Seaspan reports strong Q4, full-year financial results

The independent containership owner and manager reported net earnings of $199.4 million on revenues of $819 million for 2015, year-over-year increases of 51.9 percent and 14.2 percent, respectively.    Seaspan Corporation’s reported net earnings for the fourth quarter of 2015 skyrocketed 174.4 percent year-over-year to $76.2 million, according to the company’s financial statements.
   For the full year in 2015, reported net earnings reached $199.4 million, a 51.9 percent increase from 2014.
   Seaspan’s normalized net earnings totaled $48.9 million for the fourth quarter and $165.8 million for the full year, year-over-year increases of 21.9 percent and 19.2 percent, respectively.
   Normalized net earnings, which are a non-GAAP measure, “are adjusted for items such as interest expense, refinancing expenses and recoveries, 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 Seaspan.
   Revenues for the quarter totaled $218.5 million, a 15.3 percent increase from the fourth quarter of 2015, while revenues for the full year reached $819 million, a 14.2 percent increase from 2014.
   Seaspan attributed the surge in revenues to the delivery of eight vessels throughout 2015 (two 10,000-TEU class vessels and six 14,000-TEU class vessels) and the full period contribution of six 10,000-TEU class vessels that were delivered in 2014. However, revenue growth was partially offset by lower average charter rates for vessels on short-term charters and an increase in scheduled and unscheduled off-hire.
   “During 2015 we took important steps to further strengthen Seaspan’s capital structure,” Seaspan CEO, Co-Chairman and Co-Founder Gerry Wang said of the results. “Our success raising approximately $1.4 billion of proceeds from capital and financing transactions underscores our strong access to capital and enhances our financial flexibility. As we seek to capitalize on attractive growth opportunities, we remain committed to returning capital to shareholders and paying a stable dividend of $1.50 per share for 2016.”
   Overall, Seaspan manages a fleet of 118 containerships, which includes 18 newbuilding containerships currently on order. The company’s operating fleet comprises 85 vessels.