Danaos Corporation (NYSE:DAC) Q2 2024 Earnings Conference Call August 6, 2024 9:00 AM ET

Company Participants

Evangelos Chatzis - Chief Financial Officer
John Coustas - Chief Executive Officer

Conference Call Participants

Omar Nokta - Clarksons Platou Securities

Operator

Good day and welcome to the Danaos Corporation Conference Call to discuss the Financial Results for the Three Months ended in June 30 2024. 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 today's call. 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 the 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, adjusted net income, time charter equivalent revenues, and time charter equivalent dollars per day to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and the accompanying materials.

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

John Coustas

Thank you, Evangelos. Good morning, and thank you all for joining today's call to discuss our results for the second quarter of 2024. In the last few months brought continued market disruption as conditions in the Red Sea remained challenged and the Ukraine were persisted.

Panama Canal Crossings however returned to normal levels eliminating that source of disruption to now. Market conditions have led liner companies to reassess their capacity requirement and last to secure tonnage, including tonnage with forward deliveries. The forthcoming environmental legislation has further incentivized liner companies to secure modern newbuilding tonnage for medium-term requirements without making long-term commitments in the majority of cases.

In this environment, we have secured charter extensions for a number of our existing ships. And further we extended our newbuilding program to a total of 20 vessels three of which were delivered in the second quarter. We have secured multiyear charters with an average charter duration of approximately 4.5 years weighted by aggregate contracted charter hire for all of our newbuildings and we are very well positioned for the future.