Seaspan profits, revenues sink in Q2 2017

The Hong Kong-based containership lessor’s net earnings fell 22.4 percent for the quarter from the corresponding 2016 period, while revenues fell 8.8 percent thanks to lower average charter rates for vessels that were on short-term charters.    Seaspan Corp.’s net earnings for the second quarter of 2017 tumbled 22.4 percent year-over-year to $28.3 million, according to the company’s latest financial statements.
   The Hong Kong-based containership lessor’s earnings per share (basic and diluted) totaled $0.11 per share for the quarter, compared to $0.23 per share for last year’s second quarter.
   Revenues fell 8.8 percent 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 utilization stood at 98.2 percent for the quarter, practically unchanged from the 98.1 percent utilization rate for the second quarter of 2016.
   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.”
   Seaspan revealed Sunday that Wang will be retiring no later than the end of the year. He will continue in his current role as CEO until a permanent replacement is found and installed, or Dec. 31, whichever comes first. He will also continue to serve on Seaspan’s board until the end of the year.