Danaos Corporation announced its third-quarter 2024 financial results, reporting operating revenues of $256.2 million, a 7.1% increase from $239.2 million in the third quarter of 2023. However, adjusted net income decreased to $126.8 million, or $6.50 per diluted share, compared to $143.0 million, or $7.26 per diluted share, in the prior year period. Non-adjusted net income also saw a decline to $123.0 million, or $6.30 per diluted share, from $133.2 million, or $6.76 per diluted share, in Q3 2023.
The decrease in adjusted net income was primarily attributed to a $31.1 million increase in total operating expenses and a $3.3 million rise in net finance expenses. Vessel operating expenses increased to $49.9 million from $39.5 million, with daily operating costs rising to $6,860 per vessel per day from $6,499. The company's net debt stood at $305.14 million as of September 30, 2024, with a net debt to LTM Adjusted EBITDA ratio of 0.43x.
Despite the earnings decline, Danaos maintained a strong contracted charter backlog of $3.3 billion, with 100% coverage for 2024, 94% for 2025, and 73% for 2026 for its container vessel fleet. The company also increased its quarterly dividend to $0.85 per share and received credit rating upgrades to Ba1 from Moody's and BB+ from S&P, reflecting its balance sheet strength. Additionally, Danaos reported $123 million in cumulative share repurchases, with $77 million remaining under its authorized program.
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