Dynagas LNG Partners LP reported third‑quarter 2025 results that showed net income of $18.7 million, a 23.8% increase from $15.054 million in Q3 2024, while adjusted EBITDA fell to $27.6 million, a 4.5% decline from $28.901 million in the same period. Voyage revenue totaled $38.891 million, down 0.46% from $39.069 million in Q3 2024, and the fleet maintained a 99.1% utilization rate. The partnership paid a quarterly cash distribution of $0.050 per common unit on November 14 and completed the full redemption of all Series B Preferred Units on July 25 for $56 million, reinforcing its balance‑sheet strength.
The revenue miss of $0.579 million—$38.891 million versus the consensus estimate of $39.42 million—was driven by lower daily hire rates on the Arctic Aurora and unscheduled repairs on the Yenisei River that reduced charter days. Despite the revenue dip, adjusted earnings per share of $0.36 beat the consensus estimate of $0.32 by $0.04, a 12.5% beat, largely because of lower interest and finance costs, reduced general and administrative expenses, and a one‑time gain from insurance claims on prior‑year damages.
Adjusted EBITDA contracted by 4.5% as the decline in voyage revenue was not fully offset by cost savings. The partnership’s cost structure remained largely unchanged, but the loss of charter days and the need to allocate capital to repair work tightened margins. The 4.5% drop in EBITDA, compared with a 23.8% rise in net income, illustrates the impact of the higher other income and the effective management of financing costs.
Operationally, the fleet’s 99.1% utilization rate indicates strong demand for LNG transport, but the unscheduled repairs on the Yenisei River and the lower hire rates on the Arctic Aurora highlight the sensitivity of revenue to vessel availability and market pricing. The partnership’s contracts‑based business model continues to shield it from short‑term market volatility, but the recent repairs underscore the importance of maintaining a robust maintenance schedule.
Management emphasized a “constructive outlook for LNG demand driven by new liquefaction projects” and reiterated its focus on “disciplined capital allocation—prioritizing deleveraging, returning capital to common unitholders, and reducing cash outflows through initiatives such as the Series B Preferred Redemption.” The redemption of the preferred units and the quarterly distribution signal a continued commitment to deleveraging and returning value to investors.
Comparing to the prior quarter, Q2 2025 adjusted net income was $14.463 million and adjusted EBITDA was $27.687 million, indicating a modest QoQ improvement in earnings but a slight QoQ decline in EBITDA. The Q3 2025 results suggest that while revenue and EBITDA are under pressure from market conditions, the partnership’s cost discipline and capital‑allocation strategy are maintaining profitability and supporting a strong balance sheet.
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