The Hong Kong-based containership lessor Seaspan Corporation reported a net profit of $67 million for the quarter ended March 31, 2018 as revenues rose 11.7 percent to $244 million compared with the same 2017 period.
The addition of operating vessels from the buyout of Greater China Intermodal Investments (GCI) led to higher revenues.
The company has informed that it has completed accretive acquisition with an implied enterprise value of $1.6 billion of the remaining 89% that Seaspan did not own of GCI.
Bing Chen, President and Chief Executive Officer of Seaspan, commented, "The completion of the GCI acquisition during the first quarter solidified our industry leading position and achieved a number of important strategic objectives for the Company while being accretive to earnings per share."
Bing added: "On the strategic side, the acquisition of GCI improved our fleet composition as we increased our exposure to larger, more modern containerships that are in demand by our customers. In addition, we expanded our relationships with our customers, significantly increasing our contracted future revenue and EBITDA."
"Finally, the GCI acquisition provided an opportunity for Seaspan to expand its partnership with Fairfax and other financing partners, reinforcing the strength of our integrated platform," he comcluded.
Meanwhile, Seaspan accepted delivery of the MSC Yashi B, an 11000 TEU vessel in January 2018. The vessel was constructed at HHIC-PHIL Inc. and commenced a 17-year fixed-rate bareboat charter with MSC Mediterranean Shipping Company.
Upon completion of the bareboat charter period, MSC is obligated to purchase the vessel for a pre-determined amount. This delivery was financed with a previously committed lease facility.
Seaspan also purchased two second-hand 2500 TEU vessels and entered into fixed-rate time charter agreements for the vessels with Maersk Line A/S. Each of the time charters is for a term of four years with options for up to an additional two years at increasing charter rates.