Seaspan receives delivery of two 12,000 TEU containerships

4 November 2020 (Last Updated November 4th, 2020 11:43)

Atlas Corporation subsidiary Seaspan has received the delivery of two 12,000 twenty-foot equivalent unit (TEU) containerships constructed in 2018.

Seaspan receives delivery of two 12,000 TEU containerships
The two vessels have begun long-term time charters with global liners. Credit: Peter Gonzalez / Unsplash.

Atlas Corporation subsidiary Seaspan has received the delivery of two 12,000 twenty-foot equivalent unit (TEU) containerships constructed in 2018.

The two vessels have begun long-term time charters with global liners.

The acquisitions were announced in September.

The company financed the acquisitions, worth $176m, with additional borrowings and cash on hand.

The deal is expected to be immediately accretive to Atlas’ funds from operations per diluted share.

It is also expected to increase long-term contracted revenue by more than $165m and contribute to almost $20m of annualised Adjusted EBITDA for this year.

Seaspan chairman, president, and CEO Bing Chen said: “We are pleased to continue the execution of our quality growth strategies, including the consistent expansion of our fleet with 15 high-quality vessels added since December of 2019, which are all backed by long-term charters.

“Our relentless focus on disciplined capital allocation combined with consistent operational excellence has resulted in sustainable growth and scale, further enhancing our ability to deliver best-in-class fully integrated services. Our strong and creative customer partnerships continue to provide unique solutions within the containership trade and distinguish our value-added approach to driving mutually beneficial outcomes for all stakeholders.”

Seaspan’s global fleet has increased to 127 vessels with approximately 1,073,000 TEU capacity.

Currently, the company’s total contracted revenue stands at approximately $4.4bn with a weighted average remaining lease period of approximately four years.

In July, the company signed an agreement to acquire the containerships in a $146m cash transaction.

In April, Seaspan received the delivery of the final four eco-modern vessels, which started a five-year-term charter with a global liner.

Of the four 12,000 TEU vessels, three were constructed in 2018 and one in 2014.