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Dec 31, 2024
Danaos Q4 2024 Earnings Report
Danaos Corporation reported a decrease in net income and diluted EPS for Q4 2024 compared to Q4 2023, despite an increase in operating revenues.
Key Takeaways
Danaos Corporation's Q4 2024 results show a mixed performance with operating revenues increasing by 3.6% to $258.2 million, but net income decreasing to $90.4 million from $149.9 million in Q4 2023. Diluted EPS also fell to $4.70 from $7.70 in the prior year period. The decrease in net income was primarily due to increased operating expenses and a significant loss on marketable securities, partially offset by higher operating revenues.
Operating revenues increased by 3.6% to $258.2 million in Q4 2024, driven by additions of dry bulk vessels to the fleet.
Net income decreased significantly to $90.4 million in Q4 2024 from $149.9 million in Q4 2023, primarily due to a $35.6 million loss on marketable securities.
Diluted earnings per share decreased to $4.70 in Q4 2024 from $7.70 in Q4 2023.
Adjusted EBITDA increased by 9.9% to $189.7 million in Q4 2024, reflecting improved underlying operating performance despite the net income decline.
Danaos
Danaos
Danaos Revenue by Segment
Revenue by Segment
Container Vessels Revenue
CapyFin.comDrybulk Vessels Revenue
CapyFin.com Forward Guidance
Danaos Corporation anticipates continued market uncertainty but remains insulated by strong charter coverage and a robust balance sheet, allowing for strategic investments and shareholder returns.
Positive Outlook
- Secured multi-year charter arrangements for 13 of 15 newbuilding vessels with an average duration of 5.1 years.
- Total contracted cash operating revenues stand at $3.4 billion, including newbuildings, providing income certainty.
- Contracted operating days charter coverage for the container vessel fleet is 97% for 2025 and 79% for 2026.
- Entered into a syndicated loan facility of up to $850 million to finance remaining newbuilding container vessels.
- Strong balance sheet supports increased dividends and share buyback program.
Challenges Ahead
- Near-term predictions about shipping markets are inherently unreliable due to global economic conditions.
- Dry bulk market continues to suffer from malaise due to the slow pace of Chinese economic recovery.
- Delivery of new tonnage in the dry bulk sector, particularly in panamax and smaller segments, is expected to add to market weakness.
- Container charter market shows liners exhibiting more caution, especially for forward dates.
- Box rates are weakening, although still higher than pre-pandemic levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income