Company: DLNG
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001104659-25-033744
Chunk: 152

Company: Dynagas LNG Partners LP
Filing Date: 2025-04-10
Form: 20-F
Item: Item 3
Chunk 152
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 we obtain information from various industry and other sources, our estimates of basic market value are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may not be indicative of the current or future basic market value of our vessels or prices that we could achieve if we were to sell them.

Table of Contents

Depreciation

We depreciate our vessels on a straight-line basis over their estimated useful lives, after considering their estimated residual values. Management estimates residual value of our vessels to be equal to the product of its lightweight tonnage (“ LWT”) and an estimated scrap rate per LWT per LNG carrier, which represents our estimate of the market value of the ship at the end of its useful life. Useful economic life of each vessel in our Fleet is estimated to be 35 years from their initial delivery from the shipyard. A decrease in the useful life of a vessel or in its residual value would have the effect of increasing the annual depreciation charge. Effective from October 1, 2019, we reduced the average scrap rate estimate from $0.685 to $0.500 per lightweight ton per LNG carrier, following a reassessment of the scrap rate. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its remaining useful life is adjusted at the date such regulations become effective.

Recent Accounting Pronouncements

For a discussion on Recent Accounting Pronouncements, see Note 2 to our consolidated financial statements included in this annual report.

Results of Operations

Year ended December 31, 2024 compared to the year ended December 31, 2023

Voyage Revenues. Voyage revenues increased by $7.5 million, or 5.0%, to$156.4 million in the year ended December 31, 2024, compared to $148.9 million for the year ended December 31, 2023. Excluding non-cash items, which related to the amortization of deferred revenue and the value of the EUAs due to us by the charterers of our vessels, under time charter employment, voyage revenues increased by $18.1 million. This increase in voyage revenues was primarily due to the increase in the hire rate of the Arctic Aurorafollowing its new time charter party agreement with Equinor ASA, which took effect in October 2023.

Revenues from contracts with customers. In the year ended December 31, 2024, revenues from contracts with customers were nil, compared to $11.6 the year