Thank you for standing by, ladies and gentlemen, and welcome to the Danaos Corporation Conference Call on the Second Quarter 2013 Financial Results. We have with us Dr. John Coustas, President and Chief Executive Officer; and Mr. Evangelos Chatzis, Chief Financial Officer of the Company. At this time all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advise you that the conference is being recorded today, Tuesday, July 30, 2013. We now pass the floor to one of your speakers today, Mr. Chatzis. Please go ahead, sir.

Thank you, operator, and good morning everyone and thank you for joining us today. Before we begin, I quickly want to remind everyone that management’s remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today. These forward-looking statements speak as of today and we undertake no obligation to update that. Factors that might affect future results are discussed in our filings with the SEC and we encourage you to review the detailed Safe Harbor and risk factors disclosures. Please also note that where we feel appropriate we will continue to refer to non-GAAP financial measures such as EBITDA, adjusted EBITDA and adjusted net income to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials. Now, let me turn the call over to Dr. Coustas who will provide the broad overview of this quarter.

Thank you, Evangelos. Good morning, everyone, and thank you joining today’s call to discuss our results for the second quarter of 2013. Despite the ongoing challenging state of the containership market we are reporting yet another solid quarter with adjusted net income of $11.8 million, or $0.11 a share and adjusted EBITDA of $107.4 million for the second quarter of the year. Our adjusted net income was lower by $4.4 million when compared to second quarter of 2012 as a result of the softening of the charter market between the two periods. However, as the vessels that have been re-chartered at the current low rates deployed under short-term charters are currently running at operating break-even levels, an improvement in the charter market is a one-way option to the improvement of our results. Effectively, over the next 12 months 97% of revenues are contracted with only 3% at stake through re-chartering. We currently have two vessels on cold lay-up compared to seven vessels laid up in the beginning of the year. As previously reported, we are executing a fleet modernization program based on which during the first half of the year we sold five of the older vessels with an average age of 25 years for $32.8 million, while we have already utilized $17 million of these sales proceeds for the purchase of two 2,500 TEU geared containerships with an average age of 13.4 years. These two new vessels have already been chartered for one year and operate in niche markets. We have already commenced the rapid deleveraging of the company through our free cash flow generation. During the first half of the year we have reduced debt by $75.7 million while we anticipate to pay down debt by approximately a further $100 million until the end of the year. On…

Thank you, and good morning everyone, and thanks again to all of you for joining us today. I will briefly review the results for the quarter and then give the chance to the participants of the call to place questions. During the second quarter of 2013, we had an average of 60.9 containerships compared to 62.2 containerships for the second quarter of 2012, while during the current quarter we sold two of the oldest vessels in our fleet, the Honour and the Elbe for a net sale consideration of $14 million. Following the already consummated sales and the reactivation of Melisande during the first quarter of the year we currently have two vessels on cold lay-out. Given the state of the market we currently do not anticipate to reactivate these two vessels before the second quarter of the next year. Our adjusted net income was $11.8 million or $0.11 per share for the quarter, down by $4.4 million or $0.04 per share when compared to the adjusted net income of $16.2 million or $0.15 per share for the second quarter of 2012. This decrease is attributable to the softening of the charter market during the last 12 months that led to the cold lay-up of certain vessels and to the re-chartering at lower rates of certain other vessels. That currently run at operating break-even levels, while they have a positive contribution to operating income during the second quarter of 2012, as well as of course as to the two vessels sales in the current quarter. It is worth at this point to note that beside the chartering rates, which is manageable as 97% of our revenues is contracted for the next 12 months. The most important driver in our earnings today is related to hedging that we have in place…

Thank you very much, sir. Now from Global Hunter Securities, you have the question from Omar Nokta. Please ask your question. Omar M. Nokta – Global Hunter Securities LLC: Hi, thank you. Good afternoon guys.

Hi.

Hello, Omar. Omar M. Nokta – Global Hunter Securities LLC: Hi, I just wanted to, congratulations on the purchase of those geared containerships. And I was just wondering, could you provide us a sense of what you’re seeing in the marketplace right now, for charter rates versus a 12 months on a geared 2,500 TEU ship versus a gearless vessels?

Well, rates really are not going to be any better. It’s just as the employment prospect of a geared vessel are probably better. For the time being all these ships are, I mean geared ships are maybe under slight premium to say gearless vessel of the same size, but in any case we’re talking of numbers, which are pretty close to operating costs. The only difference is, as I say, that the geared vessels are not so much affected by the cascading because of the trades which they operate. It maybe affected by, let’s say, other changes in the structure of the trade, but not by the cascading in itself. And that’s why we think that also on the basis that nothing really is practical being built in this sector. We may have, let’s say, a more healthy market in a couple of years. Omar M. Nokta – Global Hunter Securities LLC: Okay. And would you – presumably I guess in this market as you look to deploy more of the capital you’ve currently raised ahead of sales, would you be looking more into geared ships of similar size so that even though you are paying small upfront payments just due to the fact that they are priced pretty much at scrap, that you would be looking for geared ships just at least to get employment in the near-term?

Yeah, I think we will look for geared ships. Of course that is one hand because we believe that these ships will have, let’s say, relatively better prospects. But on the other hand, one, let’s say, important consideration is that this is a segment that we do not have any exposure and we would like really to take the opportunity to have the presence also in this area. Omar M. Nokta – Global Hunter Securities LLC: Okay. And then just also I wanted to ask one final question. You have some of your oldest ships built in 1989, 1991, those I think are rolling off contract this quarter. What do see, do you see yourself also looking to sell those either for scrap or just selling them in the open market? And then taking those proceeds also and maybe deploying them in the secondhand market today?

Yeah, I mean we have earmarked a number of vessels, let’s say, as potential for – let’s say for disposal. We will see how the market develops, but, yes it’s likely that, yes, some of them maybe disposed this second half. Omar M. Nokta – Global Hunter Securities LLC: Okay. And then, just sorry, one more. I just wanted to double check. In the comments earlier you’d mentioned the two vessels that are currently in lay-up, you don’t expect to bring those back online prior to 2Q 2014, did I get that right?

Well, no. I mean, we have requested to reactivate the vessels, but it’s pointless to reactivate them as a relatively low premium to OpEx. Let’s say there is a meaningful, really profit to make out of the charter, we will do it, otherwise it’s pointless just to go through all the risks of reactivating a vessel. And also, we are contributing in a negative way to the market this way. Omar M. Nokta – Global Hunter Securities LLC: That makes sense. All right, well, thank you very much.

Thank you, Omar.

Thank you, sir. Now your next question from Euro Pacific Capital comes from Mark Suarez. Please ask your question, sir. Mark Suarez – Euro Pacific Capital: Hi, there. Good morning. Good afternoon. Thanks for taking my questions. Just to go back on the two-year vessels you talked about. What was the source of that deal? Was it from brokers, lenders or operators? I just want to get a sense as to how you managed to purchase those two vessels?

These vessels were purchased, let’s say, practically from the open market. Mark Suarez – Euro Pacific Capital: Got you. And can you talk a little bit about what sort of charters you managed to lock them in at? Are they at a premium to OpEx levels or break-even? What sort of charters do you manage to get for them?

No, they are you know pretty much, because these were reported also, there is nothing really big secrete about that, these are around in the region of $7.500 a day which is at a slight premium to OpEx. Mark Suarez – Euro Pacific Capital: And is the idea here to continue to lock them as one-year charters or is there a possibility of doing maybe shorter charters to sort of take advantage of the upturn in the market coming next year?

Yeah, practically in containers, you very rarely get lets say I mean two, three, four month charters, I'm that’s really the exception. So if someone needs the ship, he will take it for a year or so. So it’s not really a question of our choice give it, but in general the strategy yes is to keep it as short as possible. Mark Suarez – Euro Pacific Capital: Okay. And just to go back to the five remaining mortgage vessels that you have earmarked, I know you mentioned your intention to sell them off, if I hear you correctly. Do you have a sense of the timing as to when that is going to happen? Could that happen all in the second half or do you think that could overlap into 2014?

I think that practically we will try to really to decide within this year, what we will do with the ships. Mark Suarez – Euro Pacific Capital: Okay. And do you have a target as to how many new vessels you want to purchase assuming obviously that you get the you complete all these remaining selling of the vessels there or do you have like a target in mind, in terms of how many you mentioned gearshifts going actually intersecting that segment do you have a number in mind if you will how many vessels you want to acquire?

Well first of all we need to find let's say suitable candidate and once we do we probably the intention is really to utilize as much as possible from these proceeds. Mark Suarez – Euro Pacific Capital: Okay. And then the final question with regards to the laid up vessels is there any chance of maybe selling them off or I mean if you can be activating at a reasonable time that you think makes sense from a cash flow perspective may be just setting up it will make more sense or is that now something you’re thinking about?

I don't think really, I mean these are the ships that we have really that we are keeping to-date totally up. Our vessels which we believe they have the potential to compete in a better markets. So they are not really candidates for scrapping. Mark Suarez – Euro Pacific Capital: Okay. I think that is all I have for now. Thanks for your time.

Thank you very much.

(Operator Instructions) And you now have a question from Credit Suisse from Greg Lewis. Please ask your question. Gregory Lewis – Credit Suisse: Hi, good afternoon gentlemen. Can I apologize if you addressed this earlier on the call. But I mean clearly a few of your competitors have opted to partner with larger private equity firms at this stage in the game forming JVs. Is that something Danaos is exploring and I guess my question is, if it’s not given the potential for private equity alternative investments whatever we want to call them. It seems like there is real appetite from that side of the equation to want to make investments and partner up with shipping companies such as yourself.

Well, it’s true that we are really, we are discussing with a number of firms about possible cooperation. I think is that because really at least as far as let’s say the Danaos Corporation is concerned, due to the capital restrictions, I mean that we had through the restructuring such kind of joint venture deals are not very, let’s say very simple to, I mean to manage as they require you know a number of approvals from the banks and it is a bit as you know banks do not move very quickly to date. So they would require consent from all our banks, so that is bit of a deterrent. We are looking at some alternative schemes to be honest that the vessels let’s say are acquired privately with let’s say with the option of the public entry to acquire them at later stage. But we don’t really to be honest; we don’t see any kind of deals that have how can I say any returns, which are appealing. On the other hand because of the low prices, there has been a considerable number of speculative ordering on the ships of let’s say on large ships or ships of let’s say 9,000 TEU. And although we’re talking about something more than 20 ships on speculation in this segment. Charters at present are a bit let’s say reluctant to grow and commit into charter contracts because they are trying mainly to concentrate on the existing ships that have been built on speculation. And they believe that they can get a better deal through the people who have already let’s say committed. Gregory Lewis – Credit Suisse: Okay, perfect. Thank you for the time, John. Have a great summer.

Thank you.

Thank you, sir. And at this point there are no further questions. So I now pass the floor back for closing remarks to Dr. John Coustas.

Thank you, operator. Thanks everyone for joining this conference call and your continued interest in our story. We look forward to our next earning calls and wish you a nice summer. Thank you.

And with many thanks to both our speakers today. That does conclude our conference. Thank you for participating. You may now all disconnect.