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Summary of Key Highlights
-- Achieved vessel utilization of 96.1% for the quarter ended March 31, 2013 or 99.9% if the impact of off-charter days are excluded.-- Paid a quarterly dividend of $0.59375 per Series C preferred share and a pro-rated cash dividend of $0.25948 per Series D preferred share representing a total distribution of $9.1 million. The dividends were paid to all Series C and Series D preferred shareholders of record as of January 29, 2013 for the period from October 30, 2012 to January 29, 2013 and for the period from December 13, 2012 to January 29, 2013, respectively.-- Paid a quarterly dividend for the 2012 fourth quarter of $0.25 per Class A common share on February 27, 2013 to all shareholders of record as of February 18, 2013.-- In March 2013 Seaspan's board of directors approved a 25% increase in the quarterly common share dividend to $0.3125 per share, and on April 26, 2013 the board of directors declared this dividend for the quarter ending March 31, 2013 payable on May 30, 2013 to shareholders of record on May 20, 2013. This $0.0625 per share increase to Seaspan's quarterly common share dividend represents the fourth increase since March 31, 2010 for an aggregate increase of 213%. Seaspan expects common share dividends for the four quarters ending December 31, 2013 to total $1.25 per share.
Gerry Wang, Chief Executive Officer, Co-Chairman, and Co-Founder of Seaspan, commented, "During the first quarter, we generated stable results which were in line with our expectations. We also entered into two important transactions with MOL and Yang Ming Marine, enabling Seaspan to further increase its contracted revenue stream and cash flows as well as diversify and enhance the Company's high-quality customer base. We intend to continue to draw upon our financial strength and technical and operational leadership to pursue attractive growth opportunities."
Mr. Wang continued, "We declared a $0.3125 per common share dividend for the first quarter of 2013, representing a 25% increase over the fourth quarter 2012 dividend and a 213% increase since March 31, 2010."
First Quarter Developments
Time Charters
During the quarter ended March 31, 2013, two 4250 TEU vessels were re-delivered to Seaspan. Two vessels commenced short-term charters in late March and one vessel commenced a short-term charter in mid-April.
Newbuilding Contracts
In January 2013 Seaspan entered into contracts for the construction of five 14000 TEU newbuilding containerships with Hyundai Heavy Industries Co., Ltd. The vessels are scheduled for delivery in 2015 and will be constructed using Seaspan's fuel efficient SAVER design. Concurrently with executing the newbuilding contracts, Seaspan signed long-term, fixed-rate time charters for the vessels with Yang Ming Marine Transport Corporation ("Yang Ming Marine"). After the initial 10-year charter periods, Yang Ming Marine may extend the charter for each vessel up to an additional two years. Pursuant to its right of first refusal agreement with Greater China Intermodal Investments, LLC ("GCI"), Seaspan retained three of the 14000 TEU newbuilding containerships and GCI acquired the remaining two vessels.
In January 2013 Seaspan entered into contracts for the construction of four 10000 TEU newbuilding containerships with Jiangsu New Yangzi Shipbuilding Co., Ltd. and Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd. The vessels are scheduled for delivery in 2014 and will be constructed using Seaspan's fuel efficient SAVER design. Concurrently with entering into these newbuilding contracts, Seaspan signed long-term, fixed-rate time charters for these vessels with Mitsui O.S.K. Lines, Ltd. ("MOL"). In connection with this transaction, Seaspan also agreed to purchase from MOL four existing 2003-built 4600 TEU vessels, which are scheduled for delivery in late 2013 and early 2014, and has signed two-year short-term fixed-rate time charters for these vessels with MOL. Pursuant to its right of first refusal agreement with GCI, Seaspan retained two of the 10000 TEU newbuilding containerships and two of the existing vessels and GCI acquired the remaining two 10000 TEU newbuilding containerships and two existing vessels.
