Seaspan Bullish After Posting Improved Results

zoomGerry Wang, CEO, Co-Chairman and Co-Founder of Seaspan. Hong Kong-based Seaspan Corporation plans further additions to its currently 100 strong fleet of owned and managed container ships after posting improved revenues for the third quarter and the first nine months of 2015. Seaspans revenue of USD 212.9 million for the quarter ended September 30 was 14.5% better compared to USD 185.9 million reported in the third quarter a year earlier. Revenue for the first nine months of 2015 was USD 600.6 million, a 13.8% improvement compared to USD 527.7 million recorded in the first three quarters a year earlier. The company says the increases in revenue were primarily due to the delivery of seven vessels in 2015 and the full period contribution of four vessels delivered in 2014 which started their long-term time charters in the second half of 2014. The revenue increases were partially offset by lower charter rates for vessels which were on short-term charters and an increase in scheduled off-hire. The net profit for the third quarter, however, tumbled by 68.7% to USD 20.5 million, as compared to USD 65.4 million net profit in 3Q2014. The slide in profit was chalked up to higher vessel operating costs and lower charter rates for ships on short-term charters. The net profit for the first nine months of 2015 was USD 123.2 million, 19% more than USD 103.5 million Seaspan had earned in the first nine months of 2014. Ship operating expenses increased by 19.1% to USD 49.4 million and 15.7% to USD 143.3 million for the three and nine months ended September 30, 2015, respectively, compared to the same periods in 2014, due primarily to 10.9% and 10.3% increases in ownership days for the three and nine months ended September 30, 2015, respectively. The increases in ownership days are due to seven vessel deliveries in 2015 and the delivery of three vessels in the first half of 2014 resulting in a full period of ownership days for the nine months ended September 30, 2015. Seaspan expects ship operating expense to increase as its fleet expands and ages and as the average size of its vessels increases. We continue to grow our fleet and have taken delivery of eight vessels year-to-date in 2015, all commencing operation under attractive fixed rate contracts. We are proud to have recently taken delivery of our 100th vessel in our owned and managed fleet, achieving an important milestone and solidifying Seaspans position as the largest independent charter owner and manager of containerships, said Gerry Wang, Chief Executive Officer, Co-Chairman and Co-Founder of Seaspan. Consistent with our focus on maintaining significant financial flexibility and access to attractive growth capital, we signed a Framework Cooperation Agreement with the Export-Import Bank of China for a total of up to USD 1 billion in export credit facilities. With a strong and flexible capital structure, we believe we remain well positioned to continue to seek opportunities to implement our disciplined growth strategy and further increase our contracted revenue stream, which currently exceeds over USD 6 billion.