Greece-based Dynagas LNG Partners, a partnership formed by shipowner Dynagas, reported a rise in its first-quarter profit boosted by higher voyage revenues.
Net income for the three months ended March 31 increased to $7 million as compared to $1.9 million in the same period in 2019.
Dynagas LNG attributed the rise to higher voyage revenues as well as a decrease in finance costs.
Voyage revenues for the January-March period rose almost 10 percent to $34.5 million boosted by higher revenues earned on LNG carrier Lena River following its delivery to its multi-year contract with Novatek’s Yamal LNG in July 2019.
The partnership reported average daily hire gross of commissions of about $63,100 per day per vessel in the three-month period.
This compares to $57,700 per day per vessel in the corresponding period of 2019.
The shipping company’s six LNG carriers are all operating under their term charters with international gas producers with an average remaining contract term of 8.3 years.
The earliest contracted re-delivery date for Dynagas LNG fleet is in the third quarter of 2021 for the Arctic Aurora, with the next carrier the Clean Energy becoming available for re-chartering at the earliest in the first quarter of 2026.
“Despite the operational challenges the industry is facing with respect to the Covid-19 outbreak, we are pleased to report revenues in line with the fourth quarter of 2019 and net income increasing by 26% primarily as a result of lower interest expense”, chief executive Tony Lauritzen said.
“The current impact of the outbreak has been operationally manageable due to our manager’s effective response plan which has been successfully implemented with the support of our seafarers, charterers and employees which we are grateful for”, Lauritzen said.