Q2 2024 Danaos Corp Earnings Call Transcript
Key Points
- Danaos Corp (DAC) secured charter extensions for several existing ships, enhancing revenue visibility.
- The company extended its newbuilding program to a total of 20 vessels, with three delivered in the second quarter.
- Total contracted cash operating revenues reached $3.2 billion, with high charter coverage of 99% for 2024 and 80% for 2025.
- Revenues from the dry bulk sector have been steadily increasing, contributing to revenue diversification.
- Danaos Corp (DAC) maintains a strong balance sheet with low net debt and significant liquidity, providing financial flexibility.
- Adjusted EPS for Q2 2024 decreased to $6.78 per share from $7.14 per share in Q2 2023.
- Total operating expenses increased by $19.9 million, primarily due to voyage costs related to the Capesize fleet.
- Vessel operating expenses rose by $5.2 million due to an increase in the average number of vessels in the fleet.
- G&A expenses increased by $4.1 million, mainly due to higher stock-based noncash costs.
- Interest expense increased by $1.2 million due to higher average indebtedness and increased cost of debt service.
Good day and welcome to the Danaos Corporation Conference Call to discuss the Financial Results for the three months ended in June 30 2024. As a reminder, today's call is being recorded.
Hosting the call today is Dr. John Coustas, Chief Executive Officer of Danaos Corporation; and Mr. Evangelos Chatzis, Chief Financial Officer of Danaos Corporation. Dr. Coustas and Mr. Chatzis will be making some introductory comments and then we will open the call to a question-and-answer session.
Thank you, operator, and good morning to everyone, and thank you for joining today's call. Before we begin, I quickly want to remind everyone that management's remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today. These forward-looking statements are made as of today, and we undertake no obligation to update them.
Factors that might affect future results are discussed in our filings
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