Danaos Corp has outdone analysts' expectations, posting better earnings amid lower finance expenses and higher revenue.
The John Coustas-led boxship owner reported $38.5m in net income for the second quarter, up from $30.1m for the same period last year.
Adjusted profit came in at $42.5m versus $34.3m during the same stage in 2019.
Those results translated into $1.71 earnings per share (EPS), beating Wall Street consensus by $0.29 but falling short of $2.24 in EPS from a year earlier.
Revenue totalled $117m for the second quarter, up 4% from the second three months of 2019.
"Although economic activity has been subdued since the start of the coronavirus pandemic, we have seen increasing signs of confidence with liner companies in recent weeks as a number of previously blanked sailings have been reinstated, implying that demand is gradually improving," chief executive Coustas said.
"Given continued uncertainty about the duration of the coronavirus pandemic and the ensuing economic recovery, we are focused on maintaining a conservative financial profile and making thoughtful capital allocation decisions that align with our strategy and market expectations."
Lower money costs
The $8.2m rise in adjusted net income for the quarter is attributable mainly to a $5.8m decrease in net finance expenses.
This was boosted further by a $4.5m gain in operating revenues and a $1.7m rise in Gemini Shipholdings Corp's operating performance but offset by $3.8m less in operating costs.
Vessel operating costs grew to $28.6m in the second quarter, from $27.3m a year ago, primarily due to a higher average number of vessels in the fleet.
This was partially offset by an overall decrease in average daily operating costs to about $5,790 per vessel per day for ships on time charter for the quarter, compared to $5,880 per vessel per day for the same period in 2019.
"Management believes that our daily operating cost are among the most competitive in the industry," the company said.
