Seaspan announced today its financial results for the three and six months ended June 30, 2018.
Highlights for the Quarter:
— Earnings per diluted share of $0.34 for the second quarter and $0.71 for the six months
— Normalized earnings per diluted share((1)) of $0.23 for the second quarter and $0.36 for the six months
— Secured an additional $500 million equity investment commitment from affiliates of Fairfax Financial Holdings Limited (“Fairfax”), which increases their total investment to $1.0 billion
— Accepted delivery of four 10000 TEU vessels, each on a long-term charter with CMA CGM S.A. (“CMA CGM”)
— Achieved vessel utilization of 98.6% for the second quarter and 97.8% for the six months ended June 30, 2018
(1) Refer to “Description of Non-GAAP Financial Measures” for the definitions of this non-GAAP measure and reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable financial measure under U.S. generally accepted accounting principles (“GAAP”).
Bing Chen, President and Chief Executive Officer of Seaspan, commented, “I am pleased with our strong operating results for the second quarter. As expected, the acquisition and seamless integration of GCI contributed significantly to our growth. In addition to the vessels acquired through GCI in the first quarter, we grew our operating fleet with the delivery of four 10000 TEU containerships on long-term fixed rate charters with CMA CGM, and achieved a utilization rate of 98.6% for the quarter. We remain optimistic about improving industry dynamics for containerships.”
Mr. Chen continued, “The additional investment by Fairfax announced in the second quarter increases its cumulative investment to $1.0 billion. The $500.0 million Fairfax equity investment is transformative to Seaspan as it increases our equity capital base and improves our access to capital.”
David Sokol, Chairman of Seaspan Corporation, commented, “Our Board of Directors believes that the management team is doing an excellent job executing on its strategy to deliver long-term shareholder value. We are appreciative of Fairfax’s continued confidence in Seaspan. Today, Fairfax Financial Holdings owns 22 percent of Seaspan’s Class A common shares outstanding and will own an additional 38.5 million shares upon the exercise of warrants in January 2019. Seaspan appreciates having such thoughtful, long-term investors like Fairfax and the Washington Family, whose perspectives and insights are well-aligned with the Company’s longer term strategy.”