Dynagas LNG Partners LP Reports Results For the Three Months Ended March 31, 2024

Core Insights - Dynagas LNG Partners LP reported a net income of $11.8 million for the three months ended March 31, 2024, representing a 22.9% increase from $9.6 million in the same period of 2023, primarily due to increased gains from interest rate swaps and reduced interest costs [56][59] - Adjusted Net Income for the same period was $12.4 million, a significant increase of 90.8% compared to $6.5 million in 2023, driven by higher cash voyage revenues [35][31] - Adjusted EBITDA rose to $29.0 million, up 22.9% from $23.6 million in the previous year, attributed to increased revenues from the Arctic Aurora [37][31] Financial Performance - Voyage revenues increased to $38.1 million in Q1 2024 from $37.3 million in Q1 2023, marking a 2.1% rise, mainly due to a new charter agreement with Equinor ASA [57][31] - The average daily hire gross of commissions was approximately $72,770 per vessel in Q1 2024, compared to $62,130 in Q1 2023 [36][31] - Vessel operating expenses were reported at $7.7 million, with a daily rate of $14,103 per vessel, up from $7.3 million and $13,511 respectively in the prior year [58][31] Operational Highlights - The Partnership's fleet maintained 100% utilization during both Q1 2024 and Q1 2023 [36][31] - As of March 31, 2024, the Partnership had total cash of $76.2 million and outstanding indebtedness of $408.6 million under a $675 million credit facility [40][41] - The estimated contracted revenue backlog stood at approximately $1.07 billion, with an average remaining contract term of 6.6 years [31][69] Financing Developments - On June 19, 2024, the Partnership entered into a lease financing agreement with China Development Bank Financial Leasing Co. Ltd. for $345.0 million, which was used to fully prepay its existing $675 million credit facility [41][52] - The financing agreement includes a bareboat charter for four LNG carriers, with repayment scheduled in quarterly installments [41][52] Market Context - The Partnership's operations are currently not materially affected by U.S. and E.U. sanctions related to the ongoing Russian conflict with Ukraine, although it continues to monitor the situation [54][53] - The E.U. has recently enacted sanctions targeting the LNG sector of the Russian economy, which may impact future operations [54][53]