Dynagas LNG Partners (DLNG) Q3 2024 earnings summary

Executive summary

• Reported net income of $15.1 million and earnings per common unit of $0.32 for Q3 2024; nine-month net income was $37.5 million and $0.75 per unit.

• Adjusted net income for Q3 was $14.5 million ($0.30 per unit); nine-month adjusted net income was $39.2 million ($0.80 per unit).

• Adjusted EBITDA reached $28.9 million for Q3 and $86.5 million for the nine months, with 100% fleet utilization.

• All six LNG carriers are on long-term charters with an average remaining term of 6.2 years and no vessel availability until 2028.

• Estimated contract backlog stands at $1.01 billion as of November 22, 2024.

Financial highlights

• Q3 2024 voyage revenues were $39.1 million, up 5.7% year-over-year; nine-month revenues were $114.7 million, up from $111.9 million.

• Q3 net income increased by $13.7 million year-over-year, mainly due to higher voyage revenues, lower vessel operating expenses, reduced interest costs, and non-recurring insurance income.

• Vessel operating expenses for Q3 were $8.1 million ($14,656 per vessel per day), down from $10.6 million ($19,288 per day) in Q3 2023.

• Net interest and finance costs decreased 31.5% year-over-year to $6.3 million in Q3, reflecting lower debt after June 2024 refinancing.

• Net cash from operating activities was $25.6 million in Q3, up 17.4% year-over-year.

Outlook and guidance

• Reinstated quarterly cash distribution to common unitholders, reflecting improved cash flow and balance sheet after June 2024 refinancing.

• Board authorized a $10 million common unit repurchase program over the next 12 months.

• 100% fleet time charter coverage through 2026, with no debt maturities until 2029.

• Capital allocation strategy focuses on returning capital to unitholders and positioning for growth in LNG and other shipping sectors.