Seaspan's Q2 net profit tumbles 22pc to US$28m
HONG Kong-based Seaspan Corporation's net earnings for the second quarter of 2017 tumbled 22.4 per cent year over year to US$28.3 million, according to the company's latest financial statements.
The containership lessor's revenues fell 8.8 per cent year over year for the quarter to $204.6 million, which were primarily bogged down by lower average charter rates for vessels that were on short-term charters.
However, the decrease was partially offset by the delivery of newbuilding vessels in 2016 and 2017, along with the addition of two leased-in vessels in 2016.
Vessel utilisation remained practically unchanged at 98.2 per cent for the quarter, compared with 98.1 per cent in the same period last year.
In May, Seaspan took delivery of the 14,000-TEU YM Wind, which commenced a 10-year fixed rate time charter with Yang Ming Marine in June. Ocean carrier schedule and capacity database BlueWater Reporting shows the vessel is currently deployed on "THE" Alliance's Asia-Europe FE3 loop.
Seaspan's managed fleet currently consists of 114 containerships, including nine newbuilding vessels on order scheduled for delivery to Seaspan and third parties by the end of 2018, and its current operating fleet consists of 89 containerships.
Commenting on the quarter, Seaspan CEO, co-chairman and co-founder Gerry Wang said: "We took important steps to further strengthen our financial position during the quarter, including entering into a sale-leaseback transaction to fund the YM Wind delivery and renewing our unsecured revolving loan facility."
Mr Wang is to retire no later than the end of the year. The company said he will continue in his current role as CEO until a permanent replacement is found and installed before or on December 31.