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Two ships worth 1.3 billion yuan! Yangtze River Shipbuilding Industry regains Danaos methanol reserved container ship orders



Greek shipowner Danaos Corporation returns to Yangtze River Shipyard and orders two more 8258TEU methanol ready container ships.

Danaos disclosed this latest order in its 2023 financial report released on February 13th. It is reported that the total value of this contract is 188.4 million US dollars (approximately 1.355 billion yuan), equivalent to a single ship price of 94.2 million US dollars. The two new ships are expected to be delivered in the fourth quarter of 2026 and the first quarter of 2027.

As a reference, Clarkson's data shows that the current price of a new 7500-8500 TEU traditional fuel container ship is approximately $94 million, an 8% increase from $87 million in the same period last year.

Previously, Danaos ordered two 8258TEU methanol fuel reserved container ships from Yangtze River Shipyard in August last year, with plans to deliver them in 2026.

Along with the latest orders, the number of environmentally friendly methanol fuel reserved container ships under construction by the company has increased to 12, including 2 from Dalian Shipbuilding, 4 from South Korea's DH Shipbuilding (formerly South Korea Shipbuilding), 2 from Qingdao Yangfan, and 4 from Yangtze River Shipbuilding. The total capacity is 91430 TEU, with 6 to be delivered in 2024, 2 to be delivered in 2025, 3 to be delivered in 2026, and 1 to be delivered in 2027.

Danaos stated that these 12 new ships will be equipped with alternative marine power units and built in accordance with the latest requirements of the International Maritime Organization, meeting Tier III emission regulations and the third phase requirements of the Ship Energy Efficiency Design Index (EEDI). Dr. John Coustas, CEO, pointed out, "All ships in our 12 new shipbuilding plans can use methanol fuel and adopt the latest environmentally friendly designs. As the industry is rapidly reducing carbon emissions by operating green ships, there is a high demand for shipyards to deliver slipways."

In the past three months, Danaos has signed new leases for five container ships in its fleet, resulting in a cumulative increase of approximately $43 million in contract revenue and a total cash operating income of $2.3 billion. According to the weighted calculation of contract charter rent, the average remaining contract lease term is 3.0 years.

The company's latest report states that its adjusted net income for the fourth quarter of 2023 was $136 million, compared to $141.7 million in the same period last year. The adjusted net income for the whole year of 2023 decreased by 20% year-on-year to $567.6 million.

It is understood that Danaos is one of the world's largest independent container ship owners, with 68 container ships ranging from 2200TEU to 13100TEU, and has signed long-term ship leasing contracts with multiple leading consolidation companies. In addition, the company also owns 7 Cape of Good Hope bulk carriers.

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