Danaos Extends Containership Contract

Monday, September 17, 2007
Danaos Corporation (NYSE: DAC) extended its shipbuilding contracts with China Shipbuilding Trading Company, Limited to include one more 8,530 TEU vessel, bringing the total number to five vessels. All five Post Panamax containerships will be built by the Shanghai Jiangnan Changxing Heavy Industry Company Limited and are expected to be delivered to Danaos between August 2010 and February 2011. Danaos has also arranged for a large international liner company to charter all these vessels for 12 years each at accretive rates.

For the first full year of operation, this five vessel block addition to Danaos' fleet of containerships is expected to contribute approximately $65 million of EBITDA. For this purpose, EBITDA, a non-GAAP measure, shall mean net earnings before interest, un-drawn credit facility fees, taxes, depreciation and amortization of deferred dry-docking charges and financing fees.

According to schedule, Danaos also delivered back to its charterer, the APL Holland, on August 3, 2007, as a result of the exercising of the purchase option APL had on this vessel. Furthermore, Danaos took delivery of the Hyundai Advance on August 20, 2007, the Hyundai Stride on September 5, 2007, and the new building YM Seatle on September 10, 2007.

"We believe our growth strategy has paid off," said Dr. Coustas, Chief Executive Officer of Danaos. "Danaos' strong balance sheet has made it possible to place new-building orders for which a charter may not be arranged concurrently, allowing us to explore a wider array of opportunities regarding vessel deployment at the proper time. In this context, further to the initial order of four containerships, we have been able to secure an order for an additional 8,530 TEU Post Panamax containership increasing the total number of vessels to be built by Shanghai Jiangnan Changxing Heavy Industry Company Limited to five. We have also just arranged 12 year charters at accretive rates with one of the largest liner companies in the world for all five of these vessels scheduled to be delivered to us in 2010 and the beginning of 2011. With this deal we have not only managed to increase our total fleet to 63 containerships, but also secure long term charters for all vessels of our contracted fleet. In conclusion, we have increased our contracted revenue to $5.2 billion."

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Houston Shipping and Offshore Conference Program Announced

The fourth Houston Shipping and Offshore Conference has announced the final program for its Friday, October 10 conference at the Houstonian Hotel, Club & Spa, 111 N.

For Europe's LNG Ports, Russia Gas Fears and US Exporters Buoy Demand

Gas buyers nervous of Russia cutting supply are helping solve Europe's problem of too many underused liquefied natural gas (LNG) terminals, as they seek space at France's Dunkirk plant.

Statoil: COSL Pioneer Temporarily Suspended

Due to overcapacity in their rig portfolio, Statoil will lay up the COSL Pioneer rig in the fourth quarter of 2014. The rig is currently carrying out an assignment

Container Ships

Maersk Sees US Approval of Shipping Alliance as Formality

U.S. regulatory approval of a proposed shipping alliance involving AP Moeller Maersk should be a formality, the Danish company's chief executive said on Wednesday.

Cargo Container Security Alliance Formed

SC-integrity, Inc. (LoJack SCI) and Contguard Ltd. announced a strategic alliance designed to provide their customers with security and real-time visibility of

Port of Long Beach Sees Cargo Numbers Slip

Container cargo shipments declined by 9.1 percent in August at the Port of Long Beach, reflecting both early shipping by importers this year and the comparison

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1541 sec (6 req/sec)