Danaos Corporation Announces New Charters for 10 Vessels; Increases Contracted Backlog by 21.5% to Over $2 Billion

Rhea-AI Summary

Danaos Corporation (NYSE: DAC) announced new charter agreements for 10 vessels, boosting its revenue backlog by approximately $378 million, an increase of 21.5% compared to $1.75 billion as of June 30, 2021. The charters, ranging from 3 to 4 years, enhance contracted EBITDA by around $280 million. CEO Dr. John Coustas highlighted that the company has secured 100% charter coverage for 2021 and 89% for 2022, citing improved earnings and cash flow visibility. Danaos remains focused on maximizing profitability and shareholder value.

Positive

• New charters increase revenue backlog by approximately $378 million.
• Contracted EBITDA rises by about $280 million.
• Achieved 100% charter coverage for operating days in 2021.
• Contracted 89% of operating days for 2022.

Negative

• None.

Danaos Corporation (the "Company") (NYSE: DAC) today announced that it has entered into new charter agreements for 10 of its vessels, including one 8,500 TEU vessel, three 3,400 TEU vessels and six 2,200 vessels, for charter periods ranging from 3 to 4 years. The charters will commence as existing charters expire between January and August of 2022. The new charters increase the Company’s contracted revenue backlog by approximately $378 million, or 21.5% compared to the Company’s $1.75 billion backlog as of June 30, 2021 and increase contracted EBITDA by approximately $280 million.

The Company’s CEO, Dr. John Coustas commented:

“We are very pleased to have significantly increased our contracted backlog by securing multi-year charters for 10 of our vessels. Not only have we achieved charter coverage for 100% of our operating days in 2021, we have already contracted 89% of our operating days for 2022 and 60% for 2023. In the process, we have further enhanced our earnings and cash flow visibility, which will in turn result in further strengthening of our balance sheet. We will continue to work to secure additional charter extensions during the strong market environment in order to maximize our profitability and create value for our shareholders.”

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our fleet of 71 containerships aggregating 436,589 TEUs, including the additional six 5,466 TEU containerships we have agreed to acquire which are expected to be delivered through October 15, 2021, ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Our fleet is chartered to many of the world’s largest liner companies on fixed-rate charters. Danaos Corporation’s shares trade on the New York Stock Exchange under the symbol “DAC”.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect the current views of Danaos Corporation (including subsidiaries unless indicated or the context requires otherwise, the “Company,” “we,” “us,” and “our”) with respect to future events and financial performance and may include statements concerning our operations, cash flows, financial position, including with respect to vessel and other asset values, plans, objectives, goals, strategies, future events, performance or business prospects, changes and trends in our business and the markets in which we operate, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of the novel coronavirus 2019 (“COVID-19”) pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of containerized cargo, the ability and willingness of charterers to fulfill their obligations to us, charter rates for containerships, shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing, the effects of its debt refinancing transactions, the Company’s ability to achieve the expected benefits of its refinancing transactions and comply with the terms of its credit facilities and other agreements entered into in connection with the such refinancing, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.

The forward-looking statements and information contained in this announcement are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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FAQ

What is the significance of Danaos Corporation's new charter agreements for DAC?

Danaos Corporation's new charter agreements increase its revenue backlog by approximately $378 million, enhancing financial stability.

How do the new charters affect Danaos Corporation's EBITDA?

The new charters increase contracted EBITDA by approximately $280 million.

What percentage of operating days has Danaos secured for 2022?

Danaos has contracted 89% of its operating days for 2022.

What types of vessels are included in Danaos Corporation's new charter agreements?

The new charter agreements include one 8,500 TEU vessel, three 3,400 TEU vessels, and six 2,200 TEU vessels.

How many vessels does Danaos Corporation currently operate?

Danaos Corporation operates a fleet of 71 containerships.