Seaspan Orders Seven Boxships
Hong Kong-based container liner Seaspan Corporation has ordered seven containerships for a total of USD 653 million.
On April 13, 2014, Seaspan entered into contracts with Hanjin Heavy Industries Corporation Philippines (HHIC-PHIL) for the construction of five 11000 TEU containerships for an aggregate purchase price of approximately USD 467.5 million.
These five vessels are scheduled for delivery throughout 2017 and each vessel is on a 17-year charter, at the conclusion of which the operator plans to purchase each vessel at a pre-determined amount.
Pursuant to its right of first refusal agreement with Greater China Intermodal Investments LLC, (GCI), Seaspan retained three of the 11000 TEU newbuilding containerships and GCI acquired the remaining two vessels.
On April 27, 2015, Seaspan entered into contracts with Jiangsu Xinfu and Jiangsu New Yangzi Shipbuilding Co., Ltd. for the construction of two 10000 TEU containerships for an aggregate purchase price of approximately USD 186 million. These vessels are scheduled for delivery in 2017 and will be constructed using Seaspan’s SAVER design. These vessels remain subject to allocation pursuant to Seaspan’s right of first refusal agreement with GCI, the company said.
” These transactions increase our owned and managed fleet to 118 vessels. With a strong and flexible capital structure, we remain well positioned to capitalize on growth opportunities, as we continue to provide leading liner companies with large, efficient containerships,” commented Gerry Wang, Chief Executive Officer, Co-Chairman and Co-Founder of Seaspan.
Seaspan reported a strong and stable cash flow in the first quarter of 2015 due to its growing fleet. Revenue increased by 12.2% to $188.5 million for the quarter ended March 31, 2015, over the same period in 2014. The increase was primarily due to the delivery of six 10000 TEU vessels in 2014, partially offset by an increase in scheduled offhire.
The company posted USD 21,333 net profit in Q1 2015, 18% higher when compared to the same period in 2014.
“Complementing our growth strategy, we continue to take advantage of our stable business model to return capital to shareholders. We are pleased to have declared a $0.375 per share common dividend for the first quarter, representing a 9% increase over the fourth quarter 2014 dividend and a 275% increase since March 2010,” Wang added.
