Danaos(US:DAC)2025-08-05 10:06Financial Position - As of June 30, 2025, total debt amounted to $770.3 million, with senior unsecured notes at $262.8 million and various credit facilities totaling $507.5 million[94] - Stockholders' equity reached $3.6 billion, resulting in total capitalization of $4.4 billion[94] - As of June 30, 2025, total assets increased to $4,521,160, up from $4,343,654 as of December 31, 2024, representing a growth of approximately 4.1%[110] - Total current liabilities decreased to $150,718 as of June 30, 2025, from $168,954 as of December 31, 2024, a reduction of about 10.8%[110] - Danaos Corporation's total liabilities decreased from $1,691,000,000 as of December 31, 2024, to $1,668,000,000 as of June 30, 2025, indicating a reduction of about 1.4%[121] - As of June 30, 2025, total long-term debt net of current portion and deferred finance costs was $723.5 million, an increase from $699.6 million as of December 31, 2024[145] Revenue and Income - Operating revenues for the three months ended June 30, 2025, were $262,154, compared to $246,306 for the same period in 2024, reflecting an increase of about 6.0%[112] - For the six months ended June 30, 2025, the total revenue was $515.5 million, an increase from $499.8 million in the same period of 2024, representing a growth of approximately 3.5%[184] - Net income for the six months ended June 30, 2025, was $246,051, down from $291,650 in 2024, indicating a decrease of approximately 15.7%[112] - The net income for the three months ended June 30, 2025, was $130.9 million, compared to $141.2 million for the same period in 2024, indicating a decrease of about 7.5%[177] - The basic earnings per share for the six months ended June 30, 2025, was $13.27, down from $15.05 in the same period of 2024, reflecting a decline of approximately 11.8%[177] Cash Flow and Investments - Cash and cash equivalents increased to $546,164 as of June 30, 2025, from $453,384 as of December 31, 2024, marking an increase of approximately 20.5%[110] - The company generated net cash provided by operating activities of $296,639,000 for the six months ended June 30, 2025, compared to $307,567,000 for the same period in 2024[122] - The company reported a net cash used in investing activities of $135,610,000 for the six months ended June 30, 2025, compared to $331,216,000 in the same period of 2024, showing a reduction in cash outflow by approximately 59%[122] - The Company invested $4.3 million in Carbon Termination Technologies Corporation, acquiring a 49% ownership interest, and has provided an additional $2.1 million in loans for further development[132] Fleet and Charter Agreements - The charter rate for the vessel "Ambition" is $51,500 per day, contracted through April 2027[95] - The vessel "Stephanie C" has a charter rate of $55,500 per day, with a contract extending to September 2028[95] - The company has a fleet deployment profile that includes vessels with various charter rates and expiration dates, indicating a diversified revenue stream[95] - The company has contracted 16 new container vessels under construction, with delivery periods ranging from Q4 2025 to Q4 2028[98] - The gross charter rates for the new vessels range from $32,500 to $50,000, with most contracts having extension options of up to 24 months[98] - The company has a minimum charter duration of 4.8 years for several new vessels, ensuring long-term revenue stability[98] - As of June 30, 2025, the company had a total of 74 container vessels under time charter or bareboat charter agreements as of June 30, 2025, with terms extending to October 2031[172] Dividends and Stock Repurchase - A dividend of $0.85 per share was declared, payable on August 28, 2025[93] - The Company declared a dividend of $0.85 per share in February and June 2025, totaling $31.5 million, compared to $0.80 per share in 2024, totaling $31.0 million[166] - A share repurchase program totaling $300 million was announced, with 2,937,158 shares repurchased for $205.7 million as of June 30, 2025[167] Market and Economic Conditions - Elevated inflation and rising interest rates are impacting operating expenses moderately, with a potential increase in the cost of capital due to floating rate borrowings[90] - Forward-looking statements indicate potential risks including geopolitical conditions and changes in demand affecting charter rates and vessel values[104] Other Financial Metrics - The company incurred interest expense of $27.4 million in the six months ended June 30, 2025, with $9.3 million capitalized, compared to $18.7 million of interest expense in the same period of 2024[151] - The Company recognized a $17.2 million gain on marketable securities in the six months ended June 30, 2025, compared to a $13.2 million gain in the same period of 2024[143] - The fair value of marketable securities as of June 30, 2025, is $107.9 million, up from $60.9 million as of December 31, 2024[164] - The Company recognized $11.9 million of net insurance proceeds for the total loss of the vessel Stride, along with a gain on disposal of $8.3 million in the year ended December 31, 2024[136]