SOURCE: Danaos Corporation

March 16, 2007 10:04 ET

Danaos Corporation Orders Five 6,500 TEU Post-Panamax Containerships and Secures 15-Year Charters for Three With the Yang Ming Group

ATHENS, GREECE -- (MARKET WIRE) -- March 16, 2007 -- Danaos Corporation (NYSE: DAC) today announced that it has signed shipbuilding contracts for five 6,500 TEU vessels with Hanjin Heavy Industries & Construction Co., Ltd. These containerships are expected to be delivered to Danaos in late 2009 and throughout June 2010.

The capital expenditure commitment, which is in the region of $500 million, will be financed by existing credit facilities and own funds according to work in progress under the specific terms of the shipbuilding contracts.

Danaos also arranged for 15-year charters for three of these vessels with the Yang Ming Group at a rate of $34,325 per day.

This new order increases Danaos' total order-book to 23 containerships with a total carrying capacity of 130,524 TEU or 94% of its current fleet.

"This acquisition is one further step in our development," said Dr. Coustas, Chief Executive Officer of Danaos. "We have a number of excellent Hanjin Heavy Industries built vessels in our fleet, and it was now time to further our relationship with a solid order of five Post-Panamax containerships. Danaos will take delivery of these vessels from November of 2009 until June 2010, at a time when building births for large containerships around the world are becoming increasingly hard to find. The vessels will be powered by Korean built electronic engines providing improved efficiency, lower emissions and with a design speed of 25.6 Knots. Three of these vessels have been chartered by our long time customer, Yang Ming Line, increasing our contracted revenue by $550 million to about $3.5 billion."

About Danaos Corporation

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 138,931 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 23 additional containerships aggregating 130,524 TEU with scheduled deliveries up to 2010. 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 Contact:

    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