Latest news with #DanaosCorp
Yahoo
4 days ago
- Business
- Yahoo
Danaos Corp (DAC) Q2 2025 Earnings Call Highlights: Strategic Growth Amid Market Challenges
Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Danaos Corp (NYSE:DAC) has added approximately $113 million to its contracted revenue backlog, increasing its total contracted revenue base to $3.6 billion. The company maintains a strong charter coverage with 99% for 2025 and 88% for 2026, providing significant insulation from market fluctuations. Danaos Corp (NYSE:DAC) has a strong balance sheet with minimal leverage, allowing for strategic capital allocation and long-term success. The company has declared a dividend of $0.85 per share and has $94.3 million remaining authority for stock repurchases under its $300 million share repurchase program. Danaos Corp (NYSE:DAC) has secured a new vessel on a 5-year charter, ensuring visibility and attractive returns. Negative Points Adjusted EPS for the quarter decreased to $6.36 per share from $6.78 per share in the same quarter of 2024, reflecting a decline in adjusted net income. Total operating costs increased by $24.7 million, primarily due to an increase in the average number of vessels in the fleet. There was a $3.6 million increase in net finance costs and a $2.7 million decrease in dividend income from investments. Revenues in the container segment decreased by $8.2 million due to lower contracted charter rates. Interest expenses increased by $4.3 million due to higher average indebtedness, despite a reduction in the cost of debt service. Q & A Highlights Warning! GuruFocus has detected 6 Warning Sign with META. Q: Can you provide an update on the charter market and the demand for your vessels, particularly regarding the ships rolling off charter soon? A: (CEO, Dr. John Gusta) The market is stable with demand for all ships. Many ships have options, so there's limited action we can take. Most ships for this year are already fixed, with minimal activity for next year. We see interest in newer ships for 2027 delivery, and we don't expect significant changes in the market for the second half of 2025. Q: How are you approaching capital allocation, especially regarding the share buyback program? A: (CEO, Dr. John Gusta) We paused the buyback as the stock appreciated significantly, which could have driven the price up too much. We are cautious about chasing the market upwards, especially with potential corrections in the broader stock market that could affect shipping companies. Q: With the increase in operating costs due to more ships, is this a new run rate, or should we expect a return to prior averages? A: (CFO, Mr. Evangelos Hazis) The increase is circumstantial due to bulk orders in the second quarter, and we expect it to normalize as we progress through the year. Q: What are your expectations for feeder ships, and how do you see the lower order book impacting the market? A: (CEO, Dr. John Gusta) A shortage of ships can provide a tailwind, but long-term contracts for feeders are hard to secure without low rates. With increased fuel costs, there is a trend towards upsizing services for economies of scale, which could reduce demand for feeders. Q: How did you manage to secure a prompt delivery for your recent new build scheduled for 2027? A: (CEO, Dr. John Gusta) It was due to our relationship with the shipyard. They adjusted their schedule, and we were the first approached for the available berth, allowing us to quickly conclude a new contract and charter the vessel. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
San Francisco Chronicle
6 days ago
- Business
- San Francisco Chronicle
Danaos: Q2 Earnings Snapshot
ATHENS, Greece (AP) — ATHENS, Greece (AP) — Danaos Corp. (DAC) on Monday reported net income of $130.9 million in its second quarter. The Athens, Greece-based company said it had net income of $7.12 per share. Earnings, adjusted for non-recurring gains, were $6.36 per share. The shipping company posted revenue of $262.2 million in the period. Its adjusted revenue was $239 million.
Yahoo
15-05-2025
- Business
- Yahoo
Danaos Corp (DAC) Q1 2025 Earnings Call Highlights: Navigating Market Challenges with Strategic ...
Adjusted EPS: $6.04 per share for Q1 2025, down from $7.15 per share in Q1 2024. Adjusted Net Income: $113.4 million for Q1 2025, compared to $140 million in Q1 2024. Total Operating Costs: Increased by $19.8 million due to a larger fleet. Incremental Operating Revenues: $30.1 million increase, offset by decreases in other segments. Vessel Operating Expenses: Increased to $51.7 million from $43.1 million in Q1 2024. Daily Operating Costs: Increased to just above $7,000 per vessel per day from $6,500 in Q1 2024. G&A Expenses: Increased by $2 million to $12.2 million. Interest Expense: Increased by $6.6 million to $9.2 million. Adjusted EBITDA: Decreased by 3.1% to $171.7 million from $177.2 million in Q1 2024. Contracted Revenue Backlog: Increased to $3.7 billion with a 3.9-year average charter duration. Net Debt: Stood at $299 million as of March 31, 2025. Net Debt to Adjusted EBITDA Ratio: 0.4 times at the end of Q1 2025. Dividend: Declared at $0.85 per share for the quarter. Stock Repurchase: Additional $36.9 million repurchased, total program upsized to $300 million. Cash and Total Liquidity: Cash at $480 million, total liquidity at $825 million. Warning! GuruFocus has detected 4 Warning Signs with SPRY. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Danaos Corp (NYSE:DAC) has secured a strong charter coverage for 2025 and 2026, effectively insulating itself from near-term market weakness. The company has a significant growth backlog with 15 container vessels scheduled for delivery over the next three years, all backed by solid and profitable charter arrangements. Danaos Corp (NYSE:DAC) has added more than $50 billion to its contracted revenue backlog, which now stands at $3.7 billion with a 3.9-year average charter duration. The company maintains a strong liquidity position with $480 million in cash and total liquidity of $825 million, providing flexibility for capital deployment opportunities. Danaos Corp (NYSE:DAC) continues to repurchase its stock, with a recent upsizing of its buyback program to $300 million, demonstrating a commitment to delivering superior returns to shareholders. Danaos Corp (NYSE:DAC) experienced a $26.6 million decrease in adjusted net income compared to the first quarter of 2024, primarily due to increased operating costs and lower charter rates. The company faced a $19.8 million increase in total operating costs, mainly due to the increase in the average number of vessels in its fleet. Revenues from the container segment decreased by $9.4 million due to lower contracted charter rates. Vessel operating expenses increased by $8.6 million, and daily operating costs rose to just above $7,000 per vessel per day. The proposed IMO regulation on greenhouse gas emissions falls short of industry expectations, providing limited incentive for the use of expensive green fuels, which creates uncertainty about future fuel choices. Q: With the current market headwinds, what is Danaos Corp's strategy regarding new vessel investments and fleet optimization? A: Dr. John Coustas, CEO, stated that the company is focusing on optimizing the performance of its existing fleet by investing in energy-saving devices. This includes upgrading vessels with bulbous bows, propellers, and low-friction paints to enhance competitiveness. The company is cautious about new vessel investments due to expensive new buildings and unclear future fuel options. Q: Given the recent rise in stock price, will Danaos Corp continue its stock buyback program? A: Dr. John Coustas, CEO, mentioned that while they have $100 million authorized for buybacks, they do not set specific target levels or timelines for execution. The decision to buy back shares will depend on market conditions. Q: What motivated Danaos Corp to increase its stake in Starbuck by 2 million shares? A: Dr. John Coustas, CEO, explained that the investment was seen as a strategic opportunity. Evangelos Chatzis, CFO, added that the shares were acquired at a compelling price, reducing the company's average cost, which was the main incentive for the purchase. Q: How is Danaos Corp managing its financial performance amidst lower charter rates and increased operating costs? A: Evangelos Chatzis, CFO, reported a decrease in adjusted EPS and net income due to increased operating costs and lower charter rates. However, the company has a strong contracted revenue backlog of $3.7 billion, providing stability and future earnings potential. Q: What is Danaos Corp's outlook on the regulatory environment, particularly regarding greenhouse gas emissions? A: Dr. John Coustas, CEO, expressed disappointment with the proposed IMO regulation on greenhouse gas emissions, noting it falls short of industry expectations and lacks incentives for using green fuels. The company is holding off on new vessel investments until there is more clarity on future fuel options. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Danaos: Q1 Earnings Snapshot
ATHENS, Greece (AP) — ATHENS, Greece (AP) — Danaos Corp. (DAC) on Tuesday reported net income of $115.1 million in its first quarter. The Athens, Greece-based company said it had net income of $6.13 per share. Earnings, adjusted for non-recurring gains, were $6.04 per share. The shipping company posted revenue of $253.3 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on DAC at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Danaos: Q1 Earnings Snapshot
ATHENS, Greece (AP) — ATHENS, Greece (AP) — Danaos Corp. (DAC) on Tuesday reported net income of $115.1 million in its first quarter. The Athens, Greece-based company said it had net income of $6.13 per share. Earnings, adjusted for non-recurring gains, were $6.04 per share. The shipping company posted revenue of $253.3 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on DAC at
