Danaos first half profit up 17pc to US$34.3 million as revenue flattens
MAJOR Greek containership owner Danaos Corporation's first half net profit increased 17
MAJOR Greek containership owner Danaos Corporation's first half net profit increased 17.4 per cent year on year to US$34.3 million, drawn on revenues of $112.3 million, down 0.97 per cent.
'Our total contracted revenues as of June 30 were $1.5 billion, and we maintain our high charter contract coverage of 87 per cent in terms of operating revenues and 71 per cent in terms of operating days over the next 12 months,' said CEO John Coustas.
'Profit improvement was primarily the result of a $4.4 million decrease in net finance expenses and a $2 million decrease in total operating costs, partially offset by a $1.1 million decrease in operating revenues mainly due to the re-chartering of certain of our vessels that concluded long-term charters,' said Dr Coustas.
'The charter market for 5,500-TEU+ vessels remained strong over the last three months, and the market for panamax vessels is improving due to the lack of availability of larger vessels.
'Rates on smaller vessels remain stable albeit at relatively low levels. We anticipate that the implementation of IMO 2020 sulphur emissions regulations will result in a healthy charter market for the larger vessels through 2020 due to downtime related to scrubber retrofits and reduced sailing speeds that a high fuel price environment are expected to bring about,' he said.
'Escalations in trade tensions between the US and China persist, and uncertainty on the outcome and the impact on trade flows has discouraged market participants from placing new building orders.
'Collectively, these factors are expected to result in positive vessel supply side effects, which should support the strengthening of the charter market going forward,' Dr Coustas said.