Seaspan Q3 net earnings fall despite increased revenues

The independent marine vessel owner and manager took delivery of two containerships during the third quarter of 2015.    Seaspan Corporation, a large owner of containerships that charters vessels to liner companies, 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.
   Seaspan’s normalized net earnings stood at $43.7 million, a year-over-year increase of 13.9 percent. Normalized net earnings, which are a non-GAAP measure, “are adjusted for items such as interest expense, refinancing expenses and costs, foreign exchange gain, write-off of vessel equipment, change in fair value of financial instruments, interest expense at the hedged rate, and certain other items that Seaspan believes are not representative of its operating performance,” according to the company’s most recent unaudited financial statements.
   During the third quarter, Seaspan signed a Framework Cooperation Agreement with the Export-Import Bank of China (CEXIM) for up to $1 billion in export credit facilities.
   In addition, 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.
   Seaspan now manages a fleet of 118 containerships, including 18 containerships on order. The company’s operating fleet consists of 85 vessels.