Danaos Corp’s profit fell by more than a third for the first quarter without the gains on investment in liner operator Zim that swelled its earnings a year earlier.
The container ship owner posted a $146m net profit for the quarter, down from a $332m profit a year earlier that included a $210m gain from its investment in Israeli boxship owner Zim.
Danaos sold a remaining 5.69m shares in Zim in November 2022 for $161m.
Danaos posted $145m in adusted net income for the quarter, a decline from $235m in net income for the same period in 2022.
The adjusted result included a non-recurring $110m Zim dividend that accounted for $5.31 per share.
Danaos recorded $7.14 adjusted earnings per share for the quarter, down from $11.36 a year earlier.
Revenue came in at $244m for the first quarter, up from $230m during the same quarter in 2022.
“Box rates strengthened after the Chinese New Year due to the blank sailings and discipline on the part of liner companies,” chief executive John Coustas said.
“In addition, the charter market improved due to the very limited supply of charter-free vessels as well as the impact of speed reduction as charterers seek to comply with CII regulations.”
Danaos has operating days charter coverage of 97% for 2023 and 73% for 2024.
It secured more than $380m of contracted revenue through multi-year charters, including $262 million for all six new buildings that will be delivered in 2024.
“Our strong chartering capabilities and our business strategy continue to drive solid performance,” Coustas said.
