SOURCE: Danaos Corporation

February 07, 2007 16:05 ET

Danaos Corporation Delivers One More Dry Bulk Vessel to Shanghai Time Shipping Co. LTD and Announces That Options for Two Vessels Have Been Exercised

ATHENS, GREECE -- (MARKET WIRE) -- February 7, 2007 -- Danaos Corporation (NYSE: DAC) today announced that during the course of the last week it delivered the bulk carrier Dimitris C to Shanghai Time Shipping Co. LTD according to schedule. The delivery of this drybulk vessel to their new owners brought net proceeds of $21.8 million to Danaos, while Danaos expects to book a profit for this part of the sale of $13.8 million. The delivery comes as a consequence of the sale agreement Danaos signed in August 2006 for all of its six drybulk carriers in its fleet at that time. Danaos expects to deliver the three remaining drybulk carriers during the first half of 2007, in line with the existing agreement. Further, Danaos Corporation also announced that APL has declared their purchase option regarding the APL Scotland and APL Holland according to their existing agreement with Danaos. Danaos Corporation now expects to sell these vessels back to APL at the end of their respective charter on or about June 15 and July 20, 2007 respectively for a total of $88 million.

Dr. Coustas, Chief Executive Officer of Danaos, commented: "We have successfully delivered to their new owner another drybulk vessel as part of the sale agreement with Shanghai Time Shipping Co. With an acquisition price of $10.9 million back in 2002, this vessel is now sold for a profit of $13.8 million. The expected delivery of three of our vessels to APL in 2007, following the declaration of the purchase options attached to them -- which include the APL England for which the option was declared in 2006 -- will bring to our company another $132 million. The expected additions of four new containerships, scheduled for 2007, all of which are already chartered for 12 years each, will lower the average age and increase the average time charter duration profile of our fleet while at the same time increasing our revenues. The proceeds of these sales will be used to partly finance our extensive new building and delivery program we already have in place for the next three years. The company expects to continue enjoying a low leverage balance sheet which provides us with effective ammunition for further accretive growth."

About Danaos Corporation

Danaos Corporation is an international owner of containerships, chartering its vessels to many of the world's largest liner companies. Its current fleet of 31 containerships aggregating 140,137 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is the largest US listed containership company based on fleet size and market capitalization. Furthermore, the company has on order 15 additional containerships aggregating 75,124 TEU with scheduled deliveries up to the end of 2009. The company's shares trade on the New York Stock Exchange under the symbol "DAC."

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Contact Information

  • For further information please contact:

    Company Contacts:
    Dimitri Andritsoyiannis
    Chief Financial Officer
    Danaos Corporation
    Athens, Greece
    Tel: +30 210 419 6481

    Iraklis Prokopakis
    Chief Operating Officer
    Danaos Corporation
    Athens, Greece
    Tel. +30 210 419 6400

    Investor Relations and Financial Media:
    Nicolas Bornozis
    Capital Link, Inc.
    New York
    Tel. 212-661-7566