Danaos, the Greek containership owner, reported a sharply lower second quarter loss compared to the same period a year ago, as charter revenue surged 35 percent within the same period, Journal of Commerce reports.The NYSE-listed company booked a net loss of $231,000 against a $14.7 million loss in the second quarter of 2010. It grew revenue by $29.9 million to $114.8 million as it added 10 ships to its fleet.
The Athens-based company, which has 56 ships and a further nine on order, blamed losses on interest rate swaps and higher loan expenses for remaining in the red.
Stripping out these items, net income totaled $16.1 million in the second quarter against $17.2 million a year ago, and adjusted earnings before interest, taxes, depreciation and amortization increased to $78.4 million from $59.4 million.
“During the quarter we saw continuing erosion of the box rates, which in the end affected also the charter rates and some weakening was experienced due to charterers subletting vessels and the suspension of a number of Transpacific and Far East-Europe services,” said CEO John Coustas.
“In terms of financial results, we see a steady increase quarter on quarter in our net income as the new ships come on stream despite the one off items which still drag down our performance.”
The Athens-based company, which has 56 ships and a further nine on order, blamed losses on interest rate swaps and higher loan expenses for remaining in the red.
Stripping out these items, net income totaled $16.1 million in the second quarter against $17.2 million a year ago, and adjusted earnings before interest, taxes, depreciation and amortization increased to $78.4 million from $59.4 million.
“During the quarter we saw continuing erosion of the box rates, which in the end affected also the charter rates and some weakening was experienced due to charterers subletting vessels and the suspension of a number of Transpacific and Far East-Europe services,” said CEO John Coustas.
“In terms of financial results, we see a steady increase quarter on quarter in our net income as the new ships come on stream despite the one off items which still drag down our performance.”