Seaspan reports financial results for Q3 2017
Seaspan Corporation announced its financial results for the three and nine months ended September 30, 2017.
Key Financial Metrics
Total revenues of $211.0 million for the third quarter and $616.9 million for the nine months.
Earnings per diluted share of $0.26 for the third quarter and $0.60 for the nine months.
Normalized earnings per diluted share(1) of $0.18 for the third quarter and $0.50 for the nine months.
Cash available for distribution to common shareholders(1) of $65.1 million for the third quarter and $220.5 million for the nine months.
Adjusted EBITDA(1) of $125.1 million for the third quarter and $398.3 million for the nine months.
Highlights
Accepted delivery of three 11000 TEU vessels on long-term bareboat charters with MSC Mediterranean Shipping Company S.A. ("MSC").
Entered into three-year time charter contracts with CMA CGM S.A. ("CMA CGM") for two 10000 TEU newbuilding containerships currently under construction.
Entered into vessel sale agreements for four 4250 TEU vessels. Two of the individual vessel sales closed in the third quarter and a third closed in the fourth quarter.
Achieved reductions of 10.7% and 11.7% in ship operating expense per ownership day during the three and nine months ended September 30, 2017, respectively, compared to the same periods in 2016.
Achieved vessel utilization of 96.9% and 95.6% for the three and nine months ended September 30, 2017, respectively. Excluding the four 4250 TEU vessels that are being sold, vessel utilization was 98.0% and 97.0% for the same periods respectively.
Currently 19 vessels in Seaspan’s operating fleet are unencumbered, including 2 x 3500 TEUs, 14 x 4250 TEUs, 2 x 4500 TEUs, and 1 x 9600 TEU, and excluding the remaining 4250 TEU vessel subject to a sale agreement.
Vessel utilization increased for the three months ended September 30, 2017, compared to the same period in 2016, primarily due to fewer off-charter days and fewer scheduled drydock days. Vessel utilization decreased for the nine months ended September 30, 2017, compared to the same period in 2016, primarily due to an increase in off-charter days and the impact of the four 4250 TEU vessels being sold.
During the nine months ended September 30, 2017, Seaspan completed dry-dockings for three 4250 TEU vessels, which were completed between their time charters.
About Seaspan
Seaspan provides many of the world’s major shipping lines with creative outsourcing alternatives to vessel ownership by offering long-term leases on large, modern containerships combined with industry-leading ship management services. Excluding the remaining 4250 TEU class vessel which is being sold, Seaspan’s managed fleet consists of 110 containerships representing a total capacity of approximately 900,000 TEUs, including six newbuilding containerships on order scheduled for delivery to Seaspan and third parties by the end of 2018. Seaspan’s current operating fleet of 88 vessels, excluding the remaining 4250 TEU class vessel which is being sold, has an average age of approximately six years and an average remaining lease period of approximately five years, on a TEU-weighted basis.
