amended. The amount and timing of any repurchases made under the Program will be in the sole discretion of the Partnership’s management team, and will depend on a variety of factors, including legal requirements, market conditions, other investment opportunities, available liquidity, and the prevailing market price of the common units. The Program does not obligate the Partnership to repurchase any dollar amount or number of common units and the Program may be suspended or discontinued at any time at the Partnership’s discretion; and - During the fourth quarter of 2024 and through the date of this press release, repurchased 55,118 common units under the Program for total net proceeds of
$0.25 million , at an average price of$4.45 per common unit.
(1) Adjusted Net Income, Adjusted Earnings per common unit and Adjusted EBITDA are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP and other related information.
(2) Please refer to Appendix B for additional information on how we calculate fleet utilization.
Subsequent Events:
- Declared a quarterly cash distribution of
$0.56 25 on the Partnership’s Series A Preferred Units for the period from November 12, 2024 to February 11, 2025, which was paid on February 12, 2025 to all Series A Preferred unitholders of record as of February 5, 2025; - Declared a quarterly cash distribution of
$0.67 7286319 on the Partnership’s Series B Preferred Units for the period from November 22, 2024 to February 23, 2025, which was paid on February 24, 2025 to all Series B Preferred unitholders of record as of February 14, 2025; and - Declared a quarterly cash distribution of
$0.04 9 per common unit for the quarter ended December 31, 2024, which was paid on February 27, 2025 to all common unitholders of record as of February 24, 2025.
CEO Commentary:
We are pleased with the financial results for the three months ended December 31, 2024.
For this quarter, our Net Income stood at
Currently, all six LNG carriers in our fleet are under long-term charters with international gas companies with an average remaining term of 5.9 years, as of the date of this release. We anticipate, assuming no unforeseen events, no vessel availability until 2028. As of March 6, 2025, our estimated contract backlog stands at approximately
Russian Sanctions Developments
Due to the ongoing Russian conflict with Ukraine, the United States (“U.S.”), European Union (“E.U.”), Canada and other Western countries and organizations have announced and enacted numerous sanctions against Russia to impose severe economic pressure on the Russian economy and government.
As of today’s date:
- Current U.S. and E.U. sanctions regimes do not materially affect the business, operations or financial condition of the Partnership and, to the Partnership’s knowledge, its counterparties are currently performing their obligations under their respective time charters in compliance with applicable U.S. and E.U. rules and regulations; and
- Sanctions legislation continually changes and the Partnership continues to monitor such changes as applicable to the Partnership and its counterparties.
The full impact of the commercial and economic consequences of the Russian conflict with Ukraine is uncertain at this time. The Partnership cannot provide any assurance that any further development in sanctions, or escalation of the Ukraine conflict more generally, will not have a significant impact on its business, financial condition or results of operations. Please see the section of this press release entitled “Forward Looking Statements.”
Financial Results Overview:
| Three Months Ended | Twelve Months Ended | ||||||||
| (U.S. dollars in thousands, except per unit data) | December 31, 2024 (unaudited) | December 31, 2023 (unaudited) | December 31, 2024 (unaudited) | December 31, 2023 (unaudited) | |||||
| Voyage revenues | $ | 41,664 | 36,950 | 156,403 | 148,878 | ||||
| Net Income | $ | 14,079 | 10,462 | 51,591 | 35,872 | ||||
| Adjusted Net Income(1) | $ | 14,992 | 10,305 | 54,208 | 25,799 | ||||
| Operating income | $ | 19,425 | 17,677 | 77,419 | 64,713 | ||||
| Adjusted EBITDA(1) | $ | 28,523 | 27,399 | 114,988 | 94,362 | ||||
| Earnings per common unit | $ | 0.29 | 0.21 | 1.05 | 0.66 | ||||
| Adjusted Earnings per common unit(1) | $ | 0.32 | 0.20 | 1.12 | 0.39 | ||||
(1) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.
Three Months Ended December 31, 2024 and 2023 Financial Results
Net Income for the three months ended December 31, 2024 was
Adjusted Net Income (a non-GAAP financial measure) for the three months ended December 31, 2024 was
Voyage revenues for the three months ended December 31, 2024 were
The Partnership reported average daily hire gross of commissions(1) of approximately
Vessel operating expenses were
Adjusted EBITDA (a non- GAAP financial measure) for the three months ended December 31, 2024 was
Net Interest and finance costs were
For the three months ended December 31, 2024, the Partnership reported basic and diluted Earnings per common unit and Adjusted Earnings per common unit, (a non- GAAP financial measure) of
Adjusted Net Income, Adjusted EBITDA, and Adjusted Earnings per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.
Amounts relating to variations in period on period comparisons shown in this section are derived from the condensed financials presented below.
(1) Average daily hire gross of commissions is a non-GAAP financial measure and represents voyage revenue excluding the non-cash time charter deferred revenue amortization, as well as the revenues attributable to the value of the EUAs to be provided to the Partnership pursuant to the terms of its agreements with the charterers, divided by the Available Days in the Partnership’s fleet as described in Appendix B.
Liquidity/ Financing/ Cash Flow Coverage
During the three months ended December 31, 2024, the Partnership generated net cash from operating activities of
As of December 31, 2024, the Partnership reported total cash of
Vessel Employment
As of December 31, 2024, the Partnership had estimated contracted time charter coverage(1) for
As of the same date, the Partnership’s estimated contracted revenue backlog (2) (3) was
(1) Time charter coverage for the Partnership’s fleet is calculated by dividing the fleet contracted days on the basis of the earliest estimated delivery and redelivery dates prescribed in the Partnership’s current time charter contracts, net of scheduled class survey repairs by the number of expected Available Days during that period.
(2) The Partnership calculates its estimated contracted revenue backlog by multiplying the contractual daily hire rate by the expected number of days committed under the contracts (assuming earliest delivery and redelivery and excluding options to extend), assuming full utilization. The actual amount of revenues earned and the actual periods during which revenues are earned may differ from the amounts and periods disclosed due to, for example, dry-docking and/or special survey downtime, maintenance projects, off-hire downtime and other factors that result in lower revenues than the Partnership’s average contract backlog per day.
(3)
Slide Presentation:
The slide presentation on the fourth quarter ended December 31, 2024 financial results will be available in PDF format, accessible on the Partnership's website www.dynagaspartners.com.
About Dynagas LNG Partners LP
Dynagas LNG Partners LP. (NYSE: DLNG) is a master limited partnership that owns and operates liquefied natural gas (LNG) carriers employed on multi-year charters. The Partnership’s current fleet consists of six LNG carriers, with an aggregate carrying capacity of approximately 914,000 cubic meters.
Visit the Partnership’s website at www.dynagaspartners.com. The Partnership’s website and its contents are not incorporated into and do not form a part of this release.
Contact Information:
Dynagas LNG Partners LP
Attention: Michael Gregos
Tel. +30 210 8917960
Email: management@dynagaspartners.com
Investor Relations / Financial Media:
Nicolas Bornozis
Markella Kara
Capital Link, Inc.
230 Park Avenue, Suite 1540
New York, NY 10169
Tel. (212) 661-7566
E-mail: dynagas@capitallink.com
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Partnership desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “project,” “will,” “may,” “should,” “expect,” “expected,” “pending” and similar expressions identify forward-looking statements. These forward-looking statements are not intended to give any assurance as to future results and should not be relied upon.
The forward-looking statements in this press release are based upon various assumptions and estimates, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Partnership’s management of historical operating trends, data contained in its records and other data available from third parties. Although the Partnership believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Partnership’s control, the Partnership cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Partnership’s view, could cause actual results to differ materially from those discussed, expressed or implied, in the forward- looking statements include, but are not limited to, the strength of world economies and currency fluctuations, general market conditions, including fluctuations in charter rates, ownership days, and vessel values, changes in supply of and demand for liquefied natural gas (LNG) shipping capacity, changes in the Partnership’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Partnership’s vessels, availability of financing and refinancing, changes in governmental laws, rules and regulations or actions taken by regulatory authorities, economic, regulatory, political and governmental conditions that affect the shipping and the LNG industry, potential liability from pending or future litigation, and potential costs due to environmental damage and vessel collisions, general domestic and international political conditions, potential disruption of shipping routes due to accidents, political events, or international hostilities, geopolitical events including ongoing conflicts and hostilities in the Middle East and other regions throughout the world and the global response to such conflicts and hostilities, changes in tariffs, trade barriers, and embargos, including recently imposed tariffs by the U.S. and the effects of retaliatory tariffs and countermeasures from affected countries, vessel breakdowns, instances of off-hires, the length and severity of epidemics and pandemics, the impact of public health threats and outbreaks of other highly communicable diseases, the amount of cash available for distribution, and other factors. Due to the ongoing war between Russia and Ukraine, the United States, United Kingdom, the European Union, Canada, and other Western countries and organizations have announced and enacted numerous sanctions against Russia to impose severe economic pressure on the Russian economy and government. The full impact of the commercial and economic consequences of the Russian conflict with Ukraine are uncertain at this time. Although currently there has been no material impact on the Partnership, potential consequences of the sanctions that could impact the Partnership’s business in the future include but are not limited to: (1) the Partnership’s counterparties being potentially limited by sanctions from performing under its agreements; and (2) a general deterioration of the Russian economy. In addition, the Partnership may have greater difficulties raising capital in the future, which could potentially reduce the level of future investment into its expansion and operations. The Partnership cannot provide any assurance that any further development in sanctions, or escalation of the Ukraine situation more generally, will not have a significant impact on its business, financial condition, or results of operations.
Please see the Partnership’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Partnership disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
APPENDIX A
| DYNAGAS LNG PARTNERS LP Condensed Consolidated Statements of Income | ||||||||||||||
| (In thousands of U.S. dollars except units and per unit data) | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2024 (unaudited) | 2023 (unaudited) | 2024 (unaudited) | 2023 (unaudited) | |||||||||||
| REVENUES | ||||||||||||||
| Voyage revenues | $ | 41,664 | $ | 36,950 | $ | 156,403 | $ | 148,878 | ||||||
| Revenues from contracts with customers | — | — | — | 11,602 | ||||||||||
| EXPENSES | ||||||||||||||
| Voyage expenses (including related party) | (3,903 | ) | (644 | ) | (6,448 | ) | (3,338 | ) | ||||||
| Vessel operating expenses | (8,132 | ) | (8,375 | ) | (31,643 | ) | (34,412 | ) | ||||||
| Dry-docking and special survey costs | — | — | — | (17,650 | ) | |||||||||
| General and administrative expenses (including related party) | (464 | ) | (562 | ) | (2,143 | ) | (2,032 | ) | ||||||
| Management fees -related party | (1,659 | ) | (1,610 | ) | (6,599 | ) | (6,389 | ) | ||||||
| Depreciation | (8,081 | ) | (8,082 | ) | (32,151 | ) | (31,946 | ) | ||||||
| Operating income | 19,425 | 17,677 | 77,419 | 64,713 | ||||||||||
| Interest and finance costs, net | (5,450 | ) | (9,012 | ) | (28,629 | ) | (36,617 | ) | ||||||
| Loss on debt extinguishment | — | — | (331 | ) | (154 | ) | ||||||||
| Gain/ (Loss) on derivative instruments | — | (951 | ) | 1,755 | 5,267 | |||||||||
| Other income | — | 2,881 | 1,492 | 2,881 | ||||||||||
| Other, net | 104 | (133 | ) | (115 | ) | (218 | ) | |||||||
| Net income | $ | 14,079 | $ | 10,462 | $ | 51,591 | $ | 35,872 | ||||||
| Earnings per common unit (basic and diluted) | $ | 0.29 | $ | 0.21 | $ | 1.05 | $ | 0.66 | ||||||
| Weighted average number of units outstanding, basic and diluted: | ||||||||||||||
| Common units | 36,791,279 | 36,802,247 | 36,799,490 | 36,802,247 | ||||||||||
| DYNAGAS LNG PARTNERS LP Condensed Consolidated Balance Sheets (Expressed in thousands of U.S. Dollars—except for unit data) | ||||
| December 31, 2024 (unaudited) | December 31, 2023 (unaudited) | |||
| ASSETS: | ||||
| Cash and cash equivalents | $ | 68,156 | $ | 73,752 |
| Derivative financial instrument | — | 15,631 | ||
| Due from related party (current and non-current) | 2,539 | 1,350 | ||
| Other assets | 11,246 | 20,817 | ||
| Vessels, net | 765,212 | 797,363 | ||
| Total assets | $ | 847,153 | $ | 908,913 |
| LIABILITIES | ||||
| Total long-term debt, net of deferred financing costs | $ | 320,717 | $ | 419,584 |
| Total other liabilities | 40,936 | 39,534 | ||
| Due to related party (current and non-current) | 699 | 1,555 | ||
| Total liabilities | $ | 362,352 | $ | 460,673 |
| PARTNERS’ EQUITY | ||||
| General partner (35,526 units issued and outstanding as at December 31, 2024 and December 31, 2023) | 138 | 102 | ||
| Common unitholders (36,747,129 units and 36,802,247 units issued and outstanding as at December 31, 2024 and December 31, 2023) | 357,949 | 321,424 | ||
| Series A Preferred unitholders: (3,000,000 units issued and outstanding as at December 31, 2024 and December 31, 2023) | 73,216 | 73,216 | ||
| Series B Preferred unitholders: (2,200,000 units issued and outstanding as at December 31, 2024 and December 31, 2023) | 53,498 | 53,498 | ||
| Total partners’ equity | $ | 484,801 | $ | 448,240 |
| Total liabilities and partners’ equity | $ | 847,153 | $ | 908,913 |
| DYNAGAS LNG PARTNERS LP Condensed Consolidated Statements of Cash Flows (Expressed in thousands of U.S. Dollars) | ||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (unaudited) | (unaudited) | |||||||||||
| Cash flows from Operating Activities: | ||||||||||||
| Net income: | $ | 14,079 | $ | 10,462 | $ | 51,591 | $ | 35,872 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation | 8,081 | 8,082 | 32,151 | 31,946 | ||||||||
| Amortization of deferred financing fees | 142 | 396 | 1,022 | 1,667 | ||||||||
| Deferred revenue amortization | 858 | 1,719 | 5,316 | (8,343 | ) | |||||||
| Amortization of deferred charges | 55 | 54 | 217 | 216 | ||||||||
| Loss on debt extinguishment | — | — | 331 | 154 | ||||||||
| (Gain)/ Loss on derivative financial instrument | — | 951 | (1,755 | ) | (5,267 | ) | ||||||
| Dry-docking and special survey costs | — | — | — | 17,650 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Trade accounts receivable | (367 | ) | (94 | ) | (492 | ) | (642 | ) | ||||
| Prepayments and other assets | 23 | (387 | ) | 4,181 | (6,040 | ) | ||||||
| Inventories | (34 | ) | (17 | ) | (143 | ) | 134 | |||||
| Due from/ to related parties | 958 | 853 | (2,045 | ) | 83 | |||||||
| Deferred charges | 52 | — | — | — | ||||||||
| Trade accounts payable | 252 | (5,097 | ) | (636 | ) | (5,276 | ) | |||||
| Accrued liabilities | 608 | (6,425 | ) | 2,321 | (5,928 | ) | ||||||
| Unearned revenue | 7,748 | 9,688 | 99 | 8,165 | ||||||||
| Net cash from Operating Activities | $ | 32,455 | $ | 20,185 | $ | 92,158 | $ | 64,391 | ||||
| Cash flows from Investing Activities | ||||||||||||
| Ballast water treatment system installation | — | (2,809 | ) | (27 | ) | (4,238 | ) | |||||
| Net cash used in Investing Activities | $ | — | $ | (2,809 | ) | $ | (27 | ) | $ | (4,238 | ) | |
| Cash flows from Financing Activities: | ||||||||||||
| Repurchase of common units | (247 | ) | — | (247 | ) | — | ||||||
| Distributions declared and paid | (5,031 | ) | (2,891 | ) | (14,781 | ) | (11,563 | ) | ||||
| Proceeds from long- term debt and other financial liabilities | — | — | 344,975 | — | ||||||||
| Repayment of long-term debt | (11,042 | ) | (12,000 | ) | (442,726 | ) | (79,270 | ) | ||||
| Receipt of derivative instruments | — | 6,356 | 17,521 | 24,564 | ||||||||
| Payment of deferred finance fees | — | — | (2,469 | ) | — | |||||||
| Net cash used in Financing Activities | $ | (16,320 | ) | $ | (8,535 | ) | $ | (97,727 | ) | $ | (66,269 | ) |
| Net increase / (decrease) in cash and cash equivalents | 16,135 | 8,841 | (5,596 | ) | (6,116 | ) | ||||||
| Cash and cash equivalents at beginning of the period | 52,021 | 64,911 | 73,752 | 79,868 | ||||||||
| Cash and cash equivalents at end of the period | $ | 68,156 | $ | 73,752 | $ | 68,156 | $ | 73,752 | ||||
APPENDIX B
Fleet Statistics and Reconciliation of U.S. GAAP Financial Information to Non-GAAP Financial Information
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| (expressed in United states dollars except for operational data) | 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | |||||||||||
| Number of vessels at the end of period | 6 | 6 | 6 | 6 | ||||||||
| Average number of vessels in the period(1) | 6 | 6 | 6 | 6 | ||||||||
| Calendar Days(2) | 552.0 | 552.0 | 2,196.0 | 2,190.0 | ||||||||
| Available Days(3) | 552.0 | 552.0 | 2,196.0 | 2,135.8 | ||||||||
| Revenue earning days(4) | 552.0 | 552.0 | 2,196.0 | 2,089.4 | ||||||||
| Time Charter Equivalent rate(5) | $ | 68,408 | $ | 65,772 | $ | 68,286 | $ | 68,143 | ||||
| Fleet Utilization(4) | ||||||||||||
| Vessel daily operating expenses(6) | $ | 14,732 | $ | 15,172 | $ | 14,409 | $ | 15,713 | ||||
| (1) | Represents the number of vessels that constituted the Partnership’s fleet for the relevant period, as measured by the sum of the number of days that each vessel was a part of the Partnership’s fleet during the period divided by the number of Calendar Days (defined below) in the period. | |
| (2) | “Calendar Days” are the total days that the Partnership possessed the vessels in its fleet for the relevant period. | |
| (3) | “Available Days” are the total number of Calendar Days that the Partnership’s vessels were in its possession during a period, less the total number of scheduled off-hire days during the period associated with major repairs or dry-dockings. | |
| (4) | The Partnership calculates fleet utilization by dividing the number of its Revenue earning days, which are the total number of Available Days of the Partnership’s vessels net of unscheduled off-hire days (which do not include positioning- repositioning days for which compensation has been received) during a period by the number of Available Days. The shipping industry uses fleet utilization to measure a company’s efficiency in finding employment for its vessels and minimizing the number of days that its vessels are off-hire for reasons such as unscheduled repairs but excluding scheduled off-hires for vessel upgrades, dry-dockings, or special or intermediate surveys. | |
| (5) | Time charter equivalent rate (“TCE rate”) is a measure of the average daily revenue performance of a vessel. For time charters, we calculate TCE rate by dividing total voyage revenues, less any voyage expenses, by the number of Available Days during the relevant time period. Under a time charter, the charterer pays substantially all vessel voyage related expenses. However, the Partnership may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time charter, during periods of commercial waiting time or while off-hire during dry-docking or due to other unforeseen circumstances. The TCE rate is not a measure of financial performance under U.S. GAAP (non-GAAP measure), and should not be considered as an alternative to voyage revenues, the most directly comparable GAAP measure, or any other measure of financial performance presented in accordance with U.S. GAAP. However, the TCE rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a company’s performance despite changes in the mix of charter types (such as time charters, voyage charters) under which the vessels may be employed between the periods and to assist the Partnership’s management in making decisions regarding the deployment and use of the Partnership’s vessels and in evaluating their financial performance. The Partnership’s calculation of TCE rates may not be comparable to that reported by other companies due to differences in methods of calculation. The following table reflects the calculation of the Partnership’s TCE rates for the periods presented (amounts in thousands of U.S. dollars, except for TCE rates, which are expressed in U.S. dollars, and Available Days): | |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| (unaudited) | (unaudited) | |||||||||||||
| (In thousands of U.S. dollars, except for Available Days and TCE rate) | ||||||||||||||
| Voyage revenues | $ | 41,664 | $ | 36,950 | $ | 156,403 | $ | 148,878 | ||||||
| Voyage Expenses* | (3,903 | ) | (644 | ) | (6,448 | ) | (3,338 | ) | ||||||
| Time Charter equivalent revenues | $ | 37,761 | $ | 36,306 | $ | 149,955 | $ | 145,540 | ||||||
| Available Days | 552.0 | 552.0 | 2,196.0 | 2,135.8 | ||||||||||
| Time charter equivalent (TCE) rate | $ | 68,408 | $ | 65,772 | $ | 68,286 | $ | 68,143 | ||||||
* Voyage expenses include commissions of
| (6) | Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, spares and repairs and flag taxes, are calculated by dividing vessel operating expenses by fleet Calendar Days for the relevant time period. | |
Reconciliation of Net Income to Adjusted EBITDA
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| (In thousands of U.S. dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||
| (unaudited) | (unaudited) | |||||||||||||
| Net income | $ | 14,079 | $ | 10,462 | $ | 51,591 | $ | 35,872 | ||||||
| Net interest and finance costs(1) | 5,450 | 9,012 | 28,629 | 36,617 | ||||||||||
| Depreciation | 8,081 | 8,082 | 32,151 | 31,946 | ||||||||||
| Loss on Debt extinguishment | — | — | 331 | 154 | ||||||||||
| (Gain)/ Loss on derivative financial instrument | — | 951 | (1,755 | ) | (5,267 | ) | ||||||||
| Class survey costs net of Revenues from contracts with customers | — | — | — | 6,048 | ||||||||||
| Amortization of deferred revenue | 858 | 1,719 | 5,316 | (8,343 | ) | |||||||||
| Amortization of deferred charges | 55 | 54 | 217 | 216 | ||||||||||
| Other income (2) | — | (2,881 | ) | (1,492 | ) | (2,881 | ) | |||||||
| Adjusted EBITDA | $ | 28,523 | $ | 27,399 | $ | 114,988 | $ | 94,362 | ||||||
(1) Includes interest and finance costs and interest income, if any.
(2) Includes other income from insurance claims for damages incurred prior years
The Partnership defines Adjusted EBITDA as earnings before interest and finance costs, net of interest income (if any), gains/losses on derivative financial instruments, taxes (when incurred), depreciation and amortization (when incurred), dry-docking and special survey costs and other non-recurring items (if any). Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess the Partnership’s operating performance.
The Partnership believes that Adjusted EBITDA assists its management and investors by providing useful information that increases the ability to compare the Partnership’s operating performance from period to period and against that of other companies in its industry that provide Adjusted EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or against companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possible changes in financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Partnership believes that including Adjusted EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in the Partnership and other investment alternatives and (b) monitoring the Partnership’s ongoing financial and operational strength.
Adjusted EBITDA is not intended to and does not purport to represent cash flows for the period, nor is it presented as an alternative to operating income. Further, Adjusted EBITDA is not a measure of financial performance under U.S. GAAP and does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and these measures may vary among other companies. Therefore, Adjusted EBITDA, as presented above, may not be comparable to similarly titled measures of other businesses because they may be defined or calculated differently by those other businesses. It should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. Any non-GAAP measures should be viewed as supplemental to, and should not be considered as alternatives to, GAAP measures including, but not limited to net earnings (loss), operating profit (loss), cash flow from operating, investing and financing activities, or any other measure of financial performance or liquidity presented in accordance with GAAP.
Reconciliation of Net Income to Adjusted Net Income available to common unitholders and Adjusted Earnings per common unit
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| (In thousands of U.S. dollars except for units and per unit data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net Income | $ | 14,079 | $ | 10,462 | $ | 51,591 | $ | 35,872 | ||||||||
| Amortization of deferred revenue | 858 | 1,719 | 5,316 | (8,343 | ) | |||||||||||
| Amortization of deferred charges | 55 | 54 | 217 | 216 | ||||||||||||
| Class survey costs net of revenue from contracts with customers | — | — | — | 6,048 | ||||||||||||
| Loss on Debt extinguishment | — | — | 331 | 154 | ||||||||||||
| (Gain)/ Loss on derivative financial instrument | — | 951 | (1,755 | ) | (5,267 | ) | ||||||||||
| Other income | — | (2,881 | ) | (1,492 | ) | (2,881 | ) | |||||||||
| Adjusted Net Income | $ | 14,992 | $ | 10,305 | $ | 54,208 | $ | 25,799 | ||||||||
| Less: Adjusted Net Income attributable to preferred unitholders and general partner | (3,239 | ) | (2,898 | ) | (13,019 | ) | (11,577 | ) | ||||||||
| Common unitholders’ interest in Adjusted Net Income | $ | 11,753 | $ | 7,407 | $ | 41,189 | $ | 14,222 | ||||||||
| Weighted average number of common units outstanding, basic and diluted: | 36,791,279 | 36,802,247 | 36,799,490 | 36,802,247 | ||||||||||||
| Adjusted Earnings per common unit, basic and diluted | $ | 0.32 | $ | 0.20 | $ | 1.12 | $ | 0.39 | ||||||||
Adjusted Net Income represents net income before non-recurring expenses (if any), charter hire amortization related to time charters with escalating time charter rates, amortization of deferred charges, class survey costs and changes in the fair value of derivative financial instruments. Net Income available to common unitholders represents the common unitholders interest in Adjusted Net Income for each period presented. Adjusted Earnings per common unit represents Net Income available to common unitholders divided by the weighted average common units outstanding during each period presented.
Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit, basic and diluted, are not recognized measures under U.S. GAAP and should not be regarded as substitutes for net income and earnings per unit, basic and diluted. The Partnership’s definitions of Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit, basic and diluted, may not be the same at those reported by other companies in the shipping industry or other industries. The Partnership believes that the presentation of Adjusted Net Income and Net income available to common unitholders is useful to investors because these measures facilitate the comparability and the evaluation of companies in the Partnership’s industry. In addition, the Partnership believes that Adjusted Net Income is useful in evaluating its operating performance compared to that of other companies in the Partnership’s industry because the calculation of Adjusted Net Income generally eliminates the accounting effects of items which may vary for different companies for reasons unrelated to overall operating performance. The Partnership’s presentation of Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit does not imply, and should not be construed as an inference, that its future results will be unaffected by unusual or non-recurring items and should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP.
FAQ
What were Dynagas LNG Partners' (DLNG) Q4 2024 financial results?
How much is DLNG's current contract backlog and fleet utilization rate?
What is the status of DLNG's share repurchase program announced in November 2024?
What dividend did DLNG declare for Q4 2024 common unitholders?
