JOC Staff | Feb 12, 2013 9:21AM EST
Danaos booked a $129.6 million impairment loss on 13 older container ships which are laid-up or on short term charter in the fourth quarter of 2012, but the Greek shipowner closed the year with sharply higher operating revenues.
The NYSE-listed company’s revenues grew 18.3 percent from the year earlier quarter to $151.8 million as it added six ships to its fleet, but the impairment charge resulted in a $116.5 million net loss, compared with a $9 million profit in the final three months of 2011.
Adjusted earnings before interest, tax, depreciation and amortization rose 26.6 percent to $112.4 million, but adjusted net income dipped to $11.7 million from $16.1 million as ships that were breaking even during the quarter were operating profitably a year ago.
Danaos had seven ships in “cold” lay-up in the fourth quarter and six on short-term charters expiring in 2013.
Supply exceeded demand by almost 3 percent in 2012, and “although there are signs that this disparity may be somewhat moderated in the coming quarters, we still expect supply to outpace demand in 2013,” Danaos CEO John Coustas said.
Almost 85 percent of idle capacity, which accounts for around 5 percent of the world fleet, is now charter-owned tonnage, Coustas noted
Danaos is “currently investigating ... selective acquisitions within 2013 to renew part of our older fleet,” he said.
Full-year revenue rose 25.8 percent to $589 million, and there was a loss of $105.2 million, compared with a $13.4 million profit in 2011.
Adjusted earnings were 35.5 percent higher at $431.7 million, and adjusted net income slipped slightly to $60.4 million from $61.2 million.
Athens-based Danaos has a fleet of 64 container ships with average remaining charter duration of 9.7 years as of December 31.