Seaspan parent company reports quarterly revenue increases

SEASPAN parent company Atlas Corporation announced a quarterly EBITDA of US$279.5 million – an increase of 2.6% on the same period last year.

For the quarter ending 30 June, the company’s revenue was US$413.3 million (an increase of 4.9% on the same quarter last year) and net earnings of US$140 million.

Over the quarter, the company said it closed nine vessel sales for gross proceeds of US$224.3 million.

Seaspan, which owns, operates and leases containerships, entered into lease extensions for three operating vessels in the quarter, generating approximately US$230 million in gross contracted cash flow. In July and August, Seaspan entered into proactive lease extensions for an additional 14 operating vessels, generating over $1.1 billion in gross contracted cash flow.

In April and May, Seaspan accepted delivery of its fourth and fifth 12,200-TEU vessels, each of which commenced an 18-year charter upon delivery. These deliveries mark the completion of Seaspan’s five 12,200-TEU newbuild order received from its customer in late 2020. In June 2022, Seaspan also accepted delivery of its first two 11,800 TEU vessels, each of which commenced a five-year charter upon delivery.

In May, Seaspan entered into shipbuilding contracts for four 7700-TEU liquified natural gas dual-fuel containerships which remain subject to certain closing conditions. If and when the closing conditions are met, the four containerships are expected to be delivered in the second half of 2024 and first quarter of 2025. These vessels will commence 18-year charters with a leading global liner customer upon delivery, generating gross contracted cash flow of approximately $960 million.

Atlas CEO Bing Chen said the company continued its “strong” quarterly performance among a “backdrop of global market turmoil”.

“Seaspan’s customers continue to value our long-term partnerships with the forward fixing of three operating vessels in the second quarter, and an additional 14 since the end of the quarter,” he said.

“We are working diligently to deliver our newbuild program on time and on budget, and thanks to our experienced team and integrated platform, all seven of our newbuilds were delivered ahead of schedule. We have now completed 117 newbuilds since our IPO in 2005, a proud track record that our customers deeply value.”