Danaos Corp's results have landed well into the ledger's negative side, thanks to a hefty loss on part of its fleet.
The John Coustas-led company posted a net loss of $181m versus a $22.8m profit during the same period last year, mainly due to a $210m impairment charge on 10 ships.
Adjusted earnings came in at $36.6m, up from $31.2m a year earlier. Earnings per share (EPS) came in at $0.18 versus $0.28, beating analysts' take of $0.13 EPS for the quarter.
Revenue went up slightly to $115.6m from $114.2m while expenses eased up to $20.1m from $26.7m.
"This improvement was primarily the result of a $5.8m decrease in net finance expenses, combined with a $1.4m increase in operating revenues due to improved re-chartering rates," chief executive Coustas said.
"The charter market for vessels larger than 5,000 teu has recently shown encouraging signs of recovery, and the market for smaller vessels remains stable albeit at relatively low levels."
Undaunted optimism
Rates may improve as supply tightens as IMO 2020 approaches, causing anticipated slow steaming, redesign of liner networks and drydocking for scrubber retrofits, he said.
"There has also been a continued abstention of new ordering as the market is still waiting on the outcome of trade talks to determine the demand side effects," he said.
"Overall, we believe that the combined effect of these factors will be positive for the market outlook in the medium term from the second half of the year onwards."
