Danaos Reports 25.5% Rise in Income
Danaos Corporation, one of the world's largest independent owners of containerships, has reported net income of $47.7 million for the three months ended June 30, 2016 compared to $38.0 million, for the three months ended June 30, 2015, an increase of 25.5% for the period ended June 30, 2016.
Adjusted net income of $94.9 million, or $0.86 per share, for the six months ended June 30, 2016 compared to $68.6 million, or $0.62 per share, for the six months ended June 30, 2015, an increase of 38.3%.
Operating revenues of $137.0 million for the three months ended June 30, 2016 compared to $141.5 million for the three months ended June 30, 2015, a decrease of 3.2%.
Operating revenues of $274.5 million for the six months ended June 30, 2016 compared to $280.1 million for the six months ended June 30, 2015, a decrease of 2.0%.
Total contracted operating revenues were $2.8 billion2 as of June 30, 2016, with charters extending through 2028 and remaining average contracted charter duration of 6.8 years, weighted by aggregate contracted charter hire.
Danaos’ CEO Dr. John Coustas commented: "The containership market continues to be extremely challenging but is now moving sideways, an indication that we have likely reached the bottom. The idle fleet now stands at approximately 6%, while global fleet utilization is hovering at around 75%. The charter market as well as asset values have fallen to historical lows as liner companies, in an effort to contain costs, are releasing surplus chartered-in capacity and seeking charter concessions and flexible hire periods from the vessel owners."
"We anticipate the market environment to remain unchanged for the remainder of the year, over which we will also start to experience the effect of the expanded Panama Canal which will shift demand from panamax to post-panamax vessels. We are cautiously optimistic that market fundamentals will gradually begin to improve by the spring of 2017," he added.
