Danaos Corp (DAC) 2024 Q2 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 in June 30 2024. As a reminder, today's call is being recorded.

美好的一天，歡迎參加 Danaos Corporation 電話會議，討論截至 2024 年 6 月 30 日的三個月的財務表現。提醒一下，今天的通話正在錄音。

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.

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發表一些介紹性評論，然後我們將開始問答環節。

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.

謝謝接線員，大家早安，謝謝您參加今天的電話會議。在開始之前，我想提醒大家，管理階層今天上午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。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。

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.

我們向 SEC 提交的文件中討論了可能影響未來結果的因素，我們鼓勵您查看詳細的安全港和風險因素揭露。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準則財務指標。

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.

例如 EBITDA、調整後的 EBITDA、調整後的淨利潤、定期租船等值收入以及每天定期租船等值美元來評估我們的業務。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及隨附資料中。

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

現在，讓我將電話轉給約翰·庫斯塔斯 (John Coustas) 博士，他將提供本季更廣泛的概述。約翰？

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.

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 2024 年第二季的業績。過去幾個月，由於紅海局勢仍面臨挑戰且烏克蘭局勢持續存在，市場持續受到干擾。

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.

然而，巴拿馬運河過境點恢復到正常水平，目前已經消除了這個幹擾源。市場狀況促使班輪公司重新評估其運力需求，並最終確保噸位，包括遠期交付的噸位。即將出台的環境立法進一步激勵班輪公司確保現代新船噸位以滿足中期需求，而在大多數情況下無需長期承諾。

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.

在這種環境下，我們已經為一些現有船舶爭取了租期延期。我們還進一步將新造船計劃擴展到總共 20 艘船，其中三艘於第二季交付。我們已經獲得了多年期租船合同，平均租期約為 4.5 年，按我們所有新造船的總合同租船租金加權，我們為未來做好了充分準備。

As a result the company's total contracted cash operating revenues are $3.2 billion. Contracted charter coverage for our container vessel fleet including newbuildings is currently 99% for 2024 and 80% for 2025 providing us with excellent revenue visibility.

因此，公司的合約現金營運總收入為 32 億美元。我們的貨櫃船隊（包括新造船）的合約包租覆蓋率目前在 2024 年為 99%，在 2025 年為 80%，為我們提供了出色的收入可見度。

With respect to our activities in the dry bulk sector, we've recently taken delivery of all 10 capesize vessels. We have been gearing up our operations to ensure the integration within our fleet during this building phase before we continue to explore opportunities to further our reach in this sector.

關於我們在乾散貨領域的活動，我們最近接收了全部 10 艘好望角型船舶。我們一直在準備我們的運營，以確保在這個建設階段對我們的機隊進行整合，然後我們繼續探索進一步擴大我們在該領域的影響力的機會。

Our revenues from the dry bulk sector has been steadily increasing and we look forward to further diversifying our revenues and creating upside through the spot market exposure offered by the sector.

我們來自乾散貨行業的收入一直在穩步增長，我們期待進一步實現收入多元化，並透過該行業提供的現貨市場敞口創造上行空間。

Despite our recent fleet growth renewal and diversification activities, our balance sheet remained very strong with a low net debt position. We'll continue to work tirelessly to ensure accretive performance of our assets and deliver industry-leading returns to our shareholders over the long term.

儘管我們最近進行了機隊成長更新和多元化活動，但我們的資產負債表仍然非常強勁，淨債務狀況較低。我們將繼續不懈努力，確保我們的資產不斷增值，並為股東帶來長期行業領先的回報。

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

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

Thank you, John and again good morning to everyone and thanks again for joining. I will briefly review the results for the quarter and then we will open up the conference call to Q&A. We are reporting adjusted EPS for the second quarter of 2024 or $6.78 per share or adjusted net income of $132.3 million compared to adjusted EPS of $7.14 per share or $143.4 million for the second quarter of 2023.

謝謝約翰，再次向大家早安，再次感謝您的加入。我將簡要回顧本季度的業績，然後我們將在電話會議中進行問答。我們報告 2024 年第二季調整後每股收益為 6.78 美元，調整後淨利潤為 1.323 億美元，而 2023 年第二季調整後每股收益為 7.14 美元，即 1.434 億美元。

This $11.1 million decrease in adjusted net income between the two quarters is a result of a $19.9 million increase in total operating expenses, mainly due to the recognition during the current quarter of voyage costs related to voyage charters of our viable Capesize fleet, partially offset by a $4.8 million increase in net operating revenues, a $3.7 million improvement on investments and the $0.3 million improvement in net finance costs.

兩季調整後淨收入減少 1,110 萬美元，是由於總營運費用增加 1,990 萬美元，主要是由於本季確認了與我們可行的海岬型船隊航次包租相關的航次成本，部分抵銷了淨營業收入增加480 萬美元，投資減少370 萬美元，淨財務成本減少30 萬美元。

Vessel operating expenses increased by $5.2 million to $47.1 million in the current quarter from $41.9 million in the second quarter of 2023, as a result of the increase in the average number of vessels in our fleet, while our daily operating costs remained stable at $6961 per day for the current quarter compared to $6970 per day for the second quarter of 2023. Our operating costs continue to remain among the most competitive in the industry.

由於我們船隊平均船舶數量增加，本季度船舶運營費用從 2023 年第二季度的 4190 萬美元增加了 520 萬美元，達到 4710 萬美元，而我們的日常運營成本保持穩定在每艘 6961 美元。季度的每日費用為6970 美元，而2023 年第二季的每日費用為6970 美元。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 by $4.1 million to $11.3 million in the current quarter compared to $7.2 million in the second quarter of 2023, mainly due to an increase in stock-based noncash costs. Interest expense, excluding finance cost amortization decreased by $0.7 million to $4.6 million in the current quarter compared to $5.3 million for the second quarter of 2023. The decrease in interest expense is a combined result of a $1.2 million increase in interest expense due to the increase in our average indebtedness of $52 million between the two periods and the increase in the cost of debt service by approximately 14 basis points as a result of higher SOFR rates between the two periods.

本季的一般管理費用增加了 410 萬美元，達到 1,130 萬美元，而 2023 年第二季為 720 萬美元，主要原因是基於股票的非現金成本增加。本季利息支出（不含財務成本攤銷）減少 70 萬美元，至 460 萬美元，而 2023 年第二季為 530 萬美元。利息費用的減少是由於兩個時期之間我們的平均債務增加了 5,200 萬美元而導致利息費用增加了 120 萬美元，以及由於以下原因導致的償債成本增加了約 14 個基點。間的SOFR 率較高。

We also had a $1.9 million decrease in interest expense due to increased capitalized interest on our vessels under construction. At the same time, interest income came in at $2.9 million. Adjusted EBITDA remained stable, decreasing slightly by 0.3% or $0.5 million to $176.8 million for the current quarter from $177.3 million in the second quarter of 2023 for regions that have already been 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 event disclosures.

由於在建船舶的資本化利息增加，我們的利息支出也減少了 190 萬美元。同時，利息收入達到 290 萬美元。調整後EBITDA 保持穩定，本季的調整後EBITDA 較2023 年第二季的1.773 億美元小幅下降0.3%，即50 萬美元，至1.768 億美元，本次電話會議之前已概述的地區為1.773 億美元。我們也鼓勵您查看我們網站上發布的最新投資者簡報以及後續事件揭露。

A few of the highlights follow. Over the past two months, we have added approximately $900 million to our contracted revenue backlog. As a result, our contracted revenue backlog remains very strong and has increased to $3.2 billion with a 3.4-year average charter duration while contract coverage is at 99% for 2024 and 80% for 2025. Our investor presentation has analytical disclosure on our contracted charter book.

以下是一些亮點。在過去的兩個月裡，我們的合約積壓收入增加了約 9 億美元。因此，我們的合約收入積壓仍然非常強勁，已增加至 32 億美元，平均租期為 3.4 年，而 2024 年合約覆蓋率為 99%，2025 年合約覆蓋率為 80%。我們的投資者介紹在我們的合約章程中進行了分析披露。

As of June 30th, 2024, our net debt stood at $205 million. In the current interest environment this position [indiscernible] from high interest costs. Additionally the company's net debt to adjusted EBITDA ratio stood at 0.29 times, while 53 out of our 80 vessels are currently unencumbered and debt-free.

截至 2024 年 6 月 30 日，我們的淨債務為 2.05 億美元。在目前的利率環境下，這種狀況[難以辨別]源自於高利息成本。此外，該公司的淨債務與調整後 EBITDA 比率為 0.29 倍，而我們 80 艘船舶中的 53 艘目前沒有任何負擔和債務。

Finally, as of the end of the second quarter, cash was at $372 million while total liquidity including availability under our revolving credit facility and marketable securities stood at $787 million, giving us ample flexibility to pursue accretive capital deployment opportunities.

最後，截至第二季末，現金為3.72 億美元，而包括循環信貸安排和有價證券下的可用資金在內的總流動性為7.87 億美元，這為我們提供了足夠的靈活性來尋求增值的資本部署機會。

With that, I would like to thank you for listening to this first part of our call. 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通話。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Omar Nokta with Clarksons Platou Securities

奧馬爾諾克塔 (Omar Nokta) 與克拉克森普拉圖證券 (Clarksons Platou Securities)

Thank you. Hey John and Evangelos, good update. Just wanted to ask you have expanded the backlog here nicely that's just since the last update a month ago. It's interesting you took the 78250 TEU newbuildings from three-year charters to five years. I just wanted to ask how did that come about? Was that an option at the charter exercise? Was it a renegotiation? And also is there any change in day rates?

謝謝。嘿約翰和埃萬傑洛斯，很好的更新。只是想問一下，自從一個月前的最後一次更新以來，您已經很好地擴展了這裡的積壓工作。有趣的是，您將 78250 TEU 新造船的租期從三年改為五年。我只是想問這是怎麼發生的？這是包機演習中的選項嗎？這是重新談判嗎？日費率是否有任何變化？

Hi Omar. Well, the charter yes they had an option to be declared between three and five years and they chose the five-year option at a slightly less charter rate. The other ships were fixed to three to five years from the beginning.

嗨奧馬爾。嗯，是的，他們可以選擇在三年到五年之間宣布特許權，並且他們選擇了五年期的選擇，特許權費率略低。其他船隻從一開始就固定為三到五年。

Okay. Thanks John. And you added a fifth 9200 TEU newbuilding. So, you got that one contract in for five years. You now have 20 new buildings. And as you mentioned three delivered in the second quarter. Kind of thinking big picture what's your appetite here for more orders? Are there still opportunities you think in this market set up or do you think the analysis reached a positive point?

好的。謝謝約翰。您還增加了第五艘 9200 TEU 新造船。所以，你得到了一份為期五年的合約。您現在有 20 棟新建築。正如您所提到的，第二季交付了三項。有點大局觀，您對更多訂單的興趣是什麼？您認為這個市場中是否還有機會，或者您認為分析是否達到了積極的點？

As you know, weare talking now for deliveries, which at the earliest are 28-plus. I don't think we are there at this moment to go really so far ahead. We practically there out of all these ships is just the last one which is going to be 28 delivery. And we will pause for the time being to see the world situation is not really at its best.

如您所知，我們現在談論的是交貨期，最早是 28 小時以上。我認為我們目前還沒有真正走得那麼遠。實際上，我們只是所有這些船中的最後一艘，預計將在 28 艘船交付。我們將暫時停下來看看世界局勢並非真正處於最佳狀態。

The good thing is that we are completely covered and practically without debt. So yeah, we will keep let's say, our mission for any opportunities that are going to appear in the future.

好消息是我們完全得到了保障，幾乎沒有債務。所以，是的，我們將繼續我們的使命，迎接未來出現的任何機會。

Understood. Thank you. And maybe just kind of on the final question follow-up. Your point about being so under levered. You have plenty of cash building. You've got plenty of financial flexibility going forward. In general, what kind of financing, Evangelos are you guys expecting to put on the newbuilding? Or I guess, how much debt do you think you intend to put on the vessels as they deliver?

明白了。謝謝。也許只是最後一個問題的後續。你關於槓桿率如此低的觀點。你有足夠的現金累積。未來您將擁有足夠的財務彈性。總的來說，Evangelos 你們希望為新船提供什麼樣的融資？或者我猜，您認為在船舶交付時您打算承擔多少債務？

Well, we already have the financing for the first eight ships out of the 20. We have reported that. And that is $450 million. This is close to 60%, LTV. We anticipate putting in place something similar for the remaining 12 ships. So in total on a pro forma basis, because we haven't arranged the second chunk yet. I would see that for the newbuilds in the region of $1.2 billion.

嗯，我們已經為 20 艘船中的前 8 艘船提供了融資。我們已經報道過這一點。那就是 4.5 億美元。LTV 接近 60%。我們預計會對其餘 12 艘船實施類似的措施。所以總的來說，在形式上，因為我們還沒有安排第二塊。我認為新造船的成本約為 12 億美元。

Okay, got it. So about 60% on the minority --

好，知道了。所以大約 60% 屬於少數--

Yes, but it's still early, because the second chunk of ships comes online from between 2026 and 2028. We will be prudent.

是的，但現在還為時過早，因為第二批船舶將於 2026 年至 2028 年間上線。我們會謹慎行事。

Yeah, its bit early.

是的，有點早了。

We will seek to arrange debt financing, but this is sort of the ballpark number.

我們將尋求安排債務融資，但這只是大概數字。

Okay. Understood. Thank you, Evangelos. Thanks, John. I'll turn it over.

好的。明白了。謝謝你，伊凡傑洛斯。謝謝，約翰。我會把它翻過來。

Thank you.

謝謝。

At this time it appears there are no further questions. I'd like to turn the call back over to Dr. Houston for any further comments or closing remarks.

目前看來沒有其他問題了。我想將電話轉回休斯頓博士，以徵求進一步的意見或結束語。

Yes. Thank you, all for joining this conference call and your continued interest in our story. We 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對我們故事的持續關注。我們期待在下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。