Seaspan Corporation's CEO Discusses Q2 2011 Results Earnings Call Transcript

I will now pass the call over to Gerry, who will discuss or highlights for the quarter and our recent development.

Gerry Wang

Thank you, Sai. Please turn to slide three of the webcast presentation. Good morning, everybody. During the second quarter of 2011, we took important steps to enhance our industry leadership and to position the company to further expand our contracted revenue stream, net earnings and the cash flow available for distribution.

First, our fleet remained fully secured, primarily on long-term fixed rate time charters. We continued to achieve strong utilization and all of our customers continue to perform in accordance with our charter agreement.

Second, we continue to expand our fully time charter fleet, by talking delivery of four newbuildings secured on long-term contracts with leading liner companies.

Third, we paid out first dividend for newly issues. Series C preferred shares and declared our second quarter dividends on both our common and the Series C preferred shares.

And fourth, we took additional decisive steps to enhance our capital structure and financial flexibility in preparing for the next phase of our growth.

Utilization, Seaspan's business continued to operate as expected with high utilization rates. Our fleet remained fully secured, primarily on long-term fixed-rate time charters. We continue to achieve strong utilization and our high-quality customers continued to perform in accordance with our charter agreements.

For the three and six months ended June 30, 2011, we achieved a utilization rate of 98.9%. We had 58 days of scheduled off-hire for the dry dockings of four vessels. In addition to planned off-hire, we had three days of unscheduled off-hire for the second quarter.

Redeliveries, Seaspan have four M Class 4,800 TEU vessels on charter to Maersk. Maersk has exercised its first one-year options to extend charters of the Maersk Merritt and Victor to second half 2012.

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