[060511.EN.SEA] Seaspan Posts US$50.5 Million Quarterly Profit, Erasing $36.6 Million Loss

HONG KONG-linked containership owner Seaspan posted a first quarter net profit of US$50.5 million, erasing a $36.6 million loss reported in the corresponding period last year.

Seaspan's quarterly revenue increased 50 per cent year on year $121 million from the $80.4 million in 2010. Last year's profit loss was attributed to changes to the fair market of financial instruments, reported the Journal of Commerce.

Seaspan Corporation executive offices are in Hong Kong, but its corporate headquarters is in the Marshall Islands while Seaspan Ship Management is located in Vancouver. Seaspan charters ships to container lines such as Maersk, China Shipping, CSAV, Cosco, Hapag-Lloyd, "K" Line, MOL and United Arab Shipping Company.

In March, Seaspan formed a new company with the Carlyle Group, Tiger Group Investments and an affiliate of the Dennis R Washington family. The new firm will have $5 billion to invest in ships of all standard types over the next five years.

Seaspan, will contribute $100 million and retain the right of first refusal on ships acquired as well as the right of first offer on ships the new company sells.

Seaspan CEO Gerry Wang, who will head the new entity, said it will have $900 million to invest in "newbuilding vessels strategic to the Greater China Area".

Seaspan, which has 45 ship at the end of the first quarter, still has 10 more on order after taking delivery of its 59th in March. Seaspan is negotiating with Korean and Chinese yards on building another 10 ships in the 10,000-TEU range.

Source : HKSG.