In This Article:
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Adjusted EPS: $6.93 per share for Q4 2024, compared to $6.99 per share for Q4 2023.
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Adjusted Net Income: $133.3 million for Q4 2024, compared to $136 million for Q4 2023.
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Adjusted EBITDA: Increased by 9.9% to $189.7 million for Q4 2024, from $172.6 million in Q4 2023.
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Vessel Operating Expenses: Increased to $45.6 million in Q4 2024 from $40.1 million in Q4 2023.
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Daily Operating Costs: $6,135 per vessel per day for Q4 2024, compared to $6,188 per vessel per day for Q4 2023.
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G&A Expenses: Decreased to $21.7 million in Q4 2024 from $22.4 million in Q4 2023.
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Interest Expense: Increased to $9.1 million in Q4 2024 from $3.1 million in Q4 2023.
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Interest Income: $3.9 million for Q4 2024.
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Contracted Revenue Backlog: Increased to $3.4 billion.
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Net Debt: $291 million as of December 31, 2024.
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Net Debt to Adjusted EBITDA Ratio: 0.4 times.
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Cash: $453.4 million as of the end of Q4 2024.
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Total Liquidity: $807 million, including availability under revolving credit facility and marketable securities.
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Share Repurchases: Total of $168.8 million executed out of the $200 million authority.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Danaos Corp (NYSE:DAC) has secured 97% contract coverage for 2025 and 79% for 2026, providing stability against market volatility.
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The company has a strong charter backlog of $3.4 billion, ensuring a steady income stream.
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Danaos Corp (NYSE:DAC) has arranged a new $850 million facility to finance all vessels on order, demonstrating strong financial management.
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The company continues to maintain competitive operating costs, with daily operating costs slightly improving compared to the previous year.
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Danaos Corp (NYSE:DAC) has increased its dividend and continued its share buyback program, reflecting confidence in its financial position and commitment to shareholder returns.
Negative Points
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The dry bulk market remains weak due to the slow recovery of the Chinese economy and the delivery of new tonnage.
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There is a $2.7 million decrease in adjusted net income compared to the previous year, attributed to increased operating and finance costs.
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Vessel operating expenses increased by $5.5 million due to a larger fleet size, impacting overall profitability.
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Interest expenses rose significantly due to higher average indebtedness, affecting net income.
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Box rates in the container charter market are weakening, which could impact future revenue if the trend continues.
Q & A Highlights
Q: Do you agree that Danaos Corp is on pace to achieve a net cash position in 2025, and do you prefer to maintain leverage or be in a net cash position? A: Evangelos Chatzis, CFO, stated that Danaos Corp has arranged a $150 million facility covering 60% of their new building program financing. The company is generating substantial cash and remains in a surplus position, which supports their newbuilding program. They are not aiming for a negative net cash position and are focused on maintaining financial flexibility.