Danaos Corp (DAC) 2024 Q3 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 September 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 9 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 question-and-answer session. You may begin.

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。你可以開始了。

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

謝謝您，接線員，大家早安，謝謝您今天加入我們。

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 these detailed safe harbor and risk factor disclosures.

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。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 when 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 accompanying materials.

另請注意，在我們認為合適的情況下，我們將繼續參考非GAAP 財務指標，例如EBITDA、調整後EBITDA、調整後淨利潤、定期租船等值收入和每日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和隨附資料中。

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

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

Thank you, Evangelos. Good morning and thank you all for joining today's call to discuss our results for third quarter '24.

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 24 年第三季的業績。

The container market remained very strong in the third quarter of 2024 allowing us to add over $300 million to our contracted charter backlog, which presently stands at $3.3 billion. Importantly, all 14 of our new buildings in order are fixed for five years except for two that are fixed for two years. We have excellent earnings visibility as we have covered 100% of our container vessel fleet operating days for 2024, 94% for 2025, and 73% for 2026.

2024 年第三季貨櫃市場仍然非常強勁，使我們的合約包機積壓訂單增加了 3 億多美元，目前為 33 億美元。重要的是，我們所有 14 棟新建築的固定期限均為五年，只有兩棟固定期限為兩年。我們擁有出色的獲利可見性，因為我們的貨櫃船隊營運日數在 2024 年達到 100%，在 2025 年達到 94%，在 2026 年達到 73%。

The dry bulk market has been uncharacteristically soft lately, which can be attributed to disruption of seasonal patterns throughout the year as well as a decrease in Chinese steel production. Our dry bulk fleet performed reasonably well during the quarter, and we are expecting freight rates to gradually improve as we move into 2025.

乾散貨市場近來異常疲軟，可歸因於全年季節性模式的破壞以及中國鋼鐵產量的下降。我們的乾散貨船隊在本季度表現相當不錯，我們預計隨著進入 2025 年，運價將逐步改善。

Due to the certainty provided by the charter backlog in our container segment, Danaos is insulated from the unstable and unpredictable nature of the current global backdrop.

由於我們貨櫃市場的包機積壓提供了確定性，達納奧斯不受當前全球背景不穩定和不可預測的影響。

The recent US presidential election has introduced new uncertainty about future policy making and its effect in the shipping market. Most notably, President Trump has openly declared his intention to implement or increase trade tariffs that have the potential to decrease container movements or at least reshuffle trade lanes. Additionally, it's likely that energy transition initiatives will take place at a slower rate and we don't know to what extent existing IMO initiatives will be supported by the new administration.

最近的美國總統大選為未來政策制定及其對航運市場的影響帶來了新的不確定性。最值得注意的是，川普總統公開宣布他打算實施或提高貿易關稅，這有可能減少貨櫃運輸或至少重新調整貿易航線。此外，能源轉型措施可能會以較慢的速度進行，我們也不知道新政府將在多大程度上支持現有的國際海事組織措施。

Danaos remain in a fortunate and enviable position. In addition to our charter coverage, our balance sheet is a significant strength. I'm proud of the efforts we have undertaken, efforts that have been acknowledged by Moody's who upgraded Danaos to Ba1. Together with the S&P credit rating at BB+, Danaos now holds the highest grade assigned to a pure play shipping company.

達納奧斯仍然處於幸運和令人羨慕的地位。除了我們的包機涵蓋範圍之外，我們的資產負債表也是一個重要的優勢。我為我們所做的努力感到自豪，穆迪對我們的努力給予了認可，將 Danaos 升級為 Ba1。連同標準普爾 BB+ 的信用評級，達納奧斯現在擁有純粹航運公司的最高評級。

Our creditworthiness will allow us to explore fully the US bond market, creating opportunity to raise competitively priced capital to continue to pursue growth opportunities. Our continued strong financial performance and accompanying strengthening of our balance sheet has enabled us to increase our quarterly dividend to $0.85 a share in line with the commitment we have made to our shareholders.

我們的信譽將使我們能夠充分探索美國債券市場，創造機會籌集具有競爭力的價格資本，以繼續尋求成長機會。我們持續強勁的財務表現以及隨之而來的資產負債表的增強，使我們能夠將季度股息提高至每股 0.85 美元，這符合我們對股東的承諾。

We are also continuing to return value through our share buyback program. We have now cumulatively bought back stock worth $123 million and have $77 million remaining under our authorized share repurchase program. We are continuing our efforts to increase the value of the company while remaining vigilant about geopolitical risks to ensure the long-term prosperity of Danaos for the benefit of our shareholders.

我們也繼續透過股票回購計劃回報價值。目前，我們已累積回購價值 1.23 億美元的股票，授權股票回購計畫剩餘 7,700 萬美元。我們將繼續努力增加公司價值，同時對地緣政治風險保持警惕，以確保達納奧斯的長期繁榮，並造福股東。

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. I will briefly review the results for the quarter and then open the call to Q&A.

謝謝你，約翰，再次祝大家早安。我將簡要回顧本季的業績，然後開始問答電話。

We are reporting adjusted EPS for this quarter of $6.5 per share or adjusted net income of $126.8 million, and that compares to adjusted EPS of $7.26 per share or adjusted net income of $143 million for the third quarter of 2023.

我們報告的本季調整後每股收益為 6.5 美元，調整後淨利潤為 1.268 億美元，而 2023 年第三季調整後每股收益為 7.26 美元，調整後淨利潤為 1.43 億美元。

The decrease of $16.2 million in adjusted net income between the two quarters is a result of a $31.1 million increase in total operating expenses mainly due to the recognition during the current quarter of voyage costs related to voyage charters of our dry bulk capesize fleet and the $3.3 million increase in net finance costs, and those were partially offset by a $17 million increase in net operating revenues and the $1.2 million improvement on income from investments.

兩個季度調整後淨利潤減少1,620 萬美元，是由於總營運費用增加了3,110 萬美元，這主要是由於本季度確認了與我們的干散貨海岬型船隊航次租船相關的航次成本以及3.3美元的航次成本。

Vessel OpEx increased by $10.4 million to $49.9 million in the current quarter from $39.5 million in the corresponding third quarter of 2023 as a result of the increase in the average number of vessels in our fleet. While at the same time, our daily OpEx cost increased to $6,860 per day for this quarter compared to $6,500 per day for the third quarter of 2023.

由於我們船隊平均船舶數量的增加，本季船舶營運支出從 2023 年第三季的 3,950 萬美元增加了 1,040 萬美元，達到 4,990 萬美元。同時，本季我們的每日營運支出增加至每天 6,860 美元，而 2023 年第三季為每天 6,500 美元。

Our operating costs continue to remain among the most competitive in the industry. G&A expenses increased by $3.9 million to $11 million in the current quarter compared to $7.1 million in the third quarter of 2023, mainly due to an increase in stock-based noncash costs. Interest expense excluding amortization and finance costs increased by $3.6 million to $7.4 million in the current quarter compared to $3.8 million in the corresponding third quarter of 2023.

我們的營運成本持續保持在業界最具競爭力的水平。本季的一般管理費用增加了 390 萬美元，達到 1,100 萬美元，而 2023 年第三季為 710 萬美元，這主要是由於股票非現金成本的增加。本季的利息支出（不包括攤銷和財務成本）增加了 360 萬美元，達到 740 萬美元，而 2023 年第三季的利息支出為 380 萬美元。

The increase in interest expense is a combined result of a $4.2 million increase in interest expense due to an increase in our average indebtedness by more than $200 million between the two periods, partially offset by a reduction in the cost of debt service by approximately 26 basis points mainly as a result of a decrease in our financing margin cost between the two periods. This was offset by a $0.6 million decrease in interest expense due to increased capitalized interest between the two periods of vessels that are under construction. At the same time, interest income for the quarter came in at $3.1 million.

利息支出的增加是由於兩個時期之間我們的平均債務增加超過 2 億美元而導致利息支出增加 420 萬美元的綜合結果，部分被償債成本減少約 26 個基點所抵銷點主要是由於兩個期之間我們的融資保證金成本下降所致。但由於在建船舶的兩個時期之間資本化利息增加，利息支出減少了 60 萬美元，從而抵消了這一損失。同時，該季度的利息收入為 310 萬美元。

Adjusted EBITDA increased slightly by 0.5% or approximately $1 million to $178.9 million in the current quarter from $178 million in the corresponding third quarter of 2023 for the reasons that have already been outlined earlier on this call. We also encourage you to review our updated industrial presentation that is posted on our website as well as subsequent event disclosures.

調整後的 EBITDA 小幅成長 0.5%，約 100 萬美元，從 2023 年第三季的 1.78 億美元增至本季的 1.789 億美元，原因已在本次電話會議之前概述。我們也鼓勵您查看我們網站上發布的更新的行業演示以及後續的事件披露。

Some of the highlights are that since the date of our prior earnings release, as was earlier mentioned by John, we have added $308 million to our contracted revenue backlog. And as a result, our contracted revenue backlog remains strong and has now increased to $3.3 billion with a 3.4-year average charter duration. Our investor presentation has analytical disclosure on our contracted charter book.

其中一些亮點是，正如約翰之前提到的，自我們上次發布財報之日以來，我們的合約收入積壓已增加了 3.08 億美元。因此，我們的合約收入積壓依然強勁，目前已增至 33 億美元，平均租期為 3.4 年。我們的投資者介紹在我們的合約章程中進行了分析披露。

Additionally, as of September 30, 2024, our net debt stood at $305 million, and in the current interstate environment, this position shields us from high interest costs. Additionally, the company's net debt to EBITDA ratio stood at 0.4 times, while 53 out of our 82 vessels are currently unencumbered and debt free.

此外，截至 2024 年 9 月 30 日，我們的淨債務為 3.05 億美元，在目前的州際環境下，這一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 EBITDA 比率為 0.4 倍，而我們 82 艘船舶中的 53 艘目前沒有負擔且沒有債務。

Finally, at the end of the third quarter, cash was at $384 million, while total liquidity including availability under our revolving credit facility and marketable securities stood at $785 million, giving us ample flexibility to pursue accretive capital deployment opportunities.

最後，截至第三季末，現金為3.84 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7.85 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。

(Operator Instructions) Omar Nokta, Jefferies.

（操作員說明）Omar Nokta，Jefferies。

Thank you. Hi, John, Evangelos. Good afternoon. Just a couple of questions from my side. I wanted to ask, clearly, as you outlined in the release and the presentation and in the discussion, you've taken quite -- you've taken advantage of this very strong and resurgent container market, really to fix out shifts longer term. You've ordered some new ships in the past which are now obviously all contracted. Last quarter, you mentioned that you're looking to take a bit of a step back from the new building market.

謝謝。嗨，約翰，伊凡傑洛斯。午安.我這邊有幾個問題。我想明確地問，正如您在發布、演示和討論中概述的那樣，您已經充分利用了這個非常強大且復甦的容器市場，真正解決了長期的轉變。你過去訂購了一些新船，現在顯然已經全部簽約了。上個季度，您提到您希望從新建築市場退一步。

So we really -- I guess, we have continued to see the interest on the part of liners remain relatively elevated for new buildings. I just wanted to ask, how do you think about where Danaos is on the new building front? Are you still on the sidelines or do you see an opportunity to come back into the ordering side?

所以我們確實——我想，我們繼續看到班輪公司對新建築的興趣仍然相對較高。我只是想問，您如何看待達納奧斯在新大樓前的位置？您仍處於觀望狀態，或者是否有機會重返訂購領域？

Things are progressing. We are fixing more and more. Actually, we have even increased further our contracted revenues since getting this release out quite substantially. It's not that we do not believe that the market will hold. It's just that today, we want to see where -- really where the ball is going, how can I say, to sit.

事情正在進展。我們正在修復越來越多的問題。事實上，自從發布此版本以來，我們甚至進一步增加了合約收入。這並不是說我們不相信市場會持續下去。只是今天，我們想看看球到底會去哪裡，怎麼說呢，就是坐。

And the biggest issue that we have is really -- because when you're talking about new buildings, you have always to take into account the future environmental legislations. And what is for sure is that the new US administration is not going to follow what the previous one is doing, which means I'm not sure really what kind of influence we are going to have on what the IMO is currently discussing about this carbon tax, carbon levy, whatever you're going to call it.

我們面臨的最大問題確實是——因為當你談論新建築時，你必須始終考慮未來的環境立法。可以肯定的是，美國新政府不會效仿前政府正在做的事情，這意味著我不確定我們會對國際海事組織目前正在討論的這種碳排放產生什麼樣的影響稅、碳稅，無論你怎麼稱呼它。

And this is going -- really the way that this is going to be enacted, we will influence significantly, you know, the decarbonization path. On the other hand, new building prices are really on the way up. And in general, for most of the ships that we have ordered, prices are on the average between 15% and 20% more.

這確實是一種實施方式，我們將極大地影響脫碳之路。另一方面，新樓價格確實在上漲。一般來說，對於我們訂購的大多數船舶，價格平均高出 15% 至 20%。

So it's - we're going to wait for, let's say, for this kind of to cool down. And the reason is because when we order, we do not order just purely on a back-to-back with a charter because, as I've said already in the past, deals like that are kind of a mid-single-digit equity returns, and we're not prepared really to go down that path.

所以，我們要等待，比如說，這種情況冷卻下來。原因是因為當我們訂購時，我們不會純粹根據包機進行連續訂購，因為正如我過去已經說過的那樣，這樣的交易相當於中等個位數的股權回歸，但我們還沒有真正準備好走這條路。

And when you are actually taking the risk yourself, the price of the asset is extremely important. So this is really the reason that we are kind of temporizing. If we see prices, you know, coming back again retracting, we will definitely be there to take advantage.

當你自己真正承擔風險時，資產的價格就極為重要。所以這確實是我們採取臨時措施的原因。如果我們看到價格再次回落，我們肯定會從中獲利。

Okay. Thanks, John. That's fairly clear. And just to summarize that simply, given the uncertainty on the new administration, what that means for environmental shifts going forward, that uncertainty plus the fact that new building prices are high, and you don't know where the container market is going. You're content with how things are and you'd rather when you order do it opportunistically to give yourself a better ROE and given that it makes sense to just wait.

好的。謝謝，約翰。這是相當清楚的。簡單總結一下，考慮到新政府的不確定性，這對未來的環境變化意味著什麼，這種不確定性加上新建築價格很高的事實，而且你不知道貨櫃市場將走向何方。你對現狀感到滿意，並且你寧願在下訂單時趁機下訂單，這樣可以為自己帶來更好的 ROE，並且考慮到等待是有意義的。

Yeah, exactly.

是的，完全正確。

Okay. And then just a second question. I know we've talked about this before on separate calls before. Just in terms of the dry bulk investment, you bought into dry bulk at the market lows, I think, starting last year. It strengthened a bit but it's come off here over the past few months. Although, I guess you could say recently there's another bounce, but in general, it feels like the sector has maybe softened a bit relative to what we were seeing previously. How are you thinking about dry bulk in terms of where we are sort of fundamentally and where do you see Danaos going with this segment?

好的。然後是第二個問題。我知道我們之前曾在單獨的電話會議上討論過這個問題。就乾散貨投資而言，我認為從去年開始，你就在市場低點買了乾散貨。它有所加強，但在過去幾個月中有所下降。雖然，我想你可能會說最近又出現了一次反彈，但總的來說，感覺該行業相對於我們之前看到的情況可能有所軟化。您如何看待乾散貨，從我們的基本面來看，您認為達納奧斯在這領域的發展方向是什麼？

As I said, we've built a fleet of 10 ships. And as the capesize is a new segment for us, we are currently in an experience building phase. We are operating the ships. We want to see exactly where do we see benefits, which are the qualities of the ship that makes sense and they are cost effective, and we will follow the market closely and that this market is much more liquid compared to the container market. There are opportunities out. And if we see really that there is an opportunity, we will jump on it.

正如我所說，我們已經建立了一支由 10 艘船組成的艦隊。由於海岬型船對我們來說是一個新的領域，我們目前正處於經驗累積階段。我們正在操作船隻。我們希望確切地了解我們在哪裡看到了好處，即船舶的品質有意義並且具有成本效益，我們將密切關注市場，與貨櫃市場相比，這個市場的流動性要強得多。有出去的機會。如果我們真的看到有機會，我們就會抓住它。

On the other hand, as you said, as the dry bulk market is mainly China-driven, the situation in China also again with the new US administration is also relatively unclear and this will affect quite a lot the dry bulk movement, especially on capesizes, where iron ore makes a very big proportion.

另一方面，正如您所說，由於乾散貨市場主要由中國驅動，隨著美國新政府的上台，中國的情況也相對不明朗，這將對乾散貨走勢產生很大影響，特別是海岬型散貨船，其中鐵礦石所佔比例非常大。

Right. Yeah, thank you. And then just sorry to follow-up just and press maybe just one bit further on just the comment you made on if you see an opportunity, you would jump on it. Is that in relation to an opportunity to acquire assets or to sell? Or are you talking, say, both?

正確的。是的，謝謝。然後很抱歉跟進一下，如果您看到機會，您會立即抓住您所做的評論。這是否與收購或出售資產的機會有關？或者說，你們兩個都在說話？

No, to acquire more assets or whatever.

不，是為了獲得更多資產或其他什麼。

Okay, good. All right. Well, thanks. That's it for me.

好的，很好。好的。嗯，謝謝。對我來說就是這樣。

Great. Thank you, Omar.

偉大的。謝謝你，奧馬爾。

It appears we have no further questions at this time.

目前看來我們沒有其他問題了。

I would like to turn the call back over to Dr. Coustas for any further comments or closing remarks.

我想將電話轉回給庫斯塔斯博士，以徵求進一步的意見或結束語。

Thank you all for joining this conference call and your continued interest in our story. Look forward to hosting you on our next earnings call.

感謝大家參加本次電話會議以及對我們故事的持續關注。期待在我們的下一次財報電話會議上接待您。

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。