H1 2026
Filed Sep 9, 2026Dynagas LNG Partners LP reports results for the three and six months ended June 30, 2026.
Six-month voyage revenues and net income were higher than the corresponding 2025 period, while second-quarter net income rose and interest and finance costs declined. Adjusted EBITDA was slightly lower in both the quarter and six-month period, and sanctions exposure tied to the Yamal Charters remains material.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Voyage revenues, six months ended June 30GAAP | $ 81,126 | – | – |
| Other operating revenues from related party, six months ended June 30GAAP | 573 | – | – |
| Voyage expenses including related party, six months ended June 30GAAP | $ (5,980) | – | – |
| Vessel operating expenses, six months ended June 30GAAP | $ (19,089) | – | – |
| General and administrative expenses including related party, six months ended June 30GAAP | $ (939) | – | – |
| Management fees -related party, six months ended June 30GAAP | $ (3,462) | – | – |
| Depreciation, six months ended June 30GAAP | $ (15,900) | – | – |
| Operating income, six months ended June 30GAAP | $ 36,329 | – | – |
| Interest and finance costs, net, six months ended June 30GAAP | $ (7,811) | – | – |
| Other, net, six months ended June 30GAAP | $ (28) | – | – |
| Other income, six months ended June 30GAAP | $ 4,893 | – | – |
| Net income, six months ended June 30GAAP | $ 33,383 | – | – |
| Adjusted Net Income, six months ended June 30non-GAAP | $ 28,190 | – | – |
| Adjusted EBITDA, six months ended June 30non-GAAP | $ 51,901 | – | – |
| Earnings per common unit, basic and diluted, six months ended June 30GAAP | $ 0.82 | – | – |
| Adjusted Earnings per common unit, basic and diluted, six months ended June 30non-GAAP | $ 0.68 | – | – |
| Net cash from Operating Activities, six months ended June 30GAAP | 47,549 | – | – |
| Voyage revenues, three months ended June 30GAAP | $ 41,188 | – | 6.7% |
| Other operating revenues from related party, three months ended June 30GAAP | 573 | – | – |
| Operating income, three months ended June 30GAAP | 19,819 | – | – |
| Net income, three months ended June 30GAAP | $ 15,957 | – | 16.8% |
| Adjusted Net Income, three months ended June 30non-GAAP | $ 15,811 | – | 9% |
| Adjusted EBITDA, three months ended June 30non-GAAP | $ 27,642 | – | (0.4%) |
| Earnings per common unit, basic and diluted, three months ended June 30GAAP | $ 0.39 | – | – |
| Adjusted Earnings per common unit, basic and diluted, three months ended June 30non-GAAP | $ 0.39 | – | – |
| Net interest and finance costs, three months ended June 30GAAP | $ 3.8 million | – | 26.9% decrease |
| Net cash from Operating Activities, three months ended June 30GAAP | $ 21.0 million | – | 13.6% decrease |
| Fleet utilization, six months ended June 30other | 95.7% | – | – |
| Fleet utilization, three months ended June 30other | 96.2% | – | – |
| Time Charter Equivalent rate, six months ended June 30non-GAAP | $ 69,195 | – | – |
| Time Charter Equivalent rate, three months ended June 30non-GAAP | $ 70,145 | – | – |
| Vessel daily operating expenses, six months ended June 30other | $ 17,577 | – | – |
| Vessel daily operating expenses, three months ended June 30other | $ 16,322 | – | – |
| Cash and cash equivalents as of June 30, 2026GAAP | $ 59,486 | – | – |
| Other financial liabilities, net of deferred financing fees as of June 30, 2026GAAP | $ 255,225 | – | – |
Capital returns
- Declared and paid a cash distribution of $0.5625 per unit on the Partnership’s Series A Preferred Units for the period from February 12, 2026 to May 11, 2026.
- Declared a quarterly cash distribution of $0.050 per common unit for the quarter ended March 31, 2026, which was paid on May 22, 2026.
- Declared a quarterly cash distribution of $0.5625 per unit on the Partnership’s Series A Preferred Units for the period from May 12, 2026 to August 11, 2026, which was paid on August 12, 2026.
- Declared a quarterly cash distribution of $0.050 per common unit for the quarter ended June 30, 2026, which was paid on August 28, 2026.
- Distributions declared and paid were (7,018) for the six months ended June 30, 2026, compared to (9,811) for the six months ended June 30, 2025.
- Repayment of other financial liabilities was (22,084) for the six months ended June 30, 2026, compared to (22,084) for the six months ended June 30, 2025.
What drove it
- The Clean Energy commenced its new charter party with Rio Grande on April 30, 2026 at a higher time charter rate, though the vessel incurred 20.5 days off-hire for unscheduled maintenance between re-delivery by SEFE and delivery to Rio Grande.
- Voyage revenue benefited from higher variable hire revenues under OPEX pass-through time charters and from increased EUA values due from charterers.
- Other operating revenues from related party relate to monetization of FuelEU compliance surplus realized in April 2026 through a pooling agreement.
- Net interest and finance costs decreased due to reduced interest-bearing debt and lower market interest rates; the weighted average interest rate was 5.90% in the three months ended June 30, 2026 versus 6.49% in the three months ended June 30, 2025.
- Six-month other income of $ 4,893 consisted of other income from insurance claims for damages incurred in prior years.
- As of September 8, 2026, estimated contracted time charter coverage was 100%, 100% and 65% of estimated Available Days for 2026, 2027 and 2028, respectively, with estimated contracted revenue backlog of $0.73 billion and an average remaining contract term of 4.4 years.
Concerns
- Fleet utilization was 95.7% for the six months ended June 30, 2026 versus 99.7% in the corresponding period in 2025, and 96.2% in the second quarter versus 99.4%.
- Vessel operating expenses rose to $ (19,089) for the six months ended June 30, 2026 from $ (16,478), driven by increased crew expenses and scheduled engine maintenance costs.
- Adjusted EBITDA was $ 51,901 for the six months ended June 30, 2026 versus $ 54,775, and $ 27,642 for the second quarter versus $ 27,687.
- Yamal Trade Pte. Ltd. accounted for 34.5% of total revenues for the six-month period ended June 30, 2026.
- The Yamal Charters cover the Yenisei River through 2033 and the Lena River through 2034. The Partnership states that adverse sanctions interpretations, failure to meet the Legacy Contract Derogation requirements, or changes to sanctions could restrict Russian-origin LNG transportation and could lead to disputes, non-performance, litigation, early termination or a purchase option.
- The U.K. prohibition is expected to require replacement of certain key service providers currently based in the U.K.; replacement services may not be available on comparable terms or at all.
What to watch
- Contracted time charter coverage of 65% of estimated Available Days for 2028 as of September 8, 2026.
- The E.U. Legacy Contract Derogation, initially available until July 25, 2027 and thereafter subject to annual review by the E.U. Council.
- The U.K. prohibition on specified maritime transportation services for Russian-origin LNG beginning January 1, 2027.
- Operating performance of the Clean Energy under the Rio Grande charter following the April 30, 2026 commencement and the 20.5 days of intervening off-hire.
- The scheduled repayment profile: approximately three years for the Clean Energy, OB River and Amur River financial liabilities, and within eight years for the Arctic Aurora financial liabilities.
Balance sheet and cash flow
- Cash and cash equivalents were $ 59,486 as of June 30, 2026, compared to $ 41,039 as of December 31, 2025.
- Total assets were $ 791,802 as of June 30, 2026, compared to $ 786,244 as of December 31, 2025.
- Other financial liabilities, net of deferred financing fees, were $ 255,225 as of June 30, 2026, compared to $ 277,073 as of December 31, 2025.
- Outstanding financial liabilities, gross of unamortized deferred loan fees, were $36.5 million for the Clean Energy, $48.4 million for the OB River, $49.7 million for the Amur River and $122.0 million for the Arctic Aurora as of June 30, 2026.
- Net cash from Operating Activities was 47,549 for the six months ended June 30, 2026, compared to 42,384 for the six months ended June 30, 2025.
- Net cash used in Financing Activities was (29,102) for the six months ended June 30, 2026, compared to (32,684) for the six months ended June 30, 2025.
Analysis
Dynagas reported higher six-month voyage revenues of $ 81,126 versus $ 77,720 in the corresponding 2025 period and net income of $ 33,383 versus $ 27,279. The six-month result included $ 4,893 of other income from insurance claims for damages incurred in prior years. Adjusted Net Income was $ 28,190 versus $ 28,779 and Adjusted EBITDA was $ 51,901 versus $ 54,775, separating the effect of that other income from the Partnership's adjusted operating measures.
Second-quarter voyage revenues increased to $ 41,188 from $ 38,613, with the Partnership attributing the change to the Clean Energy's new Rio Grande charter, higher variable hire under OPEX pass-through charters, and increased EUA values due from charterers. The Clean Energy began its Rio Grande charter on April 30, 2026, but had 20.5 days off-hire for unscheduled maintenance before delivery to Rio Grande. Fleet utilization was 96.2%, below 99.4% in the corresponding quarter of 2025, while the reported TCE rate was $ 70,145 versus $ 67,883.
Cost pressure was evident in vessel operating expenses, which were $ (19,089) in the six-month period versus $ (16,478), and in second-quarter daily vessel operating expenses of $ 16,322 versus $ 14,189. Management cited crew expenses and scheduled engine maintenance costs. Lower funding costs supported earnings: second-quarter net interest and finance costs were $ 3.8 million versus $ 5.2 million, with the weighted average interest rate reported at 5.90% versus 6.49%. Cash and cash equivalents were $ 59,486 at June 30, 2026 and other financial liabilities, net of deferred financing fees, were $ 255,225.
Capital allocation combined debt amortization with distributions. The Partnership repaid (22,084) of other financial liabilities during the first six months and paid (7,018) in distributions declared and paid. It also paid $0.5625 per Series A Preferred Unit on August 12, 2026 and $0.050 per common unit on August 28, 2026. Management cited $0.73 billion of estimated contracted revenue backlog, a 4.4-year average remaining contract term, and 100%, 100% and 65% estimated time-charter coverage for 2026, 2027 and 2028.
The key risk is sanctions exposure related to the two Yamal Charters. Yamal Trade Pte. Ltd. represented 34.5% of six-month revenue, and the Partnership states that the Yenisei River and Lena River are contracted through 2033 and 2034, respectively. The Partnership believes transportation to destinations outside the E.U. qualifies for the Legacy Contract Derogation, but acknowledges that the interpretation, annual volume condition, future E.U. Council reviews, U.K. measures and service-provider replacements could affect charter performance, costs, operations and distributions.
Management, verbatim
The Partnership delivered a solid second quarter, reporting Net Income of $16.0 million, Adjusted Net Income of $15.8 million and Adjusted EBITDA of $27.6 million, on fleet utilization of 96.2%.
Tony Lauritzen, Chief Executive Officer
Our results reflect the commencement in April of the Clean Energy's new time charter with Rio Grande at an improved rate, and a lower cost of debt following continued deleveraging, with net interest and finance costs down 26.9% year on year.
Tony Lauritzen, Chief Executive Officer
The Partnership's contract coverage continues to deliver predictable cash generation.
Tony Lauritzen, Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue was not separately reported as a line item.
- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Income tax expense, effective tax rate and tax-rate guidance were not reported.
- No reportable operating segments or segment revenue were provided.
- No formal financial guidance for revenue, gross margin, operating expenses or tax rate was provided.
- Prior-quarter comparisons were not reported for the presented metrics.
- Previous-release outlook was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.