Hong Kong-based Seaspan reported net profit of $50.6 million compared to a loss of $36.6 million in the same 2010 period.
The company had revenue of $121 million compared to $80.3 million in the same 2010 period.
Seaspan said normalized net earnings increased 28 percent to $25.1 million in the first quarter from $19.6 million in the first quarter of 2010. The company said the normalized net earnings are adjusted for items such as the change in fair value of financial instruments, interest expense, interest expense at the hedged rate and other items that it believes are not representative of its operating performance.
Gerry Wang, chief executive officer and co-chairman, said during the first quarter the company expanded its fully-chartered fleet and re-entered the newbuilding market by signing a letter of intent with a leading Chinese shipyard and entered into an agreement with the Carlyle Group, Tiger Management and a company controlled by Dennis R. Washington. Under the agreement, Seaspan will invest up to $100 million, Carlyle $750 million, Tiger and the Washington family each $25 million. The companies hope to leverage that $900 million to purchase up to $5 billion in ships, probably container vessels.
The company accepted its 59th ship for delivery on April 21 and said it is in discussion with other Korean and Chinese shipyards about additional new buildings.
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Revenue was $99 million in the first quarter compared to $79.8 million in the first quarter of 2010.
“In terms of financial results, we still see the numbers influenced by one-off items, which relate to restructuring costs and over-hedging of our debt,' said John Coustas, Danaos CEO. 'These items will gradually disappear and from the second quarter of 2012 we can see our results free of such encumbrances.”
Coustas added, “We have noticed significant speculative ordering of newbuildings this quarter, which although not alarming at the moment, should be closely observed. However, we remain quite optimistic for the next 24 months as the demand supply balance will be in the owners’ favor.”
Danaos has a fleet of 55 containerships.
