22-12-2016

Danaos blames Hanjin bankruptcy for its Q3 losses

containership

CONTAINERSHIP owner Danaos was dragged into the red in the third quarter by the impact from the Hanjin Shipping bankruptcy. The company reported a loss of US$8.39 million in Q3 compared to a net profit $42.07 million in the same period a year earlier.

Operating revenues were down 22.7 per cent to $111.7 million for the quarter compared to $144.5 million in the corresponding period in 2015, according to Seatrade Maritime News.

Danaos was hit by the bankruptcy of Hanjin which it described as one of its largest customers. The shipowner had three 10,100 TEU and five 3,400 TEU vessels on long-term charter to Hanjin.

"As a result of the bankruptcy, we did not recognise any operating revenues for the vessels that had been chartered to Hanjin during the quarter," the company said. Danaos?operating revenues were reduced by $24.8 million accordingly.

Additionally the company recorded a $15.8 million write-down on unpaid charter owed by Hanjin up to June 30. It also resulted in Danaos being in breach of certain financial covenants at the end of Q3, which it has obtained waivers on until April 1 2017.

"Notwithstanding the negative consequences of the Hanjin bankruptcy, the company is currently in a position to fully service all of its operational and contractual financial obligations," Danaos said.

The company has so far managed to re-charter the five 3,400 TEU vessels and expects to complete negotiations to re-charter the three 10,100 TEU boxships.

Source: Schendet

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