Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
Q: Can you discuss the utilization of the dry bulk fleet and the number of dry dockings planned for 2025? A: Evangelos Chatzis, CFO, explained that all dry bulk vessels, except one, have completed dry docking in the last six months, with efficiency improvements made. No further dry dockings are planned for the dry bulk fleet for the next 2-3 years.
Q: With soft dry bulk rates and declining asset values, is there an interest in adding more vessels, and would you consider other types beyond capesizes? A: Evangelos Chatzis, CFO, confirmed that Danaos Corp is focused on capesize vessels and plans to increase their presence in this sector due to attractive pricing.
Q: What gave Danaos Corp the confidence to order two new ships despite the current market climate? A: John Coustas, CEO, stated that the sector requires modern, efficient ships, especially in the size bracket they are targeting. With financing and charters arranged for other vessels, the investment carries minimal risk.
Q: Can you provide an update on the share count following recent repurchases? A: Evangelos Chatzis, CFO, reported that the share count is just below 19 million shares, approximately 18.8-18.9 million, following the latest repurchases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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