Seaspan profit hits US$454.5 million with 98.4pc ship utilisation

SEASPAN Corporation has posted operating earnings of US$110

11 August 2019 - 19:00

SEASPAN Corporation has posted operating earnings of US$110.4 million for the second quarter and $454.5 million for the first half of the year, on the back of vessel utilisation rates of 98.7 per cent for Q2 and 98.4 per cent for the first six months of the year.

During the second quarter, the company closed its new $1 billion portfolio financing programme, which 'marked an important step toward reshaping our capital structure. Beyond an improved cost of debt and maturity profile, this structure provides us with significant financial flexibility to optimise Seaspan's capital structure going forward, while simplifying and consolidating our credit facilities', said chief financial officer Ryan Courson.

The company anticipates that revenue for the whole of 2019 will be in the range of $1,11 billion to $1,12 billion, meaning that it has raised the lower end of the range by $15 million.

'Our continued drive for operational excellence allowed us to deliver better than anticipated operating earnings, while investing in and building on our integrated platform to consistently enhance our customer-centric approach,' said CEO Bing Chen.

'In particular, we've continued to sign multi-year contracts with customers, maintaining our industry leading utilization rate of 98.7 per cent,' he said

As of June 30, Seaspan had drawn $874 million under the financing programme and used the proceeds to prepay, in full or in part, credit facilities and for general corporate purposes.

As of August 7, the company had 43 unencumbered vessels, four of which are pending completion of collateral release documentation.


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