Greek ship owner, Danaos Corporation has entered into new charter agreements for 10 of its vessels, including one 8,500TEU vessel, three 3,400TEU vessels and six 2,200TEU vessels, for charter periods ranging from three to four years.
The charters will commence as existing charters expire between January and August of 2022, according to the company’s announcement.
The new charters increase Danaos contracted revenue backlog by approximately US$378 million, or 21.5% compared to the company’s US$1.75 billion backlog as of June 30 and increase contracted earnings before interest, taxes, depreciation and amortization (EBITDA) by approximately US$280 million.
“Not only have we achieved charter coverage for 100% of our operating days in 2021, but we have also already contracted 89% of our operating days for 2022 and 60% for 2023,” said John Coustas, the company’s Chief Executive Officer.
Coustas went on to comment, “In the process, we have further enhanced our earnings and cash flow visibility, which will, in turn, result in further strengthening of our balance sheet. We will continue to work to secure additional charter extensions during the strong market environment in order to maximise our profitability and create value for our shareholders.”
