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Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2025
DanaosDanaos(US:DAC) Prnewswireยท2025-05-13 20:30

Core Viewpoint - Danaos Corporation reported strong financial performance for Q1 2025, with total operating revenues of $253.3 million, slightly down from $253.4 million in Q1 2024, while net income decreased to $115.1 million from $150.5 million in the same period last year [2][20][21]. Financial Summary - Operating revenues for container vessels increased by 1.2% to $236.2 million, driven by newbuilding additions, while dry bulk vessel revenues decreased by 14.5% to $17.1 million due to lower charter rates and utilization [21][23]. - Adjusted net income for Q1 2025 was $113.4 million, or $6.04 per diluted share, compared to $140.0 million, or $7.15 per diluted share in Q1 2024 [15][20]. - Adjusted EBITDA decreased by 3.1% to $171.7 million from $177.2 million year-over-year, attributed to increased operating expenses and finance costs [42]. Operational Metrics - The average number of container vessels increased to 73.7 in Q1 2025 from 68.0 in Q1 2024, with fleet utilization for container vessels at 97.2% compared to 97.3% in the previous year [14]. - Dry bulk vessel utilization decreased to 92.4% from 93.6% year-over-year [14]. Recent Developments - The company secured a syndicated loan facility of up to $850 million to finance newbuilding container vessels scheduled for delivery from 2026 to 2028 [11]. - Danaos has a backlog of contracted revenues totaling $3.7 billion, with a charter coverage of 99% for 2025 and 85% for 2026 [10][11]. - A dividend of $0.85 per share was declared for Q1 2025, payable on June 5, 2025 [44]. Market Insights - The dry bulk market has shown modest recovery, but significant growth is contingent on further initiatives in China [9]. - The company is currently focusing on optimizing its existing fleet performance rather than new vessel investments [13]. Environmental Regulations - Proposed IMO regulations on greenhouse gas emissions are seen as insufficient to drive meaningful progress in decarbonization, with limited incentives for using expensive green fuels [11][12].