Seaspan Back to Black in 2017

Hong Kong-based Seaspan Corporation has returned to profit in 2017 with reported net earnings of USD 58.6 million for the fourth quarter and USD 175.2 million for the full year ended December 31, 2017.

This is a major rebound when compared to the corresponding USD 1.4 million net profit from Q4 in 2016 and a net loss of USD 139 million booked for the entire year.

Total revenues reached USD 214.4 million for the fourth quarter of 2017 and USD 831.3 million for the full year.

Full-year revenue decreased by 5.3 pct year-on-year, primarily due to lower average charter rates for vessels that were on short-term charters and off-charter days that related primarily to three 10,000 TEU vessels that were previously on long-term charters and commenced short-term charters with Hapag-Lloyd AG during the first half of 2017.

These decreases were partially offset by the delivery of newbuilding vessels in 2016 and 2017.

 “2017 was an important and pivotal year for Seaspan. We continued to achieve strong operating results, maintain a sizable contracted revenue backlog, and grow our operating fleet on long-term time charters by taking delivery of five newbuildings with charters of 10 to 17 years,” David Sokol, Chairman of Seaspan, said.

“With a focus on driving shareholder value, we also took important steps to strengthen our corporate governance, deleverage our balance sheet, and increase our unencumbered asset base. We are pleased to have commenced 2018 with a USD 250 million investment by Prem Watsa-led Fairfax and the acquisition of two second-hand feeder vessels chartered to Maersk.”

Currently, there are 23 unencumbered vessels in Seaspan’s operating fleet, the company said.

 “Against a backdrop of improving fundamentals and a changing competitive environment, we see a rich set of opportunities before us. I am confident we are well positioned to capitalize on these opportunities and to create substantial long-term shareholder value,” Bing Chen, President and Chief Executive Officer of Seaspan, commented.

As World Maritime News reported, Seaspan Corporation signed definitive agreements with Fairfax Financial Holdings Limited for USD 250 million of investment in January this year.

During the same month, the company took delivery of the fifth of five 11,000 TEU vessels on a long-term bareboat charter with MSC Mediterranean Shipping Company, MSC Yashi B.