Danaos Corporation (NYSE:DAC) Q1 2023 Earnings Conference Call May 16, 2023 9:00 AM ET

Company Participants

Evangelos Chatzis - Chief Financial Officer

John Coustas - Chief Executive Officer

Conference Call Participants

Omar Nokta - Jefferies

Climent Molins - Value Investor’s Edge

Operator

Good day and welcome to the Danaos Corporation Conference Call to discuss the Financial Results for Three Months Ended March 31st, 2023. As a reminder, today’s call is being recorded. Hosting the call today is; Dr. John Coustas, Chief Executive Officer of Danaos Corporation; and Mr. Evangelos Chatzis, Chief Financial Officer of Danaos Corporation. Dr. Coustas and Mr. Chatzis will be making some introductory comments, and then, we will open the call to a question-and-answer session.

Evangelos Chatzis

Thank you, operator and good morning to everyone. And thank you for joining us today.

Before we begin, I quickly want to remind everyone that management’s remarks this morning may contain certain forward-looking statements, and that actual results could differ materially from those projected today. These forward-looking statements are made as of today and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review this detailed Safe Harbor and risk factor disclosures.

Please also note, that where we feel appropriate, we will continue to refer to non-GAAP financial measures, such as EBITDA, adjusted EBITDA and adjusted net income to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials.

With that, let me now turn the call over to Dr. Coustas, who will provide the broad overview of the quarter.

John Coustas

Thank you, Evangelos. Good morning and I thank all of you for joining today’s call to discuss results for first quarter of 2023. Danaos reported yet another solid quarter, despite the continuing geopolitical uncertainty and the turmoil in the financial markets.

Box rates strengthened after the Chinese New Year due to the blank sailings and discipline on the part of liner companies. In addition, the charter market improved due to the very limited supply of charter-free vessels, as well as the impact of speed reduction as charterers seek to comply with CII regulations.

Danaos has continued its successful chartering and asset management strategy, driving steady and predictable performance and laying the groundwork for continued growth, while also pursuing environmentally sound policies. Our chartering strategy delivered another strong quarter, and we have operating days charter coverage of 97% for 2023 and 73% of 2024. Our strong chartering capabilities and our business strategy continue to drive solid performance.