GREEK containership owner Danaos Corporation posted a 165.8 per cent year-on-year increase in adjusted net profit in 2015 to US$159.5 million, drawn on revenues of $567.9 million, which increased 2.9 per cent.
Danaos 2015 adjusted profit increases 165.8pc to US$47.2 millionGREEK containership owner Danaos Corporation posted a 165.8 per cent year-on-year increase in adjusted net profit in 2015 to US$159.5 million, drawn on revenues of $567.9 million, which increased 2.9 per cent.
Fourth quarter net income was mainly adjusted for an impairment loss of $41.1 million in relation to 12 older vessels in its fleet and one vessel held for sale as of December 31.
The significant increase in earnings was attributed to an improvement of $78.7 million in net finance costs due to interest rate swap expirations and lower debt balances, a $14.3 million improvement in EBITDA, and a $5.8 million decrease in depreciation and amortisation, a company statement said.
Commenting on the container shipping market, Danaos CEO John Coustas said: "The idle fleet is now edging above seven per cent, reflecting the efforts of the industry to manage overcapacity.
"Newbuilding orders have also come to a halt, TEU newbuilding capacity scheduled to be delivered in 2016 is expected to be lower than 2015, while scrapping activity, which was rather low in 2015, is to accelerate in 2016.
"As a result, we expect that fleet growth will be in the region of five per cent for 2016, which will help to correct the current imbalance," he said.
"A more balanced demand-supply relationship for 2016 should keep the market flat for the next year until excess TEU capacity starts being absorbed in 2017, when the container market fundamentals are expected to begin to improve," he said.
