ATCO - Earnings call transcript Q3 2021

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Operator

Welcome to the Atlas Corp Third Quarter, 2021 earnings conference call. I would like to remind everyone that this conference call is being recorded today, November 9th, 2021. I would now like to turn the call over to Robert Weiner, Head of Investor Relations at Atlas Corp. Please go ahead, sir.

Robert Weiner

Thank you, [Indiscernible]. everyone. morning, Good joining Third-Quarter, for to Atlas discuss Thank earnings. us 's XXXX Corp you today We release our issued earnings market close. yesterday evening after

Earnings found will Corp.com. today quarterly and We the pertaining earnings that Investors can our our Company our turn on like non-GAAP quarterly to definitions presentation. most to and can to presentation, the website, found includes be businesses. Number to forward-looking discussion, to a at on earnings measures you statements, performance and Atlas be earnings non-GAAP note found believe and earnings and the GAAP attention would disclaimer contains financial this our in your also two, appendices report, measures. we in our release, on workbook These supplemental we also our of X. earnings information in Slide release tab earnings conference, today call I of report call discussion The to the Please supplemental website. reconciliations clearer comparable which we refer U.S. remind draw Company the contains may refer measures on of Please that and closely which the non-GAAP presentation, such definitions our the number the slide I understanding measures, and to be of financial tables investors of back may provide

today are Officer Corp Corp. me Chen, of with Atlas Financial and Executive call the Chief of and Talbot, On Bing President Chief Graham Officer Atlas

Torsten session our us and Sokol Chief the Seaspan's is on pleased that join Curtis, David Commercial Chairman Board. Peter the the Pedersen. on during also call Seaspan's us session, the well, Q&A We're Joining Chief of as Operating Officer, will Officer, Q&A

up the Bing to to open Atlas form Following question-and-answer over am I pleased call will CEO, Chen. the a turn now session. remarks, to we our prepared Corp

Bing Chen

Today Seaspan APR I to slide to our will and to Thank business Please good will dynamics, of over differentiation I Thank present of our Then you market focus morning, model, QX and X. and for the Energy. everyone? turn update. Talbot our financial achievements you, results XXXX on call. Graham joining hand Rob, recent and

Atlas strong to to in quarter I'm of the turn highlights. very let's pleased quarter report third performance performance Now, XXXX. continued third

container compared continue a quarter We In and to and last regions. share new revenue and EBITDA same deployed year. XX%, of Atlas per robust benefit adjusted in to delivered from APR's the market robust assets adjusted a shipping of earnings of XXX.X%, QX, XX%, growth growth growth contracts

for the All of vessels Seaspan's XX%. rate utilization were a chartered full achieving quarter, of

QX to of X we strong utilization progress up of were is XX%. fleet APR in high. our benefit This, strong pipeline opportunities. building As from together cost a of and continued is a grid current control, rates, growth It of index drove to exposed stabilization projects the floating market to long-term our able also our with executed quality, achieved XX% performance. QX

XX added by continued strategically through customer builds deliver new demand, our we growth quarter, the its customers' During QX. partnerships. to Driven our in to fleet quality Seaspan

total cash and term, gross of in generating of backed now $XX.X of U.S. XX have in vessels by average XX.X We past invested contracted years charter the billion year, new-build flows.

dividend, performance. our Slide APR We Katie sustainability our member, turn We advanced business. stakeholders and of our capital Wade add executed Church. new the continued Please would like issuing to board ongoing team, of third continue operational including our to and our now Benjamin I inaugural some to ESG to to of talk CEO, for paid X. also consistent talent quarter our about drivers by creating structure aspects all report, goals across value improvements our consecutive XXth

organizations difficult the year-to-date, best-in-class operating months, our differentiators, Despite evidence environment, of LTIF and competencies fleet to is Seaspan maintained the excellence, IPO XX% drive the an asset unprecedented historically vessels, last X.XX This average logistic Seaspan has in XXXX. performance. both throughout as global X,XXX with XXX managed been successfully consistently all key changes our restrictions. also repeat, of industry-leading crew its of a low -- and X,XXX rate one of in over QX operational the continues operating since safety, achieved pandemic. delivered As over of utilization and consistent monthly XX especially with excellence it made I despite

their their Our is excellence competitive through chartering differentiator. partner customers and creative vessel overcome challenges win-win indeed a solutions. in needs understand operation We our to and with

supply-demand we fuel size example, solutions craft partnership. our vessel foster analyze forecast needs, For and their adoption and to deeper plans,

vessels, X to history. the of forward of I'm of of took the this delivery MSC XXXX, X of We marks RASHIMI power This scheduled about CAROLE, X vessels sister same remaining s in XXX We our MSC Seaspan' on program successful of execution total fixing XXXX. follow partnership customers. example with roll-offs first and newbuilds, XX,XXX anticipate and XX (ph) TEU delivery our the of team's recently November. with be year-to-date just deployment. in X Seaspan's proud is the in has ahead the (ph), newbuilds expect to This charter in schedule. with of of and the in the ahead newbuild a the delivery delivered project resulted charters months its ALAINA two XX-year XXXX, in MSC XX our X Another

Annual charter demand, thanks consumer which APR's long-term The impact economic execution to Mexicali. purchasing experience the also strong has a continues up Our APR expertise rebounded lanes conditions favorable Third market combined the changes deployments thriving. patterns. slide our with the turn and rates completed duration. volumes to to turbine lack Slide to not in improvements - classes. trade also advantage to has attributed Project a the in to particularly Please The consensus global delivery successfully of of recovery to a are all of distribution expected difficulties economics, these Port to rates low its improved forward logistics stronger customers and team's U.S. tonnage shipping which from X.X across charters world, fierce charter in which idle experiencing market continues level Seaspan is chain upswing, all working fixing through and take stimulus, of at large our in container all COVID develop ongoing expect disruption, supply charters Global business. backed trade congestions ports. QX, six, Market surpassed to X no highs contributor mobile these vessel vessels. in of ensure and best-in-class than penned pre to absolutely trade across are turn spending Consecutive Land decades new and is consistent does own in is with including strategically historically due the long-term at around X. market China, with solutions limiting container long-term to by challenges the freight this the fleet. of Please conditions for long builds, persist. historical

supply resolved a next X and equilibrium. order book, delivered to chain it issues, balanced more I As newbuild years expect it's are normalize rates. to over the

in long-term flow on partnership take chartering current certainty. at peers our short-term conditions, why building gains customer focus of quality high cash expenses long-term as through value market our counterparties. Which with and focus is the through is the resilient on model many sustainable, the long-term charters for We and with over war all Seaspan the the the trade rates business continues growth. short-term prioritized current creating to quality such of pandemic. advantage While predictability

and Atlas gross billion a program newbuild of matrix of years example, is vessel duration of of fleet, and $XX.X X.X model business unique by charter average average Please industry-leading X weighted $XX.X years. showcased cash our turn perfect XX to charter and The a provides long-term contracted performance. Slide These such XX.X predictable contributing gross insulates in as average us million is the of contracted years. age flow over fleet X.X Our flow, market cash billion X. duration set of from market are nearly TEU of volatility

based analyzing in leading has liners. for this differentiation a the years, record by demonstrated expertise defining the and built most designs fuel-efficient on clearly industry's operating pathway. and with a Seaspan market track trusted classes. the the partnered to supported reputation world's over competitive history developing of newbuild Our our vessel is future partner our being of new when XX We've Seaspan's customer excellence

Orderbook. capacity, with replace years, segment seen currently X,XXX contracted cash continue make to but they less in quarter the of We of These XX a the are of to the vessels. X%, They Please the TEU third Newbuild $X in of existing of turn approximately strong XX% duration a addition up the and TEU slide of billion our backed all as weighted average We've by than leveraging gross well-positioned global segments segments. X,XXX producing over to TEU to X,XXX flow. represents X. aging X,XXX redefine newbuilds expertise are demand charter XX.X

We continue the our composition to segments, TEU to XX,XXX we recently, more we our Year-to-date, fleet continue high optimizing develop in and expanded X,XXX best-in-class while strategically and presence portfolio the TEU of focus larger top on fleet demand our in customers. segments.

upgrades. and earnings several with to top through diversify newbuilds deepen customers continue deepened liquidity, customer is proven recently and record our with also pleased accompanies. also customers. partner quality Seaspan have the their We numerous to with ample liner relationships rating receiving industry-leading existing We ZIM through our credit who XX partnered with our amongst base and

has TEUs exceed X.X and has are our unique fleet average. substantially other charter by remaining evidence nearly than the our fleet business Atlas competitors. to this These average Decreased on a X.X than unique to with credit increased X.X continuous teams. double markets. and I age age contracted our results has. has industry These This fleets' Atlas progress performance times our nearest than XX X grew as year-to-date the No approximately results are management duration larger have the model flows This slide industry secondhand slide Please by top billion. over by of increased leadership XX% predictable strengthened, to XXXX, customers. customers XX. years. TEU X achieved the this further past financially this which we increasing cash delivered our capacity flow quality in years, fleet summarize X And the and consistency our profile. our years ' While Company transparency transformation more cash fully duration increased delivered illustrates XX% XX% adding under of less concentration long-term differentiated delivered secured to newbuilds dedicated with X.X Fully These the truly our basis. by the to turn progress X.X competitors. of reduced and average by million of on through vessels, highly quality like QX, the years, Atlas Recapping would by is $XX.X are their the growth average X competitors. and our of and metrics within

We our the return position Graham I will to it now extend all call stakeholders. leading to CFO are Talbot. to confident our and increasing over value turn

Graham Talbot

good morning, Thank you, everyone. Bing and

If you turn could XX. slide please to number

Our QX the strong reflect high-performance were and continued to of our team. results

concluded $XXX.X these report was QX XX.X% on up stabilization per previously projects to liquidity Mexicali achieved XX% growth by the Atlas projects was of XXXX, QX, APR's diluted growth FFO for million, performance increase $XXX.X share we're turbines. in to During $XXX.X now the of $X.XX, to in per to XX% and adjusted driven million. $X.XX pleased of earnings grid closing our of of of quarter, million, per strong growth EBITDA redeployment of revenue have utilization FFO by XX.X% asset actively to third announced $XXX share. working relative Adjusted to California. We're And XXX.X%. and share to Both growth an XXX.X% million XX.X% of

delivering the our by demonstrate model conditions. of market resilience to through continue strong business all We fulfillments

Please impacted the supply in financial Both the in our future, business. giving well-positioned of While unaffected the as reaffirm presented following efficient of supporting is Slide we our businesses performance which to the our XXXX. to turn and remain team our for industry confidence pandemic first-half by focus by strong the XX. guidance, our revenues XXXX we their execution increased the chain disruption, challenges on operational remained ongoing customers

operational the and organization this achieved improvement, progress has which Atlas disciplined We capital their customer had by by and continue the over excellence, are metrics growth, to years. improvement show continuous substantial partnerships, strength. our allocation showcases creative relentless these a driven bound financial as focus past quality has X on

improvements extends quality increases quality of This enhances our in asset our operations the fleet in growth been our provides considerable unencumbered improvements and base to the continuous performance, Our has and structure. capital in service customers, available during position in our our our and delivered industry-leading predictable liquidity alongside market.

growth an cost turn investment lower of effectively capital. our rating down managed slide to from a credit to pursue We credit have continue XX. Please we perspective and as grade

on optimizing quarter, our our the Balance strengthening focus continued we third During Sheet. and

$XXX which element Specifically, we this in and the improvements. key investors, capital global This upsized top evolution blue the was and tirelessly our credit we've high a of structure. offering institutional X.X% of was in reflect over-subscribed completed to well transition priced U.S. notes the is our million, something by our worked market, yield market, towards, inaugural issuance substantial

discount remaining quarter, the During notes. notes $XXX preferred quarter, million this debt completed Similar extinguishment of of X% Fairfax $XXX $XX the the This redemption redeemed for we comes position exchanged quarter's last to million. with of restructuring of the million debt completes Fairfax a when we Atlas. with shares

highlights to interest and which with which additional capital by base our in and and the continued investor Seaspan's by create redemption group. of double previously -- the as B+ I ratings of rating, Kroll accelerated in improvement agencies These increasing discount, their would management, structure. and diversified key their supported and double Fitch represents Atlas be achieving range of customer progress XXX unsecured I'd preferential us notes with our the referred asset the this million reference tenor to flexibility Through enables of B from So, supporting our Fairfax debt debt that drivers we Rating removing support also proportion as a for to [Indiscernible] Fairfax key highlighted of debt Furthering commonly like simplify have continues an funding to charge recently terms, Agency investment a towards in grade upgraded business were non-cash recognized the the increasingly over unencumbered been Standard of notes. factors. and was amortization reiterate risk ratings. base along sources is Bond

slide opportunities Balance the financing assess to and of funding these we XX. strengthen extensive interest from participate We before portfolio for to our considerable as of progress newbuilds. to to the banking an towards Sheet contains relationships our turn investment Slide simplify credit continue leveraged This Please We have grade and in progress rating. XX our transactions, details received of report and of is on creativity, We're financing stages to operational This that diverse additional financings billion target title to our and to to and have requirements. attractive of on billion these is of agility, an our $X.X excellence. happy and we financing secured evidenced terms advanced $X.X financings close year-end. industry-leading overarching in community attractive XX

across been capital execution to competitive short ' results Please turn Seaspan slide with has flexibility a delivering [Indiscernible], facilities in slide team ahead Atlas our In strategy this is delivered our planned financings XX world-class QX financing XX. element TEU growth cash dominant securing we in meticulous This financing in a pleased This now of such to similar a $XX.X Our which position capital, presented and and is to of include base secured key capital and underpinning new competitive I'm flow. being is vessels our one. announced additional date, our resulted to costs, magnitude timeframe ahead and of objectives. in to of quality all timelines make billion this build testament to XXX,XXX and being well and access contracted structure gross to these markets, the an schedule. updated This from a team. the is

of progression over X is of schedule. to vessels approximately the sister delivery be date, we've of returns of XX quarterly. and delivery the received also on forecast to we ahead delivered XX. TEU turn process plan the that Slide updated that ongoing Now first XX,XXX updates This delivered the ahead other we our the have provide To status X underway, vessel details vessel schedule, include to slide table we will the and This years. newbuilds. Please through and leadership dramatic months cycles. conditions, to model further assist resilient the was illustrates with superior X market performance program's of excluded those performance around market through by like value metrics growth team, diverse achieved This understanding by are the past our adjustments of nature has achieved this the highlight financial a delivered teams along performance to market underlying that have set one-off been are where all which of business. our and is globe, I'd delivers business our evidence the makes in

continues during we look to updated organization earnings XXXX will fourth strong Our to on call. consistently focus our which we delivering demonstrating this quarter present performance, our through and guidance, forward

Whether line operational please fixtures, forward financing ahead needs. and vessels billion the outstanding, X by X.First, of funding, schedule, or quality and acquisitions, secondhand flow billion leave Atlas close leading that comments, $XX.X planned I'll remains driving gross $X.X with We've win-win a do customer delivering to key our financings this of like $XX.X newbuild industry solutions relationships summary of ahead schedule. deepening to meet before long-term excellence, with associated to provide Now, and growth, expect the are turn delivery I be the opening We through of counterparties. developing you continued my balance Second, we're year-end. our secured cash general questions. which and newbuilds, Slide for would to re-chattering, before well-advanced of takeaways. XX, a billion daily contracted

first our X We other also vessel the vessels. that -- to be of ahead for case took expect schedule XX,XXX XX,XXX delivery of sister TEU the and

Balance from now continues journey range agencies. grade rating to to obtain achieving writings Third, optimize double-B we're credit strategically investment corporate making our accredited we're Sheet, our X achieving significant progress rating, on and

on and that finally, we -- the updated end of third upgrade to QX. our And with plus financial to an the was at shared double-B of which the guidance the market is performance achieve thirdly track quarter. One XXXX in

third capable only recently to in and Washington newbuild quality the team also Family $X.X but and as purchased the like quarter a today. we'd smart you. ahead of founding Thank million is of our confident from from surpassing who now had Thank we future, of shareholder. average shares your long-term schedule, continue our their of Atlas vote questions. of September. strong stated growth an open appreciate confidence And price our recently in the support our This in and original to indication vessels great multiple be a Given Not Affiliates, signal a at continued previously confident the interest delivered we're confidence in to is expected guidance. $XX.XX for have line we in to you Operator, investor.

Operator

[Operator please we stand the And Instructions] compile roster. while by Q&A

Your first question Citi. is Chris from of Whetherbee

line open. is Your

James Ong

Good Ong morning. James Chris. for

it view to taken the get Just it of -- supply and think chain lack -- there there's fleet way of for it's guess a that deteriorated rates longer-term. you necessarily once the new recently, trying is on your Do appetite more think fluidity, and do the terms Thanks. -- wanted broader the you have and in a [Indiscernible] newbuilding’s higher. outlook best There is newbuilding to to is newbuilds. understand that's I growth? and Just get near-term, appetite about headwind an your for in significant clears, -- the ordering set think

Bing Chen

a morning, Good That's good James. question.

quarter what are say we the back of general talked last supply I then we terms general, is balanced. the and believe newbuilding, In during demand that and in about in

the is flow. the long the newbuilds customers of that slowing quarter, believe pace from leading these by the demand but cash backed contracted We, newbuilds line -- however, All although Over XX newbuild, continued, are the term customers. our X from past global with added down. I

I to But and in there billing, actually is duration. XX.X average industry cash about gross asked speculative flow still Specifically, contract I they is control, think the U.S. almost full think the that very orders. of none, from overall meaning newbuild perspective, with of years dollars

see real time over market still under that meaning -- interest that are in delivery. forward, are in very in that much in going very a continues that any means terms overall, but new the of interest be has think I frame some very the demand So see quarter, They I control, they're that the in a are the build are and to build, think newbuild specific past they been do coming and cautious different segment. put under from new -- they that I I all demand But control. different

In supply of congestion. terms the chain supply -- chain

how is thing condition will the caused terms this Currently, its different supply two pandemic. the really and people under ways coordination standards the of the the by depends COVID the to different with the normality. with one think is we is impact and of control actually think I going is control. on kind other depends be and of have largely on chain global able That's to going that countries. congestion I X. amongst quickly is the to the things: uncoordinated Meaning to is that in how protect that's vaccine, to the return some be the

to I last it the I In quarter XXXX. will that terms until, will current overall, said earlier, second of say, the I still as of I strong market headwinds consensus, think first that at quarter believe market the least

last that have in optimistic X, marketplace be the off model XXXX. are in believe time, years. the go some as I the of And to to But we that -- the I that going business we the end will for actually normality. to way will very actually think earlier, really market come of kind Some at views back eventually, Seaspan's X charter roll mentioned it differentiate next little until

for also, these ahead have I between. X the XXXX, fleet, before, XXXX, and earlier, our said already forward we schedule. going And at it's already why for important XXXX, XX vessels vessels the regardless to This we example, September highlight the of headwinds, I for very vessels that in have XX forward also, do for with existing we that have them, of next we the XXth have in do any fixing already as some fixed of Specifically, forward vessels assumed that's fixed mentioned little very our roll-off to not XX have is between X X actually But XXXX. and we reality, in years. we that, as X time, same is be schedule, of be the delivered build X the them But Again, flow, cash X all new XXXX. vessels backed this month. has to expected be schedule our also But long-term of backed XX the are XX, that of out to to meaning delivered speculative, years. all XX, of by of is are And and all of built, contracted ahead none delivered these next charter. in remaining newbuild, it's the is ahead new long-term newbuild by for

a is and So, of headwind the think that happens. actually have we Seaspan's from I market the when perspective, positioned. with very best I our we're And achieved. highlights And If really pleased think what business.

James Ong

Got it.

lot and to newbuild and orderings given expect a come Seaspan's that once congestion additional you do been you think to of longer-term there's a of fleet Just through? it headwind the visibility, the clears, that's do clarify, to of round growth to sort orders another

Bing Chen

capacity the from demand really quickly would liner's side the to how replace of increase that they the I depends like it fleet. think on or the Well,

to with If primarily design that anticipate it's type fuel will newbuild those the normality, to growth other even be place, driven. of be that the I with earlier, be way continued going container -- intakes, those and will liner with vessels. that happened, better different vessels driven the are reduction environmentally consolidated. and by the driven mentioned going word, landscape returning improved very that's carbon initiatives There, the is by in is change in the It primarily vessels. the in newly newbuild I the transparent in still general, because liner discipline the that demand companies. Company disciplined. manner As With market the shipping of industry not to in very that they has today the from designed much and the industry fundamental I very I I of thinking will But speculative the to be would -- control. the believe be think much under be be come be that the In will would

James Ong

capital to structure asset your just quickly, just And in on wanted base. then I really touch

assets wanted think mentioned mix How and in target You've thinking the how amounts? those understand or terms all should we rather. you're that. should we Just for unencumbered How me. unsecured about debt, unsecured absolute of -- risk. about Thanks. percentages, of And that's to

Graham Talbot

on can absolute matter unencumbered assets use in think we a providing assets, unsecured that credit business Obviously, base. target it's It's to the there grow isn't just the there. an of lines. continuing I to which unsecured

balance there's of On unsecured working to capital mix, have it got to out And out sort to XX+%. investment targets do continuing discussed there. A we Chris, tomorrow, journey number to Obviously, of that matter is progressively our over grade of we've different we've to also a all the before time. We've an not up maintaining the imperative a and balancing it's fund here, and shareholders, to which to continuing of is our it out. of number things our growth, return covenants. debt as

finely confident over to manage attributes we our balance we're as about towards an investment next move those and the few years. rating a tuned it's So, ability grade

James Ong

Thank you

Operator

Jefferies. is Giveans Your Randy next of from question

open. line is Your

Randy Giveans

and Graham, Chen Bing how's it going?

Graham Talbot

you. well. Very Thank

Bing Chen

Randy. you. Thank Good.

Randy Giveans

guess look I Good. program. the at newbuilding

another of newbuilding new or all I guess strong maybe sales the to older some liquidity be have XX delivered. market? secondhand Any vessels, put You on replacement for Are raise way. vessels potential vessels these given giving the a to updates

Bing Chen

Yeah. new They're really new Randy, answer to XX question, your brand are build vessels vessels. the new all vessels.

vessels? it as opportunities. under contract. selling at current at sell is that are are In the any terms the looking vessels long-term of challenge our before, are said vessels we market to all I The looking As opportunistically we of

we the to opportunistic. that that into I the need place much opportunities, in think selling then to we be to have counter-parties, we needs in of be with with vessels counter-party take long-term very selective at at selective that customer of those same contracts right that also So, those time, at the our very right the relationship would consideration and the the already that's -- looking consider but will also

Graham Talbot

to add just I'd that, Randy.

fleet. As recycle tempting we've discussed at we've But in in got it devaluation. vessel matter customers of on of high when time, market the before, is put for the moment it's valuation run them high just a The for some the certain justify to you contract a so economic is difficult same can that when actually got this itself terms Therefore, you the is back demand economics at have a sale, and tonnage. very term. vessels to

So, making customer take customers we sure relationships right and it to look our comes the down and decision. then after economic that

Randy Giveans

then $X.X financing And newbuilding the billion the in secured Fair. Okay. you for program. have

said, I Another, $X.X advanced think the in billion you stages.

billion the have assets. $X.X in billion you'll against $X.X So,

required investment-grade investment-grade the an leverage period; on time? financing be the rating that, during next during capped another that fair? newbuilding’s, dividend for dividend overall. like few the XX% pursuit is rating? that's seems or delivery So And ratios years of for might not constraints here this the there with Are It certain any that

Graham Talbot

are leasing different the There from ratings a this. whether agencies. covenants, rates there Randy, as which a number to the agency or perspectives certain rating of you're viewing business, relation business, Yeah. it is view ways But in specific the and views from a shipping business to our to gives

vessels. there, will XX%, complex financing, XX in parties that we've releases an out counter but parties involved so And correctly And counter those, do press working the of different XX with. some packages worked point around on in our that's course. elements XX average you average just which due it's there's were LTB organize very exciting at a fairly different we're that's or an so to we with package around looking with newbuild the -- As some of as

that unsecured actually the investment pay more to obviously, rising is journey capital. down And grade about capital. using then secured to pod So

competitive to use we've cheap yield unique has And then still again, the for that together and and there will looking very over Randy, of market in very, uniqueness details relatively secure package here I'm capital be But be financings. communicate progressively time, to through recycle capital. to to access few more or Operator? around we'll example. to is it. put the high And So we that very the out the the these out that of market, raise some hopeful you elements weeks next

Operator

of Benjamin next question from Nolan is Your Stifel.

open. is line Your

Makela Rogers

strategic for all Nolan. on thinking behalf on Ben our around the the any (ph) Hello, My positioning Stifel, you about there at you long-term getting back Makela gas everybody. more - possible? question and Is fleet that is the the and to And was is grow are which Is of contracts. still name how COVID, update. you. revolves that APR. a APR? to Thank the is long-term plan the Rogers update asking from focus point of Pre on question Thank market the idea

Graham Talbot

question. Great over changed Makela, that to to I'm hasn't Makela. say to [Indiscernible] our strategy just going you. Dave. there. Thanks,

price I fairly shifted to more pipeline market maximized we much energy. aware, that market and would quarter the in so And seeing place possible. of at as got previously. we renewable a [Indiscernible], quarter previously, with we've new we're the As is portfolio maturing in very is make working as those top aware, supply. but the building sure that, the our turbine we're has asset ambition priority moment. are utilized say pivot now you're to and fully a of still And successful current a But last had or are opportunities, lot management certainly the fleet you include stated out our And opportunities. some generation, as turbine business, robust than on that fixed we've more today we're we which also building yes, through contracting had longer-term currently as to and business is gas Through working opportunities deployments, there's on the

Makela Rogers

Thank you very much. Very helpful.

Graham Talbot

Thanks, Makela.

Operator

Omar from is Nokta of question Clarkson next Securities. Your

is line open. Your

Omar Nokta

-- Good Hey to Thank you. guys. want just morning. I

Graham Talbot

Omar. Hi,

Graham Talbot

liners obviously Bing's the follow I the as industry issues. delays and operators and logistical anything Just the logistical have the help of and topics there in port to up looking disruption of today you asked Is give And can recently any is color your biggest the do comments anything that alleviate to of wanted is the you of one possibly some to on from wanted ask to all that. be logjams? I that in side? done terms ships, on the there for could

Bing Chen

Good morning, Omar.

is been we has demand see from that reliability. and of that the think the companies constantly one service, the increasingly thing the the the for owner ship -- operator quality I liner

provide current XX%, able a our our in changed Given think quarter's as the with of And high to significant of dealing of we or kind mentioned this while very vessels challenge the have in actually we utilization lot a as logistics, to X,XXX. mentioned, is to they reliable we year-to-date, actually of been the rate the the that I and customers, I of a way crew number achieve congestions. in of alleviate very, are our service very line logistical the and earlier, port

and liner there due the additional, I incidences the for operators the a ship quality over that's cause of past would many these management note, are difficulty or lot the months of and been As several is incidences of you challenges say, to that happening customers. also

from that's don't else in and increasingly during logistical from area what consistently see have our -- that period if been to So anything this challenge you at one know, add? I customers, demanding also I the our -- the has customers liner time. Peter, the

Peter Curtis

some is several excuse I we've that essence think to essentially regards of improvement. before, me. Thanks, real times Bing. would -- the Well, impact it the more, really the time in our that unwinding take said Omar, as of we us The doesn't is area in That's disruption probably the impact speed, months, our they six see an What that operational reliability. increase the that demands to which can essentially we the customers excellence. can primary of the past support. all -- provide say, we as vessels, course the is That

Bing Chen

-- is of we've always been one load Yeah. And other very ability. been the this -- proud the something that is aspect, also the

boxes load of actually -- I ability vessels last the TEU our vessel XX,XXX XX,XXX think achieved up think, XX,XXX TEU month, s, I TEU boxes. XX,XXX meaning load actually maximum of a

high ability. that differentiates of the at our And will reliable would demand to that in type to to alleviate capacity service ability a same that demand this something marketplace additional also in difference is customer, say, I environment, shortage. quality so the the help the with time very, we owners the provide where of the way So, them load ourselves, like in load have

helped their also alleviate demand. it think I

Omar Nokta

very That's you. Thank also remarks, helpful. opening also Good in your you talked color. this Follow and the and up about Q&A. in question,

and charger very new perspective, active the involved the want about coming I you're you've at the lot got from very appetite 'XX buildings, newbuilding’s, and at really forefront, at just to understand your Just of your given and for 'XX. deliveries

you taking of do What in are As amount the all it of deliveries, think for get a demand kind do a phases. just and is sense wait-and-see that or XX the approach about XX today, you there, good planning liners that? is still there

Bing Chen

available able XXXX well a the whether as r I slots think at constantly the stakeholders, are earlier, customers. liner own general, I a and lot with customers and society, class fuel looking because mostly of slots, regularly the very is said in customers. our a only where we line provide into the believe line and is will the This as newbuild do whether if opportunities about are of proportion insight, all you're I right or to work In work it's I beyond. dialogue, from in size, the think with Generally, being cautious views, newbuild design. the something it's be shipyard, customers that liner the the looking As we that from from this is now systems, of

there's order, put in most time, the So if be about come X systems could any what years potential delivery down and and the are be you fuel orders for is think to the newbuild. At realistically, the That like for has of about certain I how a same the XXXX. the therefore, road. -- in demand it's uncertainty look still to fuel used is sources going other

would the adopt. I some and some design pretty wait fuel still overall, as are certain and about and it's -see. say with are also - they liners are cautious But potentially can newbuilds certain looking at So there directions the they

Omar Nokta

it for now. pass that. on I'll Great. Thanks, Bing,

Bing Chen

you. Thank

Operator

Bank Hoexter is Your from America. question of next of Ken

is line open. Your

Ken Hoexter

team and Graham, to market. well-positioned take -- being advantage of the congrats on Bing,

accelerated You yet targets and back point. year's noted XQ tweak at this since then, risen you rates some this exponentially really your targets have didn't accelerating in -- you even

given You on the then this look year your quarter, thoughts next the exposure. as on we at close market mentioned year give and you'll out outlook, that maybe maybe 'XX X-year thoughts updated

Bing Chen

Sure. Thank you, Ken. Yeah.

right. are You

which QX full-year raising XXXX is increased for our published XXXX, earnings. not are We our guidance, we guidance strongly in but reaffirm

are But have in The we However, XX% will been driven mentioned earlier, we is at operational revenue quarter that all XX% twice only -- revised and of year. we of variety by because the to ahead the -- policies changes, over really have that guidance has our the guidance our -- is And the factors. as our we is Graham have increase earlier, provide provide our the fixing. we're XX down of newbuild XXXX mentioned the costs is offsetted utilization, also rates, the the will fleet is the have for by our growth that projection said, three reason One crew have logistic-wise, to a of the forward driving at cost significant automations. excellence have revised that not a adjusted our the for a continued all QX processes schedule, we also, we index-based in increased. deliveries, while as obviously, TC as policy I as Investor certain XXXX. long-term Day, a According beyond. But way for and secured, XXXX XXXX very our we adjusting we

if in very -- well-positioned our And there in as we net-net, the best I quarter. marginally positioned off. So, obviously, or little have OpEx over years, coming charter one to headwinds because Simply those but believe highlighted thing years. is going that's earlier, as are very forward, rolling I'm here, said, only is increase be the immaterial I you business increase providing our the not the looking projections long-term

Okay.

only and have we have XXXX. said, I 'XX. As for We nothing repeat, we for X XXXX I vessels have XX for again,

those at them of is up long-term and XX is But of for have September all This XXth. by XX charter. -- as We time do assuming the of that backed -- any four-wall newbuilds, don't fixing. all That XX newbuild, for XXXX. is we same the

economic and the the So, in it's year, business, after, certain business the very about despite because our next or year is current we model way our economic some are And in cycles. terms certain to why industry countered the our the both exactly future business market the of the the -- most way that's contract structured, our because come, the year, of volatility performance cycles. years general and fact those it's in

Ken Hoexter

[Indiscernible] Great. [Indiscernible], Thanks, Bing. [Indiscernible].

Graham Talbot

mentioned been have we it's shorter-term portion have add, three discussed actually do on to And short-term small years. contracts. going we've us just to our fleet still previously, for and we was is I which a of five

of So, broker And on raise risks. on X- them rights. are some it's and some of contracts, them X-months And like not sort on and spot. of I those context set

discussed we we've QX you're of see do of saying know previously I fleet, about definitely So, the market. that in in year. this that and when it on portion the our uptick And

been on of And So for uptick the the of fleet. there included QX. rights data that a portion that's website the the loaded in that's up for the details has in significant of all supplemental

Ken Hoexter

Great, thanks. APR, had can they were follow-up you projects I Graham, you short-term. Thanks, on that If quarter, ended. do there a the threw some guys. in more out

Corp, you to focus? timing disparate family quarter? move more been Seaspan which to ships, add allow Sounds David now over fourth every really about us on refined the Company. establishing maybe now what Seaspan obviously not to has the to line, of since So, entities the the utilization, So, the truly management's you expectations the and Sokol times APR like point is as acquired now But and great self-funding. can there then out of a couple David focus, within having container is a refined and you the APR talk given for you allow move so mentioned turned And the conglomerate? great Why spin its to Atlas

David Sokol

advantage you the sector, the of when focus trying Yeah, the a X to short-term that s. game But to and and that owner-operator that to team is small question. years, our in the the our spikes, to Ken, the occurs. we build Historically, organization price of with board mechanisms trough support was last play. shipping avoid, start management That's an me -- not fact look and of it great let back, possible, very oriented, take want if XX trying that

it's to down risks injury numbers. have over not not moved delivery below long APR. On-time we in to Peter, recognized a When manage the decades Torsten, our excellence transition taken rates the and so, charter operations, gotten support led team our approached the want place in And unheard-of we Company Bing Long-term business two, is just by that and and Again, has uncommon. levels etc., in really long-term the can as $XX And that it APR newbuilds started or and for past. XXXX at industry, the taking today, that links and liner year charter to numbers your have not be in ever X.X. a the But do Seaspan this customers Graham sustainable -- unfolded the Torsten this those long-term extraordinary have risk for industry's even X that come future, XXXX. question to -- are is and year look long-term around need XX -a-half match X that. these are and with because companies taking of 'XX clarity we to if before that contracts, the at - rates. look can't. like we you numbers like today, mid along. one literally team something nearly at billion And really in these to you emphasize have similar No I if and long-term and intending years. with financing last as mid in run getting operational as built contract. Seaspan With that many and

the So, political congestions, problem manage. if lot will, a seeing you risks. those problem, you not instance, for a on ultimately don't of take can Coast, that's subdivision West and we are It's port the so we that

them Again, lot we unloaded to move dramatic where or get fact paid our of to and to to the on are whether But shippers place. needs they the be being because taken is that So, ready line that affecting emphasizing driving in improvements built don't unfortunate. etc. which port, there to the port. it fact Company a is the People have economics a ships last, to in the be that's basis congestion long-term are Christmas, get to a getting the waiting reloaded whether our credit, trying get of and lot product, change for

So, energy happened what's side APR Unfortunately, largely after on from to the the markets, markets. month COVID emerging we closed on COVID same with. shutdown do we shutdown a globally, that is largely something through APR, want developed

of around backlog take world. excellent to longer, significant the in So, opportunities and now that say highly it's I significant the team job we're it utilization renewable are that contracts high opportunities doing both a got some that being progressed. rate keeping is short-term has But focused, now moving got in that us of They've taken although that's analyzing place will longer-term the fields going the time. of to an

to to provide urge inconsistent also perhaps organization on get and over-promise We've shipping Seaspan dramatic basis time opportunity. been because a it's taking where flat and APR differentiated in policy time it's But the for as very needs transitions see Just going going Seaspan be. us want take you to clearly took that. globally, industry, policies flat that to take place Having to for the it under-deliver. get a they've to to it that, at same on it basis performance and the we our take d a shy are time energy going dynamics about level substantially such don't APR expect said in outperformed our to for continued to the to place look going side when on forward energy some in Seaspan, the energy and XXXX investors get APR own we But we expectations and future. where haven't of the

to can very run businesses make rid and APR, short-term rather getting frankly, grow than to built-to-last, make look high-quality of sustainable So, oriented. them we We very perspective. platforms wouldn't where have multiple just infrastructure continue the our them, sense in world, and still from long-term

So business, shareholders management future question, board pay the Ten. and been the that at perform long fact in large consistently we long-term when this undervalued. But level, all a perspective, believe stock to We've substantially really we And that does view this your answer of know certainly that [Indiscernible] attention. to notwithstanding you well. -- it enough, long around is have the people that enough too

Ken Hoexter

Great. Thanks, Thanks, David. time. Appreciate Ten. the

David Sokol

Yeah. Thank you.

Operator

Your next Michael question is BMO from Goldie Markets. Capital of

Your is open. line

Michael Goldie

shift guys. Any drive good frame, new carbon-free building expect touching container that morning. XXXX-time there? towards might on but when thoughts us been be, another a longer-term shipping, looking And Hi and bit, do this you little guys. wave further to eventually out of Thanks, We've out? and

Bing Chen

free answer Torsten, Hey, to -- the answer free improve free Michael. initiatives, will good have it the from from if to looking Peter, don't morning, vessels because is, is I Peter improve design feel the feel aspects. think question to to vessel that efficiency. One that we the jump and in. two is I The at true that carbon so

other going one will X at The One other the the be in is The not selections. liquid. in fuel ultimately, be the we're be It one it's be is way -- multiple looking looking solution. will of at the in gas, is that will to categories. one areas light solutions the

future liquid So, if have other One be out one could the vessels which we you those the fuel. to conventional actually done is is fuel, looking the modified at these have newbuild have the we XX, using are. of LNG, -- also that categories. potentially the fuels two these the And take is one green whatever

that as for also, to future categories, think at in fuels. industry could the is And terms that in and to yet, no if but other think the still exact terms whether of some and believe there the we'll on part even there's I newbuild though or today are any final I vessels. will I looking still, assets, is the that potentially is I those vessels potential used I path, the think of there more in at solution probably ammonia, it's case, try other be it's carbon hydrogen methanol, So CO_X solutions looking still of looking the the for the say be would these retrofits potential the fuel, neutral, X capture

-- similar they're low-sulfur at looking what would on So, in or at the putting sulfur many to the high ways there's scrubber we initially burning I fuel. think looking the different

newbuilds possibilities not not and which we take I So, do I massive fuel forward. the will would would newbuild they going the think will But today wave in do solution, adopting anticipate that I have. new, those still whatever of whatever the be newbuilds a say, general, vessels the new

Peter Curtis

I'll think, Something that, question. add I to that's a Michael, on good

mind are what future disciplined. on into precipitate Bing I building very about future. that work think I Bearing disciplined. of some the has which choices, fuel of which are think mentioned in very the finals the I in the within today will degree newbuilds terms Alliances,

if we see any volatile the So, of the for of sort ago. some a reason of don't [Indiscernible], of years number more or

top So, of is the on these When we growth you of also sustainable GDP volatile. look growth. GDP, the that curves regards fleet not that, still global in they're to at a have believe of global greatly

a had as and growth we've recently. containerization meaningful course, generally, a will more But XXXX in and there's globalization shocks the Of XXXX, follow consistent suit. few

as There and different trade X,XXX lanes traits look Transpacific. grow, trades to the units. improve facilities, demand note, many and east-west then to of trades replacement Europe, recently, have well we of the off is to XX you that not like Intra And combined significantly. daily capacity. fundamentals are inter-regional for types ports us global with tend vessels this global -Asia, are it's vessels for the just addition at least Asia, will there's of what fleet XX% of or their not the different main last called but of TEU, global trade. two require trade and when example, these over additional And those the XX% moves. so associated grown believe sizes other think So, lanes whole of trades, Those

So, I to provides you. that some hope color

Michael Goldie

That's helpful.

Graham Talbot

[Indiscernible]. comment [Indiscernible] another Peter's just add to

think to you standpoint. about container shipping think when COX I think a suddenly important about it's from

start move no than the way there shipping world goods the around COX perspective with today, that efficient more You is already. to from fact the

is efficient now more definitely fuel But couple and the efforts, of efficiently to they're take speaks or growth and that the which near others anywhere or in years going think move will as to the making container no is whether efficient. gone over there's future. around to thinking COX be, way others, globe, this products Now, significant types There highly as that's shipping what find it's the ultimate methanol's But to storage lower take a to being about efforts, improvements along we're exist I said, to time that the are and as both changes hydrogen is and be rapid become to represented its use time in going transition solutions is are of XXXX, does, enormous the both being that made. are to carbon years. for what technology the made, in discussion. in are governments becoming fuels problem it it's to to solutions efficiency through the transition meantime, to That to to industry Bing fuel uncertainty already there's carbon-neutral. it's ultimate fuel efficiently. shifts going with right the for this sense this some as get clear full the in in makes that sense to say, And the But that industry produce

the will or a years or be X of So, when those certainly will fuels. there they're come that X retrofits But either -- a obviously time use newbuild there out. lot not

Michael Goldie

helpful. And also, That's topic. Okay. same on that

As as for space some solutions? of we overtime there maybe less the towards same consolidation the further smaller can't move sophisticated, better offer opportunity is are efficiency, who lessor COX the in players

Bing Chen

won solution. further the expertise will of customers the less a have on able emissions requirements industry [Indiscernible] pressure the to participants, team, the Because that to the absolutely the put to human on That's CO_X with resources, to lot develop be right. work the the as the

capital business meet platform able for are these the human part and the investments. also required to those other to make the Both capital, the challenging who it business needs financial The requirements. and is also

for provide from that vessels owners solutions the perspective, to well a as difficult able as So, that I to whether from a perspective. kind be they just expertise will those a and have capital customer, provide time the human capital think to would it's of

Michael Goldie

Great. Thank you.

Operator

like to for further presenters turn to over And the questions. remarks. I no the further would call

Bing Chen

Yes.

for you you the questions. thank everyone taking the for call So, and thank

closing Rob. questions, the QX if call in further addition myself you please any earnings free out We reach now are and have to to feel Graham, to

quarter. you you in Thank all the meeting So, we to forward look next all.

Operator

And this concludes today's conference call, thank you for participating.

may disconnect. You now

Bing Chen

Thank you.

Atlas (ATCOL) 9 Nov 212021 Q3 Earnings call transcript