Seaspan announces newbuild order for two 24,000 TEU containerships
Seaspan Corporation (“Seaspan”), a wholly owned subsidiary of Atlas Corp. (“Atlas”) (NYSE:ATCO), announced February 8 that it has entered into an agreement with a major shipyard for two 24,000 TEU ultra-modern newbuild container ships (“the Vessels”) with anticipated deliveries beginning in the first half of 2023. The two high-quality 24,000 TEU containerships will include industry-leading emissions reduction technologies. Upon completion, both conventional fuel vessels will enter 18-year charters with a leading global liner customer.
The Vessels are anticipated to be financed from additional borrowings as well as cash on hand. As of September 30, 2020, Seaspan’s global fleet consisted of 127 vessels and approximately 1,073,000 TEU, with total contracted revenue of approximately $4.1 billion, and a weighted average remaining lease period of approximately 4 years. Additionally, in December 2020, Seaspan announced an agreement for five newbuild 12,200 TEU vessels which, together with the two vessels announced today, will add significant new capacity of 109,000 TEU to the fleet over the next two years. These vessels will bolster Seaspan’s core 9,000 to 15,000 TEU size category and add a new ultra-large offering.
Bing Chen, Chairman, President and CEO of Seaspan, commented, “By combining our key core competencies of creative partnerships, quality growth and disciplined capital allocation, we have developed compelling newbuild opportunities to continue to fuel the company’s growth and enhance our competitive advantages. With newbuild slots scarce in today’s market, we have been consistently meeting our liner customers’ needs while maintaining our return discipline and prudent capital allocation. Upon their completion, these seven best-in-class newbuild vessels are scheduled to consistently add to our fleet beginning late this year and extending through 2023, supporting our strategies to continue generating quality growth and creating value for our shareholders.”
About Atlas
Atlas is a leading global asset management company, differentiated by its position as a best-in-class owner and operator with a focus on deploying capital to create sustainable shareholder value. Atlas brings together an experienced asset management team with deep operational and capital allocation experience. We target long-term, risk adjusted returns across high-quality infrastructure assets in the maritime sector, energy sector and other infrastructure verticals. Our two portfolio companies, Seaspan Corporation and APR Energy are unique, industry-leading operating platforms in the global maritime and energy spaces, respectively.
About Seaspan
Seaspan is a leading independent owner and operator of containerships with industry leading ship management services. We charter our vessels primarily pursuant to long-term, fixed-rate, time charters to the world’s largest container shipping liners. As of September 30, 2020, Seaspan’s fleet consists of 127 containerships, representing total capacity of approximately 1,073,000 TEU. Seaspan’s operating fleet of vessels has an average age of approximately 7 years and an average remaining lease period of approximately 4 years, on a TEU-weighted basis.
