NON-OPERATING shipowner and charterer Seaspan posted a 1.6 per cent first quarter year-on-year "normalised" profit increase to US$28.8 million, drawn on revenues of $168 million, up 1.9 per cent.
But at the same time the Vancouver-headquartered, Hong Kong-operated company also cited a "reported" profit decline of 67.6 per cent to $18,028 in the same period.
"Normalised earnings non-GAAP [generally accepted accounting principles] are adjusted for interest expense, change in fair value of financial instruments, interest expense and other items not representative of its operating performance," the company explained.
The quarterly results report said Seaspan achieved vessel utilisation of 98.9 per cent or 99.7 per cent if the impact of off-charter days were excluded.
Seaspan took delivery of one vessel during the quarter, bringing Seaspan's operating fleet to a total of 72 ships.
Seaspan said it would raise $470 million through capital market transactions, including Seaspan's first issuance of unsecured notes.
Said CEO Gerry Wang: "We continued to generate stable results. We received the delivery of our first SAVER design ship and realised fleet growth by exercising options for an additional four 10,000 TEU class ships."
The quarterly revenue increase was attributed to the impact of the contribution of two 4,600 TEU secondhand vessels delivered in mid-2013, a decrease in unscheduled off-hire and the delivery of one vessel in March 2014.
Revenue increases were partially offset by lower charter rates for three vessels, which were on short-term charters during the quarter and an increase in scheduled off-hire, said the company.
The increase in vessel utilisation was due to a 172-day decrease in unscheduled off-hire.
"In the first quarter of 2014, there were 58 days of unscheduled off-hire which included 51 off-charter days for one of Seaspan's 4,250-TEU vessels compared to 230 days of unscheduled off-hire in the first quarter of 2013, which included 221 off-charter days for four of Seaspan's 4,250 TEU vessels," said the company statement.
WORLD SHIPPING
30 April 2014 - 23:27
Seaspan 'normalised' profit up 1.6pc, 'reported' profit off 67.6pc
NON-OPERATING shipowner and charterer Seaspan posted a 1.6 per cent first quarter year-on-year "normalised" profit increase to US$28.8 million, drawn on revenues of $168 million, up 1.9 per cent.
WORLD SHIPPING
30 April 2014 - 23:27
Seaspan 'normalised' profit up 1.6pc, 'reported' profit off 67.6pc
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