Danaos Corporation (NYSE: DAC) on Monday (Aug16) announced that it has entered into new charter agreements for 10 of its vessels, including one 8,500 TEU vessel, three 3,400 TEU vessels and six 2,200 vessels, for charter periods ranging from 3 to 4 years.
The charters will commence as existing charters expire between January and August of 2022. The new charters increase the Company’s contracted revenue backlog by approximately $378 million, or 21.5% compared to the Company’s $1.75 billion backlog as of June 30, 2021 and increase contracted EBITDA by approximately $280 million.
The Company’s CEO, Dr. John Coustas commented:
“We are very pleased to have significantly increased our contracted backlog by securing multi-year charters for 10 of our vessels. Not only have we achieved charter coverage for 100% of our operating days in 2021, we have already contracted 89% of our operating days for 2022 and 60% for 2023. 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 maximize our profitability and create value for our shareholders.”