Bruce Barnard, Special Correspondent | Jul 31, 2012 8:20AM EDT
Greek shipowner Danaos returned to the black in the second quarter, booking net income of $8.97 million, compared with a year earlier loss of $231,000, as it cut ship operating costs and added 10 vessels to its charter fleet over the past 12 months.
The NYSE-listed company boosted operating revenue to $146.7 million in the three months ending June 30 from $114.8 million, a 27.8 percent increase largely attributable to the charter income from its new vessels.
Adjusted net income edged up to $16.2 million from $16.1 million in the second quarter of 2011, while adjusted earnings before interest, tax, depreciation and amortization jumped 36.1 percent to $106.7 million from $78.4 million.
Athens-based Danaos completed its extensive ship construction program during the second quarter, taking delivery of three containerships with an aggregate capacity of 39,300 20-foot-equivalent units that have been deployed on 12-year charters.
“The container market experienced stagnation during the quarter and now, although demand for larger vessels in excess of 6,000 TEUs remains reasonable, we still have a standstill on smaller tonnage,” said Danaos CEO John Coustas.
“The good news is that capacity management in the liner sector resulted in a stability of box rates and this fact in combination with the significant reduction in fuel oil costs will drive companies solidly in the black for the second and third quarters,” he said.
Danaos’ fleet totals 64 ships of 363,400 TEUs, representing a 21 percent annual compound growth rate in cargo capacity since the company went public in 2006.
“Now, we will concentrate on the successful deployment of our fleet and the rapid deleveraging of the company,” Coustas said.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
