Dynagas LNG profit surges past estimates

Dynagas LNG Partners reported a better-than-expected rise in first quarter earnings as the newest addition to the company's fleet boosted revenue.

The LNG carrier owner, a New York-listed spinoff of Greece's Dynagas, reported $17.1m in quarterly profit, up from $14.9m a year earlier.

With items typically excluded by analysts stripped out, the result amounted to adjusted earnings per share (EPS) of $0.48. Analysts' average estimate called for $0.43 in earnings per share.

Chief executive Tony Lauritzen said the company's 25.3% leap in adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) was a result of the purchase of the 155,000-cbm Lena River (built 2013) from parent Dynagas.

He said the daughter company spent the quarter working to secure additional contract coverage for its fleet of six ships.

The Lena River and 155,000-cbm Yenisei River (built 2013) have secured 15-year charters to the Yamal LNG Project starting in 2019. And Gazprom has chartered the 145,700-cbm Ob River (built 2007).

Bigger backlog

"As a result, our total contract revenue backlog has increased to $1.6bn with an average remaining contract duration of 10.3 years," Lauritzen said, although the Yenisei River contract is still not finalised.

"The partnership intends to continue to focus on increasing contract coverage, maintaining high utilisation rates and managing operating expenses in order to support sustainability of distributions."

Dynagas Partners held the line with its dividend, declaring a distribution of more than $0.42 per share.

Earnings snapshot