Danaos(US:DAC)2025-02-11 15:19Financial Data and Key Metrics Changes - The company reported adjusted EPS for Q4 2024 of $6.93 per share, down from $6.99 per share in Q4 2023, resulting in an adjusted income decrease from $136 million to $133.3 million [13] - Adjusted EBITDA increased by 9.9% to $189.7 million in Q4 2024 compared to $172.6 million in Q4 2023 [16] - Total operating expenses increased by $11 million, primarily due to voyage costs related to the dry bulk Capesize fleet [14] Business Line Data and Key Metrics Changes - Vessel operating expenses rose to $45.6 million in Q4 2024 from $40.1 million in Q4 2023, attributed to an increase in the average number of vessels [14] - Daily operating costs improved slightly to $6,135 per vessel per day from $6,188 per vessel in Q4 2023 [14] Market Data and Key Metrics Changes - The dry bulk market continues to struggle due to the slow recovery of the Chinese economy, while the container charter market remains healthy despite weakening box rates [7][8] - The company has a chartered backlog of $3.4 billion, with 97% coverage for 2025 and 79% for 2026 [11][17] Company Strategy and Development Direction - The strategic focus is on maintaining a robust financial position, securing long-term contracts, and investing in modern fuel-efficient vessels [12] - The company has arranged an $850 million facility to finance all new building vessels, indicating a commitment to growth despite market uncertainties [11][18] Management's Comments on Operating Environment and Future Outlook - Management noted that near-term predictions about shipping markets are unreliable due to ongoing tariff wars and economic slowdowns [6][7] - The company remains insulated from near-term market volatility with significant charter coverage and a strong balance sheet [10][11] Other Important Information - The company has repurchased $168.8 million of stock out of a $200 million authority provided by the board [20][21] - As of the end of Q4 2024, cash stood at $453.4 million, with total liquidity at $807 million [21] Q&A Session Summary Question: Free cash flow generation and net cash position - The company generated $30 per share in free cash flow in 2024 and is on pace to achieve a net cash position in 2025 [26][27] Question: Dry bulk fleet utilization and dry dockings - All dry bulk vessels have completed dry docking in the last six months, with no further dry dockings planned for the next two to three years [35][36] Question: Appetite for additional vessels - The company is focusing on Capesize vessels and is open to increasing its presence in the sector if prices are attractive [38] Question: Confidence in new building orders - Confidence in new building orders stems from the need for more fuel-efficient ships and secured financing [42] Question: Current share count post-repurchase - The current share count is just below 19 million shares, approximately 18.8 to 18.9 million [47]