Six Key Points From Seaspan's 3Q 2010 Earnings Call

Oct.28.10 | About: Seaspan Corporation (SSW)

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