Strong Charter Market and Fleet Expansion
The charter market remains robust with high demand for midsized and larger vessels, and Danaos has secured new charters as far out as 2028. They are expanding their fleet with six new 1,800 TEU vessels and have secured 10-year charters for four of these, contributing approximately $236 million to their contracted revenue backlog.
Successful Bond Offering and Financial Strength
Danaos completed a $500 million unsecured 7-year bond offering with a 6.85% coupon, one of the most competitively priced deals in the shipping industry. Their net debt stands at $165 million with a net debt to adjusted EBITDA ratio of 0.23x, and they have significant liquidity of $971 million.
Consistent Dividend Growth
Danaos announced an increase in their quarterly dividend to $0.90 per share, marking a 6% increase from the prior dividend, reflecting their policy of yearly increases.