Dynagas LNG Partners LP, an owner and operator of liquefied natural gas (“LNG”) carriers, announced its results for the three and nine months ended September 30, 2025.
Nine months Highlights:
Net Income and Earnings per common unit (basic and diluted) of $45.9 million and $0.99, respectively;
Adjusted Net Income(1) of $43.0 million and Adjusted Earnings per common unit(1) (basic and diluted) of $0.91;
Adjusted EBITDA(1) of $82.4 million;
99.5% fleet utilization(2).
Quarter Highlights:
Net Income and Earnings per common unit (basic and diluted) of $18.7 million and $0.48, respectively;
Adjusted Net Income(1) of $14.2 million and Adjusted Earnings per common unit(1) (basic and diluted) of $0.36;
Adjusted EBITDA(1) of $27.6 million;
99.1% 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 May 12, 2025 to August 11, 2025;
Redeemed, in full, 2,200,000 Series B Preferred Units, representing all of the Series B Preferred Units that were then issued and outstanding. Please see “Full Redemption of Series B Preferred Units” below, and;
Declared a quarterly cash distribution of $0.049 per common unit for the quarter ended June 30, 2025, which was paid on August 29, 2025, to all common unitholders of record as of August 25, 2025.
Recent Events:
Declared a quarterly cash distribution of $0.5625 on the Partnership’s Series A Preferred Units for the period from August 12, 2025 to November 11, 2025, which was paid on November 12, 2025, to all Series A Preferred unitholders of record as of November 4, 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 and through the date of this press release, repurchased 148,933 common units under the Common Unit Repurchase Program, which authorizes the repurchase of up to an aggregate of $10.0 million of the Partnership’s outstanding common units over the 12-month period that began November 21, 2024 (the “Repurchase Program”), for a total amount of $0.5 million, at an average gross price of $3.57 per common unit. As of the date of this release, we have 36,382,011 common units outstanding and $8.4 million of remaining capacity under the Repurchase Program, which expires on November 21, 2025. The Partnership intends to renew the Repurchase Program for a further 12 months.
Full Redemption of Series B Preferred Units
On July 25, 2025 (the “Redemption Date” and such redemption the “Redemption”) the Partnership redeemed all of the issued and outstanding Series B Preferred Units. The redemption price was equal to $25.00 per redeemed Series B Preferred Unit, plus an amount of $0.45258267, equal to all accumulated and unpaid distributions thereon to the Redemption Date, whether or not declared, which was paid in cash on the Redemption Date.
CEO Commentary:
We are pleased to report strong financial results for the third quarter of 2025, which demonstrated significant improvement in net income versus both last quarter and one year ago.
Our fleet maintained a utilization rate of 99.1% for the quarter and delivered Adjusted EBITDA of $27.6 million and Adjusted Net Income of $14.2 million for the quarter.
Our fleet-wide Time Charter Equivalent (TCE) of $67,094 per day comfortably exceeded our cash breakeven for the quarter of approximately $47,500, allowing us to continue generating stable free cash flow.
We continue to focus our efforts on increasing value for our common unitholders by striving to strike a responsible balance between reducing leverage and returning capital in a sustainable manner while navigating the ongoing geopolitical environment. Consistent with this focus, our Board of Directors declared a quarterly cash distribution of $0.050 per common unit which was paid on November 14, 2025, representing an annualized distribution yield of approximately 5.7%.
We maintain a firm belief in the long-term fundamentals of LNG shipping. Final investment decisions for new LNG export projects have accelerated in 2025, contributing to a growing pipeline of future natural gas supply. Over the medium term, this wave of new liquefaction capacity – combined with global efforts to expand affordable energy access – supports a constructive outlook for LNG transportation demand.
While LNG shipping remains, our core focus we may consider to broaden our investment horizon to prudently explore accretive growth opportunities in adjacent shipping sectors with the aim of maximizing unitholder returns and enhancing the overall value of the Partnership.
Three Months Ended September 30, 2025 and 2024 Financial Results
Net Income for the three months ended September 30, 2025, was $18.7 million as compared to $15.1 million for the corresponding period in 2024, which represents an increase of $3.6 million, or 23.8%. The increase in Net Income for the three months ended September 30, 2025, compared to the corresponding quarter of 2024 was mainly attributable to: (a) the increase of other income from insurance claims for damages incurred in prior years, (b) the decrease in Net Interest and finance costs, as explained below and (c) the decrease in General and administrative expenses, compared to the corresponding period in 2024. The above was partially offset by the decrease in voyage revenues, as explained below, and the decrease in gain on the interest rate swap transaction which expired in September 2024.
Adjusted Net Income (a non-GAAP financial measure) for the three months ended September 30, 2025, was $14.2 million compared to $14.5 million for the corresponding period in 2024, which represents a net decrease of $0.3 million, or 2.1%. This decrease is mainly attributable to the decrease of cash revenues, which was partially offset by the decrease in interest and finance costs and the decrease of General and administrative expenses, compared to the corresponding period of 2024.
Voyage revenues for the three months ended September 30, 2025, were $38.9 million as compared to $39.1 million for the corresponding period in 2024, which represents a net decrease of $0.2 million, or 0.5%. This decrease is mainly attributable to the lower cash revenues earned mainly due to the decrease of the daily hire rate of the Arctic Aurora in the three- month period ending September 30, 2025, and the decrease in Revenue earning days of the Yenisei River due to unscheduled repairs. The above decrease in voyage revenues was partially offset by: (i) the non-cash effect of the amortization of deferred revenues and (ii) the value of the EU ETS emissions allowances (“EUAs”) due to the Partnership by the charterers of its vessels, pursuant to the terms of its time charter agreements (the corresponding value of the abovementioned EUAs, which the Partnership is obliged to surrender to the EU authorities, is included within Voyage expenses), compared to the corresponding period in 2024.
The Partnership reported average daily hire gross of commissions (3) of approximately $69,960 per day per vessel for the three-month-period ended September 30, 2025, compared to approximately $72,800 per day per vessel for the corresponding period of 2024. The Partnership’s vessels operated at 99.1% and 100% fleet utilization during the three-month periods ended September 30, 2025 and 2024, respectively.
Vessel operating expenses were $8.1 million, which corresponds to a daily rate per vessel of $14,594 for the three-month period ended September 30, 2025, as compared to $8.1 million, or a daily rate per vessel of $14,656, in the corresponding period of 2024.
Adjusted EBITDA (a non-GAAP financial measure) for the three months ended September 30, 2025, was $27.6 million, as compared to $28.9 million for the corresponding period in 2024. The decrease of $1.3 million, or 4.5%, was mainly attributable to the abovementioned decrease in cash voyage revenues.
Net Interest and finance costs were $5.3 million in the three months ended September 30, 2025 as compared to $6.3 million in the corresponding period in 2024, which represents a decrease of $1.0 million, or 15.9%, due to (i) the reduction of the weighted average outstanding balance of the indebtedness and (ii) the decrease in the weighted average interest rate from 7.51% in the three months ended September 30, 2024 to 6.50% in the three months ended September 30, 2025. The above decrease in Net Interest and finance costs was partially offset by the interest expense related to the Series B Preferred Units for the period from July 1, 2025 up to July 25, 2025. Following reclassification of the Series B Preferred Units to liability status on May 27, 2025, distributions accrued on the Series B Preferred Units were no longer presented as dividends but were recognized as interest expense.
For the three months ended September 30, 2025, the Partnership reported basic and diluted Earnings per common unit and Adjusted Earnings per common unit (a non-GAAP financial measure), of $0.48 and $0.36, respectively, 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 36,530,944 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.
Vessel Employment
As of September 30, 2025, the Partnership had estimated contracted time charter coverage (4)(6) for 100% of its fleet estimated Available Days (as defined in Appendix B) for each of 2025, 2026 and 2027.
As of the same date, the Partnership’s estimated contracted revenue backlog (5) (6) (7) was $0.88 billion, with an average remaining contract term of 5.4 years.
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 Western countries and organizations have publicly announced and enacted numerous sanctions against Russia to impose severe economic pressure on the Russian economy and government.
Recently, on October 23, 2025, the E.U. adopted its 19th package of sanctions, and on November 11, 2025, and the U.K. government announced its intention to prohibit maritime transport services for Russian-origin LNG exports to third countries.
The U.S., U.K. and E.U. sanctions regimes that are in effect do not currently materially affect the business, operations or financial condition of the Partnership and, to the Partnership’s knowledge, its counterparties are currently performing their obligations under their respective time charters in compliance with applicable U.S, U.K., E.U., and other rules and regulations.
The Partnership closely monitors the applicability of sanctions regulations on the Partnership and its counterparties, and the potential impact of economic sanctions on the Partnership’s existing commercial arrangements, including its long-term charters with Yamal Trade Pte Ltd. for two of the Partnership’s vessels, the Yenisei River and Lena River.
The full impact of the commercial and economic consequences of the Russian war with Ukraine is uncertain at this time. The Partnership cannot provide any assurance that any further development in sanctions, or escalation of the Ukraine conflict more generally, will not have a significant impact on its business, financial condition or results of operations.
Source: Dynagas LNG Partners LP
