Greece's Dynagas LNG Q4 voyage revenue falls on lower EU emissions allowances

Overview

• Greece-based LNG carrier owner reported Q4 voyage revenue down 4% yr/yr

• Q4 adjusted net income and adjusted EBITDA both declined from prior year

• Company repurchased 149,000 common units, renewed $10 mln buyback program

Outlook

• Dynagas LNG has 100% fleet contract coverage for 2026 and 2027 each, 64% for 2028

• Company estimates contracted revenue backlog at $0.84 bln with average contract term of 5.1 years

• Dynagas LNG says new EU sanctions may restrict Russian LNG transport from Jan 2027, posing revenue risk

Result Drivers

• LOWER EMISSIONS ALLOWANCES AND REPAIRS - Q4 voyage revenues declined mainly due to a decrease in the value of EU emissions allowances owed by charterers and fewer revenue earning days from unscheduled vessel repairs

• HIGHER OPERATING EXPENSES - Vessel operating expenses rose due to increased scheduled engine overhauling costs

• LOWER TIME CHARTER RATE - Adjusted net income declined due to a lower time charter rate for the Arctic Aurora

Company press release: ID:nGNX3NjgZZ

Key Details

Analyst Coverage

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 3 three months ago

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