Danaos Corporation continues to register an extremely positive course with 3.7 billion dollars in contracted revenue, 825 million dollars in liquidity, 1.9 billion dollars in company value, 84 ships in the water and another 15 under construction,
Although the company, owned by Dr. Ioannis Coustas, listed on the NYSE, is currently trading at 88 dollars, its fair value is estimated at 110 dollars.
According to Seeking Alpha analyst J Mintzmyer, the fair value of Danaos is estimated at 150 dollars despite difficulties in the freight market.
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The CEO of Danaos also referred to the geopolitical and economic adversities, noting that as the year progresses, the level of global turmoil shows no signs of abating.
“Armed conflicts continue, most recently with India and Pakistan, while tariff uncertainty has led to a dramatic decline in the Pacific market. So far, the US economy remains resilient. As long as US consumers continue to spend, we expect trade flows to recover, with depleted inventories ultimately leading to an increase in demand.”
Regarding the dry bulk market, Dr. Coustas pointed out that the sector has recovered from the lows of the first quarter, although – as he said – the recovery was at moderate levels.
According to him, a substantial and sustainable recovery will be difficult in the absence of further development initiatives in China.
“While the Simandu project is expected to benefit the capesize market by increasing tonne-miles, overall iron ore consumption is not expected to increase significantly,” he emphasized.
Speaking about the financial performance of the listed company, Dr. Coustas noted that it continues to be strong, although it has been affected by a series of freight renewals at lower rates than those observed during the pandemic.
However, he explained that “charter coverage for the company’s vessels is largely secured through 2025 and 2026.”
The head of the listed company revealed that the company is “holding back” on investments in new ships and is focusing on optimizing the performance of the existing fleet.
