Owner and operator of LNG carriers Dynagas LNG Partners LP has recorded a net income of USD 17.1 million in the first three months of 2016 compared to the net income of USD 14.8 million for the same period a year earlier.
Voyage revenues were at USD 42.7 million in the quarter, up from USD 35.6 million seen in the same period in 2015, due to a rise in revenue earning days from 450 to 546 days yoy amid fleet expansion.
LNG Tanker Arctic Aurora - Image: Arjan Elmendorp
An average daily hire gross of commissions was reported on a cash basis of USD 81,300 per day per vessel in the first quarter, compared to USD 79,700 in the same period of 2015. The Partnership’s vessels operated at 100% utilization during the quarter.
“In comparison to the corresponding quarter ended March 31, 2015, this first quarter of 2016 resulted in a 25.3% increase in Adjusted EBITDA, mainly due to the acquisition of the Lena River in late December 2015. Our current fleet of six LNG carriers performed at 100% utilization for the quarter, which also contributed to our strong results,” Tony Lauritzen, Chief Executive Officer of the Partnership, said.
Following the long term charters which the company signed for the Lena River, the Yenisei River and the Ob River, which provide the Partnership with approximately USD 1 billion of incremental fixed contracted revenues over their remaining minimum charter term, the Partnership’s contracted revenue backlog increased to approximately USD 1.6 billion, with average remaining contract duration of 10.3 years, including the Yenisei River time charter contract.
Under the new contracts, signed in March, the Lena River and the Yenisei River will start work in the Yamal LNG Project, which is currently under construction on the Yamal Peninsula in Northern Russia, for an initial term of 15 years.
In March, the Partnership also entered into a time charter contract with Gazprom Marketing and Trading Singapore Pte. Ltd., for the Ob River, for a firm charter period of 10 years.
“The Partnership intends to continue to focus on increasing contract coverage, maintaining high utilization rates and managing operating expenses in order to support sustainability of distributions,” Lauritzen said.
Dynagas Partners’ fleet of six LNG carriers has an aggregate carrying capacity of 913,980cbm.