Seaspan's CEO Discusses Q2 2012 Results - Earnings Call Transcript

In regards to such financial measures and for reconciliation of such measures, the most closely comparable US GAAP measures, please refer to our earnings release. I will now pass the call over to Gerry, who will discuss our second quarter highlights as well as some of our recent development.

Gerry Wang

Thank you, Mr. Chu. Please turn to Slide 3 of the webcast presentation. Q2 was another quarter of smooth sailing. I would like to make four highlights for this quarter. Firstly, we continue to generate strong operational and financial results. All our operating fleet remain fully employed without any major off-hire incidents.

We achieved vessel utilization of 99.4% including off-hire for dry-docking and special survey (ph) and we continued to grow revenues, cash available for distribution and normalized net earnings.

Second, our new building program has progressed according to plan. We took delivery of the final two 13,100 TEU vessels, which commenced 12-year fixed rate time charter with COSCON. We have now completed our eight ship 13,100 TEU new building program within the heavy industries.

These vessels are the largest in our fleet and they also present COSCON flagship containerships. Seaspan now has 69 vessels in operation and over 400,000 TEU of carrying capacity. The construction of our 10,000 TEU SAVER class at (inaudible) is also progressing well.

Third, our focus remained on improving our capital structure and positioning Seaspan to continue to opportunistically implement our balanced and disciplined growth strategy.

The financing for the three 10,000 TEU SAVER class vessels to be charted to Hanjin Shipping has been secured with a leading Chinese bank and reason to have successfully amended our $1.3 billion credit facility, improving our flexibility and reducing costs.

Fourth, our board declared dividends on our common stock and our Series C preferred shares. The dividend of $0.25 per common share represents a 33% increase over Q2 of last year.

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