Seaspan Q2 profit up 32 percent $112.3 million
Seaspan Corporation on Thursday reported net profit of $112.3 million for the quarter ended June 30, 2009, up 32 percent from the $85.3 million it earned in the same quarter last year.
The Hong Kong-based company, which owns a fleet of containerships that are under long-term charter contracts with major shipping lines, reported revenue of $69.8 million for the quarter, up 27.1 percent from $54.9 million a year earlier.
The company said the revenue increase was primarily due to the delivery of nine additional vessels between August 2008 and May 2009.
Seaspan said it has two 4,250-TEU vessels on charter to CSAV, and nine 4,250-TEU vessels on charter to Hapag-Lloyd, two container lines that have been experiencing financial problems.
Seaspan said both liner companies have been making payments in accordance with their charter agreements.
It said that it received a request from CSAV on April 28 “to participate in a restructuring plan and renegotiate the payment terms of our time charters with them.” The company said it “declined to participate in the restructuring plan; however, we are aware that since that time, CSAV has proceeded with its plan.”
It also received a request from Hapag-Lloyd on July 30 for suggestions on whether it could amend the charter agreements and “for a meeting to discuss the same.” Seaspan said it does not intend to renegotiate the main terms of its agreements with Hapag-Lloyd, USA.
“If any of our charterers are unable to make charter payments to us in the future and are in default of their respective charter parties, we may not be able to recharter the relevant vessels at rates equal to the rates in our current charters or at all,” the company said in its report.
The Hong Kong-based company, which owns a fleet of containerships that are under long-term charter contracts with major shipping lines, reported revenue of $69.8 million for the quarter, up 27.1 percent from $54.9 million a year earlier.
The company said the revenue increase was primarily due to the delivery of nine additional vessels between August 2008 and May 2009.
Seaspan said it has two 4,250-TEU vessels on charter to CSAV, and nine 4,250-TEU vessels on charter to Hapag-Lloyd, two container lines that have been experiencing financial problems.
Seaspan said both liner companies have been making payments in accordance with their charter agreements.
It said that it received a request from CSAV on April 28 “to participate in a restructuring plan and renegotiate the payment terms of our time charters with them.” The company said it “declined to participate in the restructuring plan; however, we are aware that since that time, CSAV has proceeded with its plan.”
It also received a request from Hapag-Lloyd on July 30 for suggestions on whether it could amend the charter agreements and “for a meeting to discuss the same.” Seaspan said it does not intend to renegotiate the main terms of its agreements with Hapag-Lloyd, USA.
“If any of our charterers are unable to make charter payments to us in the future and are in default of their respective charter parties, we may not be able to recharter the relevant vessels at rates equal to the rates in our current charters or at all,” the company said in its report.