Seaspan sees busy first quarter
2007 first quarter report shows spate of acquisitions


"The first quarter of 2007 was a very busy period for Seaspan," said Gerry Wang, Chief Executive Officer. "During the quarter, we took delivery of two vessels from our originally contracted fleet plus the COSCO Fuzhou, the first new vessel ordered after our initial public offering. These acquisitions added the first 9600 TEU and 3500 TEU vessels to our fleet and brought the total number of Seaspan vessels in operation to 26."

"We also arranged to build a total of six new vessels during the quarter with an estimated total delivered cost of $357.2 million. The addition of these vessels will increase our steady state EBITDA by approximately $40.0 million annually."

For this purpose, EBITDA, a non-GAAP measure, shall mean net earnings before interest, undrawn credit facility fee, taxes, depreciation and amortization of deferred charges.

Financial Highlights for the Quarter Ended March 31, 2007

- Reported net earnings of $14.7 million and earnings per share of $0.31 for the quarter ended March 31, 2007 compared to net earnings of $8.9 million and earnings per share of $0.25 for the quarter ended March 31, 2006.

- Generated $24.7 million of cash available for distribution during the quarter ended March 31, 2007 compared to $15.3 million for the quarter ended March 31, 2006.

- Paid a quarterly dividend of $0.44625 per share on February 13, 2007 for the fourth quarter ended December 31, 2006. This was a 5% increase over the dividend paid in the fourth quarter of 2006.

Results for the Quarter Ended March 31, 2007

During the quarter ended March 31, 2007, Seaspan had 2,053 vessel operating days as compared to 1,259 vessel operating days for the quarter ended March 31, 2006.

Seaspan reported revenue of $41.2 million for the quarter ended March 31, 2007, an increase of 66.2% or $16.4 million from $24.8 million for the quarter ended March 31, 2006. Net earnings were $14.7 million and $8.9 million for the quarters ended March 31, 2007 and March 31, 2006 respectively. For the quarter ended March 31, 2007, total operating expenses were $21.6 million, comprised of ship operating costs of $9.8 million, depreciation of $10.5 million and general and administrative costs of $1.4 million. For the quarter ended March 31, 2006, total operating expenses were $12.4 million, comprised of ship operating costs of $5.8 million, depreciation of $5.6 million and general and administrative costs of $1.0 million.

Seaspan reported basic and fully diluted earnings per share of $0.31 for the quarter ended March 31, 2007, an increase of 24.0% or $0.06 per share from the earnings per share of $0.25 for the quarter ended March 31, 2006.

During the quarter ended March 31, 2007, Seaspan generated $24.7 million of cash available for distribution, a non-GAAP measure as compared to $15.3 million for the quarter ended March 31, 2006. Please read Reconciliation of Non-GAAP Financial Measures - Description of Non-GAAP Financial Measures - Cash Available for Distribution for a description of cash available for distribution and a reconciliation of net earnings to cash available for distribution.

Seaspan declared a quarterly cash dividend of $0.44625, representing a total cash distribution of $21.2 million. The cash dividend is payable on May 11, 2007 to all shareholders of record on April 30, 2007.

Operational Highlights for the Quarter Ended March 31, 2007

- During the first quarter, Seaspan took delivery of two additional vessels in its initial contracted fleet of 23 vessels;

- On March 15, 2007, Seaspan took delivery of the 9600 TEU CSCL Zeebrugge, its largest vessel. The CSCL Zeebrugge is chartered to China Shipping Container Lines (Asia) Co., Ltd., ("CSCL Asia"), a subsidiary of China Shipping Container Lines Co., Ltd., ("CSCL") for twelve years. This is 13(th) of 22 vessels to be chartered to CSCL Asia by Seaspan.

- On March 28, 2007, Seaspan took delivery of the 4250 TEU Rio de Janeiro Express. This ship is the eighth of nine vessels to be chartered to Hapag Lloyd USA.

- On March 27, 2007, Seaspan took delivery of the Cosco Fuzhou, its first 3500 TEU vessel. This is the first of two ships to be chartered for 12 years to Cosco Container Lines Co., Ltd.

-During the quarter, Seaspan increased its contracted fleet to 47 vessels with the signing of agreements to acquire the following newbuilding vessels:

- Two 2500 TEU vessels from Jiangsu Yangzijiang Shipbuilding Co., Ltd in China scheduled be delivered between March and June 2010. The total delivered cost is expected to be approximately $46.4 million per vessel.

- Four 4250 TEU vessels at Jiangsu New Yangzi Shipbuilding Co., Ltd. in China scheduled to be delivered between March and September 2009. The total delivered cost is expected to be approximately $66.1 million per vessel.

- Seaspan diversified its customers by adding charters with two leading liner companies:

- Ten-year charter agreements for the two 2500 TEU vessels with Kawasaki Kisen Kaisha Ltd., ("K-Line") of Japan at a rate of $17,880, per vessel per day. K-Line is Japan's third largest liner operator and is ranked 13(th) in the world by TEU capacity.

- Six-year charter agreements for the four 4250 TEU vessels with Compania SudAmerica de Vapores SA ("CSAV") of Chile at a rate of $25,925, per vessel per day. CSAV is the largest liner shipping company in South America and is ranked 16(th) in the world by TEU capacity.

- During the quarter, the CSCL Ningbo, CSCL Dalian and Maersk Moncton completed their regularly scheduled five-year dry-dockings for special survey. The repairs to the rudder horn of the CSCL Chiwan were also performed during the quarter as scheduled. There was no material unscheduled off-hire during the quarter and all future rudder horn repairs are expected to be completed during regularly scheduled dry-dockings.

- Seaspan's fleet was utilized 97.9% for the quarter ended March 31, 2007 compared to 97.1% for the quarter ended March 31, 2006.