Danaos announced its financial results for the second quarter and the first half of the year, which ended on 30 June 2022.
The company’s adjusted net income was US$157.1 million for the second quarter compared to US$68.9 million in the same period last year, an increase of 128%. For the first half of the year, adjusted net income was US$392.4 million, an increase of 209.2%, compared to US$126.9 million a year earlier.
“Danaos business model continued to generate strong results in the second quarter, more than doubling our adjusted net income compared with a year ago. Given our fixed charter coverage over the next 12 months, we expect these metrics to improve further. At the same time, however, we are closely following macroeconomic conditions and the potential impacts to our industry,” commented Danaos’ CEO, Dr. John Coustas.
Furthermore, the company’s operating revenues reached US$250.9 million for the second quarter, compared to US$146.4 million in the same period last year, while operating revenues for the first six months of 2022 increased to US$480.8 million from US$278.5 million in the same period in 2021.
Coustas said, “The company is very well positioned with a strong liquidity position and a balance sheet that can sustain a severe deterioration of economic conditions. This is reflected in the upgrades by both S&P and Moody’s to the highest level among public shipping companies, validating our efforts to create a leader in our sector.”
During the second quarter of 2022, Danaos prepaid US$434.1 million of debt and lease indebtedness and realised a US$22.9 million gain related to this debt extinguishment.
“We are also insulated from rising interest rates as we have reduced our floating rate debt to a level nearly equal to our cash and marketable securities. We will continue to use our balance sheet opportunistically, with a continued focus on state-of-the-art newbuildings with environmental profiles desired by our liner customers which also gives us great confidence about the future of our already ordered six methanol-ready green newbuildings,” added Coustas.
“We are also continuing to return value to our shareholders through our dividend and our share buyback program, which we have used to reduce our number of outstanding shares by approximately two percent,” he concluded.
