Seaspan Reports Strong Revenue Growth

By Finance

Seaspan Corporation, a large owner of containerships that charters vessels to liner companies, improved its revenue as well as net result in the first nine months of 2015, a development mainly attributed to new ships delivered this year, notes management.

Seaspan Reports Strong Revenue Growth

Image: Seaspan Corp.

It has reported net earnings of $20.5 million for the third quarter ending Sept. 30, 2015, a year-over-year decrease of 68.7 percent. Revenues rose 14.5 percent from the third quarter of 2014 to $212.9 million.

In August 2015, Seaspan entered into a lease financing arrangement with special purpose companies, for one 14000 TEU newbuilding vessel, the YM Wellness, which delivered on August 17, 2015.

The company took delivery of the 10,000-TEU Maersk Guayaquil, which commenced a five-year, fixed-rate time charter with Maersk Line A/S on Sept. 21; and the 14,000 TEU YM Wellness, which commenced a 10-year, fixed-rate time charter with Yang Ming Marine Transport Corp. on Aug. 21.

At the beginning of the fourth quarter (Oct. 8), Seaspan took delivery of the 14,000-TEU YM Warmth, which commenced a 10-year, fixed-rate time charter with Yang Ming Marine Transport Corp. on Oct. 16.

Ship operating expense increased by 19.1% to $49.4 million and 15.7% to $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.

Seaspan now manages a fleet of 118 containerships, including 18 containerships on order. The company's operating fleet consists of 85 vessels.

Source: marinelink.com