Seaspan interest swaps sink 28pc gain into US$65 million loss

SEASPAN, the Hong Kong-Vancouver non-operating shipowner, has announced a US$65.9 million year-on-year third quarter loss, despite a 28.6 per cent quarterly revenue gain of $74.1 million.
Seaspan blamed widening losses on quarterly interest rate swaps of $92.6 million, compounded by similar swap loss of $24.7 million suffered in last year`s third quarter.
Not counting the interest rate swap loss, said the company, Seaspan would have increased quarterly profit 6.5 per cent year on year to $20.2 million.
Seaspan has deferred the delivery of 11 ships from shipyards for two to 15 months, but also accepted two new containerships in the third quarter. As well, it has secured agreement to delay deliveries on two other ships for nine months.The company said it owes $1.8 billion for 27 ships it has ordered, but adds that it has secured long-term credit and reaches no substantial debt maturity until 2015.
Seaspan said it also plans to secure $180 million to $240 million in common stock or other forms of capital late next year or early in the year after. It will also look to alternate funding to defer or eliminate current equity needs, said the company.