Danaos boosted third quarter revenue by 33 percent from a year ago as its fleet expanded but losses on interest rate swaps kept the Greek container shipowner in the red, the Journal of Commerce reported.
The NYSE-listed company’s operating revenue jumped to $126 million from $94.6 million in the third quarter of 2010, driven by a $26 million contribution from eight vessels, ranging from 3,400 20-foot equivalent units to 10,100 TEUs, that joined the fleet in the past year.
The net loss narrowed to $833,000 from $977,000 while adjusted profit grew to $17.6 million from $12.1 million a year earlier.
“This quarter we experienced one of the most sudden market drops in recent history due to the termination of a number of services, putting vessels, mostly panamax size, in the market either as liner relets or redeliveries,” said John Coustas, CEO of the Athens-based shipowner.
Danaos said it temporarily laid up one of its panamax vessels rather than charter it out at a rate that will not cover operating expenses.
Coustas said Danaos is in a strong position despite the market softening as 92 percent of its fleet is chartered through end-2012.
“The company is practically insulted from the effects of a soft charter market, having solid income visibility with limited downside on charter market risks,” Coustas said.
“On the positive side, the market deterioration has put the brakes on any further newbuilding discussions and in combination with the lending freeze by European banks this will be a limiting factor to the growth of the fleet that will offer favorable future market dynamics,” he said.
Coustas expects the charter market to remain flat until the Chinese New Year when a “moderate” recovery will get underway, driven by new liner services or the upgrading of services to achieve economies of scale.
Revenue in the first nine months grew to $339. 8 million from $259.2 million in the 2010 period while profit dropped to $4.4 million from $94.5 million and adjusted profit slipped to $45 million from $46.9 million.
Danaos operates 58 ships with a combined capacity of 282,619 TEUs, and will take delivery of seven new vessels of 82,560 TEUs by the end of 2012.
The NYSE-listed company’s operating revenue jumped to $126 million from $94.6 million in the third quarter of 2010, driven by a $26 million contribution from eight vessels, ranging from 3,400 20-foot equivalent units to 10,100 TEUs, that joined the fleet in the past year.
The net loss narrowed to $833,000 from $977,000 while adjusted profit grew to $17.6 million from $12.1 million a year earlier.
“This quarter we experienced one of the most sudden market drops in recent history due to the termination of a number of services, putting vessels, mostly panamax size, in the market either as liner relets or redeliveries,” said John Coustas, CEO of the Athens-based shipowner.
Danaos said it temporarily laid up one of its panamax vessels rather than charter it out at a rate that will not cover operating expenses.
Coustas said Danaos is in a strong position despite the market softening as 92 percent of its fleet is chartered through end-2012.
“The company is practically insulted from the effects of a soft charter market, having solid income visibility with limited downside on charter market risks,” Coustas said.
“On the positive side, the market deterioration has put the brakes on any further newbuilding discussions and in combination with the lending freeze by European banks this will be a limiting factor to the growth of the fleet that will offer favorable future market dynamics,” he said.
Coustas expects the charter market to remain flat until the Chinese New Year when a “moderate” recovery will get underway, driven by new liner services or the upgrading of services to achieve economies of scale.
Revenue in the first nine months grew to $339. 8 million from $259.2 million in the 2010 period while profit dropped to $4.4 million from $94.5 million and adjusted profit slipped to $45 million from $46.9 million.
Danaos operates 58 ships with a combined capacity of 282,619 TEUs, and will take delivery of seven new vessels of 82,560 TEUs by the end of 2012.