Seaspan reports sharp increase in Q2 profits

The containership owner accepted the first in a series of 14,000-TEU vessels being chartered to ocean carrier Yang Ming.    Seaspan Corp. a large owner of containerships that charters vessels to liner companies, reported a profit of $81.4 million in the second quarter ending June 30, 2015 compared with $20 million in earnings during the same 2014 period. Revenues in the most recent quarter were $199.2 million compared with $178.9 million in the second quarter of last year.
   The company also reported normalized net earnings of $35.2 million in the quarter ending June 30 this year compared with $32.1 million in 2014. Normalized net earnings is a non-GAAP measure “adjusted for items such as interest expense, refinancing expenses and costs, foreign exchange gain, writeoff 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 Seaspan’s most recent financial statements.
   Seaspan manages 93 ships (118 if ships on order are included), which includes its operating fleet of 82 ships as well as ships from Greater China Intermodal Investments, Seaspan’s investment partnership established with an affiliate of global asset manager The Carlyle Group and others.
   The second quarter results reflect “stable and growing cash flows” said Seaspan, noting that in the second quarter it accepted delivery of four 14,000-TEU containerships that are being chartered for a decade to Taiwanese ocean carrier Yang Ming. Seaspan will manage a total of ten 14,000-TEU vessels from its own fleet or GCI’s with more to be delivered this year and in 2016.