Danaos reported its net income in the second quarter of 2013 was $19.5 million, jumping 117.9 percent from $9.0 million in the second quarter of 2012.
Quarterly revenue for the Greek container ship owner was $146.6 million, basically flat compared with the same period last year.
Despite the “ongoing challenging state” of the container ship market, Danaos reported “yet another solid quarter,” said John Coustas, CEO of Danaos, in a written statement. He noted that over the next 12 months, 97 percent of revenue has been contracted, with only 3 percent at stake through re-chartering. Coustas also mentioned that the company sold five older vessels in the first half of the year, realizing $32.8 million, which was partially used to buy two 2,500-TEU container ships with an average age of 13.4 years.
From January to June, profit spiked 80.1 percent, reaching $33.0 million in 2013, from $18.3 million in 2012. In the first six months of 2013, revenue was $292.7 million, up 4.2 percent from $280.9 million.
“On the market front, the situation is stagnant, while the liner companies are struggling to absorb the influx of the mega container ships amidst a weak demand environment in the main lane trades, particularly in the Europe-Far East trade, with [gross domestic product] in the eurozone expected to marginally contract in 2013 and the growth figures in China not being as robust as initially anticipated,” Coustas said. “The U.S. economy seems to be rebounding, but this is not in itself enough to drive a market improvement. The peripheral trades are doing much better and at the moment this is the only bright side of the market.”