Lower interest and finance costs, along with debt reduction efforts, helped Dynagas LNG Partners to an improved third quarter earnings.
The company reported a 71% drop in interest and finance costs for the quarter, a drop of $14.9m from the $20.9m logged in the same period last year.
It said the reduction is due to lower interest rates, debt reduction and a decrease in deferred loan fees.
Dynagas LNG turned around its third-quarter results, reporting a net income of $10.0m, compared to a $4.7m loss in the corresponding year-ago period.
Voyage revenues were effectively static year-on-year at $34.3m.
In addition to the lower interest and finance costs, the company attributed its improved performance to an increase in voyage revenues, coupled with stable vessel operating expenses.
“We intend to continue our strategy of using our cash flow generation to deleverage our balance sheet and reinforce our liquidity so as to build equity value over time,” the company said.
“This, we believe, will enhance our ability to pursue future growth initiatives.”
Dynagas LNG, whose parent company recently revealed that it had upped the size of its two LNG newbuildings to a unique 200,000 cbm, said it has fully contracted its six-ship LNG carrier fleet for the rest of this year.
Contracted days cover 92% of the total for 2021 and 83% for 2022, through and including 2025.
The company's estimated contracted revenue backlog stands at approximately $1.15 bn.
Dynagas LNG said its earliest redelivery date is the 155,000-cbm Arctic Aurora (built 2013), which is due to come off-hire in third quarter 2021. The next vessel to become available will be the 149,700-cbm Clean Energy (built 2007) in the first quarter 2026 at the earliest.
The company reiterated its previous statement that the impact of the Covid-19 outbreak has been “operationally manageable” due to its response plan.
