Giannis Koustas – Containerships firms on course for profits for two more years

2022 and most likely 2023 will be very good years for shipping companies that control fleets with container ships according to estimates by Dr. Giannis Koustas CEO of Danaos Corporation.

The NYSE-listed shipping company headed by Giannis Koustas with 71 containerships in its fleet saw its adjusted earnings (excluding extraordinary financial gains) jump to $ 109.5 million or $ 5.32 per share for the quarter ending Sept. 30 2021 compared to $ 47.3 million or $ 1.91 per share for the quarter ending September 30, 2020, following a similar path to the profitability of other companies with containerships

When asked how long this positive course of the companies in the sector will continue, Mr. Kousta’s assessments are very encouraging. Commenting on the results of his company, he noted that the disruption in the global supply chain, which continues unabated, had, despite their negative impact on global growth, extremely positive results in the container transport industry, which continues very dynamically. Despite the efforts of all participants to alleviate disruptions in the global supply chain, there is no evidence that conditions are improving. The main contributing factors are the increase in demand, the lack of ships available to meet this demand and the low levels of productivity in ports and other land infrastructure.

In addition, as deliveries of new vessels in 2022 are actually expected to be lower than in 2021, no difference is expected on the tonnage front in the near future. In 2023, increased deliveries are forecast, but these will be offset by the new environmental regulations which are likely to lead to a reduction in ship speed and therefore tonnage supply. Overall, we do not expect a dramatic difference, provided demand remains healthy.

Danaos Corporation recorded revenue for the third quarter of 2021 of $ 195.915 million compared to $ 118.932 million in the corresponding period of 2020, a development due to both the increase in fares ($ 30.6 million) and the addition of new ships to company fleet ($ 15.6 million) but also in accounting records based on US accounting standards and depreciation

The company’s profits were $ 217.2 million, up from $ 42.8 million a year earlier, but they include accounting gains of $ 64.1 million from Gemini’s acquisition and an additional $ 59.5 million in return on investment. of Danaos in ZIM shares.