Manage episode 318724628 series 2505215
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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