Netincome showed a year-on-year decline of 37.4% to $8.4m, while the decline onadjusted net income was down 50% to $6.9m.
Operating revenues for the three months ended 31March 2014 were $135m, a decline of 7.3% on the $146m seen a year ago.
“Thisdecrease is mainly a result of the previously announced Zim restructuring whichaccounts for $6m in lower operating revenues,” said Danaos chief executive DrJohn Coustas.
“We anticipate this effect to be partiallyoffset upon legal consummation of the Zim restructuring when we will commenceto gradually recognize through our income statement the debt and equityinstruments that we will receive in return for the charter rate concessions.”
Ona more upbeat note Coustas said a positive income driver which is starting tobecome increasingly relevant is the decrease in Danaos’ financing costs as aresult of the deleveraging of the balance sheet and the gradual expiration ofinterest rate swaps which will continue in the coming quarters.
“Duringthe first quarter of 2014 finance costs were $4.6m lower when compared to the firstquarter of 2013,” he said.
“In the current quarter we reduced indebtednessby $60.7m while we will reduce debt by at least $200m in total within 2014.
“Interest rate swapswere $300m lower between the 2 quarters while there is a further $1bn in swapsexpiring within 2014.”
