zoom As a result of higher charter contract coverage, Athens-based containership owner Danaos Corporation managed to improve its earnings in the third quarter of this year, when compared to the same period of 2016.The company’s net income amounted to USD 22.4 million during the quarter ended September 30, 2017, compared to a net loss of USD 8.4 million posted in the same period a year earlier.Adjusted net income of USD 30.1 million for the quarter represented an increase of USD 7.3 million compared to USD 22.8 million for the third quarter of 2016.As explained, this increase was attributable to a USD 6 million increase in the operating revenues of the vessels that were previously chartered to former shipping company Hanjin that had not recorded any operating revenues during the third quarter of 2016 and improved operating performance of USD 1.3 million. “The company is in breach of certain financial covenants as a result of the Hanjin bankruptcy. We are currently engaged in discussions with our lenders regarding refinancing substantially all of our debt maturing in 2018. These discussions encompass potential amendments to the associated financial covenants that have been breached. In the meantime, we continue to generate positive cash flows from our operations and currently are in a position to service all our operational obligations as well as all scheduled principal amortization and interest payments under the original terms of our debt agreements,” John Coustas, Danaos’ CEO, commented.During the three months ended September 30, 2017 and September 30, 2016, Danaos had an average of 55 containerships. The fleet utilization for the third quarter of 2017 was 97% compared to 98.3% in the three months ended September 30, 2016, when excluding the off charter days of the vessels that were previously chartered to Hanjin.Charter coverage remains at 87% for the next 12 months based on current operating revenues and 71% in terms of contracted operating days.“The charter market for the sub 4,000 TEU vessels is relatively stable, with charter rates slightly higher than the lows of 2016, while the size segment between 4,000 to 5,000 TEU is facing more pressure. For larger vessel sizes, the fourth quarter is typically the low season of the year. We will have more clarity on the state of that segment as we approach the peak season in the spring of 2018. We do not expect a material improvement in the market environment next year, given the large number of vessel deliveries scheduled for 2018. Danaos continues to have low near term exposure to the weak spot market as a result of the aforementioned strong charter coverage,” Coustas added.Net income for the nine months ended September 30, 2017, stood at USD 61.1 million, compared to a net income of USD 83.7 million reported in the Q3 2016.