Seaspan reports loss, expresses confidence in business model

Seaspan Corp. reported a third quarter net loss of $5 million, compared to a net loss of $38.6 million in the same 2007 period. But the company said it remained confident about its containership chartering business.

We recognize that the global economy and the credit markets are experiencing a period of unprecedented and extraordinary volatility. However, container shipping remains the most efficient means to transport goods from areas of manufacturing to areas of consumption, said Garry Wang, chief executive officer of Seaspan. While there has recently been and there may be in the near term less demand for containerized goods, we believe the industry will continue to grow at a healthy rate over the long-term.

Seaspan continues to execute its strategy, which is focused on chartering vessels solely to leading shipping lines over the long-term and maintaining strong relationships with a diverse group of leading banks and well known shipyards. The company has secured its entire 33-vessel operating fleet on charters with an average remaining duration of seven years, and committed all 35 of its newbuildings to long-term time charters averaging approximately 11 years in duration from delivery. We have also maintained relationships with financially strong shipyards and positioned the company to receive the delivery of two additional vessels in 2008. Going forward, we remain committed to managing the company in a prudent manner in order to best serve shareholders over the long-term.

He said Seaspan's conservative and resilient business model continued to serve the company well. The company increased cash available for distribution by 11.5 percent to $33.9 million for the three months ended Sept. 30, and 20.6 percent to $99.3 million for the nine-month period. The company also continued to grow its fleet by receiving early delivery of four newbuildings year to date, which all commenced 12-year time charters.