Dynagas LNG Partners LP(US:DLNG)2025-09-18 20:05Revenue and Income - In the six-month period ended June 30, 2025, revenues were derived from three charterers: SEFE (39%), Yamal (36%), and Equinor (25%)[18]. - Voyage revenues increased to $77,720,000 in 2025 from $75,670,000 in 2024, representing a growth of 2.7%[22]. - Net income rose to $27,279,000 in 2025, up from $22,458,000 in 2024, reflecting a year-over-year increase of 21.5%[22]. - Voyage revenues for the six months ended June 30, 2025, were $77.7 million, compared to $75.7 million for the same period in 2024, reflecting a growth of approximately 2.7%[86]. - Net income attributable to common unitholders for the six months ended June 30, 2025, was $18,918,000, up from $15,951,000 in 2024, reflecting an increase of about 18%[171]. Cash Flow and Distributions - A cash distribution of $0.049 per common unit was paid on August 29, 2025, for the quarter ended June 30, 2025[12]. - The Partnership's total distributions declared and paid for the six months ended June 30, 2025, amounted to $9.8 million, compared to $6.5 million in the same period of 2024, marking a 51% increase[91]. - The company paid cash distributions of $0.049 per common unit for the fourth quarter of 2024 and the first quarter of 2025, maintaining consistent distributions[69][70]. - The Partnership declared a cash distribution of $0.5625 per Series A Preferred Unit for the period from May 12, 2025, to August 11, 2025[179]. - A quarterly cash distribution of $0.049 per common unit was approved for the quarter ended June 30, 2025[179]. Fleet and Operations - The Partnership's fleet consists of six LNG carriers, five of which are Ice Class notation 1A FS, capable of operating in harsh environments[5]. - The average age of the fleet is approximately 15.1 years, with all vessels currently employed or contracted on multi-year time charters[13]. - Fleet utilization was reported at 99.7% in 2025, slightly down from 100% in 2024[23]. - The number of vessels in the fleet remained constant at 6 for both periods[23]. - The average age of vessels in operation increased to 14.9 years in 2025 from 13.9 years in 2024[23]. Financial Position and Liabilities - Total current assets increased to $84,745,000 at the end of June 2025, up from $78,162,000 at the end of December 2024, a rise of 8.2%[22]. - Total partners' equity decreased to $445,858,000 in June 2025 from $484,801,000 in December 2024, a decline of 8%[22]. - The working capital deficit increased to $50.9 million as of June 30, 2025, compared to a deficit of $21.1 million as of June 30, 2024[57]. - The Partnership's net book value of vessels decreased to $749,312 from $765,212 as of December 31, 2024, reflecting a depreciation of $15,900[125]. - Total liabilities due to related parties increased to $1,460 as of June 30, 2025, from $699 as of December 31, 2024[113]. Capital Management and Strategy - The Partnership is focused on a disciplined capital allocation strategy prioritizing debt repayment and maintaining balance sheet strength[7]. - The company expects to finance future capital expenditures through a combination of borrowings, cash generated from operations, and equity financings[48]. - No scheduled vessel drydocks are expected in 2025 and 2026, with no material capital expenditure commitments for the next twelve months as of June 30, 2025[64]. - The Partnership's cash flows used in financing activities for the six months ended June 30, 2025, were $32.7 million, a decrease from $72.3 million in 2024, showing improved cash management[91]. - The Partnership repurchased 216,185 common units for a total amount of $789 during the six months ended June 30, 2025, as part of its $10 million Common Unit Repurchase Program[146]. Interest and Financing Costs - Interest and finance costs decreased by $7.2 million, or 39.1%, to $11.2 million for the six months ended June 30, 2025, due to reduced interest-bearing debt and a lower average interest rate[42]. - Interest expense for the six months ended June 30, 2025, was $10,366,000, down from $17,590,000 in 2024, indicating a decrease of approximately 41%[172]. - The Partnership's weighted average interest rate on long-term debt and other financial liabilities decreased to 6.51% for the six-month period ended June 30, 2025, compared to 8.4% for the same period in 2024[130]. - Interest income decreased by 31.3%, or $0.5 million, to $1.1 million during the six months ended June 30, 2025, attributed to lower interest rates[43]. - The total amount of accrued dividends from May 22, 2025, to June 30, 2025, was $622,000, recorded as part of the Series B Preferred Units in current liabilities[151]. Geopolitical and Market Risks - The ongoing geopolitical situation may impact future revenues, particularly from contracts with Yamal due to sanctions related to the Russia-Ukraine conflict[19]. - The company earned 36% of its revenues from Yamal, primarily from Russian LNG ports, with current charter contracts unaffected by sanctions to date[59]. - The Partnership's time charter contracts have not been affected by sanctions related to the ongoing conflict in Ukraine, ensuring continued operations[93]. - The maximum aggregate amount of loss due to credit risk was $526 as of June 30, 2025, down from $1,201 as of December 31, 2024[103]. - The Partnership continues to adopt the going concern basis in preparing its financial statements, indicating confidence in its operational sustainability[95].