Dynagas LNG Partners, a limited partnership formed by the Greek shipowner Dynagas, reported a net income of $4.8 million, 62.5 percent below the figures reported in 2017.
Adjusted net income for the three months ended March 31, 2018, compared to adjusted net income of $14.9 million in the corresponding period of 2017, which represents a decrease of 51.5 percent.
The decrease in both the net income and the adjusted net income was mainly attributable to the lower revenues earned for the Clean Energy which has been employed under a short-term charter during the first quarter of 2018, in comparison to the corresponding quarter of 2017 during which the vessel operated under a multiyear charter at a significantly higher charter rate.
Earnings were also affected by the increased interest costs for servicing the partnership’s secured debt, which was refinanced in May 2017.
Company’s CEO Tony Lauritzen said the fleet is 85 percent contracted through 2018, 92 percent contracted through 2019 and 100 percent contracted through 2020, with an estimated fleet-wide average remaining contract duration of 10.2 years.
“We believe we have significant cash flow visibility,” he said after noting that the company experienced a decrease in operating cash flow and a weakened distribution coverage ratio following the shift to longer-term charters for the employment of its LNG carriers.