Seaspan: Fuel Saving Vessels in High Demand Despite Significant Drop in Bunker Prices

by Ship & Bunker News Team
Thursday April 30, 2015

Seaspan Corp. (Seaspan) CEO Gerry Wang Tuesday said that despite falling fuel prices, his organization is enjoying a continued demand for its SAVER eco-ship design vessels.

"We have seen a continued demand interest for our SAVER design vessels of 10,000 TEU and 14,000 TEU classes from our customers, despite the significant reduction in bunker fuel costs," Wang said during a corporate conference call to discuss Seaspan's first quarter  financial results ended March 31, 2015.

"Our core focus will be remaining on designing, owning, and chartering large modern fuel-efficient containerships to creditworthy customers."

Wang noted that during Q1 Seaspan expanded its operating fleet with the delivery of one 10,000 TEU SAVER design vessel.

This gives Seaspan a total of 78 vessels in its operating fleet and 85 vessels in its managed fleet.

These disclosures were accompanied by healthy Q1 numbers from Sai Chu, chief financial officer and corporate secretary for Seaspan.

Chu noted that Seaspan's revenue increased by $20.6 million or 12.2 percent, while revenue vessel utilization was 98.9 percent consistent with last year's quarter.

Ship operating expenses were $44.6 million, a $3.3 million increase Chu said reflects higher ownership days.

Normalized net earnings for the quarter increased by $9.6 million or 33.2 percent. 

Debt and capital lease balances at the end of the quarter were $3.75 billion versus $3.6 billion in Q4 of 2014, an increase of $156 million, partly due to the refinancing of three 4500 containerships. "Overall, total liabilities increased by $174.2 million, [and] shareholder's equity decreased by $5.6 million since the beginning of the year," said Chu.

In March 2014 Seaspan received its first SAVER design vessel which, at the time, Wang said was "an important milestone" for the company.