Danaos Corp. Q3 FY2024 earnings call

• Container market was strong in Q3 2024, adding over $300 million to contracted charter backlog, now $3.3 billion.
• All newbuildings on order have fixed leases, with excellent earnings visibility.
• Dry bulk market has been soft, but freight rates expected to improve in 2025.
• Danaos has high credit ratings (Ba1 from Moody's and BB+ from S&P), a strong balance sheet.
• Increased quarterly dividend to $0.85 per share and continued share buyback program, with $123 million cumulatively bought back and $77 million remaining.

The container market was very strong in the third quarter of 2024, allowing Danaos to add over $300 million to its contracted charter backlog, which now stands at $3.3 billion. All 14 newbuildings on order are fixed for five years except two fixed for two years. The company has 100% of its container vessel fleet operating days covered for 2024, 94% for 2025, and 73% for 2026. The dry bulk market has been uncharacteristically soft lately due to seasonal pattern disruptions and decreased Chinese steel production. The dry bulk fleet performed reasonably well during the quarter, and freight rates are expected to gradually improve in 2025.

• Container fleet operating days covered: 100% for 2024, 94% for 2025, 73% for 2026.
• Dry bulk freight rates expected to gradually improve in 2025.
• Uncertainty from new U.S. administration regarding trade tariffs, energy transition initiatives, and IMO support.

• New U.S. administration may implement/increase trade tariffs, affecting container movements and trade lanes.
• Energy transition initiatives may proceed at a slower rate.
• Uncertainty about support for existing IMO initiatives from new administration.
• Dry bulk market affected by disruption of seasonal patterns and decreased Chinese steel production.

Q: Regarding the newbuilding market, how does Danaos view the current situation?

A: There's uncertainty due to new administration's impact on environmental shifts, high newbuilding prices, and container market uncertainty. Waiting for prices to cool down and will act opportunistically for better ROE.

Q: How is Danaos thinking about the dry bulk segment?

A: Built a fleet of 10 dry bulk ships, in an experienced building phase, will follow the market closely and jump on opportunities if seen