DAC Q3 2022 earnings release

Released today (11/08)

Seem really good in many stats - cash/liquidity, debt paydown, charter backlog, etc.
Somewhat challenged - charter expiry (2 this month, at least 12 in 2023), very old fleet avg in smallest category


When DAC reported their results, their management had commented on market conditions. They had suggested that, if vessels were rolling off charters, a vessel would likely get a new charter, but it would not be a multi-year. They gave the example, one of their own vessels - a 2200-TEU vessel @ $16K daily for 6 months. While perusing NMM’s Q3 report, they had a similar data-point - a 4500-TEU vessel $22,195 for 6 months. In the DAC case, they were okay with the rate, as pre-Covid times (in 2019), that vessel was earning < $10K.

Glancing at the DAC fleet, the vessels in that size are generally 23 - 25 years old. Depreciation is probably mostly or all wrung out. Probably little or no financing on said vessel. At $16K daily, margins are likely 50 - 60%. Will the rates hold in 2023?

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