Not much to report from Seaspan's Wednesday's earnings call. Here are my key notes:
- The sale and lease back transaction was done at a price of 150 MUSD. SSW didn't want to share the details of the lease back rate.
- The company will continue to consider the dividend but it should be seen in the context of just having eliminated its equity requirement.
Seaspan foresees distributable cash flows of 190 MUSD in 2010, 260 MUSD in 2011 and +300 in 2012 but also mentioned that part of this would be used to expand the fleet.
A very interesting point is that management stated that the current market rate is 25-30% higher than the lease rates it has entered. This surprised me a little as I was expecting it to be lower.
Cosco would like to recieve its new buildings earlier and Seaspan is working with Cosco to achieve this.
The market currently has a preference for ships in the size of 8-10000 TEU.
Disclosure: Long SSW