Danaos Corp (DAC) 2023 Q4 法說會逐字稿

Good day and welcome to the Danaos Corporation conference call to discuss the financial results for the three months ended December 31, 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 question and answer session.

美好的一天，歡迎參加 Danaos Corporation 電話會議，討論截至 2023 年 12 月 31 日止三個月的財務表現。提醒一下，今天的通話正在錄音。今天主持電話會議的是 Danaos Corporation 執行長 John Coustas 博士；以及 Danaos Corporation 財務長 Evangelos Chatzis 先生。庫斯塔斯博士和查齊斯先生將做一些介紹性評論，然後我們將開始電話問答環節。

Thank you, operator. Good morning, 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.

謝謝你，接線生。大家早安，感謝您今天加入我們。在開始之前，我想提醒大家，管理階層今天早上的言論可能包含某些前瞻性陳述，實際結果可能與今天的預測有重大差異。

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 these detailed safe harbor and risk factor disclosures.

這些前瞻性陳述是截至今天作出的，我們不承擔更新這些陳述的義務。我們向 SEC 提交的文件中討論了可能影響未來結果的因素，我們鼓勵您查看這些詳細的安全港和風險因素揭露。

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 time charter equivalent revenues and time charter equivalent dollar income per day to evaluate our business.

另請注意，在我們認為合適的情況下，我們將繼續參考非公認會計原則財務指標，例如EBITDA、調整後EBITDA 和調整後淨收入期租相當於收入和期租相當於每日美元收入來評估我們的業務。

Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials.

非 GAAP 財務指標與 GAAP 財務指標的調整表包含在我們的收益發布和隨附資料中。

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

現在，讓我將電話轉給約翰·庫斯塔斯 (John Coustas) 博士，他將提供本季度的總體概述。

Thank you, Evangelos. Good morning and thank you all for joining today's call to discuss our results for the fourth quarter of 2023. Danaos continued to deliver strong results in the fourth quarter of 2023, as geopolitical events continue to impact global shipping markets.

謝謝你，伊凡傑洛斯。早安，感謝大家參加今天的電話會議，討論我們 2023 年第四季的業績。隨著地緣政治事件持續影響全球航運市場，達瑙斯在 2023 年第四季繼續取得強勁業績。

Mostly recently, the conflict in the Middle East expanded to the seas attacks on vessels in the Red Sea area. These dramatically older trade routes and the performance of liner companies, as most major companies decided to reroute their vessels away from the Suez Canal sailing longer distances around the Cape of Good Hope to reach Europe.

最近，中東衝突擴大到紅海地區的海上攻擊事件。這些極其古老的貿易航線和班輪公司的表現，因為大多數大公司決定改變其船隻的路線，遠離蘇伊士運河，繞好望角航行更遠的距離，以到達歐洲。

This in turn, increased on-mile demand leading to capacity shortage that drove box rates significantly higher, up to 300%. While it's expected that box rates will remain elevated as long as the disruption continues. Against this backdrop, we have some secured additional charters for our vessels at very healthy levels.

這反過來又增加了里程需求，導致運能短缺，導致箱費顯著上升，高達 300%。儘管預計只要中斷持續，箱費就會維持在高水準。在此背景下，我們以非常健康的水平為我們的船舶獲得了一些額外的租船合約。

In the fourth quarter of 2023, Danaos completed delivery of all seven Capesize vessels that we had agreed to acquire earlier in 2023. Subsequent to the end of the year, we entered into agreements to acquire two additional franchise vessels as we continue to diversify our revenues and look to capture upside from a healthy dry bulk market.

2023 年第四季度，達納奧斯完成了我們於 2023 年初同意收購的全部七艘海岬型船舶的交付。年底後，我們簽訂了協議，購買另外兩艘特許經營船，因為我們繼續實現收入多元化，並希望從健康的干散貨市場中抓住機會。

The market for Capesize vessels, you show unusual seasonal strength in Brazilian iron ore exports increased coal trade remains elevated and demand for minor bulks like book side and agricultural commodities is following global recovery.

好望角型船舶市場，巴西鐵礦石出口表現出異常的季節性強勁，煤炭貿易量持續上升，隨著全球復甦，對書籍和農產品等小宗散貨的需求也隨之增加。

Recent stimulus measures in China aimed at supporting construction infrastructure projects and consumer demand is expected to keep demand steady as fleet growth begins to slow over the next two years. We continue to explore interesting opportunities in the dry bulk sector.

中國近期旨在支持基礎建設項目和消費者需求的刺激措施預計將保持需求穩定，因為未來兩年​​機隊成長開始放緩。我們繼續探索乾散貨領域的有趣機會。

Danaos has also recently ordered two more 8,258 TEU vessels at [EMC] and severe. And we have now a total of four vessels under construction at that yard with delivery scheduled for second half of 2026 and first quarter of 2027.

Danaos 最近也在 [EMC] 訂購了兩艘 8,258 TEU 船。目前船廠共有四艘船舶在建，預計將於 2026 年下半年和 2027 年第一季交付。

All 12 vessels in our newbuilding program, our methanol ready and are designed with the latest Echo characteristics. Demand for shipping delivery slots is very high as the industry is quickly moving to reduce carbon emissions by operating reinvest.

我們新建案中的所有 12 艘船舶均已準備好甲醇，並採用最新的 Echo 特性進行設計。由於該行業正在迅速採取行動，透過營運再投資來減少碳排放，因此對運輸艙位的需求非常高。

As we continue to execute our strategy, we remain focused on taking actions that will ultimately benefit our shareholders than ours is well positioned with a very strong balance sheet and significant revenue visibility into 2025. This provides us with the flexibility to return value to our shareholders through dividends and share repurchases and also pursue opportunities to ensure the long-term resilience of the company.

在我們繼續執行我們的策略的過程中，我們仍然專注於採取最終有利於我們股東的行動，我們的資產負債表非常強勁，並且到 2025 年的收入可見度很高。這使我們能夠靈活地透過股利和股票回購向股東回報價值，並尋求機會確保公司的長期彈性。

With that, I'll hand over the call back to Evangelos, who will take you through the financials for the quarter. Evangelos?

接下來，我會將電話轉給 Evangelos，他將向您介紹本季的財務狀況。埃萬傑洛斯？

Thank you and good morning again to everyone. I will briefly review the results for the quarter and then we will open up the call to Q&A.

謝謝大家，再次祝大家早安。我將簡要回顧本季度的業績，然後我們將開啟問答電話。

We are reporting adjusted EPS for the current quarter of $6.99 per share or $136 million compared to $6.99 per share of EPS for the fourth quarter of 2022 or $141.7 million. This decrease of $5.7 million in adjusted net income between the two quarters is primarily the result of a $9.6 million increase in total operating costs, mainly due to the recognition during the current quarter of volumes costs related to voyage charters of our dry bulk Capesize fleet.

我們報告的本季調整後每股收益為 6.99 美元，即 1.36 億美元，而 2022 年第四季調整後每股收益為 6.99 美元，即 1.417 億美元。兩個季度調整後淨收入減少 570 萬美元，主要是由於總營運成本增加 960 萬美元，這主要是由於本季確認了與我們幹散貨海岬型船隊航次租船相關的運輸成本。

And a $3.2 million reduction in operating revenues, mainly due to vessel disposals and noncash revenue recognition accounting. All that being partially offset by a $6.9 million improvement in net finance costs driven by the significant deleveraging of our balance sheet.

營業收入減少 320 萬美元，主要是由於船舶處置和非現金收入確認會計。所有這些都被我們資產負債表大幅去槓桿化帶來的 690 萬美元的淨財務成本改善所部分抵消。

Vessel operating expenses remained almost the same to $40.1 million in the current quarter compared before, $40 million in the fourth quarter of 2022. And while our daily operating costs decreased to $6,188 per day compared to $6,417 per day for the fourth quarter of 2022. OpEx increased due to the increase in the average number of vessels in our fleet. Our operating costs continue to remain among the most competitive in the industry.

本季船舶營運費用幾乎保持不變，為 4,010 萬美元，而 2022 年第四季為 4,000 萬美元。我們的日常營運成本從 2022 年第四季的每天 6,417 美元下降到每天 6,188 美元。由於我們船隊平均船舶數量的增加，營運支出有所增加。我們的營運成本持續保持在業界最具競爭力的水平。

G&A expenses increased in Q4 by $7.5 million, mainly due to a increase in stock-based non-cash costs. They came in at $22.4 million in the current quarter compared to $14.9 million in the fourth quarter of 2022. Interest expense, excluding amortization of finance costs, decreased by $7.8 million to $3.1 million in the current quarter compared to $10.9 million in the fourth quarter of 2022.

第四季的一般管理費用增加了 750 萬美元，主要是由於基於股票的非現金成本增加。本季的營收為 2,240 萬美元，而 2022 年第四季的營收為 1,490 萬美元。本季利息支出（不含財務成本攤銷）減少 780 萬美元，至 310 萬美元，而 2022 年第四季為 1,090 萬美元。

The decrease in interest expense is a combined result of a $5.4 million decrease in interest costs because of deleveraging. Our average indebtedness review was lower by almost $400 million between the two periods. And all that was partially offset by an increase in the cost of debt service by approximately 130 basis points as a result of rising interest rates.

利息支出的減少是去槓桿化導致利息成本減少 540 萬美元的綜合結果。兩個時期之間，我們的平均債務審查降低了近 4 億美元。所有這些都被利率上升導致償債成本增加約 130 個基點所部分抵銷。

And we also had a $2.4 million decrease in interest expense due to capitalization of interest on our vessels under construction. At the same time, interest income came in at $2.7 million, effectively covering almost 90% of our interest expense for the current quarter. And this effectively reflects the almost net debt zero position that we have today.

由於在建船舶的利息資本化，我們的利息支出也減少了 240 萬美元。同時，利息收入為 270 萬美元，有效涵蓋了本季利息支出的近 90%。這有效地反映了我們今天幾乎淨債務為零的狀況。

Our adjusted EBITDA decreased by 2.2% or $3.8 million to $172.6 million in the current quarter from $176.4 million in the fourth quarter of 2022 for regions are probably already outlined earlier on this call. We also encourage you to review our updated investor presentation that is posted on our website as well as subsequent events disclosure, I will mention a few of the highlights.

我們調整後的 EBITDA 下降了 2.2%，即 380 萬美元，從 2022 年第四季的 1.764 億美元降至本季的 1.726 億美元，本次電話會議早些時候可能已經概述了各地區的情況。我們還鼓勵您查看我們網站上發布的最新投資者演示文稿以及後續事件披露，我將提到一些亮點。

Our contracted cash revenue backlog remains strong at $2.3 billion with a three year average charter duration, while contract coverage is up 95.8% for 2024 and 62% for 2025 in terms of operating days coverage. Our investor presentation has analytical disclosure on our contracted charter book that you can refer to.

我們的合約現金收入積壓依然強勁，達 23 億美元，平均租期為三年，而就營業天數而言，2024 年合約覆蓋率將成長 95.8%，2025 年將成長 62%。我們的投資者簡報在我們的合約章程書中進行了分析披露，您可以參考。

As of December 31, 2023. Our net debt is down to $138.7 million. And in the current interest rate environment, this low net debt position, it shields us from high interest costs. Additionally, the company's net debt to adjusted EBITDA ratio stood at 0.2 times, while 51 out of our 75 vessels are currently unencumbered and debt-free.

截至 2023 年 12 月 31 日。我們的淨債務降至 1.387 億美元。在當前的利率環境下，這種較低的淨債務狀況使我們免受高利息成本的影響。此外，該公司的淨債務與調整後 EBITDA 的比率為 0.2 倍，而我們 75 艘船舶中的 51 艘目前沒有任何負擔和債務。

Finally, as of the end of the fourth quarter, cash was up $272 million. While total liquidity, including availability under our revolving credit facility, it stood at $609 million, giving us ample flexibility to pursue accretive capital deployment opportunities.

最後，截至第四季末，現金增加了 2.72 億美元。總流動性（包括我們的循環信貸安排下的可用資金）為 6.09 億美元，這為我們提供了足夠的靈活性來尋求增值資本部署機會。

With that, I would like to thank you for listening to this first part of our call. And operator, we are now ready to open the call to Q&A.

在此，我要感謝您收聽我們電話會議的第一部分。接線員，我們現在準備開始問答電話。

(Operator Instructions)

（操作員說明）

Omar Nokta, Jefferies.

奧馬爾諾克塔，傑弗里斯。

Thank you. Hi, John and Evangelos. Good afternoon. Just have a couple of questions for you. You've obviously added the five charters on those 5,000 TEU to 6,000 TEU ships at better rates and terms. And I think a lot of us expected coming into the year, especially given where the market was at the end of '23, it looks like each of those has gotten about a year or so duration.

謝謝。嗨，約翰和伊凡傑洛斯。午安.只是有幾個問題想問你。顯然，您已經以更好的費率和條款添加了 5,000 TEU 至 6,000 TEU 船舶的五份包機。我認為我們很多人都預計今年會到來，特別是考慮到 23 年底的市場情況，看起來每一個都已經持續了大約一年左右的時間。

Wanted to ask what's the liner appetite looking like right now, you mentioned freight rates being elevated and they'll continue to be. So as long as the Red Sea diversions are in place now. How is the appetite now for further chartering that there are specific vessel classes that you see liners targeting at this point?

想問一下目前班輪的需求情況如何，您提到運費正在上漲，而且會繼續上漲。因此，只要紅海改道現在就位。您認為班輪目前針對的是特定的船舶類別，現在對進一步租船的興趣如何？

Well Omar, we do not really of course, due to the shortage at present, everybody is interested in prompt vessels, and we have practically nothing until year-end, maybe one or two ships in the second half. And so really, I cannot really tell you what is a definite is that there is significant demand from all line of companies for modern vessels, for even for future 25 or 26 deliveries, but that's for the very modern vessels.

奧馬爾，我們當然沒有，由於目前短缺，每個人都對即時船隻感興趣，而我們到年底幾乎沒有任何船隻，下半年可能會有一兩艘船。所以說實話，我無法確切地告訴你，所有公司都對現代船舶有巨大的需求，甚至未來 25 或 26 艘交付，但那是針對非常現代的船舶。

And there is significant demand for the, let's say, the other six new buildings that we do not have, let's say, presently committed and we are in negotiations for all of them.

比如說，我們目前還沒有承諾的其他六棟新建築的需求很大，我們正在就所有這些建築進行談判。

Thank you. Thanks for that. And then maybe just a follow up. Obviously, you've been expanding kind of opportunistically within the drybulk segment you've got the nine Capes now. Looks like containers are still the core business.

謝謝。感謝那。然後也許只是後續行動。顯然，您一直在乾散貨領域進行機會主義擴張，現在您已經擁有了九個好望角。看來容器仍是核心業務。

You do have plenty of liquidity and flexibility. Just wanted to get a sense, but any thoughts on where you see the Cape fleet going from here in terms of size, is there a certain critical mass or trying to get that segment update?

您確實擁有充足的流動性和靈活性。只是想了解一下，但是您對開普敦艦隊的規模有何想法，是否有一定的臨界質量或試圖獲得該部分更新？

It's -- as we said, we are going into this segment in order to, let's say, to build it up. Of course, as I've already said, a number of times, the dry bulk market is quite cost-sensitive and we are not going to chase the market up already. I mean the prices in the market, at least for the first and let's say, seven ships that we've got is at least, let's say, a 15%, maybe 20% up in some instances.

正如我們所說，我們進入這個細分市場是為了，比如說，建立它。當然，正如我已經多次說過的，乾散貨市場對成本相當敏感，我們不會追趕市場。我的意思是市場上的價格，至少是第一艘，比如說，我們擁有的七艘船至少上漲了 15%，在某些情況下可能上漲了 20%。

So we are pretty careful. Of course, it's a market segment that we want to grow, but we will do it in a kind of a measured way. There is no hiring for that. Our main business will continue to be, let's say, the container segment where we have our competitive edge and the scale, we will move cautiously as we have always done.

所以我們非常小心。當然，這是我們想要發展的一個細分市場，但我們會以一種有節制的方式來實現這一目標。沒有為此招聘。我們的主要業務將繼續是貨櫃業務，我們有競爭優勢和規模，我們將一如既往地謹慎行事。

Makes sense. Yes, thank you. Thank you. And have one final one, and I know it's a bit sensitive. But just wanted to ask, in terms of the [Eagle] Bulk holding, you have it's gone up nicely in value since you took the stake. Anything you're willing to say about the planned merger with Star Bulk? And do you see this holding as sort of a core term investment or is this more of an opportunistic trade?

說得通。是的，謝謝。謝謝。還有最後一件事，我知道這有點敏感。但我只是想問一下，就[Eagle] Bulk 持有量而言，自從您持有股份以來，它的價值已經大幅上漲。對於與 Star Bulk 的合併計劃，您有什麼想說的嗎？您是否認為這種持有是一種核心期限投資，或者這更像是一種機會主義交易？

We have not really decided really how we're going to handle that for the time being. We do not have any let's see any reason to get out of this investment. And we will see how it, develops.

我們暫時還沒有真正決定如何處理這個問題。我們沒有任何理由退出這項投資。我們將看到它如何發展。

Okay. Thank you. That's clear enough. Thank you, John. I'll turn it over.

好的。謝謝。這已經很清楚了。謝謝你，約翰。我會把它翻過來。

Thank you.

謝謝。

Climent Molins, Value investors.

克萊門特·莫林斯，價值投資者。

Good morning. Thank you for taking my questions. I want to start by asking about the Capesizes you have added over the past few months. Utilization during the quarter was a tad lower than expected. Could you provide some commentary on the drivers behind that? Was it due to the delivery of the vessels? And secondly, could you give us some insight on utilization you expect to realizing in the first quarter?

早安.感謝您回答我的問題。我想先詢問你們在過去幾個月中添加的好望角型船舶。本季的利用率略低於預期。您能否對背後的驅動因素提供一些評論？是因為船隻的交付嗎？其次，您能否向我們介紹一下您期望在第一季實現的利用率？

Yes. Let me take that. We first of all, we took delivery of the vessels during Q4, right. And are upon taking delivery. We performed certain repairs on the vessels to bring them up to our standards. So there were certain schedules the days that the vessels were off-hire. Hence, the 82% almost utilization that you see now is not indicative of how the vessels will be utilized.

是的。讓我來吧。首先，我們在第四季度接收了船隻，對吧。並在提貨時。我們對船隻進行了某些維修，使其達到我們的標準。因此，船舶停租的日子有一定的時間表。因此，您現在看到的 82% 的幾乎利用率並不能表明船隻將如何使用。

There are the vessels are scheduled to, some of them to go to drydock in Q1 and Q2 and Q3 of this year. So there we may you may expect to have two or three weeks of downtime, but other than that, we expect them to be fully utilized.

有船舶計劃，其中一些將在今年第一季、第二季和第三季進入乾塢。因此，您可能會預期會有兩到三週的停機時間，但除此之外，我們希望它們能夠充分利用。

Thanks for the color. I also wanted to ask about the newbuilds. I would assume you will you've added recently and the ones that remain on track. Should we expect a tender announcement in the foreseeable future? Or do you plan on waiting until closer to delivery before securing a charter?

謝謝你的顏色。我也想問一下新房的狀況。我假設您會最近添加的內容以及仍在軌道上的內容。我們是否應該期待在可預見的將來發布招標公告？或者您打算等到接近交貨時才獲得包機嗎？

We are already in discussion. So yeah, we may very well announce something, but that we don't have to rush it. Most companies are in order to contract the vessels. It wanted to have a charter beforehand, I mean for us and with the strength of our balance sheet that practically and we can practically buying the vessels with existing liquidity and we don't need financing.

我們已經在討論了。所以，是的，我們很可能會宣布一些事情，但我們不必著急。大多數公司都是為了承包船舶。它希望事先獲得租船合同，我的意思是對我們來說，憑藉我們的資產負債表的實力，我們實際上可以用現有的流動性購買船隻，而我們不需要融資。

We can wait as long as we want. If we do not find the rates that makes sense to us. So yeah, we can always way modern vessels are definitely scars, and we believe that our strategy is going to makes much more sense rather than ordering on the back of a long-term charter where your churn rates are better, pretty squeezed.

我們可以等多久。如果我們找不到對我們有意義的費率。所以，是的，我們總是可以認為現代船舶肯定是傷痕累累，我們相信我們的策略將更有意義，而不是在長期租船的基礎上訂購，因為長期租船的客戶流失率更好，相當擠壓。

Makes sense. That's all for me. I'll pass it over. Thank you for taking my questions.

說得通。這就是我的全部。我會把它傳過去。感謝您回答我的問題。

Thank you.

謝謝。

It appears we have no further questions at this time. I would like to turn the call back over to Dr. Coustas for any closing remarks.

目前看來我們沒有其他問題了。我想將電話轉回庫斯塔斯博士，讓他發表結束語。

Yes. Thank you all for joining us in this conference call and your continued interest and also look forward to hosting you on our next earnings call. Have a nice day.

是的。感謝大家參加本次電話會議以及您的持續關注，並期待在我們的下一次財報電話會議上接待您。祝你今天過得愉快。

Thank you. This concludes today's teleconference. We would like to thank everyone for their participation. Have a wonderful afternoon.

謝謝。今天的電話會議到此結束。我們要感謝大家的參與。祝你有個美好的下午。