- Dynagas LNG Partners LP (DLNG, Financial) reports Q1 2025 net income of $13.6 million, up 15.3% YoY.
- Full redemption of $55 million Series B Preferred Units to save $5.7 million annually.
- Maintained 100% fleet utilization with a contract backlog of $0.9 billion.
Dynagas LNG Partners LP (DLNG) has announced a robust financial performance for the first quarter of 2025, achieving a net income of $13.6 million, which translates to $0.28 per unit. This marks a 15.3% increase compared to the same period in the previous year. The company reported adjusted EBITDA of $27.1 million and maintained full fleet utilization, with all six LNG carriers under long-term contracts averaging 5.7 years of remaining duration.
In a strategic move, Dynagas LNG Partners declared the full redemption of its $55 million Series B Preferred Units, scheduled for July 25, 2025. This redemption is expected to generate annual cash savings of approximately $5.7 million, as the units carried an annualized yield of 10.17%. The redemption will be funded from the company's strong cash position, currently standing at $70 million.
The company's contract backlog is estimated at $0.9 billion, providing revenue visibility and stability in quarterly distributions. Additionally, DLNG continues its $10 million unit repurchase program, enhancing value for common unitholders. Despite an increase in daily vessel operating expenses to $16,169, a significant reduction in interest and finance costs by 43.7% YoY has strengthened the financial outlook.
Dynagas LNG Partners remains resilient amid ongoing Russian sanctions, with no material impact on its operations reported. The company holds a strong financial position, with $312 million in total debt and no maturities until mid-2029, positioning it well against potential market volatility.
