Seaspan Corporation (SSW) has reported a 98.11 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1.44 million, or $0.14 a share in the quarter, compared with $76.21 million, or $0.63 a share for the same period last year.
Revenue during the quarter went down marginally by 2.41 percent to $213.19 million from $218.46 million in the previous year period. Operating margin for the quarter stood at negative 7.38 percent as compared to a positive 41.80 percent for the previous year period.
Operating loss for the quarter was $15.74 million, compared with an operating income of $91.31 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $131.94 million compared with $181.14 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2103 basis points in the quarter to 61.89 percent from 82.92 percent in the last year period.
Gerry Wang, chief executive officer, Co-Chairman and Co-Founder of Seaspan, commented, "During 2016 we continued to generate strong cash flows from our business while taking important steps aimed at positioning Seaspan to successfully operate in the current challenging industry environment and over the long-term. We further improved our fleet profile by adding five newbuilding vessels to our operating fleet, each of which commenced long-term fixed rate time charters with leading liners. We also focused diligently on implementing cost control measures which enabled us to reduce daily ship operating expense by approximately 9%, and we strengthened our balance sheet by lowering our net debt to equity ratio to approximately 1.7 times by the end of the year."
Operating cash flow declines
Seaspan Corporation has generated cash of $311.09 million from operating activities during the year, down 7.38 percent or $24.79 million, when compared with the last year.
The company has spent $265.61 million cash to meet investing activities during the year as against cash outgo of $716.63 million in the last year.
Cash flow from financing activities was $106.91 million for the year, down 72.90 percent or $287.62 million, when compared with the last year.
Cash and cash equivalents stood at $367.90 million as on Dec. 31, 2016, up 70.70 percent or $152.38 million from $215.52 million on Dec. 31, 2015.
Debt comes down
Seaspan Corporation has recorded a decline in total debt over the last one year. It stood at $3,371.73 million as on Dec. 31, 2016, down 8.74 percent or $322.89 million from $3,694.62 million on Dec. 31, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
