Boxship giant Seaspan is reaping the reward of a significant fleet expansion.
The leading tonnage provider saw quarterly revenues rise to record levels after taking delivery of 11 containerships.
That helped lift Seaspan's fleet from 112 to 125 vessels.
It provided the shipowner with the tools needed to maintain a fleet in near full employment, chief executive Bing Chen told an earning call on Tuesday.
He added that the company would seek to grow further to meet the needs of liner operators that require scale and flexible partners.
Record revenues
Seaspan reported record revenues of $303.8m for the second quarter, according to figures from its New York-listed parent Atlas Corp.
Adjusted Ebitda rose to $203.3m from April to June, up from $173.8m for same period last year.
Revenues rose with the delivery of 11 containerships that the shipowner acquired since December 2019.
These added $26.1m to the coffers of parent company Atlas.
Seaspan also benefited to the tune of $9m in lower interest expenses.
Further acquisitions
Seaspan's fleet is set to grow further in the third quarter with the addition of two neo-panamax containerships.
Brokers report the 13,371-teu Madrid Express (built 2010) and Paris Express (built 2011) as being purchased in July from Germany's Peter Dohle Group.
The two ships have been acquired for a combined price of $146m with lengthy charters to German operator Hapag-Lloyd.
These will help Seaspan maintain its revenue forecast for the full year at between $1.19bn and $1.22bn.
That is despite lower rates obtained on charter renewals as a result of Covid-19.
Adjusted Ebitda in 2020 is forecast at between $750m and $795m.
Size matters
Seaspan's size had enabled it to do deals with liner operators that are not possible for smaller tonnage providers, Chen said.
Its larger portfolio meant it had been able to "swap" vessels of different sizes and in geographical locations.
That helped maintain a high utilisation rate. At present, all of Seaspan's vessels are contracted out.
Seaspan operates 47 vessels below 5,100 teu and 76 larger sizes up to 14,000 teu.
Only 15% is exposed to the spot market with the rest of the fleet on long-term charter.
Chen, speaking as Atlas chief executive, said his group had $4.6bn of long-term contracted revenue.
He added that the group was "well positioned to take advantage of future opportunities as the market shock accelerates consolidation in the containership space".
BBB-
Seaspan was earlier this week awarded a BBB- rating from Kroll Bond Rating Agency (KBRA).
The rating was attributed to Seaspan's portfolio financing programme, which closed in 2019, and has since grown to over $1.7bn.
Chen said the assessment would help reduce Seaspan's funding costs.
He added that Seaspan had expanded its management team to handle growth opportunities.
In June, it appointed Torsten Holst Pedersen as Seaspan's chief operating officer.
