GREEK containership owner, Danaos, has posted a 14.1 per cent third quarter adjusted net profit drop to $13.4 million year on year, marking its third straight profitable quarter against last years Q3 loss of $7 million.
The company said it adjusted the third quarter net income for unrealized gains on derivatives of $200,000, as well as a non-cash expense of $4.8 million for fees related to its comprehensive financing plan.
The fall in adjusted net income was mainly the result of lower operating revenues due to the softening of the charter market last year. As of September 30, 2013, the company had two ships in cold lay-up.
Third quarter operating revenues fell by 5.1 per cent year-on-year to $148.4 million, which was attributed both to a softening charter market and the sale of four old ships in the first half.
This was partly mitigated by $1.1 million in additional revenues earned by two more modern ships that were acquired during the first half of the year.
Danaos has agreed with lenders HSH Nordbank, Aegean Baltic Bank and Piraeus Bank that up to nine mortgaged vessels can be sold this year, and the proceeds will be used to finance the acquisition of new vessels up to year-end.
Over the past two months the company has sealed three deals to sell older ships, bringing the number of disposals to eight, reports Lloyds List. The vessels shed by Danaos have netted $52.3 million in proceeds for the company.
"We are still scanning the market for accretive acquisition opportunities of younger tonnage to complement the recent additions of two 2,500-TEU geared ships," said Danaos CEO John Coustas.
The company controls a fleet of 58 containerships, amounting to a total capacity of 342,142 TEU.