Danaos Corporation Αρχεία

Danaos Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2025

Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of container vessels, today reported unaudited results for the period ended December 31, 2025.
Highlights for the Fourth Quarter and Year Ended December 31, 2025 and up to date of this release:
Financing developments

On October 16, 2025, the Company successfully placed a $500 million senior unsecured bond with a seven-year tenor and a coupon of 6.875%. On December 1, 2025, we utilized $111.4 million from this offering towards early repayment of two secured credit facilities, and we have issued a redemption notice to repay in full early on March 2, 2026 our 8.5% senior notes due 2028 with an outstanding principal amount of $262.8 million. The remaining proceeds, after application to refinancing-related costs and expenses, including fees and commissions, are available for general corporate purposes.
As of December 31, 2025, out of our total 85 vessel fleet, we have 77 debt free vessels of which 61 are unencumbered and 16 are encumbered in connection with our $382.5 million Revolving Credit Facility on which no debt has been drawn.
We have entered into Japanese Operating Lease (“Jolco”) transactions for two of our recently delivered newbuilding vessels, ‘Phoebe’ and ‘Greenhouse’ that were refinanced out of our $450 million syndicated credit facility that originally housed them. The Jolco transactions were consummated on October 30, 2025 and January 15, 2026, respectively, each for a consideration of $80 million and a tenor of eight years.

Fleet developments

Since our previous earnings announcement we have added four 5,300 TEU containership vessels to our orderbook with deliveries in 2028 and 2029.
As a result, our containership orderbook currently consists of 27 newbuilding containership vessels with an aggregate capacity of 174,550 TEU with expected deliveries of three vessels in 2026, thirteen vessels in 2027, seven vessels in 2028 and four vessels in 2029. All vessels in our orderbook are designed with the latest eco characteristics and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
In relation to our dry bulk fleet, we have placed orders for two Newcastlemax dry bulk carriers of approximately 211,000 DWT capacity each, with expected delivery dates in 2028 while, as previously announced, we expect to take delivery of a secondhand Capesize dry bulk vessel towards the end of the first quarter of 2026.
On a pro forma, fully delivered basis, assuming the delivery of all vessels currently under construction and on order, our fleet would consist of 102 containerships with an aggregate capacity of approximately 652,041 TEUs and 13 dry bulk vessels, comprising 11 Capesize bulk carriers and two Newcastlemax bulk carriers, with an aggregate capacity of approximately 2.37 million DWT.

Chartering developments

Since the date of our previous earnings release, we have added approximately $428 million to our contracted revenue backlog through a combination of charter extensions and forward new charters for 17 of our existing container vessels.
As a result, total contracted operating revenues, based on concluded charter contracts through the date of this release, currently stand at $4.3 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 4.3 years, weighted by aggregate contracted charter hire.
Contracted operating days charter coverage for our container vessel fleet is currently 100% for 2026, 87% for 2027 and 64% for 2028. This includes newbuildings based on their scheduled delivery dates.

New Investments

On January 20, 2026, the Company announced a strategic partnership with Glenfarne Group to advance the Alaska LNG project. This partnership includes a $50 million development capital equity investment in Glenfarne Alaska Partners LLC. In addition, Danaos Corporation will also be the preferred tonnage provider to construct and operate at least six LNG carriers to deliver LNG to global customers for Glenfarne Alaska LNG, LLC, majority owner and developer of the Alaska LNG Project. This transaction provides Danaos with an opportunity to capitalize on its expertise in global seaborne transportation and expand the footprint of Danaos in the LNG and Energy segments.

Share buy-back and dividends

As of the date of this release, Danaos has repurchased a total of 3,247,444 shares of its common stock in the open market for $235.1 million under its $300.0 million authorized share repurchase program, that was originally introduced in June 2022 and was upsized twice in $100.0 million increments, in November 2023 and in April 2025.
Danaos has declared a dividend of $0.90 per share of common stock for the fourth quarter of 2025. The dividend is payable on March 4, 2026, to stockholders of record as of February 23, 2026.

Danaos’ CEO Dr. John Coustas commented:
In this quarter it became evident that the business community continues to adapt quickly to geopolitical disruptions. Despite concerns that tariff and geopolitical uncertainty would cause a U.S. slowdown, it has not materialized. At the same time, the hype around AI-related investments has increased optimism, China’s exports continue to set new records and consequently container volumes have reached record highs. With the Suez Canal still largely avoided by major liners, and trade patterns increasingly transforming to multipolar, demand for midsize vessels has remained very strong.
Against this background we continued our strategy of securing long term employment for our existing vessels through forward fixtures by either extending existing charters or by new charters even for late 2027 dates. We also continued to invest in modern container vessels. We ordered six 1,800 TEU vessels, four 5,300 TEU vessels, and two 211k DWT Newcastlemax dry bulk vessels for deliveries in 2028 and 2029. We have secured 10-year charters for four of these vessels, and the Company’s total contracted revenue increased to $4.3 billion as of the end of the quarter, giving us great earnings visibility into the future from which we derive comfort on our ability to manage any eventual future market developments.
On the financing front, we completed a seven-year $500 million unsecured bond offering at 6.875% coupon, one of the most competitively priced deals ever achieved in the shipping industry for an unsecured bond of such tenor, further diversifying the capital structure and re-affirming our access to the deep and liquid international debt capital markets.
Our liquidity at year-end reached $1.4 billion. Backed by a strong financial profile, we have begun exploring selective investments in the energy sector to broaden revenue sources and expand in the LNG business. In this context, Danaos became a strategic investor in the Alaska LNG project, providing access to LNG transportation opportunities associated with a facility planned to produce 20 MTPA annually.
The Company remains focused on positioning itself at the forefront of shipping and energy growth areas for the benefit of our shareholders.
View Full Report

Danaos Corporation Announces Date for the Release of Fourth Quarter 2025 Results, Conference Call and Webcast

Danaos Corporation (NYSE: DAC), one of the world’s largest independent owners of containerships, announced that it will release its results for the fourth quarter ended December 31, 2025, after the close of the market in New York on Monday, February 9, 2026.
The Company’s management team will host a conference call to discuss the results on Tuesday, February 10, 2026 at 9:00 A.M. ET.
Conference Call Details:Participants should dial into the call 10 minutes before the scheduled time using the following numbers:
U.S. Toll Free Dial-in: 1 833 890 6464U.K. Toll Free Dial-in: 0 800 279 9489Standard International Dial-in: +44 (0) 2075 441 375
Please indicate to the operator that you wish to join the Danaos Corporation earnings call.
A telephonic replay of the conference call will be available until February 17, 2026 by dialing 1 855 669 9658 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 4481482# as your access code.
Audio Webcast:A live audio webcast of the conference call will be available through the Danaos Corporation website (www.danaos.com). Participants of the live audio webcast should register on the website approximately 10 minutes prior to the start of the webcast. An archived version of the audio webcast will be available on the website within 48 hours of the completion of the call.

Danaos Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2024

Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of container vessels and drybulk vessels, reported unaudited results for the period ended December 31, 2024.
Highlights for the Fourth Quarter and Year Ended December 31, 2024:

Financial Summary
Three Months Ended December 31, 2024 and Three Months Ended December 31, 2023
Unaudited
(Expressed in thousands of United States dollars, except as otherwise stated)

Three Months Ended

December 31, 2024

December 31, 2023

Financial & Operating Metrics

ContainerVessels

DrybulkVessels

Other

Total

ContainerVessels

DrybulkVessels

Other

Total

Operating Revenues

$237,510

$20,669

–

$258,179

$238,924

$10,391

–

$249,315

Voyage Expenses, excl. commissions

$925

$(4,960)

–

$(4,035)

$(437)

$(6,446)

–

$(6,883)

Time Charter Equivalent Revenues(1)

$238,435

$15,709

–

$254,144

$238,487

$3,945

–

$242,432

Net income/(loss)

$121,985

$1,740

$(33,298)

$90,427

$130,996

$(1,851)

$20,776

$149,921

Adjusted net income / (loss)(2)

$128,697

$2,300

$2,276

$133,273

$137,582

$(1,631)

$14

$135,965

Earnings per share, basic

$4.72

$7.73

Earnings per share, diluted

$4.70

$7.70

Adjusted earnings per share, diluted(2)

$6.93

$6.99

Operating Days

6,467

775

–

6,109

337

–

Time Charter Equivalent $/day(1)

$36,869

$20,270

–

$39,039

$11,706

–

Ownership days

6,706

920

–

6,256

412

–

Average number of vessels

72.9

10.0

–

68.0

4.5

–

Fleet Utilization

96.4 %

84.2 %

–

97.7 %

81.8 %

–

Adjusted EBITDA(2)

$180,700

$6,775

$2,252

$189,727

$173,083

$(488)

$14

$172,609

Consolidated Balance Sheet
& Leverage Metrics

As of December 31,2024

As of December 31, 2023

Cash and cash equivalents

$453,384

$271,809

Availability under Revolving Credit Facility

$292,500

$337,500

Marketable securities(3)

$60,850

$86,029

Total cash liquidity & marketable securities(4)

$806,734

$695,338

Debt, gross of deferred finance costs

$744,546

$410,516

Net Debt(5)

$291,162

$138,707

LTM Adjusted EBITDA(6)

$722,615

$707,002

Net Debt / LTM Adjusted EBITDA

0.40x

0.20x

Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

Adjusted net income/(loss), adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.

Marketable securities refer to fair value of 4,070,214 shares of common stock of SBLK on December 31, 2024 and 1,552,865 shares of common stock of EGLE on December 31, 2023.

Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and (iii) marketable securities.

Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents

Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below.

For management purposes, the Company is organized based on operating revenues generated from container vessels and dry-bulk vessels and has two reporting segments: (1) a container vessels segment and (2) a dry-bulk vessels segment. The Company measures segment performance based on net income. Items included in the applicable segment’s net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. The Other column includes components that are not allocated to any of the Company’s reportable segments and includes investments in an affiliate accounted for using the equity method of accounting and investments in marketable securities.

Financial Summary
Year Ended December 31, 2024 and Year Ended December 31, 2023
Unaudited
(Expressed in thousands of United States dollars, except as otherwise stated)

Year Ended

December 31, 2024

December 31, 2023

Financial & Operating Metrics

ContainerVessels

DrybulkVessels

Other

Total

ContainerVessels

DrybulkVessels

Other

Total

Operating Revenues

$937,077

$77,033

–

$1,014,110

$963,192

$10,391

–

$973,583

Voyage Expenses, excl. commissions

$746

$(27,075)

–

$(26,329)

$(1,662)

$(6,446)

–

$(8,108)

Time Charter Equivalent Revenues(1)

$937,823

$49,958

–

$987,781

$961,530

$3,945

–

$965,475

Net income/(loss)

$518,129

$4,429

$(17,485)

$505,073

$563,279

$(1,910)

$14,930

$576,299

Adjusted net income / (loss)(2)

$519,759

$4,989

$7,694

$532,442

$572,215

$(1,690)

$(2,937)

$567,588

Earnings per share, basic

$26.15

$28.99

Earnings per share, diluted

$26.05

$28.95

Adjusted earnings per share, diluted(2)

$27.47

$28.52

Operating Days

24,961

2,753

–

24,286

337

–

Time Charter Equivalent $/day(1)

$37,572

$18,147

–

$39,592

$11,706

–

Ownership days

25,684

3,164

–

24,850

417

–

Average number of vessels

70.2

8.6

–

68.1

1.1

–

Fleet Utilization

97.2 %

87.0 %

–

97.7 %

80.8 %

–

Adjusted EBITDA(2)

$697,463

$17,505

$7,647

$722,615

$710,476

$(537)

$(2,937)

$707,002

Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

In December 2024, we added two 9,200 TEU newbuilding containerships to our orderbook, which have expected deliveries in 2027. We took delivery of 6 newbuilding containerships in 2024 and 1 in January 2025.
In February 2025, we entered into a syndicated loan facility agreement for an amount of up to $850 million, to finance all of our remaining newbuilding container vessels, including the two additional recent orders, with deliveries from 2026 through 2028.
Our remaining orderbook currently consists of a further 15 newbuilding containership vessels with an aggregate capacity of 128,220 TEU with expected deliveries of one vessel in 2025, three vessels in 2026, nine vessels in 2027 and two vessels in 2028. All the vessels in our orderbook are designed with the latest eco characteristics, will be methanol fuel ready, fitted with open loop scrubbers and Alternative Maritime Power (AMP) units and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
We have secured multi-year charter arrangements for 13 of the remaining 15 newbuilding vessels orderbook, with an average charter duration of approximately 5.1 years weighted by aggregate contracted charter hire.
Over the past three months, we added approximately $336 million to our contracted revenue backlog through a combination of new charters and charter extensions for 11 of our container vessels and container vessels newbuildings.
As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at $3.4 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 3.7 years, weighted by aggregate contracted charter hire.
Contracted operating days charter coverage for our container vessel fleet is currently 97% for 2025 and 79% for 2026. This includes newbuildings based on their scheduled delivery dates.
We took delivery of all of our contracted capesize drybulk carriers by taking delivery of two vessels in the second quarter of 2024 and one vessel in July 2024. As a result, our capesize drybulk fleet currently stands at 10 vessels with an aggregate capacity of approximately 1.8 million DWT.
As of the date of this release, Danaos has repurchased a total of 2,458,024 shares of its common stock in the open market for $168.8 million under its $200 million authorized share repurchase program that was originally introduced in June 2022 and was upsized in November 2023.
Danaos has declared a dividend of $0.85 per share of common stock for the fourth quarter of 2024. The dividend is payable on March 5, 2025, to stockholders of record as of February 24, 2025.

Danaos’ CEO Dr. John Coustas commented:
“The world is entering uncharted territory and any near-term predictions about the direction of shipping markets are inherently unreliable. The tariff war is bound to generate disruptions, which have historically benefited shipping. However, an economic slowdown might negate these benefits.
The dry bulk market continues to suffer from ongoing malaise due to the pace of the recovery of the Chinese economy, which has not shown signs of accelerating. The delivery of new tonnage starting this year will add to this weakness, particularly in the panamax and smaller segments, where the orderbook is concentrated. The capesize segment, where our fleet is concentrated, continues to have an orderbook that remains at historically low levels.
The container charter market remains healthy, albeit liners are exhibiting more caution, particularly with respect to more forward dates. While box rates are weakening, they are still much higher than pre-pandemic levels. We will have to wait until after Chinese New Year to gauge the effect of the front-loading of exports that occurred in anticipation of tariffs and the demand pattern in the new trade environment.
Danaos is highly insulated from near-term market uncertainty, with 97% coverage for 2025 and 79% for 2026 at healthy rates, shielding us from market volatility. Our charter backlog of $3.4 billion provides us with a certainty of income and firepower to explore accretive investments. We have chartered 13 out of our 15 newbuildings for five years and have arranged a new $850 million facility from a bank syndicate to fully cover the financing of all vessels on order.
Our profitability remains consistent, and we are using our strong balance sheet to increase dividends, continue our share buyback program, and source opportunities to grow our company for the benefit of our shareholders.
Our strategic focus remains on maintaining a robust financial position, securing long-term contracts for vessels coming off charter, and investing in modern, fuel-efficient container vessels to enhance our competitive position in the market. We are committed to delivering value to our shareholders through prudent financial management and strategic growth initiatives.”
Three months ended December 31, 2024 compared to the three months ended December 31, 2023
During the three months ended December 31, 2024, Danaos had an average of 72.9 container vessels and 10.0 drybulk vessels compared to 68.0 container vessels and 4.5 drybulk vessels during the three months ended December 31, 2023. Our container vessels utilization for the three months ended December 31, 2024 was 96.4% compared to 97.7% in the three months ended December 31, 2023. Our drybulk vessels utilization for the three months ended December 31, 2024 was 84.2% compared to 81.8% in the three months ended December 31, 2023.
Our adjusted net income amounted to $133.3 million, or $6.93 per diluted share, for the three months ended December 31, 2024 compared to $136.0 million, or $6.99 per diluted share, for the three months ended December 31, 2023. We have adjusted our net income in the three months ended December 31, 2024 for a $35.6 million change in fair value of investments, a $8.2 million of stock based compensation expense, a $0.8 million of non-cash finance fees amortization and a $1.7 million gain on vessel disposal.
Adjusted net income of our container vessels segment amounted to $128.7 million for the three months ended December 31, 2024 compared to $137.6 million for the three months ended December 31, 2023. We adjusted net income of container vessels segment in the three months ended December 31, 2024 for a $7.6 million of stock based compensation expense, a $0.8 million of non-cash finance fees amortization and a $1.7 million gain on vessel disposal.
Adjusted net income of our drybulk vessels segment amounted to $2.3 million for the three months ended December 31, 2024 compared to $1.6 million adjusted net loss for the three months ended December 31, 2023. We adjusted net income of drybulk vessels segment in the three months ended December 31, 2024 for a $0.6 million of stock based compensation expense.
The $2.7 million decrease in adjusted net income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 is primarily attributable to a $11.0 million increase in total operating expenses, a $4.9 million increase in net finance expenses and a $0.1 million increase in equity loss on investments, which were partially offset by a $8.9 million increase in operating revenues, a $2.3 million increase in dividends received and a $2.1 million cash collection of common benefit claim from the bankruptcy trustee of Hanjin Shipping.
Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.
On a non-adjusted basis, our net income amounted to $90.4 million, or $4.70 earnings per diluted share, for the three months ended December 31, 2024 compared to net income of $149.9 million, or $7.70 earnings per diluted share, for the three months ended December 31, 2023. Our net income for the three months ended December 31, 2024 includes $35.6 million loss on marketable securities compared to a $20.8 million gain on marketable securities in the three months ended December 31, 2023. On a non-adjusted basis, the net income of our container vessels segment amounted to $122.0 million for the three months ended December 31, 2024 compared to $131.0 million for the three months ended December 31, 2023. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $1.7 million for the three months ended December 31, 2024 compared to a $1.9 million net loss for the three months ended December 31, 2023.
Operating Revenues
Operating revenues increased by 3.6%, or $8.9 million, to $258.2 million in the three months ended December 31, 2024 from $249.3 million in the three months ended December 31, 2023.
Operating revenues of our container vessels segment decreased by 0.6%, or $1.4 million, to $237.5 million in the three months ended December 31, 2024 from $238.9 million in the three months ended December 31, 2023, analyzed as follows:

a $21.6 million increase in revenues in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 as a result of newbuilding vessel additions;
a $3.7 million increase in revenues in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 due to higher non-cash revenue recognition in accordance with US GAAP;
a $19.9 million decrease in revenues in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 as a result of lower charter rates and decreased vessel utilization;
a $2.4 million decrease in revenues in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 due to vessel disposals; and
a $4.4 million decrease in revenues in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 due to decreased amortization of assumed time charters.

Operating revenues of our drybulk vessels segment added an incremental $10.3 million of revenues in the three months ended December 31, 2024 compared to the three months ended December 31, 2023, mainly as a result of additions of dry bulk vessels to our fleet.
Vessel Operating Expenses
Vessel operating expenses increased by $5.5 million to $45.6 million in the three months ended December 31, 2024 from $40.1 million in the three months ended December 31, 2023, primarily as a result of the increase in the average number of vessels in our fleet due to recent container vessel newbuilds deliveries and drybulk vessels acquisitions, which was partially offset by the decrease in average daily operating cost of our vessels to $6,135 per vessel per day for the three months ended December 31, 2024 compared to $6,188 per vessel per day for the three months ended December 31, 2023. Management believes that our daily operating costs remain among the most competitive in the industry.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased by 20.6%, or $6.9 million, to $40.4 million in the three months ended December 31, 2024 from $33.5 million in the three months ended December 31, 2023 mainly due to depreciation expense related to 10 recently acquired Capesize drybulk vessels and 6 recently delivered container newbuilds.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by $3.7 million to $9.3 million in the three months ended December 31, 2024 from $5.6 million in the three months ended December 31, 2023.
General and Administrative ExpensesGeneral and administrative expenses decreased by $0.7 million, to $21.7 million in the three months ended December 31, 2024 from $22.4 million in the three months ended December 31, 2023. The decrease was mainly attributable to decreased stock based compensation expense, which was partially offset by increased management fees.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses decreased by $1.7 million to $14.1 million in the three months ended December 31, 2024 from $15.8 million in the three months ended December 31, 2023 primarily as a result of a $1.0 million decrease in voyage expenses related to our drybulk vessels and a $0.7 million decrease in voyage expenses related to our container vessels.
Voyage expenses of container vessels segment decreased by $0.7 million to $8.0 million in the three months ended December 31, 2024 from $8.7 million in the three months ended December 31, 2023 mainly due to decreased other voyage expenses.
Voyage expenses of drybulk vessels segment decreased by $1.0 million to $6.1 million in the three months ended December 31, 2024 compared to $7.1 million voyage expenses in the three months ended December 31, 2023. Total voyage expenses of drybulk vessels comprised $1.1 million commissions and $5.0 million other voyage expenses, mainly bunkers consumption and port expenses, in the three months ended December 31, 2024.
Net gain on disposal/sale of vessels
In March 2024, we sold for scrap the vessel Stride, which had been off-hire since January 8, 2024 due to damage from a fire in the engine room that was subsequently contained. In the three months ended December 31, 2024, we recognized an additional $1.7 million gain on disposal of this vessel, relating to an additional $1.7 million of net insurance proceeds for the constructive total loss of this vessel.
Interest Expense and Interest Income
Interest expense increased by $6.3 million, to $9.9 million in the three months ended December 31, 2024 from $3.6 million in the three months ended December 31, 2023. The increase in interest expense is a result of:

a $5.3 million increase in interest expense due to an increase in our average indebtedness by $332.1 million between the two periods, which was partially offset by a decrease in our debt service cost by approximately 0.78%, mainly as a result of a reduction in SOFR rates between the two periods. Average indebtedness was $747.2 million in the three months ended December 31, 2024, compared to average indebtedness of $415.1 million in the three months ended December 31, 2023;
a $0.3 million increase in the amortization of deferred finance costs; and
a $0.7 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction in the three months ended December 31, 2024.

As of December 31, 2024, our outstanding debt, gross of deferred finance costs, was $744.5 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $410.5 million, which included $262.8 million principal amount of our Senior Notes, as of December 31, 2023. The increase in our outstanding debt is mainly due to loans drawn down within 2024 to partially finance our container vessel newbuildings.
Interest income increased to $3.9 million in the three months ended December 31, 2024 compared to $2.7 million in the three months ended December 31, 2023 mainly as a result of an increase in the average amount of time deposits between the two periods.
Gain/(loss) on investments
Following the all-stock merger of Eagle Bulk Shipping Inc. (“EGLE”) with Star Bulk Carriers Corp. (“SBLK”) completed on April 9, 2024, we currently own 4,070,214 shares of common stock of SBLK. The $33.1 million loss on investments in the three months ended December 31, 2024 consisted of the $35.6 million fair value loss on these marketable securities, which was partially offset by the dividends recognized on these shares of $2.5 million. This compares to a $20.9 million gain on marketable securities in the three months ended December 31, 2023.
Equity loss on investments
Equity loss on investments amounting to $0.2 million and $0.1 million in the three months December 31, 2024 and December 31, 2023, respectively, relates to our share of initial expenses of Carbon Termination Technologies Corporation (“CTTC”), currently engaged in the research and development of decarbonization technologies for the shipping industry.
Other finance expenses
Other finance expenses remained stable at $0.9 million in each of the three months ended December 31, 2024 and December 31, 2023.
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended December 31, 2024 and December 31, 2023.
Other income/(expenses), net
Other income, net amounted to $2.8 million in the three months ended December 31, 2024 compared to $0.2 million other expenses, net in the three months ended December 31, 2023. The other income, net in the three months ended December 31, 2024 mainly consists of $2.1 million in cash collected from the bankruptcy trustee of Hanjin Shipping as a partial payment of our claim under the Hanjin bankruptcy proceedings.
Adjusted EBITDA
Adjusted EBITDA increased by 9.9%, or $17.1 million, to $189.7 million in the three months ended December 31, 2024 from $172.6 million in the three months ended December 31, 2023. As outlined above, the increase is mainly attributable to a $13.3 million increase in operating revenues, a $2.3 million increase in dividends received and a $2.1 million cash collection of common benefit claim from the bankruptcy trustee of Hanjin Shipping, which were partially offset by a $0.5 million increase in total operating expenses and a $0.1 million increase in equity loss on investments. Adjusted EBITDA for the three months ended December 31, 2024 is adjusted for a $35.6 million change in fair value of investments, stock based compensation of $8.2 million and a $1.7 million gain on disposal of vessel. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.
Adjusted EBITDA of container vessels segment increased by 4.4%, or $7.6 million, to $180.7 million in the three months ended December 31, 2024 from $173.1 million in the three months ended December 31, 2023.
Adjusted EBITDA of drybulk vessels segment increased by $7.3 million to $6.8 million in the three months ended December 31, 2024 from ($0.5) million in the three months ended December 31, 2023.
Year ended December 31, 2024 compared to the year ended December 31, 2023
During the year ended December 31, 2024, Danaos had an average of 70.2 container vessels and 8.6 drybulk vessels compared to 68.1 container vessels and 1.1 drybulk vessels during the year ended December 31, 2023. Our container vessels utilization for the year ended December 31, 2024 was 97.2% compared to 97.7% for the year ended December 31, 2023. Our drybulk vessels utilization for the year ended December 31, 2024 was 87.0% compared to 80.8% in the year ended December 31, 2023.
Our adjusted net income amounted to $532.4 million, or $27.47 per diluted share, for the year ended December 31, 2024 compared to $567.6 million, or $28.52 per diluted share, for the year ended December 31, 2023. We have adjusted our net income in the year ended December 31, 2024 for a $25.2 million change in fair value of investments, a $8.3 million gain on vessel disposal, a $8.2 million of stock based compensation expense and a $2.3 million of non-cash finance fees amortization.
Adjusted net income of our container vessels segment amounted to $519.8 million for the year ended December 31, 2024 compared to $572.2 million for the year ended December 31, 2023. We adjusted net income of container vessels segment in the year ended December 31, 2024 for a $8.3 million gain on vessel disposal, a $7.6 million of stock based compensation expense and a $2.3 million non-cash finance fees amortization.
Adjusted net income of our drybulk vessels segment amounted to $5.0 million for the year ended December 31, 2024 compared to $1.7 million adjusted net loss for the year ended December 31, 2023, as we just started to be engaged in the drybulk vessels segment during that period. We adjusted net income of drybulk vessels segment in the year ended December 31, 2024 for a $0.6 million of stock based compensation expense.
The $35.2 million decrease in adjusted net income for the year ended December 31, 2024 compared to the year ended December 31, 2023 is primarily attributable to a $84.2 million increase in total operating expenses and a $4.2 million increase in net finance expenses, which were partially offset by a $40.5 million increase in operating revenues, a $8.2 million increase in dividends received, a $2.4 million decrease in equity loss on investments and a $2.1 million cash collection of common benefit claim from the bankruptcy trustee of Hanjin Shipping.
Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.
On a non-adjusted basis, our net income amounted to $505.1 million, or $26.05 earnings per diluted share, for the year ended December 31, 2024 compared to net income of $576.3 million, or $28.95 earnings per diluted share, for the year ended December 31, 2023. Our net income for the year ended December 31, 2024 includes a $25.2 million loss on marketable securities compared to a $17.9 million gain on marketable securities in the year ended December 31, 2023. On a non-adjusted basis, the net income of our container vessels segment amounted to $518.1 million and the net income of our drybulk vessels segment amounted to $4.4 million for the year ended December 31, 2024. On a non-adjusted basis, the net income of our container vessels segment amounted to $563.3 million and the net loss of our drybulk vessels segment amounted to $1.9 million for the year ended December 31, 2023.
Operating Revenues
Operating revenues increased by 4.2%, or $40.5 million, to $1,014.1 million in the year ended December 31, 2024 from $973.6 million in the year ended December 31, 2023.
Operating revenues of our container vessels segment decreased by 2.7%, or $26.1 million, to $937.1 million in the year ended December 31, 2024 from $963.2 million in the year ended December 31, 2023, analyzed as follows:

a $40.5 million increase in revenues in the year ended December 31, 2024 compared to the year ended December 31, 2023 as a result of vessel additions;
a $40.4 million decrease in revenues in the year ended December 31, 2024 compared to the year ended December 31, 2023 mainly as a result of lower charter rates and decreased vessel utilization;
a $9.9 million decrease in revenues in the year ended December 31, 2024 compared to the year ended December 31, 2023 due to vessel disposals;
a $16.7 million decrease in revenues in the year ended December 31, 2024 compared to the year ended December 31, 2023 due to decreased amortization of assumed time charters; and
a $0.4 million increase in revenues in the year ended December 31, 2024 compared to the year ended December 31, 2023 due to higher non-cash revenue recognition in accordance with US GAAP.

Operating revenues of our drybulk vessels segment added an incremental $66.6 million of revenues in the year ended December 31, 2024 compared to the year ended December 31, 2023, mainly as a result of additions of dry bulk vessels to our fleet.
Vessel Operating Expenses
Vessel operating expenses increased by $23.6 million to $185.7 million in the year ended December 31, 2024 from $162.1 million in the year ended December 31, 2023, primarily as a result of the increase in the average number of vessels in our fleet due to recent container vessel newbuilds deliveries and dry bulk vessels acquisitions, while the average daily operating cost of our vessels remained stable at $6,606 per vessel per day for the year ended December 31, 2024 compared to $6,607 per vessel per day for the year ended December 31, 2023. Management believes that our daily operating costs remain among the most competitive in the industry.
View Full Press Release

Danaos: Κέρδη ύψους 399 εκατ. δολ. στο 9μηνο

Τα οικονομικά της αποτελέσματα για το πρώτο εννιάμηνο του έτους ανακοίνωσε η εισηγμένη στο NYSE Danaos Corporation, συμφερόντων Γιάννη Κούστα.
Αναλυτικότερα, τα προσαρμοσμένα καθαρά κέρδη της ναυτιλιακής εταιρείας ανήλθαν σε 399.2 εκατομμύρια δολάρια, ή 20.43 δολάρια ανά μετοχή, σε σύγκριση με 431.6 εκατομμύρια δολάρια ή 21.54 δολάρια ανά μετοχή, για το εννιάμηνο που έληξε στις 30 Σεπτεμβρίου 2023. Επίσης, το προσαρμοσμένο καθαρό εισόδημα του τμήματος των containerships ανήλθε σε 391.1 εκατομμύρια δολάρια για το εφετινό πρώτο εννιάμηνο, από 434.6 εκατομμύρια δολάρια για το περσινό πρώτο εννιάμηνο. Όσον αφορά στα προσαρμοσμένα καθαρά έσοδα του τμήματος bulk carriers ανήλθαν σε 2.7 εκατομμύρια δολάρια για το εννιάμηνο που έληξε στις 30 Σεπτεμβρίου 2024 σε σύγκριση με 0.1 εκατομμύρια δολάρια προσαρμοσμένη καθαρή ζημιά για τους εννέα μήνες που έληξαν στις 30 Σεπτεμβρίου 2023, καθώς η Εταιρεία μόλις ξεκίνησε την δραστηριοποίηση της στο τμήμα πλοίων ξηρού χύδην κατά την περίοδο εκείνη.
Σημειώνεται ότι κατά τη διάρκεια των εννέα μηνών που έληξαν στις 30 Σεπτεμβρίου 2024, η Danaos είχε κατά μέσο όρο 69.3 containerships και 8.2 Capesize bulk carriers σε σύγκριση με 68.1 containerships και κανένα bulk carrier κατά τη διάρκεια των εννέα μηνών που έληξαν στις 30 Σεπτεμβρίου 2023. Η χρήση των containerships για τους εννέα μήνες που έληξε στις 30 Σεπτεμβρίου 2024 ήταν 97.4% σε σύγκριση με 97.8% για το εννεάμηνο που έληξε στις 30 Σεπτεμβρίου 2023.
Ο Διευθύνων Σύμβουλος της Danaos, Dr. Γιάννης Κούστας, δήλωσε σχετικά: «Η αγορά εμπορευματοκιβωτίων παρέμεινε πολύ ισχυρή το τρίτο τρίμηνο του 2024, επιτρέποντάς μας να προσθέσουμε πάνω από 300 εκατομμύρια δολάρια στο συμβατικό ανεκτέλεστο ναύλωσης, το οποίο επί του παρόντος ανέρχεται σε 3.3 δισεκατομμύρια δολάρια.Έχουμε εξαιρετική ορατότητα κερδών καθώς έχουμε καλύψει το 100% των ημερών λειτουργίας του στόλου πλοίων μεταφοράς εμπορευματοκιβωτίων για το 2024, το 94% για το 2025 και το 73% για το 2026. Η αγορά ξηρού χύδην χύδην ήταν ήπια τον τελευταίο καιρό, γεγονός που μπορεί να αποδοθεί σε διαταραχή των εποχιακών προτύπων καθ’ όλη τη διάρκεια του έτους καθώς και στη μείωση της κινεζικής παραγωγής χάλυβα.Ο στόλος μας χύδην ξηρού φορτίου είχε αρκετά καλή απόδοση κατά τη διάρκεια του τριμήνου και αναμένουμε να βελτιωθούν σταδιακά οι ναύλοι καθώς προχωράμε προς το 2025».

Danaos Corporation Reports Third Quarter and Nine Months Results for the Period Ended September 30, 2024

Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of container vessels and drybulk vessels, today reported unaudited results for the period ended September 30, 2024.
Highlights for the Third Quarter and Nine Months Ended September 30, 2024:

Financial Summary

Three Months Ended September 30, 2024 and Three Months Ended September 30, 2023

Unaudited

(Expressed in thousands of United States dollars, except as otherwise stated)

Three Months Ended

September 30, 2024

September 30, 2023

Financial & Operating Metrics

ContainerVessels

DrybulkVessels

Other

Total

ContainerVessels

DrybulkVessels

Other

Total

Operating Revenues

$235,570

$20,606

–

$256,176

$239,215

–

$239,215

Voyage Expenses, excl. commissions

$757

$(8,019)

–

$(7,262)

$(479)

–

$(479)

Time Charter Equivalent Revenues (1)

$236,327

$12,587

–

$248,914

$238,736

–

$238,736

Net income/(loss)

$124,102

$62

$(1,168)

$122,996

$142,173

$(59)

$(8,958)

$133,156

Adjusted net income / (loss) (2)

$125,143

$62

$1,640

$126,845

$142,647

$(59)

$375

$142,963

Earnings per share, basic

$6.36

$6.76

Earnings per share, diluted

$6.30

$6.76

Adjusted earnings per share, diluted (2)

$6.50

$7.26

Operating Days

6,387

778

–

6,115

–

Time Charter Equivalent $/day (1)

$37,001

$16,179

–

$39,041

–

Ownership days

6,540

913

–

6,256

–

Average number of vessels

71.1

9.9

–

68.0

–

Fleet Utilization

97.7 %

85.2 %

–

97.7 %

–

Adjusted EBITDA (2)

$173,454

$3,826

$1,617

$178,897

$177,701

$(49)

$375

$178,027

Consolidated Balance Sheet
& Leverage Metrics

As of September 30,2024

As of December 31, 2023

Cash and cash equivalents

$384,336

$271,809

Availability under Revolving Credit Facility

$303,750

$337,500

Marketable securities(3)

$96,423

–

Total cash liquidity & marketable securities(4)

$784,509

$609,309

Debt, gross of deferred finance costs

$689,476

$410,516

Net Debt (5)

$305,140

$138,707

LTM Adjusted EBITDA (6)

$705,497

$707,002

Net Debt / LTM Adjusted EBITDA

0.43x

0.20x

1. Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

2. Adjusted net income/(loss), adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.

3. Marketable securities refer to fair value of 4,070,214 shares of common stock of SBLK on September 30, 2024.

4. Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and (iii) marketable securities.

5. Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents

6. Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below.

Financial Summary

Nine Months Ended September 30, 2024 and Nine Months Ended September 30, 2023

Unaudited

(Expressed in thousands of United States dollars, except as otherwise stated)

Nine Months Ended

September 30, 2024

September 30, 2023

Financial & Operating Metrics

ContainerVessels

DrybulkVessels

Other

Total

ContainerVessels

DrybulkVessels

Other

Total

Operating Revenues

$699,567

$56,364

–

$755,931

$724,268

–

$724,268

Voyage Expenses, excl. commissions

$(179)

$(22,115)

–

$(22,294)

$(1,225)

–

$(1,225)

Time Charter Equivalent Revenues (1)

$699,388

$34,249

–

$733,637

$723,043

–

$723,043

Net income/(loss)

$396,144

$2,689

$15,813

$414,646

$432,283

$(59)

$(5,846)

$426,378

Adjusted net income / (loss) (2)

$391,062

$2,689

$5,418

$399,169

$434,633

$(59)

$(2,951)

$431,623

Earnings per share, basic

$21.41

$21.28

Earnings per share, diluted

$21.22

$21.28

Adjusted earnings per share, diluted (2)

$20.43

$21.54

Operating Days

18,494

1,978

–

18,177

–

Time Charter Equivalent $/day (1)

$37,817

$17,315

–

$39,778

–

Ownership days

18,978

2,244

–

18,594

–

Average number of vessels

69.3

8.2

–

68.1

–

Fleet Utilization

97.4 %

88.1 %

–

97.8 %

–

Adjusted EBITDA (2)

$516,763

$10,730

$5,395

$532,888

$537,393

$(49)

$(2,951)

$534,393

1. Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

During the third quarter of 2024 and through the date of this release, we took delivery of another 3 newbuilding containerships, namely one 7,165 TEU vessel and two 8,010 TEU vessels which have commenced their three-year charters. In total, we have taken delivery of 6 newbuilding containerships in 2024.
As a result, our remaining orderbook currently consists of a further 14 newbuilding containership vessels with an aggregate capacity of 115,834 TEU with expected deliveries of two vessels in 2025, three vessels in 2026, seven vessels in 2027 and two vessels in 2028. All the vessels in our orderbook are designed with the latest eco characteristics, will be methanol fuel ready, fitted with open loop scrubbers and Alternative Maritime Power (AMP) units and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
We have now secured multi-year charter arrangements for all of the vessels in our newbuilding orderbook with an average charter duration of approximately 4.8 years weighted by aggregate contracted charter hire.
Over the past two months, we added approximately $308 million to our contracted revenue backlog through a combination of new charters and charter extensions for 16 of our container vessels.
As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at $3.3 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 3.4 years, weighted by aggregate contracted charter hire.
Contracted operating days charter coverage for our container vessel fleet is currently 100% for 2024, 94% for 2025 and 73% for 2026. This includes newbuildings based on their scheduled delivery dates.
We took delivery of all of our contracted capesize drybulk carriers by taking delivery of two vessels in the second quarter of 2024 and one vessel in July 2024. As a result, our capesize drybulk fleet currently stands at 10 vessels with an aggregate capacity of approximately 1.8 million DWT.
As of the date of this release, Danaos has repurchased a total of 1,893,803 shares of its common stock in the open market for $123.2 million under its $200 million authorized share repurchase program that was originally introduced in June 2022 and upsized in November 2023.
Danaos has declared an increased dividend of $0.85 per share of common stock for the third quarter of 2024, an increase of 6.25%. The dividend is payable on December 4, 2024, to stockholders of record as of November 25, 2024.

Danaos’ CEO Dr. John Coustas commented:
“The container market remained very strong in the third quarter of 2024, allowing us to add over $300 million to our contracted charter backlog which presently stands at $3.3 billion. Importantly, all 14 of our newbuildings on order are fixed for 5 years, except for two that are fixed for 2 years. We have excellent earnings visibility as we have covered 100% of our container vessel fleet operating days for 2024, 94% for 2025 and 73% for 2026.
The dry bulk market has been uncharacteristically soft lately, which can be attributed to a disruption of seasonal patterns throughout the year as well as a decrease in Chinese steel production. Our dry bulk fleet performed reasonably well during the quarter, and we are expecting freight rates to gradually improve as we move into 2025.
Due to the certainty provided by the charter backlog in our container segment, Danaos is insulated from the unstable and unpredictable nature of the current global backdrop. The recent U.S. Presidential election has introduced new uncertainty about future policymaking and its effect in the shipping market. Most notably, President Trump has openly declared his intention to implement or increase trade tariffs that have the potential to decrease container movements or at least will reshuffle trade lanes. Additionally, it is likely that energy transition initiatives will take place at a slower rate, and we don’t know to what extent existing IMO initiatives will be supported by the new administration.
Danaos remains in a fortunate and enviable position. In addition to our charter coverage, our balance sheet is a significant strength. I am proud of the efforts we have undertaken, efforts that have been acknowledged by Moody’s, who upgraded Danaos to Ba1. Together with the S&P credit rating at BB+, Danaos now holds the highest grade assigned to a pure play shipping company. Our creditworthiness will allow us to explore fully the U.S. bond market, creating opportunity to raise competitively priced capital to continue to opportunistically pursue growth opportunities.
Our continued strong financial performance and accompanying strengthening of our balance sheet has enabled us to increase our quarterly dividend to $0.85 per share, in line with the commitment we have made to our shareholders. We are also continuing to return value through our share buyback program. We have now cumulatively bought back stock worth $123 million and have $77 million remaining under our authorized share repurchase program.
We are continuing our efforts to increase the value of the company while remaining vigilant about geopolitical risks to ensure the long-term prosperity of Danaos for the benefit of our shareholders.”
Three months ended September 30, 2024 compared to the three months ended September 30, 2023
During the three months ended September 30, 2024, Danaos had an average of 71.1 container vessels and 9.9 Capesize drybulk vessels compared to 68.0 container vessels and no drybulk vessels during the three months ended September 30, 2023. Our container vessels utilization remained stable at 97.7% in each of the three months ended September 30, 2024 and September 30, 2023.
Our adjusted net income amounted to $126.8 million, or $6.50 per diluted share, for the three months ended September 30, 2024 compared to $143.0 million, or $7.26 per diluted share, for the three months ended September 30, 2023. We have adjusted our net income in the three months ended September 30, 2024 for a $2.8 million change in fair value of investments, a $0.6 million non-cash finance fees amortization and a $0.4 million loss on vessel disposal.
Adjusted net income of our container vessels segment amounted to $125.1 million for the three months ended September 30, 2024 compared to $142.6 million for the three months ended September 30, 2023. We adjusted net income of container vessels segment in the three months ended September 30, 2024 for a $0.6 million non-cash finance fees amortization and a $0.4 million loss on vessel disposal.
Adjusted net income of our drybulk vessels segment amounted to $0.1 million for the three months ended September 30, 2024 compared to $0.1 million adjusted net loss for the three months ended September 30, 2023.
The $16.2 million decrease in adjusted net income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 is primarily attributable to a $31.1 million increase in total operating expenses, a $3.3 million increase in net finance expenses and a $0.7 million increase in equity loss on investments, which were partially offset by a $17.0 million increase in operating revenues and a $1.9 million increase in dividends received.
Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.
On a non-adjusted basis, our net income amounted to $123.0 million, or $6.30 earnings per diluted share, for the three months ended September 30, 2024 compared to net income of $133.2 million, or $6.76 earnings per diluted share, for the three months ended September 30, 2023. On a non-adjusted basis, the net income of our container vessels segment amounted to $124.1 million and the net income of our drybulk vessels segment amounted to $0.1 million for the three months ended September 30, 2024.
Operating RevenuesOperating revenues increased by 7.1%, or $17.0 million, to $256.2 million in the three months ended September 30, 2024 from $239.2 million in the three months ended September 30, 2023.
Operating revenues of our container vessels segment decreased by 1.5%, or $3.6 million, to $235.6 million in the three months ended September 30, 2024 from $239.2 million in the three months ended September 30, 2023, analyzed as follows:

a $14.0 million increase in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 as a result of vessel additions;
a $7.1 million increase in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 due to higher non-cash revenue recognition in accordance with US GAAP;
a $17.9 million decrease in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 as a result of lower charter rates;
a $2.4 million decrease in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 due to vessel disposals; and
a $4.4 million decrease in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 due to decreased amortization of assumed time charters.

Operating revenues of our drybulk vessels segment added an incremental $20.6 million of revenues in the three months ended September 30, 2024 compared to no such operating revenues in the three months ended September 30, 2023.
Vessel Operating ExpensesVessel operating expenses increased by $10.4 million to $49.9 million in the three months ended September 30, 2024 from $39.5 million in the three months ended September 30, 2023, primarily as a result of the increase in the average number of vessels in our fleet due to recent container vessel newbuilds deliveries and drybulk vessels acquisitions and the increase in average daily operating cost of our vessels to $6,860 per vessel per day for the three months ended September 30, 2024 compared to $6,499 per vessel per day for the three months ended September 30, 2023. Management believes that our daily operating costs remain among the most competitive in the industry.
Depreciation & AmortizationDepreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
DepreciationDepreciation expense increased by 19.8%, or $6.4 million, to $38.7 million in the three months ended September 30, 2024 from $32.3 million in the three months ended September 30, 2023 mainly due to depreciation expense related to 10 recently acquired Capesize drybulk vessels and 5 recently delivered container newbuilds.
Amortization of Deferred Dry-docking and Special Survey CostsAmortization of deferred dry-docking and special survey costs increased by $2.7 million to $7.5 million in the three months ended September 30, 2024 from $4.8 million in the three months ended September 30, 2023.
General and Administrative ExpensesGeneral and administrative expenses increased by $3.9 million, to $11.0 million in the three months ended September 30, 2024 from $7.1 million in the three months ended September 30, 2023. The increase was mainly attributable to increased stock-based compensation and management fees.
Other Operating ExpensesOther Operating Expenses include Voyage Expenses.
Voyage ExpensesVoyage expenses increased by $8.0 million to $17.0 million in the three months ended September 30, 2024 from $9.0 million in the three months ended September 30, 2023 primarily as a result of the $9.2 million in voyage expenses related to our recently acquired 10 Capesize drybulk vessels, which generated revenue partially from voyage charter agreements, compared to no such expenses related to drybulk vessels in the three months ended September 30, 2023.
Voyage expenses of container vessels segment decreased by $1.2 million to $7.8 million in the three months ended September 30, 2024 from $9.0 million in the three months ended September 30, 2023.
Voyage expenses of drybulk vessels segment were $9.2 million in the three months ended September 30, 2024 compared to no voyage expenses in the three months ended September 30, 2023. Total voyage expenses of drybulk vessels comprised $1.2 million commissions and $8.0 million other voyage expenses, mainly bunkers consumption and port expenses, in the three months ended September 30, 2024.
Net gain on disposal/sale of vesselsIn March 2024, we sold for scrap the vessel Stride, which had been off-hire since January 8, 2024 due to damage from a fire in the engine room that was subsequently contained. We collected $9.9 million net insurance proceeds for total loss of vessel and recognized a gain on disposal of this vessel amounting to $7.1 million in the six months ended June 30, 2024. In the three months ended September 30, 2024, we recognized $0.4 million of expenses related to this vessel disposal, which reduced the total gain to $6.7 million in the nine months ended September 30, 2024. The proceedings with the insurers are in progress as of September 30, 2024, and any additional gain will be recognized upon their finalization.
Interest Expense and Interest IncomeInterest expense increased by $3.7 million, to $8.0 million in the three months ended September 30, 2024 from $4.3 million in the three months ended September 30, 2023. The increase in interest expense is a result of:

a $4.2 million increase in interest expense due to an increase in our average indebtedness by $224.7 million between the two periods, which was partially offset by a decrease in our debt service cost by approximately 0.26%, mainly as a result of a reduction in the financing margin cost. Average indebtedness was $646.8 million in the three months ended September 30, 2024, compared to average indebtedness of $422.1 million in the three months ended September 30, 2023;
a $0.1 million increase in the amortization of deferred finance costs; which were partially offset by
a $0.6 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the three months ended September 30, 2024.

As of September 30, 2024, our outstanding debt, gross of deferred finance costs, was $689.5 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $417.4 million, which included $262.8 million principal amount of our Senior Notes as of September 30, 2023. The increase in our outstanding debt is mainly due to loans drawn down to partially finance our container vessel newbuildings.
Interest income remained stable at $3.1 million in each of the three months ended September 30, 2024 and September 30, 2023.
Gain/(loss) on investmentsFollowing the all-stock merger of Eagle Bulk Shipping Inc. with Star Bulk Carriers Corp. (“SBLK”) completed on April 9, 2024, we currently own 4,070,214 shares of common stock of SBLK. The $41 thousand gain on investments in the three months ended September 30, 2024 consisted of the $2.8 million fair value loss on these marketable securities, which was offset by the dividends recognized on these shares of $2.8 million. This compares to a $8.4 million loss on marketable securities in the three months ended September 30, 2023.
Equity loss on investmentsEquity loss on investments amounting to $1.2 million and $0.5 million in the three months September 30, 2024 and September 30, 2023, respectively, relates to our share of initial expenses of Carbon Termination Technologies Corporation (“CTTC”), currently engaged in the research and development of decarbonization technologies for the shipping industry.
Other finance expensesOther finance expenses decreased by $0.3 million to $0.9 million in the three months ended September 30, 2024 compared to $1.2 million in the three months ended September 30, 2023.
Loss on derivativesAmortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended September 30, 2024 and September 30, 2023.
Other income/(expenses), netOther expenses, net amounted to $0.7 million in the three months ended September 30, 2024 compared to $1.1 million other income, net in the three months ended September 30, 2023.
Adjusted EBITDAAdjusted EBITDA increased by 0.5%, or $0.9 million, to $178.9 million in the three months ended September 30, 2024 from $178.0 million in the three months ended September 30, 2023. As outlined above, the increase is mainly attributable to $21.4 million increase in operating revenues and a $1.9 million increase in dividends received, which were partially offset by a $21.7 million increase in total operating expenses and a $0.7 million increase in equity loss on investments. Adjusted EBITDA for the three months ended September 30, 2024 is adjusted for a $2.8 million change in fair value of investments and a $0.4 million loss on disposal of vessel. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.
Adjusted EBITDA of container vessels segment decreased by 2.4%, or $4.2 million, to $173.5 million in the three months ended September 30, 2024 from $177.7 million in the three months ended September 30, 2023.
Adjusted EBITDA of drybulk vessels segment was $3.8 million in the three months ended September 30, 2024. We had just started to be engaged in the drybulk vessels segment and did not have significant expenses in the three months ended September 30, 2023.
Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023
During the nine months ended September 30, 2024, Danaos had an average of 69.3 container vessels and 8.2 Capesize drybulk vessels compared to 68.1 container vessels and no drybulk vessels during the nine months ended September 30, 2023. Our container vessels utilization for the nine months ended September 30, 2024 was 97.4% compared to 97.8% for the nine months ended September 30, 2023.
Our adjusted net income amounted to $399.2 million, or $20.43 per diluted share, for the nine months ended September 30, 2024 compared to $431.6 million, or $21.54 per diluted share, for the nine months ended September 30, 2023. We have adjusted our net income in the nine months ended September 30, 2024 for a $10.4 million change in fair value of investments, a $6.7 million gain on vessel disposal and a $1.6 million non-cash finance fees amortization.
Adjusted net income of our container vessels segment amounted to $391.1 million for the nine months ended September 30, 2024 compared to $434.6 million for the nine months ended September 30, 2023. We adjusted net income of container vessels segment in the nine months ended September 30, 2024 for a $6.7 million gain on vessel disposal and a $1.6 million non-cash finance fees amortization.
Adjusted net income of our drybulk vessels segment amounted to $2.7 million for the nine months ended September 30, 2024 compared to $0.1 million adjusted net loss for the nine months ended September 30, 2023, as we just started to be engaged in the drybulk vessels segment during that period.
The $32.4 million decrease in adjusted net income for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 is primarily attributable to a $73.1 million increase in total operating expenses, which was partially offset by a $31.7 million increase in operating revenues, a $5.9 million increase in dividends received, a $0.7 million decrease in net finance expenses and a $2.4 million decrease in equity loss on investments.
Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.
On a non-adjusted basis, our net income amounted to $414.6 million, or $21.22 earnings per diluted share, for the nine months ended September 30, 2024 compared to net income of $426.4 million, or $21.28 earnings per diluted share, for the nine months ended September 30, 2023. On a non-adjusted basis, the net income of our container vessels segment amounted to $396.2 million and the net income of our drybulk vessels segment amounted to $2.7 million for the nine months ended September 30, 2024.
Operating RevenuesOperating revenues increased by 4.4%, or $31.6 million, to $755.9 million in the nine months ended September 30, 2024 from $724.3 million in the nine months ended September 30, 2023.
Operating revenues of our container vessels segment decreased by 3.4%, or $24.7 million, to $699.6 million in the nine months ended September 30, 2024 from $724.3 million in the nine months ended September 30, 2023, analyzed as follows:

a $18.9 million increase in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 as a result of vessel additions;
a $20.5 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 mainly as a result of lower charter rates and decreased vessel utilization;
a $7.5 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 due to vessel disposals;
a $12.3 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 due to decreased amortization of assumed time charters; and
a $3.3 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 due to lower non-cash revenue recognition in accordance with US GAAP.

Operating revenues of our drybulk vessels segment added an incremental $56.3 million of revenues in the nine months ended September 30, 2024 compared to no such operating revenues in the nine months ended September 30, 2023.
Vessel Operating ExpensesVessel operating expenses increased by $18.1 million to $140.1 million in the nine months ended September 30, 2024 from $122.0 million in the nine months ended September 30, 2023, primarily as a result of the increase in the average number of vessels in our fleet due to recent container vessel newbuilds and dry bulk vessels acquisitions, while the average daily operating cost of our vessels remained stable at $6,775 per vessel per day for the nine months ended September 30, 2024 compared to $6,758 per vessel per day for the nine months ended September 30, 2023. Management believes that our daily operating costs remain among the most competitive in the industry.
View Full Report

Danaos: Ένα ακόμη πλοίο στο βιβλίο παραγγελιών της

Ένα ακόμη πλοίο, μεταφορικής ικανότητας 9.200 teu, πρόσθεσε στο βιβλίο παραγγελιών στο Dalian Shipbuilding Industry Co (DSIC), η Danaos, συμφερόντων του Δρ. Ιωάννη Κούστα.
Η εισηγμένη στο Nasdaq ναυτιλιακή εταιρεία ανάφερε στην τριμηνιαία έκθεση κερδών της ότι πλέον εχει πέντε πλοία με συμβόλαιο στο κρατικό ναυπηγείο της Κίνας, τρία από τα οποία θα πρέπει να παραδώσουν το 2027 και δύο το 2028.
Υπενθυμίζεται ότι η αρχική παραγγελία τον Ιούλιο περιελάμβανε τέσσερα Post-panamaxes μεθανόλης εξοπλισμένα με scrubbers, αξίας 105 εκατομμυρίων δολαρίων το καθένα, υποστηριζόμενα από πολυετείς συμφωνίες ναύλωσης.
Γενικότερα, η Danaos έχει παραγγείλει 20 πλοία από τον Δεκέμβριο του 2020, εκ των οποίων τρία έχουν ήδη παραδοθεί και όλα έχουν ναυλωθεί για περίπου 4,5 χρόνια κατά μέσο όρο.

Danaos Corporation: Συμφωνία για ναυπήγηση πέντε νέων containerships

Την ενίσχυση του στόλου της συνεχίζει η εισηγμένη ναυτιλιακή Danaos Corporation, του Γιάννη Κούστα, και στο πλαίσιο αυτό προέβη στην παραγγελία πέντε πλοίων μεταφοράς εμπορευματοκιβωτίων.
Συγκεκριμένα, η εταιρεία ανακοίνωσε την προσθήκη 616 εκατ. δολαρίων στο ανεκτέλεστο υπόλοιπο συμβολαίων της και την προσθήκη πέντε πλοίων μεταφοράς εμπορευματοκιβωτίων στο βιβλίο παραγγελιών της.
Οι προσθήκες στο ανεκτέλεστο υπόλοιπο συμβολαίων εσόδων περιλαμβάνουν περίπου 203 εκατ. δολάρια σε προθεσμιακές διετείς ναυλώσεις για εννέα από τα υφιστάμενα πλοία της και περίπου 413 εκατ. δολάρια σε ναυλώσεις για τις νέες πέντε παραγγελίες νεότευκτων πλοίων με μέση διάρκεια ναύλωσης 4,8 έτη, σταθμισμένη με βάση το συνολικό συμβολαιοποιημένο μίσθωμα ναύλωσης.
Οι πέντε παραγγελίες νεότευκτων πλοίων με συνολικό συμβατικό τίμημα 509 εκατ. δολαρίων περιλαμβάνουν ένα containership 8.258 teu, που θα ναυπηγηθεί στο ναυπηγείο Yangzijiang στην Κίνα και αναμένεται να παραδοθεί το 2027, και τέσσερα πλοία μεταφοράς εμπορευματοκιβωτίων χωρητικότητας 9.200 teu που θα ναυπηγηθούν στο κινεζικό ναυπηγείο Dalian, εκ των οποίων τα τρία αναμένεται να παραδοθούν το 2027 και ένα το 2028.
Και τα πέντε πλοία έχουν σχεδιαστεί με τα πιο πρόσφατα οικολογικά χαρακτηριστικά, θα είναι έτοιμα για καύσιμο μεθανόλης και θα είναι εξοπλισμένα με scrubbers.
Ο διευθύνων σύμβουλος της εταιρείας, Γιάννης Κούστας, σχολίασε: «Είμαστε πολύ χαρούμενοι που ανακοινώνουμε ότι θα θέσουμε σε λειτουργία άλλα πέντε πλοία μεταφοράς εμπορευματοκιβωτίων που βρίσκονται στην αιχμή της νέας τεχνολογίας. Με αυτή τη νέα παραγγελία, η Danaos συνεχίζει να εδραιώνει τη θέση της ως ένας από τους σημαντικότερους παίκτες στην αγορά containerships παγκοσμίως και κάνει ένα ακόμη σταθερό βήμα προς τον εκσυγχρονισμό του στόλου της».

Danaos Corporation Reported Second Quarter and Half Year Results for the Period Ended June 30, 2023

Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of containerships, reported unaudited results for the period ended June 30, 2023.
Highlights for the Second Quarter and Half Year Ended June 30, 2023:
Adjusted net income1 of $143.4 million, or $7.14 per share, for the three months ended June 30, 2023 compared to $157.1 million, or $7.59 per share, for the three months ended June 30, 2022, a decrease of $13.7 million or $0.45 per share. Adjusted net income for the three months ended June 30, 2022 had included a non-recurring $13.9 million dividend from ZIM that accounted for $0.67 per share.
Adjusted net income of $288.7 million, or $14.28 per share, for the six months ended June 30, 2023 compared to $392.4 million, or $18.95 per share, for the six months ended June 30, 2022, a decrease of $103.7 million or $4.67 per share. Adjusted net income for the six months ended June 30, 2022 had included a non-recurring $123.9 million dividend from ZIM that accounted for $5.98 per share.
Net income of $147.0 million, or $7.32 per share, for the three months ended June 30, 2023 compared to $8.2 million, or $0.40 per share, for the three months ended June 30, 2022, an increase of $138.8 million, or $6.92 per share. Net income of $293.2 million, or $14.51 per share, for the six months ended June 30, 2023 compared to $339.7 million, or $16.40 per share, for the six months ended June 30, 2022, a decrease of $46.5 million, or $1.89 per share.
Adjusted EBITDA1 of $177.3 million for the three months ended June 30, 2023 compared to $192.1 million for the three months ended June 30, 2022, a decrease of $14.8 million. Adjusted EBITDA for the three months ended June 30, 2022 had included a non-recurring $13.9 million dividend from ZIM.
Adjusted EBITDA of $356.3 million for the six months ended June 30, 2023 compared to $461.6 million for the six months ended June 30, 2022, a decrease of $105.3 million.
Adjusted EBITDA for the six months ended June 30, 2022 had included a non-recurring $123.9 million dividend from ZIM.
Cash and cash equivalents were $293.3 million as of June 30, 2023.
As of June 30, 2023, Net Debt2 was $131.0 million, and Net Debt / LTM Adjusted EBITDA was 0.18x, while 44 of our vessels are debt-free currently.
Total liquidity was $653.3 million as of June 30, 2023, including undrawn available commitments under our Revolving Credit Facility.
As of the date of this release, Danaos has repurchased a total of 1,080,547 shares of its common stock in the open market for $65.6 million, under its share repurchase program of up to $100 million announced in June 2022.
During the three months ended June 30, 2023 we acquired 1,552,865 shares of common stock of Eagle Bulk Shipping Inc. (“Eagle Bulk”) for a total of $68.2 million that currently represents a 16.7% shareholding stake. Eagle Bulk is listed on the New York Stock Exchange (Ticker: EGLE) and currently owns and operates a fleet of 52 Ultramax and Supramax bulk carriers that aggregate to approximately 3.2 million deadweight tons (“DWT”).
On June 20, 2023, we entered into contracts for the construction of two 8,258 TEU containerships. These containerships are expected to be delivered to us in 2026.
This brings the total tally of our newbuilding order-book to 10 vessels with an aggregate capacity of 74,914 TEU, with expected deliveries of seven vessels in 2024, one vessel in 2025 and two vessels in 2026. All our newbuildings are designed with the latest eco characteristics, will be methanol fuel ready, fitted with Alternative Maritime Power Units and will all be built in accordance with the latest requirements of the International Maritime Organization in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
In July 2023, we reached an in principle agreement to acquire 5 Capesize bulk carriers built in 2010 through 2012 that aggregate to 879,306 DWT for a total of $103 million. The agreement is subject to entry into definitive documentation. These vessels are expected to be delivered to us between September and October 2023.
During the last three months we added approximately $469 million to our contracted revenue backlog through the arrangement of new charters for 12 containerships in our fleet. The new fixtures notably include additional contracted revenues of $177 million for three 13,100 TEU vessels that were forward fixed on new 3-year charters and $227 million for five 8,530 TEU vessels that were extended forward for an additional 3.6 years.
As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, had increased to $2.5 billion as of June 30, 2023. The remaining average contracted charter duration was 3.3 years, weighted by aggregate contracted charter hire.
Contracted operating days charter coverage for our containership fleet is currently 99.4% for 2023 and 86.1% for 2024.
Danaos has declared a dividend of $0.75 per share of common stock for the second quarter of 2023, which is payable on September 1, 2023, to stockholders of record as of August 23, 2023.
Danaos’ CEO Dr. John Coustas commented:
“The world economies stagnated in the second quarter of 2023, resulting in a gradual easing of the container market. Danaos active strategy in the current market conditions is made possible by the prudent approach we have taken to manage our balance sheet to conservative levels as well as our successful chartering strategy. The latter is reflected in our operating revenues of $241 million, which is near to previous records despite a charter market drop that is more than 50% lower than a year ago. We continue to be active in the charter market, highlighting the resilience of our business model, and secured nearly $500 million in new charter contracts during the quarter. Our total charter backlog increased to $2.5 billion as of the end of the quarter, and contracted charter coverage currently stands at 99% for 2023 and 86% for 2024.
In the second quarter of 2023, Danaos received the Gold, first place awards in the Governance and Environment categories in the inaugural ESG Shipping Awards. These accolades, which we are proud of, acknowledge the company’s exemplary efforts in promoting sustainable practices, social responsibility, and strong governance and reaffirm our position as a leader in responsible maritime operations. The timing of the awards is notable as the IMO recently reiterated and strengthened its commitment to decarbonize shipping by targeting a net zero by around 2050.
Danaos continues to advance its decarbonization strategy in multiple ways. We are constantly optimizing and retrofitting our existing fleet and have committed to upgrade around 20 vessels with new propellers, fuel saving appendages and low friction paints. We have also expanded our new building program with the order of four additional newbuilding vessels. These vessels, two of which are 6,000 TEU and two of which are 8,200 TEU, will be delivered methanol-ready, ensuring the longevity of our investment. In total, we have 10 vessels, with a total capacity of approximately 75,000 TEU, on order. All of these will be able to utilize alternative fuels. Importantly, six of these vessels are already chartered for multi-year periods beginning on their delivery dates in 2024.
We also deployed capital opportunistically, after identifying weakness in the dry bulk market, a market we are very familiar with. We believe the long-term fundamentals in the dry bulk market are very positive. In particular, the orderbook is at historically low levels, and fleet supply growth is projected to decline significantly over the next several years against a backdrop of rebounding demand. Short-term market sentiment is not as strong, and we were able to make investments at attractive prices. As has been previously reported, Danaos acquired a significant stake in Eagle Bulk Shipping, Inc., a NYSE listed dry bulk company (“Eagle”). Additionally, we acquired five Capesize bulk carriers in the secondhand market.
With respect to Eagle, we were able to purchase shares in a company we believed had best in class corporate governance practices at a significant discount to our perception of the company’s net asset value. Shortly following our investment, the Board of Eagle unilaterally implemented a poison pill and repurchased Oaktree Capital’s 28% stake in the company at nearly a 35% premium to Eagle’s 45-day average share prices and a 32% premium to our cost basis. These transactions, which were done by Eagle’s Board fundamentally alter our view of Eagle’s corporate governance. We are concerned with these developments and are seeking clarification from the Board of Directors of Eagle. As Eagle Bulk’s current largest shareholder, we have a strong vested interest in seeing the company enhance long-term shareholder value and believe that we have a duty to speak up when we think the Board and/or management may be acting outside the best interests of all shareholders. Accordingly, we are committed to working constructively with the Board to identify balanced, well-considered, and effective methods to enhance shareholder value on behalf of all shareholders.
With respect to our interest in the dry bulk market in general, Danaos has significant experience in the dry bulk market as an owner and operator. We exited the segment years ago, which was a well-timed decision in hindsight, and now we again see opportunity. Given the strength of our balance sheet, we are uniquely positioned to deploy capital in various ways to grow our revenue base and earnings. Our fleet of container vessels, which are contracted on multi-year charters, provides strong revenue and cash flow visibility. While we will continue to grow and future-proof our core fleet by adding next generation vessels to it, our ultimate goal is to generate value for our shareholders, and we will consistently pursue the best opportunities to do so.
As I have said before, our healthy balance sheet allows us to be opportunistic and deploy our capital in various ways. During the quarter, we continued our buyback program and have now spent $65.5 million from our $100 million buyback program to retire more than one million shares. Finally, we remain committed to returning capital to shareholders, as evidenced by our $0.75 per share dividend announced this morning.
We will continue to implement our strategy to ensure the long-term growth and profitability of the company and are consistently focused on creating value for our shareholders.”
Three months ended June 30, 2023 compared to the three months ended June 30, 2022
During the three months ended June 30, 2023, Danaos had an average of 68.0 containerships compared to 71.0 containerships during the three months ended June 30, 2022. Our fleet utilization for the three months ended June 30, 2023 was 98.7% compared to 99.9% for the three months ended June 30, 2022.
Our adjusted net income amounted to $143.4 million, or $7.14 per share, for the three months ended June 30, 2023 compared to $157.1 million, or $7.59 per share, for the three months ended June 30, 2022. We have adjusted our net income in the three months ended June 30, 2023 for a $6.4 million change in fair value of investments, a $2.3 million loss on debt extinguishment and a $0.6 million non-cash finance fees amortization. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The $13.7 million decrease in adjusted net income for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 is primarily attributable to a $13.9 million dividend from ZIM (net of withholding taxes) recognized in the three months ended June 30, 2022. We also incurred a $0.7 million equity loss on investments in the three months ended June 30, 2023 and a $9.4 million decrease in operating revenues, which were partially offset by a $10.2 million decrease in net finance expenses and a $0.1 million decrease in total operating expenses.
On a non-adjusted basis, net income amounted to $147.0 million, or $7.32 earnings per diluted share, for the three months ended June 30, 2023 compared to net income of $8.2 million, or $0.40 earnings per diluted share, for the three months ended June 30, 2022. Our net income for the three months ended June 30, 2022 included a $154.7 million total loss on our investment in ZIM and a $22.9 million gain on debt extinguishment compared to a $6.4 million gain on our investments and a $2.3 million loss on debt extinguishment for the three months ended June 30, 2023.
View Full Press Release

Danaos Corporation Reports Record Third Quarter Operating Profit and a Backlog of $2.3 Billion in Contracted Revenue

Danaos Corporation, one of the world’s largest independent owners of containerships, today reported unaudited results for the period ended September 30, 2022.
Highlights for the Third Quarter and Nine Months Ended September 30, 2022:
• Adjusted net income1 of $176.9 million, or $8.71 per share, for the three months ended September 30, 2022 compared to $109.5 million, or $5.32 per share, for the three months ended September 30, 2021, an increase of 61.6%. Adjusted net income1 of $569.3 million, or $27.67 per share, for the nine months ended September 30, 2022 compared to $236.4 million, or $11.49 per share, for the nine months ended September 30, 2021, an increase of 140.8%.
• In September 2022, we sold all of our remaining 5,686,950 ZIM ordinary shares resulting in proceeds to us of $161.3 million.
• Cash and cash equivalents amounted to $556.3 million as of September 30, 2022.
• Operating revenues of $260.0 million for the three months ended September 30, 2022 compared to $195.9 million for the three months ended September 30, 2021, an increase of 32.7%. Operating revenues of $740.9 million for the nine months ended September 30, 2022 compared to $474.5 million for the nine months ended September 30, 2021, an increase of 56.1%.
• Adjusted EBITDA1 of $213.1 million for the three months ended September 30, 2022 compared to $149.6 million for the three months ended September 30, 2021, an increase of 42.4%. Adjusted EBITDA1 of $674.7 million for the nine months ended September 30, 2022 compared to $349.6 million for the nine months ended September 30, 2021, an increase of 93.0%.
• Total contracted cash operating revenues were $2.3 billion as of September 30, 2022 and remaining average contracted charter duration was 3.5 years, weighted by aggregate contracted charter hire.
• Contracted operating days charter coverage currently stands at 100% for 2022 and 88.4% for 2023 while for the next 12 months, from September 30, 2022, charter coverage stands at 92.9%.
• As of September 30, 2022, Net Debt2 was $398.9 million, Net Debt / LTM Adjusted EBITDA was 0.48x, while 15 of our vessels are debt-free currently.
• As of the date of this release, we have repurchased 466,955 shares of our common stock in the open market for $28.6 million, under our share repurchase program of up to $100 million announced in June 2022.
• The Company has reached an in-principle agreement with Citi and Alpha Bank to refinance the currently outstanding facility of $437.75 million and the transactions are expected to close within the 4th quarter of 2022. This refinancing, which remains subject to definitive documentation, is summarized as follows:
§ a $382.5 million Revolving Credit Facility with Citi reducing and repayable over 5 years in 20 quarterly reductions of $11.25 million each together with a final reduction of $157.5 million at maturity, in the 4th quarter of 2027.
§ a $55.25 million Term Loan with Alpha Bank repayable over 5 years with 20 consecutive quarterly installments of $1.875 million each together with a balloon payment of $17.75 million at maturity, in the 4th quarter of 2027.
• Through this refinancing the Company will achieve the following:
o Extension of maturity of the refinanced debt by 2.5 years and the creation of a 5-year runway without any of the Company’s bank debt maturing before 2027.
o Given the Company’s strong liquidity position, the Revolving Credit Facility feature of Citi provides the Company with increased flexibility in managing debt capital and associated costs.
o Improvement in pricing terms.
• Pro-forma for the refinancing, the Company will triple the unencumbered and debt-free fleet to 45 vessels versus 15 vessels currently out of a total existing fleet of 71 vessels.• Danaos has declared a dividend of $0.75 per share of common stock for the third quarter of 2022, which is payable on November 30, 2022 to stockholders of record as of November 18, 2022.
Danaos’ CEO Dr. John Coustas commented:
“This quarter marked the retreat of the container market from unsustainable stratospheric highs to more normalized levels, albeit still well above 2019 levels. The liner market has experienced a combination of supply chain normalization and demand destruction due to various factors. These include, but are not limited to, rampant inflation and declining GDP growth, the uncertainties created by the war in Ukraine and an energy crisis. This has been compounded by high inventories in warehouses and delayed collection of containers, both indirect impacts of easing of supply chain disruptions.
The drop in demand for containerized freight has also significantly reduced vessel demand from opportunistic market participants, who were aggressively contracting smaller vessels or extra loaders which were used during the peak of demand last year. This has led to a significant correction in the sub-3,000 TEU segment as charterers are on the sidelines waiting for the market to drop before they commit a vessel.
Charter periods have also been reduced to as little as six months for smaller vessels as charterers are waiting to see how the CII requirements will impact fleet scheduling and what additional slow steaming will be needed to meet the requirements.
Danaos is well-insulated from the current market environment and achieved record operating profit in the third quarter of 2022. Our commercial efforts earlier this year resulted in a number of new vessel fixtures for our vessels, and we ended the quarter with a multi-year backlog of $2.3 billion in contracted revenue. We have also continued to strengthen our balance sheet and we have now fully liquidated our shareholding in ZIM, as we stated we would. In addition, we have new commitments from our bank group to extend existing bank debt facilities until 2027. This means we have no significant capital requirements or refinancings until then, and we have the necessary flexibility to pursue our strategy of growth, share buybacks, and acquisitions. In fact, our net debt will be very close to zero by the end of this year, which protects Danaos from the recent dramatic increase in interest rates.
With a fortress balance sheet, we are looking at the future with great optimism and evaluating the steps that will keep Danaos at the forefront of the industry. Danaos’ management team is fully aligned with our shareholders, and we will continue working to enhance long term value of the company.”
Three months ended September 30, 2022 compared to the three months ended September 30, 2021
During the three months ended September 30, 2022, Danaos had an average of 71.0 containerships compared to 65.7 containerships during the three months ended September 30, 2021. Our fleet utilization for the three months ended September 30, 2022 was 97.1% compared to 97.7% for the three months ended September 30, 2021.
Our adjusted net income amounted to $176.9 million, or $8.71 per share, for the three months ended September 30, 2022 compared to $109.5 million, or $5.32 per share, for the three months ended September 30, 2021. We have adjusted our net income in the three months ended September 30, 2022 for the change in fair value of our investment in ZIM Integrated Shipping Services Ltd. (“ZIM”) of $107.3 million and a non-cash fees amortization of $2.8 million. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The $67.4 million increase in adjusted net income for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 is attributable mainly to a $64.1 million increase in operating revenues, a $11.0 million increase in dividends from ZIM (net of withholding taxes) and a $2.5 million decrease in net finance expenses, which were partially offset by a $10.2 million increase in total operating expenses.
On a non-adjusted basis, our net income amounted to $66.8 million, or $3.29 earnings per diluted share, for the three months ended September 30, 2022 compared to net income of $217.2 million, or $10.55 earnings per diluted share, for the three months ended September 30, 2021. Our net income for the three months ended September 30, 2022 includes a loss on our investment in ZIM of $84.0 million (net of withholding taxes on dividend).
Operating Revenues
Operating revenues increased by 32.7%, or $64.1 million, to $260.0 million in the three months ended September 30, 2022 from $195.9 million in the three months ended September 30, 2021.
Operating revenues for the three months ended September 30, 2022 reflect:
o a $76.9 million increase in revenues in the three months ended September 30, 2022 compared to the three months ended September 30, 2021 mainly as a result of higher charter rates;
o a $11.1 million increase in revenues in the three months ended September 30, 2022 compared to the three months ended September 30, 2021 due to the incremental revenue generated by newly acquired vessels;
o a $4.5 million increase in revenues in the three months ended September 30, 2022 compared to the three months ended September 30, 2021 due to amortization of assumed time charters; and
o a $28.4 million decrease in revenue in the three months ended September 30, 2022 compared to the three months ended September 30, 2021 due to lower non-cash revenue recognition in accordance with US GAAP.
Vessel Operating Expenses
Vessel operating expenses increased by $4.5 million to $39.2 million in the three months ended September 30, 2022 from $34.7 million in the three months ended September 30, 2021, primarily as a result of the increase in the average number of vessels in our fleet and an increase in the average daily operating cost for vessels on time charter to $6,173 per vessel per day for the three months ended September 30, 2022 compared to $5,918 per vessel per day for the three months ended September 30, 2021. The average daily operating cost increased mainly due to the COVID-19 and Ukraine war related increase in crew remuneration and increased insurance premiums in the three months ended September 30, 2022 compared to the three months ended September 30, 2021. Management believes that our daily operating costs remain among the most competitive in the industry.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased by 10.0%, or $3.1 million, to $34.1 million in the three months ended September 30, 2022 from $31.0 million in the three months ended September 30, 2021 due to recent acquisitions of 6 vessels.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by $0.5 million to $3.1 million in the three months ended September 30, 2022 from $2.6 million in the three months ended September 30, 2021.
General and Administrative Expenses
General and administrative expenses decreased by $0.2 million, to $7.1 million in the three months ended September 30, 2022 from $7.3 million in the three months ended September 30, 2021.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by $2.3 million to $10.3 million in the three months ended September 30, 2022 from $8.0 million in the three months ended September 30, 2021 primarily as a result of the increase in commissions due to the increase in revenue per vessel and the increase in the average number of vessels in our fleet.
Interest Expense and Interest Income
Interest expense decreased by 11.6%, or $2.1 million, to $16.0 million in the three months ended September 30, 2022 from $18.1 million in the three months ended September 30, 2021. The decrease in interest expense is a combined result of:
• a $1.5 million decrease in interest expense due to a decrease in our average indebtedness by $466.7 million between the two periods (average indebtedness of $971.3 million in the three months ended September 30, 2022 compared to average indebtedness of $1,438.0 million in the three months ended September 30, 2021), which was partially offset by an increase in our debt service cost by 1.46 percentage points, mainly as a result of increase in the reference rates;
• a $0.8 million decrease in the amortization of deferred finance costs and debt discount;
• a $1.3 million decrease in interest expense due to capitalized interest on our vessels under construction in the three months ended September 30, 2022 compared to none in the three months ended September 30, 2021; and
• a $1.5 million reduction in the recognition through our income statement of accumulated accrued interest that had been accrued in 2018 in relation to two of our credit facilities that were refinanced on April 12, 2021 and subsequently fully repaid on May 15, 2022, at which point the remaining accumulated accrued interest of $26.9 million was recognized in gain on debt extinguishment.
As of September 30, 2022, our outstanding debt, gross of deferred finance costs, was $868.1 million, which includes $300 million aggregate principal amount of our Senior Notes, and our leaseback obligation was $79.6 million. These balances compare to debt of $1,165.5 million and a leaseback obligation of $242.9 million, gross of deferred finance costs, as of September 30, 2021.
Interest income increased by $1.2 million to $1.3 million in the three months ended September 30, 2022 compared to $0.1 million in the three months ended September 30, 2021 mainly as a result of increased interest income earned on time deposits in the three months ended September 30, 2022.
Gain/(loss) on investments
A loss on investments of $80.3 million in the three months ended September 30, 2022 consists of the change in fair value of our shareholding interest in ZIM of $107.3 million, which was offset in part by the dividends recognized on ZIM ordinary shares of $27.0 million. In the three months ended September 30, 2022, we sold all of our remaining 5,686,950 ZIM ordinary shares resulting in proceeds to us of $161.3 million.
Equity income on investments
Equity income on investments in Gemini Shipholdings Corporation (“Gemini”) decreased to nil in the three months ended September 30, 2022 compared to the non-cash gain of $64.1 million recognized upon our acquisition of the remaining 51% equity interest in Gemini on July 1, 2021.
Other finance expenses
Other finance expenses increased by $0.1 million to $0.2 million in the three months ended September 30, 2022 compared to $0.1 million in the three months ended September 30, 2021.
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended September 30, 2022 and September 30, 2021.
Other income, net
Other income, net was $0.4 million in the three months ended September 30, 2022 compared to $0.3 million in the three months ended September 30, 2021.
Income taxes
Income taxes were $3.8 million in the three months ended September 30, 2022, related to the taxes withheld on dividend income earned on ZIM ordinary shares compared to $4.1 million taxes withheld on dividend income in the three months ended September 30, 2021.
Adjusted EBITDA
Adjusted EBITDA increased by 42.4%, or $63.5 million, to $213.1 million in the three months ended September 30, 2022 from $149.6 million in the three months ended September 30, 2021. As outlined above, the increase is mainly attributable to a $59.6 million increase in operating revenues (net of $4.5 million increase in amortization of assumed time charters) and a $11.0 million increase in dividends from ZIM (net of withholding taxes) in the three months ended September 30, 2022, which were partially offset by a $7.1 million increase in total operating expenses. Adjusted EBITDA for the three months ended September 30, 2022 is adjusted for a $103.5 million change in fair value of the investment in ZIM and dividend withholding taxes and stock-based compensation of $0.1 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.
Nine months ended September 30, 2022 compared to the nine months ended September 30, 2021
During the nine months ended September 30, 2022, Danaos had an average of 71.0 containerships compared to 61.9 containerships during the nine months ended September 30, 2021. Our fleet utilization for the nine months ended September 30, 2022 was 98.1% compared to 98.5% for the nine months ended September 30, 2021.
Our adjusted net income amounted to $569.3 million, or $27.67 per share, for the nine months ended September 30, 2022 compared to $236.4 million, or $11.49 per share, for the nine months ended September 30, 2021. We have adjusted our net income in the nine months ended September 30, 2022 for the change in fair value of our investment in ZIM of $176.4 million, gain on debt extinguishment of $22.9 million and a non-cash fees amortization of $9.4 million. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The $332.9 million increase in adjusted net income for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 is attributable mainly to a $266.4 million increase in operating revenues and a $134.9 million increase in dividends from ZIM (net of withholding taxes), which were partially offset by a $49.4 million increase in total operating expenses, a $11.1 million increase in net finance expenses, a $4.0 million decrease in our equity income from our investment in Gemini following our acquisition and full consolidation of Gemini since July 1, 2021 and a partial collection of common benefit claim of $3.9 million from Hanjin Shipping in the nine months ended September 30, 2021.
On a non-adjusted basis, our net income amounted to $406.5 million, or $19.75 earnings per diluted share, for the nine months ended September 30, 2022 compared to net income of $886.8 million, or $43.11 earnings per diluted share, for the nine months ended September 30, 2021. Our net income for the nine months ended September 30, 2022 includes a total loss on our investment in ZIM of $29.2 million (net of withholding taxes on dividend) and a gain on debt extinguishment of $22.9 million.
Operating Revenues
Operating revenues increased by 56.1%, or $266.4 million, to $740.9 million in the nine months ended September 30, 2022 from $474.5 million in the nine months ended September 30, 2021.
Operating revenues for the nine months ended September 30, 2022 reflect:
• a $187.8 million increase in revenues in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 mainly as a result of higher charter rates;
• a $55.8 million increase in revenues in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 due to the incremental revenue generated by newly acquired vessels;
• a $36.9 million increase in revenues in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 due to amortization of assumed time charters; and
• a $14.1 million decrease in revenue in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 due to lower non-cash revenue recognition in accordance with US GAAP.
Vessel Operating Expenses
Vessel operating expenses increased by $20.2 million to $118.9 million in the nine months ended September 30, 2022 from $98.7 million in the nine months ended September 30, 2021, primarily as a result of the increase in the average number of vessels in our fleet and an increase in the average daily operating cost for vessels on time charter to $6,314 per vessel per day for the nine months ended September 30, 2022 compared to $6,034 per vessel per day for the nine months ended September 30, 2021. The average daily operating cost increased mainly due to the COVID-19 and Ukraine war related increase in crew remuneration and increased insurance premiums in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. Management believes that our daily operating costs remain among the most competitive in the industry.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased by 22.1%, or $18.3 million, to $101.2 million in the nine months ended September 30, 2022 from $82.9 million in the nine months ended September 30, 2021 due to recent acquisitions of 11 vessels.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by $1.4 million to $9.0 million in the nine months ended September 30, 2022 from $7.6 million in the nine months ended September 30, 2021.
General and Administrative Expenses
General and administrative expenses decreased by $3.7 million to $21.7 million in the nine months ended September 30, 2022, from $25.4 million in the nine months ended September 30, 2021. The decrease was mainly attributable to decreased stock-based compensation.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by $9.7 million to $26.9 million in the nine months ended September 30, 2022 from $17.2 million in the nine months ended September 30, 2021 primarily as a result of the increase in commissions due to the increase in revenue per vessel and the increase in the average number of vessels in our fleet.
Interest Expense and Interest Income
Interest expense decreased by 4.3%, or $2.2 million, to $49.2 million in the nine months ended September 30, 2022 from $51.4 million in the nine months ended September 30, 2021. The decrease in interest expense is a combined result of:
• a $5.8 million decrease in interest expense due to a decrease in our average indebtedness by $346.0 million between the two periods (average indebtedness of $1,159.3 million in the nine months ended September 30, 2022 compared to average indebtedness of $1,505.3 million in the nine months ended September 30, 2021), which was partially offset by an increase in our debt service cost by 0.63 percentage points, mainly as a result of increase in the reference rates;
• a $3.0 million decrease in the amortization of deferred finance costs and debt discount;
• a $2.0 million decrease in interest expense due to capitalized interest on our vessels under construction in the nine months ended September 30, 2022 compared to none in the nine months ended September 30, 2021; and
• a $8.6 million reduction in the recognition through our income statement of accumulated accrued interest that had been accrued in 2018 in relation to two of our credit facilities that were refinanced on April 12, 2021 and subsequently fully repaid on May 15, 2022, at which point the remaining accumulated accrued interest of $26.9 million was recognized in gain on debt extinguishment.During the nine months ended September 30, 2022, we reduced debt and lease indebtedness by $550.8 million mainly as a result of $434.1 million of early debt and lease repayments and recognized a $22.9 million gain related to this early debt extinguishment. On the other hand, our indebtedness increased by $130 million following consummation of the loan agreement to finance our six 5,466 TEU vessels that were acquired in 2021.
As of September 30, 2022, our outstanding bank debt, gross of deferred finance costs, was $868.1 million, which includes $300 million aggregate principal amount of our Senior Notes, and our leaseback obligation was $79.6 million. These balances compare to debt of $1,165.5 million and a leaseback obligation of $242.9 million, gross of deferred finance costs, as of September 30, 2021.
Interest income decreased by $10.3 million to $1.4 million in the nine months ended September 30, 2022 compared to $11.7 million in the nine months ended September 30, 2021, mainly as a result of full collection of accrued interest on ZIM and HMM bonds, which were redeemed by the issuers thereof, in the year 2021.
Gain/(loss) on investments
A loss on investments of $11.0 million in the nine months ended September 30, 2022 consists of the change in fair value of our shareholding interest in ZIM of $176.4 million and dividends recognized on ZIM ordinary shares of $165.4 million. In April 2022, we sold 1,500,000 of these ZIM ordinary shares resulting in proceeds to us of $85.3 million. In September 2022, we sold all of our remaining 5,686,950 ZIM ordinary shares resulting in proceeds to us of $161.3 million.
View Full Press Release

Danaos Corporation Announces $1 Billion in Incremental Contracted Revenues and Sale Proceeds Through New Charter Arrangements for 11 Vessels and the Agreement to Sell 2 Vessels

Danaos Corporation, one of the world’s largest independent owners of containerships, announced that it has entered into new charter arrangements for 11 of its vessels ranging between 2,500 to 10,000 TEU with major liner companies, that significantly improve cash flow visibility and charter coverage. These charters, which have a revenue weighted average contract duration of 4.7 years commence on the expiration of the vessels’ existing charters between February 2022 and April 2023 and extend up to May 2028.
The new charters increase the Company’s contracted revenue backlog by approximately $870 million, or by approximately $700 million in contracted EBITDA. Inclusive of these charters, total contracted operating revenue was $2.8 billion as of December 31, 2021, with a remaining average contracted charter duration of four years, weighted by aggregate contracted charter revenue. Additionally, contract coverage in terms of operating days is now 95% for 2022, 77% for 2023 and 57% for 2024.
The Company has also entered into an agreement to sell two 20-year-old 6,422 TEU vessels for a total consideration of $130 million and are expected to be delivered to their buyer in November 2022. The Company acquired these two vessels as part of the consolidation of Gemini Shipholdings Corporation on July 1, 2021, based on a fair value of $73 million, and expects to book a healthy profit when the sale is completed.
The Company’s CEO, Dr. John Coustas commented:
“We are very pleased to announce the continued improvement of our contracted backlog with multi-year charters for 11 of our vessels and the profitable sale of two older vessels. The combined result is up to $1 billion of contracted revenue accretion and sales proceeds. These transactions significantly improve our liquidity and cash flow visibility for the next several years and further strengthen our balance sheet. We will continue to work to maximize our profitability and secure more accretive transactions with a focus on creating value for our shareholders.”

Ετικέτα: Danaos Corporation