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Danaos Corp said it had first quarter net earnings of $31.5 million, compared to $23.9 million in the same 2007 period.
The Athens-based company listed on the New York Stock Exchange that owns and charters out container ships, said operating revenues from continuing operations were $69.9 million for the quarter compared to $62 million in the same 2007 period.
John Coustas, Danaos chief executive officer, said, During the first quarter of 2008, the containership market marginally improved due to continued demand in the Far East/Europe and Middle East/India/Far East trades, which counterbalanced a decline in the rate of growth in the transpacific trades, although the increase was lower than the first quarter of 2007.
The lack of available vessels for new charters, especially in the 3,000-TEU and above sizes, explains our success in rechartering our older vessels, he said. The weakness in the U.S. housing market, which contributed to slow growth in the transatlantic and transpacific trades is likely to persist throughout 2008. However, vessel demand keeps strong due to the slow steaming that is increasingly becoming a practice due to the sustainable high oil prices."
In our industry asset backed borrowing and long charters have supported further extension of loans by the credit institutions despite the overall market turmoil. During the first quarter we secured a further $560 million in long-term debt at very competitive terms, he said.
Vessel prices during the first quarter of 2008 have further strengthened as a result of strong new building demand for large containerships, significant increases in commodity prices and further dollar weakness. The slow-down of the U.S. economy will likely have a spillover effect triggering some caution in the ordering of additional containerships," he said.
Danaos has a fleet of 38 containerships aggregating 149,718 TEUs, It has contracted for 34 additional containerships aggregating 243,468 TEUs with scheduled deliveries up to 2011.
Source: American Shipper
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