Container giant Seaspan Corp has reported a stronger than forecast third quarter performance.
New York-listed Seaspan booked net earnings of $80m, up from $48.4m at the same stage in 2017, while the period saw operating cash flow set a new record of $142.2m.
Bing Chen, chief executive of Seaspan, said the full integration of GCI, a former joint venture, was the main driver of its year-over-year growth.
Earnings per share of $0.33 came in ahead of the $0.25 per share consensus on Wall Street.
Ben Nolan of Stifel says lower than exepected operating and interest rate expenses assisted the quarterly performance.
“There are some changes in reporting which may be helping lift the quarterly results, but irrespective of this, the results reflect a solid beat,” Nolan said.
“Despite concerns on trade, we expect shares to trade up sharply tomorrow [Wednesday], barring any surprises on the call.”
Seaspan, which is set to invest in the offshore market with a $200m restructuring of Swiber Holdings, improved its liquidity position in the quarter.
It closed the first of two $250m equity investments with Fairfax, inked a $150m two-year corporate revolving credit facility and collected a further $150m from a preferred share sale.
