Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2024
Danaos (NYSE: DAC), a leading owner of container and drybulk vessels, reported its unaudited first-quarter results for 2024.
Key financial metrics include operating revenues of $253.4 million, a 4% increase from Q1 2023. Net income was $150.5 million, or $7.68 per diluted share.
Adjusted EBITDA decreased slightly to $177.2 million from $179.0 million in Q1 2023. The company acquired 7 Capesize drybulk vessels, contributing $20 million in new operating revenues. Vessel operating expenses rose to $43.1 million.
As of March 31, 2024, Danaos had $747.6 million in total liquidity, including cash, equivalents, and marketable securities. The company also secured $450 million in financing for newbuildings and declared an $0.80 dividend per share for Q1 2024, payable on June 20, 2024.
Total contracted cash operating revenues stand at $2.5 billion with an average charter duration of 2.9 years.
- Operating revenues increased by 4% to $253.4 million.
- Net income rose to $150.5 million, or $7.68 per diluted share.
- Total liquidity, including cash and marketable securities, improved to $747.6 million.
- Adjusted EBITDA remained robust at $177.2 million, only slightly down from $179.0 million.
- Secured $450 million financing for newbuildings.
- Declared $0.80 dividend per share for Q1 2024.
- Total contracted cash operating revenues amount to $2.5 billion.
- Added 7 Capesize drybulk vessels, contributing $20 million in new operating revenues.
- Utilization rate for container vessels increased to 97.3% from 96.8%.
- Debt-to-EBITDA ratio improved to 0.19x from 0.20x.
- Adjusted net income decreased to $140 million from $145.3 million in Q1 2023.
- Adjusted EBITDA decreased slightly by 1% to $177.2 million.
- Operating expenses rose by $22.2 million.
- Vessel operating expenses increased to $43.1 million from $40.6 million.
- Depreciation expense rose by 7.6% to $33.9 million.
- General and administrative expenses increased by $3.4 million to $10.2 million.
- Voyage expenses increased by $12.4 million to $20.3 million.
- Decrease in operating revenues of container vessels by $10.2 million.
- Higher interest expense due to increased debt service cost by 0.6%.
Insights
Operating Revenues saw a slight increase of
From a leverage perspective, Danaos’s net debt to LTM Adjusted EBITDA ratio is at 0.19x, which indicates a strong balance sheet and financial stability. The company’s liquidity remains robust with total cash liquidity and marketable securities standing at
Short-term, the operating expenses increase is a notable setback, but the revenue generation from new segments partially offsets this. Long-term, the newbuild container vessels with eco-friendly features and secured multi-year chartering agreements bode well for future revenue streams and profitability.
Investors should monitor the company's ability to manage operating expenses and capitalize on its diversified fleet's revenue potential.
The addition of drybulk vessels and new container vessel orders are strategic moves to diversify and strengthen Danaos’s market position. The container market has shown resilience and an increase in charter rates indicates a favorable market trend. The fleet utilization at 96.8% exemplifies efficient operational management, important for maximizing revenue.
Furthermore, the emphasis on eco-friendly vessel designs ready for methanol fuel future-proofs a portion of the fleet, aligning with evolving regulatory requirements and green shipping initiatives. This is a significant long-term positive for the company, positioning it as a forward-thinking player in the maritime industry.
However, geopolitical uncertainties and potential trade restrictions could impact future market dynamics. The company's cautious approach to financing and fleet expansion reflects prudent risk management, ensuring sustained growth amidst industry fluctuations.
Retail investors should appreciate the company's proactive stance on environmental sustainability and diversification, which may enhance its competitive edge and market valuation over time.
Highlights for the First Quarter Ended March 31, 2024:
Financial Summary
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Three Months Ended |
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Three Months Ended |
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March 31, 2024 |
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March 31, 2023 |
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Financial & Operating
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Container
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Drybulk
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Other |
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Total |
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Container
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Drybulk
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Other |
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Total |
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Operating Revenues |
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- |
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- |
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- |
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Voyage Expenses, excl. commissions |
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- |
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- |
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- |
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Time Charter Equivalent Revenues (1) |
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- |
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- |
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- |
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Net income / (loss) |
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- |
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Adjusted net income / (loss) (2) |
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- |
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Earnings per share, basic |
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Earnings per share, diluted |
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Adjusted earnings per share, diluted (2) |
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Operating Days |
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6,019 |
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596 |
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- |
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5,956 |
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- |
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- |
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Time Charter Equivalent $/day (1) |
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- |
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- |
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- |
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Ownership days |
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6,185 |
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637 |
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- |
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6,150 |
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- |
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- |
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Average number of vessels |
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68.0 |
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7.0 |
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- |
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68.3 |
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- |
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- |
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Fleet Utilization |
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- |
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- |
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- |
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Adjusted EBITDA (2)
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- |
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Consolidated Balance Sheet
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As of March 31, 2024 |
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As of December 31, 2023 |
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Cash and cash equivalents |
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Availability under Revolving Credit Facility |
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Marketable securities(3) |
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- |
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Total cash liquidity & marketable securities(4) |
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Debt, gross of deferred finance costs |
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Net Debt (5) |
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LTM Adjusted EBITDA (6) |
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Net Debt / LTM Adjusted EBITDA |
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0.19x |
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0.20x |
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1. |
Time charter equivalent revenues, time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided below. |
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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 net income to adjusted EBITDA provided below. |
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3. |
Marketable securities refer to fair value of 1,552,865 shares of common stock of EGLE as at March 31, 2024. |
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4. |
Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and (iii) marketable securities. |
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5. |
Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents |
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6. |
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 segment 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 accounting and investments in marketable securities.
-
In March 2024, we entered into a syndicated loan facility agreement for an amount of up to
$450 million $55.0 million - In February 2024, we entered into agreements to acquire an additional 3 Capesize drybulk vessels aggregating 529,704 DWT, with expected delivery to us in the second and third quarter of 2024. This will bring the total number of our Capesize drybulk vessels fleet to 10 vessels with an aggregate capacity of 1,760,861 DWT.
- In February and March 2024 we added four 8,258 TEU newbuildings to our orderbook with expected deliveries in 2026 and 2027. As a result, as of March 31, 2024, we had 14 container vessels under construction with an aggregate capacity of 107,946 TEU. Two newbuilding vessels were delivered to us in April and May 2024, four vessels are expected to be delivered in the remainder of 2024, two vessels in 2025, three vessels in 2026 and three vessels in 2027. 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.
-
We have now secured multi-year chartering agreements for all of our 14 newbuildings. As a result of this chartering activity, over the past three months we have added approximately
$423 million -
As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at
$2.5 billion -
As of the date of this release, Danaos has repurchased a total of 1,671,059 shares of its common stock in the open market for
$104.4 million $200 million -
Contracted operating days charter coverage for our container vessel fleet is currently
99% for 2024 and69% for 2025. This includes newbuildings based on their scheduled delivery dates. -
Danaos has declared a dividend of
$0.80
Danaos’ CEO Dr. John Coustas commented:
“The container market continued to strengthen in the first quarter of 2024, a trend that has continued into the second quarter. Both charter and box rates are gaining momentum, and we have completed all necessary rechartering activity in excess of our internal forecasts. The renewed optimism in the market extends to the longer term view of the charterers, who are making charter commitments on newbuilding vessels with deliveries scheduled from 2025 through the end of 2027.
Following the recent placement of an order for an additional two 8,250 TEU vessels for 2027 delivery, our newbuilding orderbook currently consists of 14 vessels, totaling 108,000 TEU, two of which have already been delivered to us.
More importantly, we have now secured multi-year chartering agreements for all our vessels on order, while we have also extended charters of certain existing vessels. As a result of this chartering activity, over the past three months we have added
All the vessels in our newbuilding orderbook are Methanol ready, future proofing a portion of our fleet on green fuel usage. We have also arranged very conservative financing for the first eight newbuildings at competitive rates to ensure that we are able to maintain a strong liquidity profile to support continued opportunistic fleet expansion.
In our drybulk vessels segment, we have added an additional Capesize vessel to our fleet, increasing our fleet to 10 vessels in total. We are continuing to explore ways to increase our exposure to this market. The drybulk market has performed above expectations, and we are confident that an eventual Chinese recovery will drive the market higher. Our entry point into the dry bulk market is relatively low, and our breakeven is therefore easily achievable.
Despite geopolitical uncertainties, most of the economies around the world are performing relatively well and are displaying no signs of recession. The biggest risk to our market outlook comes from trade hurdles that various countries are putting in place in the form of tariffs and trade restrictions on energy as well as manufactured goods. Despite the positive short-term impacts of these practices, we believe they will ultimately result in trade contraction in the long term.
In the meantime, our strategy has continued to result in consistent solid results. We will continue to explore growth opportunities while ensuring the longevity of our investments for the benefit of our shareholders.”
Three months ended March 31, 2024 compared to the three months ended March 31, 2023
During the three months ended March 31, 2024, Danaos had an average of 68.0 container vessels and 7.0 Capesize drybulk vessels compared to 68.3 container vessels and no drybulk vessels during the three months ended March 31, 2023. Our container vessels utilization for the three months ended March 31, 2024 was
Our adjusted net income amounted to
Adjusted net income of our container vessels segment amounted to
Adjusted net income of our drybulk vessels segment amounted to
Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.
The
On a non-adjusted basis, our net income amounted to
Operating Revenues
Operating revenues increased by
Operating revenues of our container vessels segment decreased by
-
a
$3.0 million -
a
$2.7 million -
a
$3.0 million -
a
$7.5 million
Operating revenues of our drybulk vessels segment added an incremental
Vessel Operating Expenses
Vessel operating expenses increased by
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased by
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by
General and Administrative Expenses
General and administrative expenses increased by
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
Voyage expenses of container vessels segment increased by
Voyage expenses of drybulk vessels segment were
Gain on sale of vessels
In January 2023, we completed the sale of the container vessel Amalia C for net proceeds of
Interest Expense and Interest Income
Interest expense decreased by
-
a
$1.0 million $94.0 million $413.7 million $507.7 million 0.6% as a result of higher interest rates; -
a
$2.4 million -
a
$0.2 million
As of March 31, 2024, our outstanding debt, gross of deferred finance costs, was
Interest income increased by
Gain on investments
The gain on investments of
Equity loss on investments
Equity loss on investments amounting to
Other finance expenses
Other finance expenses decreased by
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at
Other income/(expenses), net
Other income, net remained stable at
Adjusted EBITDA
Adjusted EBITDA decreased by
Adjusted EBITDA of container vessels segment decreased by
Adjusted EBITDA of drybulk vessels segment was
Dividend Payment
Danaos has declared a dividend of
Recent Developments
In February 2024, we entered into agreements to acquire 3 Capesize drybulk vessels aggregating 529,704 DWT for
In February and March 2024, we added 4 additional 8,258 TEU newbuildings to our orderbook for an aggregate purchase price of
In April and May 2024, we took delivery of two container vessels under construction, Hull No. C7100-7 and Hull No. HN4009 and named the vessels Interasia Accelerate and Catherine C, respectively.
Conference Call and Webcast
On Tuesday, May 28, 2024 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 844 802 2437 (US Toll Free Dial In), 0800 279 9489 (
A telephonic replay of the conference call will be available until June 4, 2024 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 4069360# as the access code.
Audio Webcast
There will also be a live and then archived webcast of the conference call on the Danaos website (www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Slide Presentation
A slide presentation regarding the Company and the container and drybulk industry will also be available on the Danaos website (www.danaos.com).
About Danaos Corporation
Danaos Corporation is one of the largest independent owners of modern, large-size container vessels. Our current fleet of 69 container vessels aggregating 434,268 TEUs and 12 under construction container vessels aggregating 92,771 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also recently invested in the drybulk sector with the acquisition of 7 Capesize drybulk vessels aggregating 1,231,157 DWT, while we have also agreed to acquire a further 3 Capesize drybulk vessels aggregating 529,704 DWT. Our fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. 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 our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, 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 Danaos Corporation believes 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, Danaos Corporation cannot assure you that it 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 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 Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, 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, including the conflict in
Risks and uncertainties are further described in reports filed by Danaos Corporation with the
Visit our website at www.danaos.com
APPENDIX
Container vessels fleet utilization |
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Vessel Utilization (No. of Days) |
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First Quarter |
First Quarter |
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2024 |
2023 |
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Ownership Days |
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6,185 |
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6,150 |
Less Off-hire Days: |
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Scheduled Off-hire Days |
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(67) |
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(150) |
Other Off-hire Days |
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(99) |
(44) |
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Operating Days(1) |
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6,019 |
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5,956 |
Vessel Utilization |
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Operating Revenues (in '000s of US$) |
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Less: Voyage Expenses excluding commissions (in '000s of US$) |
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(488) |
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(415) |
Time Charter Equivalent Revenues (in '000s of US$) |
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232,923 |
243,159 |
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Time Charter Equivalent US$/per day |
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Drybulk vessels fleet utilization |
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Vessel Utilization (No. of Days) |
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First
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First
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2024 |
2023 |
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Ownership Days |
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637 |
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- |
Less Off-hire Days: |
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Scheduled Off-hire Days |
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(31) |
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- |
Other Off-hire Days |
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(10) |
- |
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Operating Days(1) |
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596 |
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- |
Vessel Utilization |
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Operating Revenues (in '000s of US$) |
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- |
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Less: Voyage Expenses excluding commissions (in '000s of US$) |
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(10,827) |
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- |
Time Charter Equivalent Revenues (in '000s of US$) |
|
9,211 |
- |
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Time Charter Equivalent US$/per day |
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- |
1. |
We define Operating Days as the total number of Ownership Days net of Scheduled off-hire days (days associated with scheduled repairs, drydockings or special or intermediate surveys or days) and net of off-hire days associated with unscheduled repairs or days waiting to find employment but including days our vessels were sailing for repositioning. The shipping industry uses Operating Days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes. Our definition of Operating Days may not be comparable to that used by other companies in the shipping industry. |
Fleet List
The following table describes in detail our container vessels deployment profile as of May 27, 2024:
Vessel Name |
Vessel Size
|
|
Year Built |
|
Expiration of Charter(2) |
Hyundai Ambition |
13,100 |
|
2012 |
|
April 2027 |
Hyundai Speed |
13,100 |
|
2012 |
|
April 2027 |
Hyundai Smart |
13,100 |
|
2012 |
|
June 2027 |
Kota Primrose (ex Hyundai Respect) |
13,100 |
|
2012 |
|
April 2027 |
Kota Peony (ex Hyundai Honour) |
13,100 |
|
2012 |
|
March 2027 |
Express |
10,100 |
|
2011 |
|
April 2027 |
Express |
10,100 |
|
2011 |
|
August 2026 |
Express |
10,100 |
|
2011 |
|
April 2027 |
Le Havre |
9,580 |
|
2006 |
|
June 2028 |
Pusan C |
9,580 |
|
2006 |
|
May 2028 |
|
9,012 |
|
2009 |
|
January 2028 |
C Hamburg |
9,012 |
|
2009 |
|
January 2028 |
Niledutch Lion |
8,626 |
|
2008 |
|
May 2026 |
Kota Manzanillo |
8,533 |
|
2005 |
|
February 2026 |
Belita |
8,533 |
|
2006 |
|
July 2026 |
CMA CGM Melisande |
8,530 |
|
2012 |
|
January 2028 |
CMA CGM Attila |
8,530 |
|
2011 |
|
May 2027 |
CMA CGM Tancredi |
8,530 |
|
2011 |
|
July 2027 |
CMA CGM Bianca |
8,530 |
|
2011 |
|
September 2027 |
CMA CGM Samson |
8,530 |
|
2011 |
|
November 2027 |
America |
8,468 |
|
2004 |
|
April 2028 |
|
8,468 |
|
2004 |
|
May 2028 |
Kota Santos |
8,463 |
|
2005 |
|
August 2026 |
Catherine C |
8,010 |
|
2024 |
|
May 2027 |
Interasia Accelerate |
7,165 |
|
2024 |
|
April 2027 |
CMA CGM Moliere |
6,500 |
|
2009 |
|
March 2027 |
CMA CGM Musset |
6,500 |
|
2010 |
|
September 2025 |
CMA CGM Nerval |
6,500 |
|
2010 |
|
November 2025 |
CMA CGM Rabelais |
6,500 |
|
2010 |
|
January 2026 |
|
6,500 |
|
2010 |
|
April 2026 |
YM Mandate |
6,500 |
|
2010 |
|
January 2028 |
YM Maturity |
6,500 |
|
2010 |
|
April 2028 |
Zim Savannah |
6,402 |
|
2002 |
|
May 2025 |
Dimitra C |
6,402 |
|
2002 |
|
February 2025 |
Suez Canal |
5,610 |
|
2002 |
|
April 2026 |
Kota |
5,544 |
|
2002 |
|
November 2024 |
Wide Alpha |
5,466 |
|
2014 |
|
May 2025 |
Stephanie C |
5,466 |
|
2014 |
|
June 2025 |
Maersk Euphrates |
5,466 |
|
2014 |
|
July 2025 |
Wide Hotel |
5,466 |
|
2015 |
|
July 2025 |
Wide |
5,466 |
|
2015 |
|
November 2025 |
Wide Juliet |
5,466 |
|
2015 |
|
September 2025 |
Seattle C |
4,253 |
|
2007 |
|
October 2026 |
|
4,253 |
|
2007 |
|
November 2026 |
Derby D |
4,253 |
|
2004 |
|
January 2027 |
Tongala |
4,253 |
|
2004 |
|
November 2024 |
Rio Grande |
4,253 |
|
2008 |
|
November 2026 |
Merve A |
4,253 |
|
2008 |
|
September 2025 |
|
4,253 |
|
2008 |
|
June 2025 |
|
4,253 |
|
2009 |
|
October 2024 |
|
4,253 |
|
2009 |
|
March 2026 |
ZIM |
4,253 |
|
2009 |
|
August 2025 |
Dimitris C |
3,430 |
|
2001 |
|
November 2025 |
Express Black Sea |
3,400 |
|
2011 |
|
January 2025 |
Express |
3,400 |
|
2011 |
|
January 2025 |
Express |
3,400 |
|
2010 |
|
September 2024 |
Express |
3,400 |
|
2010 |
|
June 2025 |
Express |
3,400 |
|
2010 |
|
September 2025 |
|
3,314 |
|
2004 |
|
March 2025 |
|
3,314 |
|
2004 |
|
January 2025 |
Zebra |
2,602 |
|
2001 |
|
November 2024 |
Artotina |
2,524 |
|
2001 |
|
May 2025 |
Advance |
2,200 |
|
1997 |
|
January 2025 |
Future |
2,200 |
|
1997 |
|
December 2024 |
Sprinter |
2,200 |
|
1997 |
|
December 2024 |
Bridge |
2,200 |
|
1998 |
|
December 2024 |
Progress C |
2,200 |
|
1998 |
|
November 2024 |
Phoenix D |
2,200 |
|
1997 |
|
March 2025 |
Highway |
2,200 |
|
1998 |
|
February 2025 |
| (1) | Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity. |
|
| (2) | Earliest date charters could expire. Some charters include options for the charterer to extend their terms. |
Container vessels under construction as of May 27, 2024:
|
||||||
Hull Number |
Vessel Size
|
|
Expected
|
|
|
Minimum Charter
|
Hull No. C7100-8 |
7,165 |
|
2024 |
|
|
3 Years |
Hull No. HN4010 |
8,010 |
|
2024 |
|
|
3 Years |
Hull No. HN4011 |
8,010 |
|
2024 |
|
|
3 Years |
Hull No. HN4012 |
8,010 |
|
2024 |
|
|
3 Years |
Hull No. CV5900-07 |
6,014 |
|
2024 |
|
|
2 Years |
Hull No. CV5900-08 |
6,014 |
|
2025 |
|
|
2 Years |
Hull No. YZJ2023-1556 |
8,258 |
|
2026 |
|
|
3 Years |
Hull No. YZJ2023-1557 |
8,258 |
|
2026 |
|
|
3 Years |
Hull No. YZJ2024-1612 |
8,258 |
|
2026 |
|
|
3 Years |
Hull No. YZJ2024-1613 |
8,258 |
|
2027 |
|
|
3 Years |
Hull No. YZJ2024-1625 |
8,258 |
|
2027 |
|
|
3 Years |
Hull No. YZJ2024-1626 |
8,258 |
|
2027 |
|
|
3 Years |
The following table describes the details of our Capesize drybulk vessels as of May 27, 2024:
|
||||||
Vessel Name |
Capacity
|
|
Year Built |
|
|
|
Achievement |
175,966 |
|
2011 |
|
|
|
Genius |
175,580 |
|
2012 |
|
|
|
Ingenuity |
176,022 |
|
2011 |
|
|
|
Integrity |
175,966 |
|
2010 |
|
|
|
Peace |
175,858 |
|
2010 |
|
|
|
W Trader |
175,879 |
|
2009 |
|
|
|
E Trader |
175,886 |
|
2009 |
|
|
|
Guo May (2) |
176,536 |
|
2011 |
|
|
|
Xin Hang (2) |
178,043 |
|
2010 |
|
|
|
Star Audrey (2) |
175,125 |
|
2011 |
|
|
|
| (1) | DWT, dead weight tons, the international standard measure for drybulk vessels capacity. |
|
| (2) | The vessels are expected to be delivered in June through July 2024. |
DANAOS CORPORATION
|
||||
|
|
Three months
|
|
Three months
|
March 31, |
March 31, |
|||
|
|
2024 |
|
2023 |
|
|
|
|
|
OPERATING REVENUES |
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
Vessel operating expenses |
(43,114) |
|
(40,639) |
|
Depreciation & amortization |
(39,315) |
|
(35,364) |
|
General & administrative |
(10,244) |
|
(6,845) |
|
Other operating expenses |
(20,342) |
|
(7,883) |
|
Gain on sale of vessels |
- |
|
1,639 |
Income From Operations |
140,434 |
|
154,482 |
|
OTHER INCOME/(EXPENSES) |
|
|
|
|
|
Interest income |
2,936 |
|
2,723 |
|
Interest expense |
(3,124) |
|
(6,722) |
|
Gain on investments |
11,911 |
- |
|
|
Other finance expenses |
(882) |
|
(976) |
|
Equity loss on investments |
(109) |
|
(2,588) |
|
Other income/(expenses), net |
235 |
|
175 |
|
Realized loss on derivatives |
(903) |
|
(893) |
Total Other Income/(Expenses), net |
10,064 |
|
(8,281) |
|
Net Income |
150,498 |
|
146,201 |
|
EARNINGS PER SHARE |
|
|
|
|
Basic earnings per share |
|
|
|
|
Diluted earnings per share |
|
|
|
|
Basic weighted average number of common shares (in thousands of shares) |
19,412 |
|
20,349 |
|
Diluted weighted average number of common shares (in thousands of shares) |
19,584 |
|
20,349 |
|
Non-GAAP Measures1
|
|||
|
Three months
|
|
Three months
|
March 31, |
March 31, |
||
|
2024 |
|
2023 |
Net Income |
|
|
|
Change in fair value of investments |
(10,979) |
|
- |
Gain on sale of vessels |
- |
|
(1,639) |
Amortization of financing fees, debt discount & finance fees accrued |
497 |
|
693 |
Adjusted Net Income |
|
|
|
Adjusted Earnings Per Share, diluted |
|
|
|
Diluted weighted average number of shares (in thousands of shares) |
19,584 |
|
20,349 |
1 The Company reports its financial results in accordance with
DANAOS CORPORATION
|
|||||
|
|
|
As of |
|
As of |
March 31, |
December 31, |
||||
|
|
|
2024 |
|
2023 |
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
|
|
|
|
Accounts receivable, net |
|
13,383 |
|
9,931 |
|
Other current assets |
|
225,422 |
|
220,030 |
|
|
|
563,131 |
|
501,770 |
NON-CURRENT ASSETS |
|
|
|
|
|
|
Fixed assets, net |
|
2,711,984 |
|
2,746,541 |
|
Advances for vessels acquisition and vessels under construction |
|
421,887 |
|
301,916 |
|
Deferred charges, net |
|
36,069 |
|
38,012 |
|
Other non-current assets |
|
76,679 |
|
72,897 |
|
|
|
3,246,619 |
|
3,159,366 |
TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Long-term debt, current portion |
|
|
|
|
|
Accounts payable, accrued liabilities & other current liabilities |
|
124,327 |
|
146,860 |
|
|
|
144,822 |
|
168,160 |
LONG-TERM LIABILITIES |
|
|
|
|
|
|
Long-term debt, net |
|
431,491 |
|
382,874 |
|
Other long-term liabilities |
|
83,547 |
|
93,785 |
|
|
|
515,038 |
|
476,659 |
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Common stock |
|
194 |
|
194 |
|
Additional paid-in capital |
|
687,634 |
|
690,190 |
|
Accumulated other comprehensive loss |
|
(74,813) |
|
(75,979) |
|
Retained earnings |
|
2,536,875 |
|
2,401,912 |
|
|
|
3,149,890 |
|
3,016,317 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
DANAOS CORPORATION
|
||||
|
Three months
|
|
Three months
|
|
March 31, |
March 31, |
|||
|
2024 |
|
2023 |
|
Operating Activities: |
|
|
|
|
Net income |
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization of right-of-use assets |
33,863 |
|
31,529 |
|
Amortization of deferred drydocking & special survey costs, finance cost, debt discount and other finance fees accrued |
5,949 |
|
4,528 |
|
Amortization of assumed time charters |
(3,498) |
|
(6,536) |
|
Prior service cost and periodic cost |
257 |
|
492 |
|
Gain on investments |
(10,979) |
|
- |
|
Gain on sale of vessels |
- |
|
(1,639) |
|
Payments for drydocking/special survey |
(4,169) |
|
(9,742) |
|
Amortization of deferred realized losses on cash flow interest rate swaps |
903 |
|
893 |
|
Equity loss on investments |
109 |
|
2,588 |
|
Stock based compensation |
1,576 |
|
- |
|
Accounts receivable |
(3,452) |
|
(1,939) |
|
Other assets, current and non-current |
11,887 |
|
(8,794) |
|
Accounts payable and accrued liabilities |
(6,228) |
|
(5,085) |
|
Other liabilities, current and long-term |
(23,424) |
|
(24,902) |
|
Net Cash provided by Operating Activities |
153,292 |
|
127,594 |
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
Vessel additions and advances for vessels under construction |
(124,127) |
|
(5,736) |
|
Proceeds and advances received from sale of vessels |
716 |
3,914 |
||
Investments |
- |
|
(4,263) |
|
Net Cash used in Investing Activities |
(123,411) |
|
(6,085) |
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
Proceeds from long-term debt, net |
55,000 |
|
- |
|
Debt repayment |
(6,875) |
|
(6,875) |
|
Payments of leaseback obligations |
- |
|
(6,629) |
|
Dividends paid |
(15,535) |
|
(15,262) |
|
Repurchase of common stock |
(4,129) |
|
(581) |
|
Finance costs |
(5,825) |
|
(250) |
|
Net Cash provided by/(used in) Financing Activities |
22,636 |
|
(29,597) |
|
Net increase in cash and cash equivalents |
52,517 |
|
91,912 |
|
Cash and cash equivalents, beginning of period |
271,809 |
|
267,668 |
|
Cash and cash equivalents, end of period |
|
|
|
|
DANAOS CORPORATION
|
|||||||
|
Three months
|
|
Three months
|
|
Last twelve
|
|
Last twelve
|
March 31, |
March 31, |
March 31, |
December 31, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net income |
|
|
|
|
|
|
|
Depreciation and amortization of right-of-use assets |
33,863 |
|
31,529 |
|
131,621 |
|
129,287 |
Amortization of deferred drydocking & special survey costs |
5,452 |
|
3,835 |
|
20,280 |
|
18,663 |
Amortization of assumed time charters |
(3,498) |
|
(6,536) |
|
(18,184) |
|
(21,222) |
Amortization of deferred finance costs, debt discount and commitment fees |
1,273 |
|
1,451 |
|
4,958 |
|
5,136 |
Amortization of deferred realized losses on interest rate swaps |
903 |
|
893 |
|
3,632 |
|
3,622 |
Interest income |
(2,936) |
|
(2,723) |
|
(12,346) |
|
(12,133) |
Interest expense |
2,627 |
|
6,029 |
|
14,860 |
|
18,262 |
Change in fair value of investments |
(10,979) |
|
- |
|
(28,846) |
|
(17,867) |
Stock based compensation |
- |
- |
6,340 |
6,340 |
|||
Loss on debt extinguishment |
- |
|
- |
|
2,254 |
|
2,254 |
Gain on sale of vessels |
- |
(1,639) |
- |
(1,639) |
|||
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
1) |
Adjusted EBITDA represents net income before interest income and expense, depreciation and amortization of right-of-use assets, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs, debt discount and commitment fees, amortization of deferred realized losses on interest rate swaps, change in fair value of investment, stock based compensation, loss on debt extinguishment and gain on sale of vessels. However, Adjusted EBITDA is not a recognized measurement under |
|
| Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income. |
The Company reports its financial results in accordance with |
|
DANAOS CORPORATION
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
||||||||||||
|
|
March 31, 2024 |
|
|
March 31, 2023 |
||||||||||||
|
|
Container
|
|
Drybulk
|
|
Other |
|
Total |
|
|
Container
|
|
Drybulk
|
|
Other |
|
Total |
Net income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
Depreciation and amortization of right-of-use assets |
|
32,008 |
|
1,855 |
|
- |
|
33,863 |
|
|
31,529 |
|
- |
|
- |
|
31,529 |
Amortization of deferred drydocking & special survey costs |
|
5,452 |
|
- |
|
- |
|
5,452 |
|
|
3,835 |
|
- |
|
- |
|
3,835 |
Amortization of assumed time charters |
|
(3,498) |
|
- |
|
- |
|
(3,498) |
|
|
(6,536) |
|
- |
|
- |
|
(6,536) |
Amortization of deferred finance costs, debt discount and commitment fees |
|
1,273 |
|
- |
|
- |
|
1,273 |
|
|
1,451 |
|
- |
|
- |
|
1,451 |
Amortization of deferred realized losses on interest rate swaps |
|
903 |
|
- |
|
- |
|
903 |
|
|
893 |
|
- |
|
- |
|
893 |
Interest income |
|
(2,936) |
|
- |
|
- |
|
(2,936) |
|
|
(2,723) |
|
- |
|
- |
|
(2,723) |
Interest expense |
|
2,627 |
|
- |
|
- |
|
2,627 |
|
|
6,029 |
|
- |
|
- |
|
6,029 |
Change in fair value of investments |
|
- |
|
- |
|
(10,979) |
|
(10,979) |
|
|
- |
|
- |
|
- |
|
- |
Gain on sale of vessels |
|
- |
|
- |
|
- |
|
- |
|
|
(1,639) |
|
- |
|
- |
|
(1,639) |
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
1) |
Adjusted EBITDA represents net income before interest income and expense, depreciation and amortization of right-of-use assets, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs, debt discount and commitment fees, amortization of deferred realized losses on interest rate swaps, change in fair value of investments and gain on sale of vessels. However, Adjusted EBITDA is not a recognized measurement under |
|
Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income. |
The Company reports its financial results in accordance with |
|
DANAOS CORPORATION
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
||||||||||||
|
|
March 31, 2024 |
|
|
March 31, 2023 |
||||||||||||
|
|
Container
|
|
Drybulk
|
|
Other |
|
Total |
|
|
Container
|
|
Drybulk
|
|
Other |
|
Total |
Net income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
Change in fair value of investments |
|
- |
|
- |
|
(10,979) |
|
(10,979) |
|
|
- |
|
- |
|
- |
|
- |
Amortization of financing fees & debt discount |
|
497 |
|
- |
|
- |
|
497 |
|
|
693 |
|
- |
|
- |
|
693 |
Gain on sale of vessels |
|
- |
|
- |
|
- |
|
- |
|
|
(1,639) |
|
- |
|
- |
|
(1,639) |
Adjusted Net income/(loss)(1) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
Adjusted Earnings per Share, diluted |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
- |
|
|
Diluted weighted average number of shares (in thousands of shares) |
|
19,584 |
|
|
|
|
20,349 |
||||||||||
1 The Company reports its financial results in accordance with
View source version on businesswire.com: https://www.businesswire.com/news/home/20240528636350/en/
Company Contact:
Evangelos Chatzis
Chief Financial Officer
Danaos Corporation
Tel.: +30 210 419 6480
E-Mail: cfo@danaos.com
Investor Relations and Financial Media
Rose & Company
Tel. 212-359-2228
E-Mail: danaos@rosecoglobal.com
Source: Danaos Corporation
FAQ
What were Danaos 's operating revenues for Q1 2024?
What is Danaos 's net income for Q1 2024?
How much did Danaos 's adjusted EBITDA decrease in Q1 2024?
What is the total liquidity of Danaos as of March 31, 2024?
What is the dividend declared by Danaos for Q1 2024?
What was the utilization rate for Danaos 's container vessels in Q1 2024?
How much did Danaos 's vessel operating expenses increase in Q1 2024?
What was Danaos 's adjusted net income for Q1 2024?
How much new financing did Danaos secure for newbuildings in Q1 2024?
What was the total contracted cash operating revenues for Danaos as of Q1 2024?
