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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.
I would now like to turn the call to Sai to discuss our quarterly financial results. Sai, please?Sai Chu Thanks, Gerry. Please turn to Slide 4 for a summary of our second quarter and first half 2012 results compared to the results for the comparable periods of 2011. Revenue increased by over 24% in the second quarter due to the increased number of operating days and higher time charter rate attributed to delivery of our larger new build vessels. Overall, ship operating expenses increased by a lower percentage than our revenue increased. This is consistent with the operating efficiencies achieved by our larger new build ships, which have lower operating costs per TEU. As a result of the Manager acquisition in January of this year and as discussed in prior earnings calls, we now expect ship operating expenses to be more variable on a quarter-to-quarter basis as they are now based on the direct operating costs of the vessels as opposed to the fixed technical services fees that were in place pre-acquisition. Ship operating expenses for the second quarter decreased by 3.9% compared to 2011. This decrease was primarily attributable to the reclassification of a portion of the ship operating expenses because they are not operating in nature to general and administrative expenses since the closing of the Manager acquisition. For the three and six months ended, the amounts reclassified were approximately $2.3 million and $2.2 million respectively. For a meaningful comparison to the 2011 figures, it would be appropriate to add back the reclassified (ph) amounts of (ph) ship operating expenses. On an adjusted basis, ship operating expenses for the three and six months would’ve been increased by approximately 3% and 10% respectively compared to the same periods in 2011 primarily due to the 7.9% and 8.9% respective increases in ownership days resulting from the four deliveries during 2012 and a full period of expenses for the 10 vessel deliveries in 2011. Read the rest of this transcript for free on seekingalpha.com