Dynagas LNG Partners LP, an owner of Liquefied Natural Gas (“LNG”) carriers, Friday announced its results for the three and twelve months ended December 31, 2025.
Twelve months Highlights:
Net Income and Earnings per common unit (basic and diluted) of $61.6 million and $1.38, respectively;
Adjusted Net Income (1) of $57.1 million and Adjusted Earnings per common unit (1) (basic and diluted) of $1.26;
Adjusted EBITDA (1) of $109.2 million; and
99.3% fleet utilization (2).
Quarter Highlights:
Net Income and Earnings per common unit (basic and diluted) of $15.7 million and $0.38, respectively;
Adjusted Net Income(1) of $14.1 million and Adjusted Earnings per common unit(1) (basic and diluted) of $0.34;
Adjusted EBITDA(1) of $26.9 million;
98.8% fleet utilization(2);
Declared and paid a cash distribution of $0.5625 per unit on the Partnership’s Series A Preferred Units (NYSE: “DLNG PR A”) for the period from August 12, 2025 to November 11, 2025;
Declared a quarterly cash distribution of $0.050 per common unit for the quarter ended September 30, 2025, which was paid on November 14, 2025, to all common unitholders of record as of November 10, 2025;
During the fourth quarter of 2025, repurchased 148,933 common units for a total amount of $0.5 million, at an average gross price of $3.57 per common unit. The repurchases were made pursuant to our common unit repurchase program, which initially provided the authorization for our repurchase of up to an aggregate of $10.0 million of our outstanding common units over the one year period expiring November 21, 2025, and which was subsequently renewed on November 24, 2025 to again authorize the repurchase of up to an aggregate of $10.0 million common units over the following one year period (the “Repurchase Program”). Repurchases of common units under the Repurchase Program may be made, from time to time, in privately negotiated transactions, in open market transactions, or by other means, including through trading plans intended to qualify under Rule 10b-18 and/or Rule 10b5-1 of the U.S. Securities Exchange Act of 1934, as amended. The amount and timing of any repurchases made under the Repurchase Program will be at the sole discretion of the Partnership’s management team and will depend on a variety of factors, including legal requirements, market conditions, other investment opportunities, available liquidity, and the prevailing market price of the common units. The Repurchase Program does not obligate the Partnership to repurchase any dollar amount or number of common units and the Repurchase Program may be suspended or discontinued at any time at the Partnership’s discretion.
Recent Events:
Declared a quarterly cash distribution of $0.5625 on the Partnership’s Series A Preferred Units for the period from November 12, 2025 to February 11, 2026, which was paid on February 12, 2026, to all Series A Preferred unitholders of record as of February 5, 2026, and;
Declared a quarterly cash distribution of $0.050 per common unit for the quarter ended December 31, 2025, which was paid on February 27, 2026, to all common unitholders of record as of February 23, 2026.
CEO Commentary:
We are pleased to report strong financial results for the fourth quarter and full year 2025, which demonstrated the resilience and stability of our business model.
We remain focused on creating value for our common unitholders through disciplined deleveraging and sustainable capital returns. Consistent with this focus, our Board of Directors declared a quarterly cash distribution of $0.050 per common unit which was paid on February 27, 2026. In addition, on November 24, 2025, the Board authorized a new $10.0 million common unit repurchase program to replace the prior program which expired on November 21, 2025, demonstrating our continued commitment to enhancing unitholder value.
Recent geopolitical tensions in the Middle East, including the escalation of hostilities involving Iran and increased security risks around the Strait of Hormuz, have introduced significant volatility into global LNG markets. Disruptions to regional LNG production and reduced vessel transits through the strait have raised concerns over potential supply interruptions affecting a substantial portion of global LNG trade. As a result, LNG prices and shipping markets have strengthened, with LNG carrier charter rates increasing sharply amid tightening vessel availability and shifting global trade flows. However, the Partnership’s fleet is fully contracted under long-term charters, and therefore the Partnership does not have direct exposure to these short-term market developments.
The Partnership is closely monitoring the evolving security situation arising from the Israel-U.S./Iran conflict and broader instability in the Middle East. The safety of our seafarers and the security of our assets remain our highest priorities.
As of December 31, 2025, the Partnership had estimated contracted time charter coverage for 100%, 100%, and 64% of its fleet estimated Available Days for 2026, 2027, and 2028, respectively, with an estimated contracted revenue backlog of $0.84 billion and an average remaining contract term of 5.1 years.
With respect to charter developments, the Clean Energy is expected to be redelivered from her current charter with SEFE in early April 2026 and will enter into her new time charter with Rio Grande LNG at approximately the same time. The new charter with Rio Grande LNG is at a higher daily rate than the current SEFE charter and is expected to be accretive to the Partnership’s revenues and cash flows.
With respect to the ongoing Russian sanctions environment, the Partnership continues to monitor developments, including the E.U.’s 19th sanctions package, with which the Partnership is committed to full compliance. For a detailed discussion, please refer to the “Russian Sanctions Developments” section of this press release. Looking ahead, we remain focused on disciplined capital allocation, continued balance sheet deleveraging, and returning capital to our unitholders in a sustainable manner.
Three Months Ended December 31, 2025 and 2024 Financial Results
Net Income for the three months ended December 31, 2025 was $15.7 million as compared to $14.1 million for the corresponding period in 2024, which represents an increase of $1.6 million, or 11.3%. The increase in Net Income for the three months ended December 31, 2025, compared to the corresponding quarter of 2024, was mainly attributable to the increase in Other income due to adjustments to revenue relating to the variable hire of the Yenisei River and the Lena River in the prior years and the decrease in Net interest and finance costs, as explained below. The above was partially offset by the increase in Vessel operating expenses.
Adjusted Net Income (a non-GAAP financial measure) for the three months ended December 31, 2025 was $14.1 million, compared to $15.0 million for the corresponding period in 2024, which represents a net decrease of $0.9 million, or 6.0%. This decrease was mainly attributable to the decrease in cash revenues due to the lower time charter rate of the Arctic Aurora compared to the corresponding period in 2024 and the increase in Vessel operating expenses. The decrease was partially offset by the decrease in Net interest and finance costs as explained below, compared to the corresponding period of 2024.
Voyage revenues for the three months ended December 31, 2025 were $40.0 million, as compared to $41.7 million for the corresponding period in 2024, which represents a net decrease of $1.7 million, or 4.1%. This decrease was mainly attributable to the decrease of the value of the EU ETS emissions allowances (“EUAs”) owed to the Partnership by the charterers of its vessels, pursuant to the terms of its time charter agreements, compared to the corresponding period in 2024 (the corresponding value of the abovementioned EUAs, which the Partnership is obliged to surrender to the EU authorities, is included within Voyage expenses) and the decrease in Revenue earning days of one of our vessels due to unscheduled repairs. The above decrease in voyage revenues was partially offset the higher variable hire revenues earned on the Lena River and the Yenisei River in the three months ended December 31, 2025, compared to the corresponding period in 2024.
The Partnership reported average daily hire gross of commissions(3) of approximately $69,920 per day per vessel for the three-month-period ended December 31, 2025, compared to approximately $71,460 per day per vessel for the corresponding period of 2024. The Partnership’s vessels operated at 98.8% and 100% fleet utilization during the three-month periods ended December 31, 2025 and 2024, respectively.
Vessel operating expenses were $8.8 million, which corresponds to a daily rate per vessel of $15,862 for the three-month period ended December 31, 2025, as compared to $8.1 million, or a daily rate per vessel of $14,732, in the corresponding period of 2024. This increase was mainly attributable to increased scheduled engine overhauling costs during the three month period ended December 31, 2025, compared to the corresponding period in 2024.
Adjusted EBITDA (a non-GAAP financial measure) for the three months ended December 31, 2025 was $26.9 million, as compared to $28.5 million for the corresponding period in 2024. The decrease of $1.6 million, or 5.6%, was mainly attributable to the above-mentioned decrease in cash voyage revenues and the increase of operating expenses, compared to the corresponding period in 2024.
Net Interest and finance costs were $4.7 million in the three months ended December 31, 2025 as compared to $5.5 million in the corresponding period in 2024, which represents a decrease of $0.8 million, or 14.5%, due to (i) the reduction of the weighted average outstanding balance of the Partnership’s consolidated indebtedness and (ii) the decrease in the weighted average interest rate from 6.86% in the three months ended December 31, 2024 to 6.19% in the three months ended December 31, 2025.
For the three months ended December 31, 2025, the Partnership reported both basic and diluted Earnings per common unit and Adjusted Earnings per common unit (a non-GAAP financial measure), of $0.38, after taking into account the distributions relating to the Series A Preferred Units on the Partnership’s Net Income/Adjusted Net Income. Earnings per common unit and Adjusted Earnings per common unit, basic and diluted, were calculated on the basis of a weighted average number of 36,412,872 common units outstanding during the period and in the case of Adjusted Earnings per common unit after reflecting the impact of certain adjustments presented in Appendix B of this press release.
Adjusted Net Income, Adjusted EBITDA, and Adjusted Earnings per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.
Amounts relating to variations in period on period comparisons shown in this section are derived from the condensed consolidated financial statements, presented in Appendix A hereto.
(3) Average daily hire gross of commissions is a non-GAAP financial measure and represents voyage revenue excluding the non-cash time charter deferred revenue amortization, as well as the revenues attributable to the value of the EU ETS emissions allowances (“EUAs”) to be provided to the Partnership pursuant to the terms of its agreements with the charterers, divided by the Available Days in the Partnership’s fleet as described in Appendix B.
Liquidity/ Financing/ Cash Flow Coverage
During the three months ended December 31, 2025, the Partnership generated net cash from operating activities of $21.4 million, as compared to $32.5 million in the corresponding period in 2024, which represents a decrease of $11.1 million, or 34.2%, mainly as a result of working capital changes.
As of December 31, 2025, the Partnership reported total cash of $41.0 million. The Partnership’s outstanding financial liabilities as of December 31, 2025 under the Sale and Leaseback agreements between the vessel owning companies of the Clean Energy, the OB River, the Amur River, and the Arctic Aurora with China Development Bank Financial Leasing Co. Ltd. amounted to $40.8 million, $54.1 million, $55.5 million and $128.3 million, respectively, gross of unamortized deferred loan fees. The financial liabilities under these Sale and Leaseback agreements are repayable within approximately three years for the Clean Energy, the OB River, and the Amur River and within eight years for the Arctic Aurora.
Vessel Employment
As of December 31, 2025, the Partnership had estimated contracted time charter coverage(4)(6) for 100%, 100% and 64% of its fleet estimated Available Days (as defined in Appendix B) for 2026, 2027 and 2028, respectively.
As of the same date, the Partnership’s estimated contracted revenue backlog (5) (6) (7) was $0.84 billion, with an average remaining contract term of 5.1 years.
(4) Time charter coverage for the Partnership’s fleet is calculated by dividing the fleet contracted days on the basis of the earliest estimated delivery and redelivery dates prescribed in the Partnership’s current time charter contracts, net of scheduled class survey repairs by the number of expected Available Days during that period.
(5) The Partnership calculates its estimated contracted revenue backlog by multiplying the contractual daily hire rate by the expected number of days committed under the contracts (assuming earliest delivery and redelivery and excluding options to extend), assuming full utilization.
(6) The “estimated contract revenue backlog” and “estimated contracted time charter coverage” presented herein are based on commitments represented by signed charters. The actual amount of revenues earned and the actual periods during which revenues are earned may differ from the amounts and periods disclosed due to, for example, dry-docking and/or special survey downtime, maintenance projects, off-hire downtime and other factors that result in lower revenues than the Partnership’s estimated contract revenue backlog. In addition, while the charters for our vessels have fixed terms, they may be terminated early, or in certain instances, temporarily suspended, due to certain events, including the applicability of economic sanctions.
(7) $0.10 billion of the revenue backlog estimate relates to the estimated portion of the hire contained in certain time charter contracts with Yamal Trade Pte. Ltd., which represents the operating expenses of the respective vessels and is subject to yearly adjustments on the basis of the actual operating costs incurred within each year. The actual amount of revenues earned in respect of such variable hire rate may therefore differ from the amounts included in the revenue backlog estimate due to the yearly variations in the respective vessel’s operating costs.
Russian Sanctions Developments
Due to the ongoing Russian war with Ukraine, the United States (“U.S.”), European Union (“E.U.”), the United Kingdom (the “U.K.”), and other countries and organizations have publicly announced and enacted extensive sanctions against Russia to impose severe economic pressure on the Russian economy and government.
Most recently, on October 23, 2025, the E.U. adopted its 19th package of sanctions (“New E.U. Sanctions Regulations”), and on November 11, 2025, the U.K. government announced its intention to prohibit maritime transport services for Russian-origin LNG exports to third countries. Importantly, the New E.U. Sanctions Regulations prohibit E.U. persons and non-E.U. persons with an E.U.-nexus from purchasing, importing, or transferring, directly or indirectly, LNG originating in or exported from Russia to any jurisdiction, whether inside or outside the E.U. The New E.U. Sanctions Regulations will apply beginning January 1, 2027 with respect to existing long-term contracts with a duration of more than one year. The Partnership is required to comply with the New E.U. Sanctions Regulations.
One of our charterers, Yamal Trade Pte. Ltd. (the “Charterers”), employs two of our vessels, the Yenisei River and Lena River, on existing long-term charters which extend to 2033 and 2034, respectively (the “Yamal Charters”). These vessels, since commencement of the Yamal Charters, have been engaged in the transportation of LNG produced in Russia for discharge at destinations worldwide in compliance with applicable sanctions regulations. However, under the New E.U. Sanctions Regulations, commencing January 1, 2027, our vessels will be restricted from transporting LNG from Russia which would affect the Charterers’ ability to continue to employ the vessels in the manner currently conducted.
The Partnership and the Charterers (the “Parties”) are evaluating the potential impact of the New E.U. Sanctions Regulations on the operation of the vessels under the Yamal Charters. Our fleet consists of only six LNG carriers and we derive all of our revenues from a limited number of charterers. For the year ended December 31, 2025, the Charterers accounted for 36% of our total revenues. The Partnership believes the Yamal Charters remain enforceable notwithstanding the New E.U. Sanctions Regulations, however there can be no assurance that the Charterers will share this interpretation, and any disagreement could result in disputes, nonperformance, litigation, or early termination of the Yamal Charters, among other things. The loss of revenue under either or both of the Yamal Charters would have a material adverse effect on our business, results of operations, financial condition, and ability to make distributions to our unitholders, and could result in an event of default under our debt agreements.
Applicable U.S., U.K. and E.U. sanctions regimes that are in effect as of today’s date do not materially affect our business, operations or financial condition and, to our knowledge, our counterparties are currently performing their obligations under their respective time charters in compliance with such sanctions regulations. We closely monitor the applicability of sanctions regulations on us and our counterparties, and the potential impact of economic sanctions on our existing commercial arrangements, including the Yamal Charters. The full impact of the commercial and economic consequences of the Russian war with Ukraine is uncertain at this time. The New E.U. Sanctions Regulations or any further development in sanctions, or escalation of the Ukraine war and other geopolitical events and conflicts more generally may have a material adverse impact on our business, financial condition, results of operations, our ability to make distributions to unitholders, or our ability to comply with the covenants in our debt agreements. Sanctions have been expanded over time and may continue to evolve and could ultimately restrict or prevent the performance of certain contractual obligations under our charters.
Source: Dynagas LNG Partners
