Seaspan Q3 profit up 66.6pc to US$80 million as revenues rise 39.8pc

  Nov.1--HONG KONG based but Vancouver headquartered non-operating shipowners and charterer Seaspan has posted a 66.6 per cent third quarter net profit increase to US$80 million, drawn on revenues of $295 million, which increased 39.8 per cent year on year.

  Seaspan's first nine months profits increased 84 per cent to $215.7 million, drawn on revenues of $801 million which increased 29.9 per cent year on year.

  "I am pleased with our record in the third quarter, and the strategic milestones we have achieved so far this year," said Seaspan president and CEO Bing Chen.

  "We are realising benefits from the full integration of GCI [Greater China Intermodal Investments acquisition], which is the main driver of our year-over-year growth, while we continue to invest in and improve operations of our integrated containership platform to provide best-in-class services," he said..

  These improvements, said Mr Chen, are evidenced by our 98.4 per cent utilisation rate for the quarter, as well as marking the lowest ever number of lost time injuries since we began tracking in 2013."

  Said chief financial offocer Ryan Courson:"Over the course of the third quarter, we have improved our liquidity position with several strategic financings.. Through prudent capital allocation we have lowered our cost of capital while increasing our capital structure flexibility."

  Seaspan issued warrants to Fairfax Financial Holdings Ltd and its affiliates to purchase 25.0 million Class A common shares.

  Seaspan also entered into a binding term sheet for a potential investment of up to $200 million in the restructured Swiber Holdings Limited.

  The board has declared a quarterly distribution in the amount of $0.125 per share for its Class A common shares, payable on October 30.

  Ownership days, that is the number of days a vessel is open to hire, increased year on year by 1,696 days and 3,318 days for the three and nine months ended September 30 respectively due to the addition of 16 vessels acquired through the Greater China Intermodal Investments LLC (GCI) acquisition, which contributed 1,472 days and 3,216 days, respectively.

  Vessel utilisation increased for the three and nine months ended September 30 primarily due to higher utilisation of vessels acquired from GCI, 2018 deliveries and acquisitions and a decrease in off-hire days.

  During the nine months ended September 30, 2018, Seaspan completed dry-dockings for five 2,500-TEU vessels, one 3,500-TEU vessel and one 4,250-TEU vessel, one of which occurred while the vessel was off-charter.

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