ATHENS, GREECE--(Marketwire - September 17, 2007) - Danaos Corporation (NYSE: DAC) today
announced that it has extended its shipbuilding contracts with China
Shipbuilding Trading Company, Limited to include one more 8,530 TEU
vessel, bringing the total number to five vessels. All five Post Panamax
containerships will be built by the Shanghai Jiangnan Changxing Heavy
Industry Company Limited and are expected to be delivered to Danaos between
August 2010 and February 2011. Danaos has also arranged for a large
international liner company to charter all these vessels for 12 years each
at accretive rates.
For the first full year of operation, this five vessel block addition to
Danaos' fleet of containerships is expected to contribute approximately $65
million of EBITDA. For this purpose, EBITDA, a non-GAAP measure, shall mean
net earnings before interest, un-drawn credit facility fees, taxes,
depreciation and amortization of deferred dry-docking charges and financing
fees.
According to schedule, Danaos also delivered back to its charterer, the APL
Holland, on August 3, 2007, as a result of the exercising of the purchase
option APL had on this vessel. Furthermore, Danaos took delivery of the
Hyundai Advance on August 20, 2007, the Hyundai Stride on September 5,
2007, and the new building YM Seatle on September 10, 2007.
"We believe our growth strategy has paid off," said Dr. Coustas, Chief
Executive Officer of Danaos. "Danaos' strong balance sheet has made it
possible to place new-building orders for which a charter may not be
arranged concurrently, allowing us to explore a wider array of
opportunities regarding vessel deployment at the proper time. In this
context, further to the initial order of four containerships, we have been
able to secure an order for an additional 8,530 TEU Post Panamax
containership increasing the total number of vessels to be built by
Shanghai Jiangnan Changxing Heavy Industry Company Limited to five. We have
also just arranged 12 year charters at accretive rates with one of the
largest liner companies in the world for all five of these vessels
scheduled to be delivered to us in 2010 and the beginning of 2011. With
this deal we have not only managed to increase our total fleet to 63
containerships, but also secure long term charters for all vessels of our
contracted fleet. In conclusion, we have increased our contracted revenue
to $5.2 billion."
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 33 containerships aggregating 138,772 TEU 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
30 additional containerships aggregating 163,121 TEU with scheduled
deliveries up to 2011. The company's shares trade on the New York Stock
Exchange under the symbol "DAC."
Visit our website at www.danaos.com
Contact Information: For further information please contact:
Dimitri Andritsoyiannis
Chief Financial Officer
Danaos Corporation
Athens, Greece
Tel: +30 210 419 6481
E-Mail: cfo@danaos.com
Iraklis Prokopakis
Chief Operating Officer
Danaos Corporation
Athens, Greece
Tel. +30 210 419 6400
E-Mail: coo@danaos.com
Investor Relations and Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
New York
Tel. 212-661-7566
E-Mail: nbornozis@capitallink.com