Danaos’ Earnings Still Affected by Hanjin Bankruptcy

Athens-based containership owner Danaos Corporation informed that its income plunged in the first quarter of 2017, reflecting the continued impact of the Hanjin bankruptcy.

The company’s net income for the period reached USD 18.4 million, dropping by over 58 percent from USD 44.1 million seen in the first three months of 2016.

Operating revenues decreased by 19.9 percent to USD 110.1 million for the quarter, from USD 137.5 million reported a year earlier.

“The USD 22.7 million decrease in our adjusted net income was primarily attributable to USD 22 million of operating revenues lost from Hanjin,” John Coustas, Danaos’ CEO, said.

Danaos  said that the total contracted operating revenues were USD 2 billion as of March 31, 2017, with charters extending through 2028 and remaining average contracted charter duration of 6.4 years, weighted by aggregate contracted charter hire.

“Excluding the off-hire days related to three 10,100 TEU vessels that were previously chartered by Hanjin and were delivered to their new charterers in April 2017, our fleet utilization increased to 98.1% compared to 94.6% in the first quarter of 2016. Including those vessels, our fleet utilization was 92.7%,” Coustas added.

As previously reported, the company is in breach of certain financial covenants as a result of the Hanjin bankruptcy. Danaos now informed that it had obtained a waiver for these breaches until April 1, 2017.

“We have asked our lenders for an extension of this waiver until July 1, 2017 and are engaged in constructive conversations to resolve this matter,” according to the shipowner.

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