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Seaspan posts net loss of US$139 million in 2016 as revenues increase 7.1pc

HONG KONG non-operating shipowner Seaspan has posted a net loss of US$139 million net loss for 2016 while revenues gained 7.1 per cent to $877.9 million.

Fourth quarter earnings declined from $76.2 million in 2015 to $1.4 million in 2016, drawn on revenues $213.1 million, down 2.4 per cent.

Seaspan added three 10,000-TEU vessels on long-term charters with MOL and Maersk and two 14,000-TEU vessels on long-term charters with Yang Ming, the company said.

The company said it strengthened its balance sheet by raising a total of $660 million of common and preferred equity during the year ended December 31.

Moreover, it achieved reductions of 11.7 per cent and 8.8 per cent in ship operating expense per ownership day during the quarter and year ended December 31 against the same time in the previous year.

Seaspan intends to pay a quarterly dividend of $0.125 per common share commencing with the first quarter of 2017.

Said Seaspan CEO Gerry Wang: "During 2016 we continued to generate strong cash flows from our business while taking important steps aimed at positioning Seaspan to successfully operate in the current challenging industry environment and over the long-term.

"We further improved our fleet profile by adding five newbuilding vessels to our operating fleet, each of which commenced long-term fixed rate time charters with leading liners," he said.