Danaos: “Signals of a visible recovery”

Danaos: “Signals of a visible recovery”

Danaos: “Signals of a visible recovery”

   Danaos Corp., an owner and charterer of containerships, said it had second quarter net profit of $15.9 million compared to $32.2 in the same 2009 period.
   The company’s operating revenue for the quarter was $79.1 million compared to $73.9 million in the prior year period.
   John Coustas, the company’s chief executive officer, said he saw some positive developments in the container shipping industry.
   “On the broader market front, we are still getting signals of a visible recovery based on volumes traded. Indeed, today there are certain routes where the vessels are once again running at capacity. This is a necessary preceding sign for any broader recovery in the sector. We believe that during the upcoming August-September peak season liner companies should be able to restore some pricing power on box rates, which will be important for both their financial outlook and the reduction of the risk premium that markets seem to assign to our industry today,” he said.
   The company said it added one newly built 4,253-TEU ship during the quarter, which immediately commenced its 12-year charter as planned.
   “During this quarter, we secured waivers or amendments running through at least January 2010, for all the covenant breaches we had in relation to certain of our loan facilities and we are currently in the process of securing extensions for up to a full year ahead of such waivers, wherever this may be required,” Coustas said.
   The company reduced its average daily operating cost per vessel by 2.5 percent on a quarterly basis compared to the second quarter of 2008, he said, and advanced “efforts to secure further bank financing in relation to our new building program.”