Seaspan's earnings up, broker believes it could be a consolidator

Containership charterer Seaspan Corp. said it had net earnings of $85.3 million in the three months ending June 30, compared to $33.5 million in the same 2007 quarter.

Normalized net earnings were $19.3 million compared to $15.6 million in the year-earlier period.

In a research note issued Thursday, brokerage firm Dahlman Rose & Co. said the results were in line with our expectations.

The containership market has eased this year, particularly on the Asia-U.S. and Asia-Europe routes, although Eastern Hemisphere trading has remained robust. We believe Seaspan's long-term charters insulate it from current market conditions, it added.

Dahlman Rose said one Seaspan's strengths is its access to debt capital, and that while it could expand its fleet by ordering additional ships, the major focus is either sale/leasebacks with top quality liner operators, taking over distressed newbuild construction slots or acquiring smaller companies with cash flow and/or credit shortfalls. We believe Seaspan is in the unique position of having the ability to consolidate in such manners due to its very strong relationships with both liner companies and commercial banks across the globe.

Source: American Shipper