Why Is Danaos Stock Trading Higher Today?

Danaos Corporation DAC has entered into new charter agreements for 10 of its vessels, including one 8,500 TEU vessel, three 3,400 TEU vessels, and six 2,200 vessels, for charter periods ranging from 3 to 4 years.
The charters will commence between January and August of 2022.
The new charters increase the contracted revenue backlog by ~$378 million, or 21.5% compared to the Company's $1.75 billion backlog as of June 30, 2021, and increase contracted EBITDA by ~$280 million.
"We are very pleased to have significantly increased our contracted backlog by securing multi-year charters for 10 of our vessels. Not only have we achieved charter coverage for 100% of our operating days in 2021, we have already contracted 89% of our operating days for 2022 and 60% for 2023," commented Dr. John Coustas, CEO.
Price Action: DAC shares are trading higher by 4.46% at $74.41 on the last check Monday.

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