Danaos Corporation (DAC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $446.57 million, or $ 4.07 a share in the quarter, against a net profit of $6.53 million, or $0.06 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $23.16 million, or $0.21 a share compared with $47.15 million or $0.43 a share, a year ago. Revenue during the quarter dropped 21.78 percent to $112.11 million from $143.32 million in the previous year period.
Operating loss for the quarter was $372.77 million, compared with an operating income of $31.61 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $75.87 million compared with $105.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 607 basis points in the quarter to 67.68 percent from 73.75 percent in the last year period.
Danaos chief executive officer Dr. John Coustas commented: Danaos results for the fourth quarter of 2016 reflect the impact of the bankruptcy of Hanjin Shipping, which previously chartered eight of our vessels on long term charter party agreements representing approximately 20% of our fixed contracted revenue. These charter party agreements were terminated, and each of the chartered vessels were returned to us, as we have previously announced. The $24.0 million decrease in our adjusted net income is primarily the result of a $23.3 million decrease in operating revenues resulting from the Hanjin bankruptcy. During the fourth quarter, our fleet utilization decreased to 90.4% after the Hanjin charter cancellations.
Operating cash flow falls marginallyDanaos Corporation has generated cash of $261.97 million from operating activities during the year, down 3.57 percent or $9.71 million, when compared with the last year. The company has spent $9.38 million cash to meet investing activities during the year as against cash outgo of $13.29 million in the last year.
The company has spent $251.12 million cash to carry out financing activities during the year as against cash outgo of $243.86 million in the last year period.
Cash and cash equivalents stood at $73.72 million as on Dec. 31, 2016, up 2.03 percent or $1.46 million from $72.25 million on Dec. 31, 2015.
Debt comes down
Danaos Corporation has recorded a decline in total debt over the last one year. It stood at $2,504.93 million as on Dec. 31, 2016, down 8.59 percent or $235.46 million from $2,740.40 million on Dec. 31, 2015.
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