Seaspan not renegotiating CSAV, Hapag-Lloyd charters
Seaspan Corp. said Wednesday it is has not renegotiated charters with container carriers such as Compania Sud Americana De Vapores or Hapag-Lloyd.
In its second quarter earnings report released Wednesday, the company noted it has two 4,250-TEU ships on charter to CSAV, and plans to charter two similar sized ships to the Chilean carrier in the future.
“During the first quarter of 2009, we became aware from media reports of the downgrade of CSAV’s counter-party credit rating by major credit rating agencies and subsequent to the release of our first quarter earnings on April 28, 2009, we received requests from CSAV to participate in a restructuring plan and renegotiate the payment terms of our time charters with them. We declined to participate in the restructuring plan, however, we are aware that since that time, CSAV has proceeded with its plan. To date, CSAV has made payments in accordance with the time charter for the CSAV Loncomilla and the CSAV Lumaco.”
The company said it has nine 4,250-TEU vessels on charter to a Hapag-Lloyd subsidiary.
“We are aware that shareholders of Hapag-Lloyd AG have agreed in principle to capital and financing measures intended to support and safeguard the company over the long term. To date, Hapag-Lloyd USA has made payments to us in accordance with the time charters for the nine vessels chartered to them. On July 30, 2009, we received a request from Hapag-Lloyd AG for suggestions on how we can continue our charter parties with them on amended terms and for a meeting to discuss the same. At this time, we do not intend to renegotiate the main terms of our charter parties with Hapag-Lloyd USA.
“If any of our charterers are unable to make charter payments to us in the future and are in default of their respective charter parties, we may not be able to recharter the relevant vessels at rates equal to the rates in our current charters or at all,” the company warned.
Meanwhile, the company said it had second quarter net profit of $112.3 million compared to $85.3 million in the same prior year period.
Seaspan said it had revenue of $69.8 million in the three months ending June 30, compared to $54.9 million in the second quarter of 2008.