Value Investor's Edge Live #46: Danaos Ready To Boost Shareholder Returns


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By Joseph Sancio and Seeking Alpha. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Danaos Corp (DAC) CFO, Evangelos Chatzis, joined Value Investor's Edge Live to discuss the containership leasing markets and prospects for 2022. DAC has been a massive winner from the ongoing supply chain crisis, but the have taken the long-term view with very responsible moves including comprehensive refinancing, massive deleveraging, and fixing their fleet onto medium- and long-term contracts to lock in sky-high rates.

Topics Covered
  • (2:15) Update on ocontainership markets: how long can strength last?
  • (6:00) Liners gladly taking ships 2023-2028, what is the market ‘missing?’
  • (9:15) Potential to sell any more older ships?
  • (11:15) Further appetite to add growth deals in this market?
  • (12:45) What about newbuilds with long-term charters attached?
  • (15:15) Will cash be wasted on bad growth deals?
  • (18:00) How can Danaos close the massive valuation gap?
  • (20:45) Dividend policy and future payout policy?
  • (22:30) Balance sheet: leverage target and use of funds?
  • (27:30) Danaos plans for ZIM stake? Structure to reduce taxes?
  • (31:00) Share repurchase program on the table?
  • (34:45) What are the key risks to this market and to DAC?
  • (36:45) Potential for future contract rolls? CMA CGM “market rate”?
  • (40:30) Interest in a share split? Potentially 5-1?
  • (42:15) Why invest in DAC versus other containership peers?

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