Danaos Corporation ("Danaos") (NYSE: DAC), a leading international owner of containerships, on Monday July 29 reported unaudited results for the period ended June 30, 2013.
Q2 and H1 highlights:
- Operating revenues of $146.6 million for the three months ended June 30, 2013 compared to $146.7 million for the three months ended June 30, 2012, a decrease of 0.1%. Operating revenues of $292.7 million for the six months ended June 30, 2013 compared to $280.9 million for the six months ended June 30, 2012, an increase of 4.2%.
- Adjusted EBITDA1 of $107.4 million for the three months ended June 30, 2013 compared to $106.7 million for the three months ended June 30, 2012, an increase of 0.7%. Adjusted EBITDA1 of $216.0 million for the six months ended June 30, 2013 compared to $203.2 million for the six months ended June 30, 2012, an increase of 6.3%.
- Adjusted net income of $11.8 million, or $0.11 per share, for the three months ended June 30, 2013 compared to $16.2 million, or $0.15 per share, for the three months ended June 30, 2012. Adjusted net income1 of $25.7 million, or $0.23 per share, for the six months ended June 30, 2013 compared to $33.1 million, or $0.30 per share, for the six months ended June 30, 2012.
- The remaining average charter duration of the Company's fleet was 9.3 years as of June 30, 2013 (weighted by aggregate contracted charter hire).
- Total contracted operating revenues were $4.6 billion as of June 30, 2013, through 2028.
- Charter coverage of 88% for the next 12 months in terms of contracted operating days and 97% in terms of operating revenues.
Danaos' CEO Dr. John Coustas commented:
"Despite the ongoing challenging state of the containership market we are reporting yet another solid quarter with adjusted net income at $11.8 mil., or 11 cents per share and adjusted EBITDA of $107.4 million for the 2nd quarter of the year. Our adjusted net income was lower by $4.4 million when compared to the 2nd quarter of 2012 as a result of the softening of the charter market between the 2 periods. However, as the vessels that have been re-chartered at the current low rates deployed under short-term charters are currently running at operating break-even levels, an improvement in the charter market is a one-way option to the improvement of our results."
"Effectively, over the next 12 months 97% of revenues are contracted with only 3% at stake through re-chartering. We currently have 2 vessels on cold lay-up compared to 7 vessels laid up in the beginning of the year. As previously reported, we are executing a fleet modernization program based on which during the 1st half of the year we have sold 5 of our older vessels with an average age of 25 years for $32.8 million, while we have already utilized $17.9 mil. of these sales proceeds for the purchase of 2 x 2,500 TEU geared containerships with an average age of 13.4 years. These 2 new vessels have already been chartered for 1 year and operate in niche markets."
Charter coverage of 88% for the next 12 months in terms of contracted operating days and 97% in terms of operating revenues.