Tuesday 18th of January 2022 04:56:52 AM
Danaos announces $1B in incremental contracted revenues and sale proceeds through new charter deals
- Danaos Corporation (NYSE:DAC) has inked new charter arrangements for 11 of its vessels ranging between 2,500 to 10,000 TEU with major liner companies and have finalized sale of two 20-year-old 6,422 TEU vessels.
- These charters have a revenue weighted average contract duration of 4.7 years commences on the expiration of the vessels’ existing charters between February 2022 and April 2023 and extend up to May 2028.
- This new charter deals to increase the company’s contracted revenue backlog by approximately $870M, or by approximately $700M in contracted EBITDA.
- Sales proceeds from two 20-year-old 6,422 TEU vessels to be $130M and will be delivered to their buyer in November 2022.
- Additionally, contract coverage in terms of operating days is now 95% for 2022, 77% for 2023 and 57% for 2024.
- The Company’s CEO, Dr. John Coustas commented:
- “We are very pleased to announce the continued improvement of our contracted backlog with multi-year charters for 11 of our vessels and the profitable sale of two older vessels. The combined result is up to $1 billion of contracted revenue accretion and sales proceeds. These transactions significantly improve our liquidity and cash flow visibility for the next several years and further strengthen our balance sheet. We will continue to work to maximize our profitability and secure more accretive transactions with a focus on creating value for our shareholders.”
- Shares up 0.11% premarket.