Dynagas LNG Partners LP(US:DLNG)2026-03-13 20:54Financial Performance - Net Income for the twelve months ended December 31, 2025, was $61.6 million, representing an increase of 19.5% compared to $51.6 million for the same period in 2024[24]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $109.2 million, a decrease of 5.0% from $115.0 million in 2024[29]. - For the three months ended December 31, 2025, the Partnership generated net cash from operating activities of $21.4 million, a decrease of $11.1 million or 34.2% compared to $32.5 million in the same period in 2024[35]. - Net income for Q4 2025 was $15,711,000, representing a 12% increase compared to $14,079,000 in Q4 2024, and for the full year, net income rose to $61,645,000 from $51,591,000, a 19% increase[63]. - Adjusted Net Income attributable to common unitholders for Q4 2025 was $12,428,000, compared to $11,753,000 in Q4 2024, reflecting an increase of 6%[77]. - Common unitholders' interest in Adjusted Earnings per common unit for 2025 was $1.26, up from $1.12 in 2024, indicating a growth of 12.5%[77]. Revenue and Backlog - Estimated contracted revenue backlog as of December 31, 2025, was $0.84 billion with an average remaining contract term of 5.1 years[20]. - Voyage revenues for the three months ended December 31, 2025, were $40.0 million, a decrease of 4.1% from $41.7 million in the same period of 2024[26]. - Voyage revenues for Q4 2025 were $40,013,000, a decrease of 4% from $41,664,000 in Q4 2024, while total revenues for the year increased slightly to $156,624,000 from $156,403,000[59]. - Approximately $0.10 billion of the revenue backlog estimate relates to variable hire contracts with Yamal Trade Pte. Ltd., subject to yearly adjustments based on actual operating costs[41]. - For the year ended December 31, 2025, Yamal Trade Pte. Ltd. accounted for 36% of the Partnership's total revenues[45]. Fleet and Utilization - Fleet utilization for the twelve months ended December 31, 2025, was 99.3%, compared to 100% in 2024[12]. - The Partnership's fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters[50]. - The number of vessels remained stable at 6 throughout the periods reported[65]. - The fleet utilization rate was 98.8% in Q4 2025, slightly down from 100% in Q4 2024, while the average time charter equivalent rate increased to $68,547 from $68,408[65]. Costs and Liabilities - Net Interest and finance costs decreased to $4.7 million for the three months ended December 31, 2025, a reduction of 14.5% from $5.5 million in 2024[30]. - Total liabilities decreased to $313,014,000 in 2025 from $362,352,000 in 2024, reflecting a reduction in financial liabilities[61]. - Net interest and finance costs for the twelve months ended December 31, 2025, were $20,044,000, down from $28,629,000 in 2024, a reduction of approximately 30%[71]. Cash and Distributions - The Partnership declared a quarterly cash distribution of $0.050 per common unit for the quarter ended December 31, 2025, paid on February 27, 2026[19]. - As of December 31, 2025, the Partnership reported total cash of $41.0 million and outstanding financial liabilities under Sale and Leaseback agreements totaling $278.7 million[36]. - Cash and cash equivalents at the end of Q4 2025 were $41,039,000, down from $68,156,000 at the end of Q4 2024[64]. - The company repurchased common units costing $530,000 in Q4 2025, compared to $247,000 in Q4 2024[64]. Market and Regulatory Environment - The Clean Energy vessel is expected to enter a new time charter with Rio Grande LNG at a higher daily rate in early April 2026, which is anticipated to be accretive to revenues[21]. - The Partnership closely monitors the impact of sanctions and geopolitical events on its operations and financial condition[46]. - The full impact of the Russian war with Ukraine and related sanctions on the Partnership's business remains uncertain[56]. - The New E.U. Sanctions Regulations, effective January 1, 2027, may restrict the Partnership's ability to transport LNG from Russia, impacting the Yamal Charters[43]. - The Partnership had estimated contracted time charter coverage for 100% of its fleet's Available Days for 2026 and 2027, and 64% for 2028[37]. Management Insights - The partnership's management believes that Adjusted EBITDA provides useful information for comparing operating performance across periods and with other companies in the industry[74]. - Adjusted Net Income is defined as net income before non-recurring expenses and other adjustments, which aids in evaluating operating performance[79].