Seaspan Corp’s Quarterly Earnings Halved, Revenue Up

COSCO HopeIllustration; Image Courtesy: Pixabay

Despite the addition of a number of boxships during the second quarter, the Hong Kong-based containership owner Seaspan Corporation saw a drop of over 55% in its second quarter net earnings to USD 36.4 million, against the net earnings of USD 81.3 million seen in the same quarter a year earlier.

However, the company’s revenue for the period increased by 12.6% to USD 224.3 million, from USD 199.1 million reported in the second quarter of 2015, primarily due to the delivery of newbuilding vessels in 2015 and 2016 and the additional two leased in vessels in 2016, partially offset by lower average charter rates for vessels that were on short-term charters.

Seaspan Corporation’s half year results showed similar developments, as the company’s net earnings for the first half plunged by 57.6% to USD 43.5 million from USD 102.6 million in the first half of 2015, while the revenue rose by 13.4% to USD 439.8 million for the period.

“We continued to generate strong financial and operational results in the second quarter, which was defined by a series of transactions that strengthened our balance sheet and positioned us for further growth,” Gerry Wang, Chief Executive Officer, Co-Chairman and Co-Founder of Seaspan, said.

“During the second quarter, we expanded our fleet with the delivery of our eighth 14,000 TEU SAVER design containership, which commenced a ten-year fixed-rate contract with Yang Ming,” Wang said.

Seaspan also grew its operating fleet by entering into leasing arrangements for two newly-delivered vessels that were previously owned by GCI and constructed under the company’s supervision.

Each of these vessels has been contracted for long-term fixed-rate charters.

Furthermore, at the end of the second quarter, Seaspan acquired two newbuilding 11,000 TEU vessels from GCI and their associated 17-year charters with MSC.

“With these actions, we have taken significant steps to ensure the stability of our cash flows while increasing our position as the world’s largest independent owner and lessor of containerships,” Wang said.

Seaspan’s operating fleet as of June 30 stands at a total of 89 vessels.

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