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Danaos Corporation Expands Fleet with $616 Million Revenue Boost and Five New Containerships

ATHENS, Greece–Danaos Corporation (NYSE: DAC), a leading global containership owner, has made significant strides in strengthening its fleet and revenue stream. Announced today, Danaos has added $616 million to its contracted revenue backlog and commissioned five new containerships for its expanding orderbook.

This boost in contracted revenue is composed of two main segments: approximately $203 million from forward two-year charter agreements for nine existing vessels, and about $413 million from charters for the newly ordered ships. These new charters average a duration of 4.8 years, enhancing Danaos’ long-term earnings visibility.

The newbuilding orders, totaling $509 million, consist of one 8,258 TEU container vessel from Yangzijiang shipyard and four 9,200 TEU vessels from Dalian shipyard, all in China. Delivery is expected between 2027 and 2028. These ships are designed with the latest eco-friendly technologies, including methanol fuel readiness, open loop scrubbers, and Alternative Maritime Power (AMP) units. They also comply with the International Maritime Organization’s (IMO) Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.

With these new additions, Danaos’ total contracted cash operating revenues have reached $2.9 billion, based on existing charter contracts. The company’s average contracted charter duration now stands at 3.1 years.

Danaos’ fleet has nearly full charter coverage, with 99% of operating days secured for 2024 and 80% for 2025, including the newbuilds based on their scheduled deliveries.

In the second quarter of 2024, Danaos took delivery of three new vessels: two 8,010 TEU ships and one 7,165 TEU ship. Currently, 16 more container vessels are under construction, with a total capacity of 129,819 TEU. The delivery schedule includes three vessels in the remainder of 2024, two in 2025, three in 2026, seven in 2027, and one in 2028.

Dr. John Coustas, CEO of Danaos Corporation, expressed his enthusiasm about the fleet expansion: “We are very pleased to announce the commissioning of a further five containerships that are at the forefront of new technology. With this new order, Danaos continues to solidify its position as one of the major players in the containership market worldwide and makes yet another solid step towards fleet modernization.”

Coustas highlighted the strategic benefits of the new charters: “We have now secured multi-year charters for all the vessels in our orderbook while we have also made significant additions to the contracted revenue backlog of our existing fleet and have further improved earnings and cash flow visibility.”

Danaos Corporation, one of the largest independent owners of modern, large-size container vessels, operates a fleet of 70 ships totaling 442,278 TEUs, with an additional 16 under construction adding 129,819 TEUs. The company’s shares are traded on the New York Stock Exchange under the symbol “DAC.”

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