Major box ship lessor Danaos Q1 profit soars 37.9pc, revenues up 0.9pc
ATHENS based Danaos Corporation, one of the world's largest independent owners of containerships, posted a 37
ATHENS based Danaos Corporation, one of the world's largest independent owners of containerships, posted a 37.9 per cent year-on-year first quarter net profit increase to US$38.6 million drawn on operating revenues of $112.9 million, up 0.9 per cent.
Total contracted operating revenues were $1.5 billion as of March 31, 2019, with charters extending through 2028 and remaining average contracted charter duration of 4.7 years, weighted by aggregate contracted charter hire.
Charter coverage of 86 per cent for the next 12 months based on current operating revenues and 71 per cent in terms of contracted operating days. Concluded sale and leaseback transactions for two 13,100-TEU containerships on April 12, resulting in net proceeds of $144.8 million, which were used to repay credit facilities secured by mortgages on the vessels.
'The charter market for vessels over 5,500 TEU has seen significant improvement when compared to the recent lows of the fourth quarter of 2018,' said Danaos CEO John Coustas.
'In general, the charter market for larger vessels has improved considerably, which is notable as more than 70 per cent of our fleet in terms of capacity, is comprised of such vessels. Vessels below 5,500 TEU have also improved slightly since last November's downturn.
'We have recently concluded our first scrubber installation on a vessel owned by Gemini Shipholdings Corporation, in which Danaos has a 49 per cent, and will install scrubbers nine more wholly-owned vessels and one owned by Gemini,' Dr Coustas said.
During the quarter, Danaos had an average of 55 containerships. Our fleet utilisation for the three months ended March 31 was 98.2 per cent compared to 95.6 per cent for the three months in the prior year.