ATCO - Earnings call transcript Q4 2021

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Operator

Welcome to the Atlas Corp. Fourth Quarter, 2021 Earnings Conference Call. I would like to remind everyone that this conference call is being recorded today, February 17, 2022. I would now like to turn the call over to Robert Weiner, Head of Investor Relations at Atlas Corp.

Robert Weiner

Thank you, Chris. thank fourth joining quarter and discuss today everyone Corp.'s Atlas XXXX morning, you us for to Good earnings report. earnings our issued release after evening We market yesterday close.

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

investors of growth Canada. be with Kostlivy, and leader to creation believe it the to analysts, a leaving want whom over and thank relations to has in at my of conference its as continue be Atlas call let Vancouver, is is I personal Atlas based pleasure and as Atlas of been who This I for the team all last my of end I value me update. will Atlas' the very Now investor Taking Will well positioned shareholders. to turn will know. work and to get be the will month.

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

the on Commercial during Seaspan's session, Officer, and Peter Operational Chief Chief is Officer, Pedersen. Curtis, Seaspan's Torsten us Joining Q&A call the

up prepared remarks, that, a turn floor we to our Atlas Following call will Corp.'s I open CEO, Chen. session. Bing over the pleased With Mr. question-and-answer to the to am

Bing Chen

and Please XXXX. report Slide Talbot Then to guidance, record our Graham to the him his Thank contribution for to you, like morning, Rob will Rob, financial future Thank and delivering results performance through-cycle key thanking we begin present success call. that and and since XXXX Seaspan QX you good turn to to will Today, joining QX pleased hand I his for endeavors. the my our APR at on in chain developments financial and to disruptions everyone. the pandemic. I update. by best XXXX we wish global our comments supply Atlas' our I'm X. and would beat performance over highlights, and XXXX despite focus upgraded

with growth We regions, and from new customers, benefit in strategic continue long-term the with year-over-year resulting along container and robust a deployment in XX.X%. contracts APR's partnerships our to adjusted a assets of market EBITDA shipping the liner of

year. balance last quarter as contracted They optimizing and addition charters investment same to strengthened are cash billion We resulted This $X.X XX quality per very billion a continued in through we financings. fourth robust balance as adjusted rating. quarter billion $XX committed a in our flow performance an pleased to all have a double-digit our compared and XXXX, I'm our financing in adjusted gross across significant EBITDA we $X.X record long-term earnings growth has cost the of growth towards capital backed report revenue, improved total also of credit year. locked to solid growth quality delivered of yearend. progress by in of high investment share Atlas vessels. that sheet, and our capped flexibility, In grade newbuild

and are Please We pleased are to positioned shareholders we our value X. Slide delivering very material well continue in with this performance, to XXXX. to turn

differentiates the review average we XX competitive record the is demand, we further charters in vessel to The through $XX.X of years our Seaspan. track successful people, the dominance, past on and not be delivering our selected XX.X response platform delivered three vessels of over This XX-year Let's program XX been vessels invested building XX the reinforcing vessels testament since our contracted so in newbuild program. have XX to customer next does industry. platform integrated which key execute years. process is newbuild of Three far, our charter include vessel Seaspan's over over cash program, consistently unprecedented on gross systems vessels XXX with developments flows have integrated schedule leveraged inception, delivered newbuild duration. at billion which have years, a over ahead Seaspan's In of newbuild Seaspan's program to our which

pandemic. This During was is successfully executing the challenges operational crew the X,XXX rate changes fourth quarter, which was since the our utilization consistent underpinned with vessel vessel IPO. over our performance by utilization presented XX.X%, despite by

in to continue and of XX vessels market, and as from in of XX during X the yearend. fleet fixed to index XXXX, we XXXX, XX% the and to to forward up vessels total XXXX, as in only We in strong QX is charter floating roll-offs benefit leading XXXX XXXX, rates XX our exposed XX

as historical Please continue disciplined and achieved safety our together strong low our we to injury focus drove record on consistent control, of demonstrates with Slide XXXX X.X our lost operational our These people. and time successes, of excellence. frequency to turn cost performances X. we addition, QX In

into Two beginning market contracts APR's improve megawatts with totaling select key two disruptions. after years the at the to is of fourth quarter, second quarterly projects the mobile globally, of rolled-off these global start subsequent have quarter. the seasonality of demand reflects this quarter, periods demobilization consistent review and XXX let's reduced right the first pandemic, and utilization and resuming of of Now developments After at XX% the in This days APR. year's low rate the and demand postponements our and power the XX last projects. range is with the power to is the

to IID of market X.XX. by We the for LTIF which disciplined for a a our is focusing strong deployments, wrap have APR comments a cash reflecting a utilization a achieved the turbines in in its recently a on California APR's turbines, on increasing history. megawatts, like to developing up of megawatts, and APR building long-term contracted installed by in includes Similar continued our new Texas-based point long-term as company's in rate and X. entered new power Brazil contract momentum. what predictable turning projects dry Please counterparty of for generating which XXXX XXX into turn XXX leasing while of was my past is flow. five our would three turn renewal successes strengthening to to XX contract Seaspan, megawatts. the in manner, on I Slide we platform

resilient and model. which building is and of team core creative Chairman the governance XXXX appointment Board, began our operational competencies, joined in our strengthening our then we embedding five quality transformation I and our strong David consistent Sokol's as and Following business began financial excellence, further solid of the the management have growth, is partnerships, consistent we track set allocation. business which record that value disciplined that built customer conditions, of through of a evidence and delivers time, capital through-cycles. market diverse strength, a Since performance of model

themes, have performance our our have for business We model discussing value with at grown forward later cash consistently strong you financial and platform, strength, shareholders. and balance enhanced time Thank integrated I XXXX guidance, significantly billion quality customer today. significant and our your our delivering fully leveraging you seeing franchise coupled predictable improved management future for Investor the performance with team, creative by in our upgraded focused will flow, our our which $XX Atlas of share all sheet, which solutions detail. provides drive and long-term to Day the managed call. These of actively contracted Graham financial look the more in our on

turn the over call our to Graham, now please. CFO. will I So

Graham Talbot

for Slide #X to and Bing Thanks today morning, you, good turn into everyone. much us and joining let's very Thank please. and jump it straight

August. we've So our performance exceeded QX and strong full financial raised issued last in during year delivered was being as XXXX a call XXXX, earnings mentioned which our QX guidance, which

of our results of relative XXXX, of period Atlas XX.X% team's $X.XX, EPS EBITDA XX% consistent adjusted global high following the in platform, very XX.X% minimal growth FFO of a to achieved Revenue challenges These impact to caused seafarers. adjusted growth and team efforts resilience which We've our fully We're demonstrate FFO our considerable chain of the integrated million, due operations to navigated conditions. growth Growth operational all of uncertainty the by QX delivery of provides performance to proud per performance of consistent to supply QX XX.X% million XX.X% $XXX market ongoing growth to disruptions the $XXX and to with the during pandemic. million, and diligent of $XXX $X.XX. During share XXXX.

we turn We with Throughout quarter. issuances, select to operational to and to and financing a captures a redemptions, year continued in asset deliver slide Please customers level commitment of service This to continued of have focus the #X. balance whole. XX.X% for sheet. and balance initiatives on busy continued our our restructurings, management. utilization active our optimizing our a sheet Atlas XXXX XXXX, strengthening as high efficiency the was and demonstrating team, Slide

financing aggressive our We an and which flexibility, capital our capital have access cost capacity. of capital. improved positively broadened financial markets, to unsecured incorporated and transactions, our optimized and executed global sustainability We our structure impacted portfolio financings, has linked of

critical these agencies been ability the profile to grade to strong on credit and we're investment on continues credit We've that future competitive pleased and our rating. build close our continues with to on Our and rating an our see the goals, develop. execute elements achieve positioning working initiatives our achievements to to past journey

funded we team's newbuild fully While I'm of we on high program, accomplishments proud growth are quality strengthening importance to financial our delivery continue of our profiles. a the our for place and and

manage of component We as business continue sheet therefore a balance critical actively our our to will model.

financing Slide considerable in rating. decisions. financial the of agencies on and and XX. improved assessment Please, our from key metrics aspects unencumbered carefully to metrics to XXXX. like of highlight a and debt, in our and These rating asset effectively used that all capture leverage proportion of our our we've quality managed unsecured significant executed investment growth in actions are growth I'd XXXX. credit evolution turn credit alongside the profile. our all These We our delivered in of base, increases planned We've business these Next, perspective impacts

continue XXXX our throughout will to with you these sharing optimize to balance due look We developments sheet in forward course. and

look let's the XX. Now and Slide program. newbuild to of at impact turn the our future Please

through billion our $XX.X gross the annually details how XX-vessel As until performance program an flows, of site will flows. to newbuilds when all previously XXXX. of and contracted average years, $X newbuild ahead slide and incremental program associated of teams. flows approximately program of noted, billion experienced some cash cash financial completion years long, financings, XX.X With charters far That's delivery our we charters cash XX This the charter and delivered. with duration through contribute are long-term derisked of contributes contracted our newbuild deployment our newbuild have

you guidance recap to our year comparing please. our turn Now to can turn a Slide to if XXXX of actual XX, results, full performance

QX and call As during earnings we initial our our updated QX a reminder, our August. guidance XXXX XXXX earnings this during in we XXXX issued call

been the our across a XXXX As outperformed guidance been which communicated point common earlier. since spoke XXXX raised has key about all theme we earlier, inflection metrics,

Our our ability consistent sustained to resilience do and this the basis delivery quality demonstrates growth. on model business a of of

turn guidance, EBITDA to just Revenues as grow billion. financial billion expected year is Now midpoint please. The follows. Slide to and XX, XXXX to at Atlas' XXXX initial guidance to adjusted expected is are of look our full if $X.XXX $X.XXX you'll be

presentation. guidance and find APR segmented in of You'll the appendix for the the Seaspan

environment advantage includes guidance impact This taking through been two nonstrategic which to assets. current we've been fully of communicated, divestment of have vessels, the previously divestment the As recycle market capital executed. of of the

sales included the presentation. transactions of underway at vessel We this of time of forecast. are impact notes five have Details of financial concluded the not this the in these but end another

Investor more Day. a capital recycling guidance to XXXX our provide Slide to update with summarize leaving upcoming at financial will on our performance long-term and turn great We by like I'd five our program key comprehensive Please takeaways. you XX.

of long-term and success in growth, generating $XX our past gross contracted Firstly, Atlas consistently flows. predictable delivered building driving upon XXXX, billion quality cash

our raised in Seaspan our XXXX both provided financial for August. XXXX and guidance Secondly, Atlas exceeded results and APR

newbuild plan we to financial but our improve terms. sustainability And our and flexibility, structures of that cost with you'll not favorable structure least, our March our fully to Wednesday, Day focus financing, XXth the direction future through financed forward incorporating innovative capital join our discuss look the value us optimizing rating, together we and program to the capital. We proposition. to with Investor Fourth, on Thirdly, Atlas' increase XXXX event. is hold credit at hope continue Atlas linked and your of and last participation we unique

you And to operator, we'd Thank you. to today. questions. open the thank for your like So interest line now

Operator

Instructions] [Operator Thank of you, comes Wetherbee Citigroup. Chris question sir. Our first from

open. is line Your

Unidentified Analyst

Chris, is guys, for on the Jim thanks question. taking for Hey

some likelihood possibility the schedule, there's today? put to upside what's delivery have Just that actually accelerated maybe delivery you that that have in when you out can the out the of look the you across or guidance

Bing Chen

morning, question XXXX good regarding which three With to the Hey, was schedule. past this for deliveries actually the we is Bing. had James, ahead your of year

For anticipate years delivery, on -- these schedule XXXX on And vessels this vessels everything's delivery have where think continue for first some to I and schedule, of the anticipate delivered ahead program, is not will of to on far have update we XX delivery scheduled scheduled we material be of I but with think XX for stand those of eight now we them which be delivery advanced schedule. these All for we all have them and and our market and some throughout we all early and vessels year. XXXX. have coming are of which year deliveries, delivered -- the in early might this we will so on schedule for right vessels as the XXXX some we so vessels all, we do far, in newbuild executing to

Unidentified Analyst

just followup opportunity existing or on book the Got terms out it. business, them the might upside reprice there charter or to the ranges And guidance create in think rather to within the sort any and that, sort of that or change it? brackets the of and you is how whatnot which trying you So to if the gave of to around of understand will? sensitivity

Bing Chen

Yes, thank you.

fixed we high For terms water, to that these for they you. that disclosed those newbuild hell terms meaning those are contract, are have

customers variation However, answer like not part terms, of our think and in and the get modifications more linked. could of something is of we fleet any the about is this spot index upon are ourselves kind question, fleet event of is the upside XXXX? XX% said we to market, the is that our I the exposed a the existing revenue more mutually if or potential as To fleet expecting. that the change agreements, owners those to they that is your because as what question into for potentially where the probably your is but are towards this

available. have numbers Or those have is as be based opportunity the going the to guidance believe for other actually, our the for as is given possibility one know, that with are right market -- that have And very Seaspan the factor five have the the I But differential than off to on the we predictable. that, those other is that that are this we for up, whatever are we out expectation potentially the is differentiating continued negotiated of that the year, ones customers. benefit re-chartering, upside. business key the this reflects information example, terms will would the to have vessels also we then So now rolled you

we the why contracts, of contracts quality is predictable -- is that's is have business our this and model, which have flow. cornerstone cash and long-term the quality, We predictable,

Peter Curtis

the And is other I could to we're obviously forward just on if Bing, add our fixing proactively James that, to this element that contracts.

actively up coming, and do So we going yet, working aren't due customers but forward. our have are to with extend we're when roll-offs those that

place results. flows pointed cash as contracted of end out, and the not really the stable market long-term with is we're being into So our where the short focus, we

However, area we some term, the do focus. of key not exposure our short in that's but have

Unidentified Analyst

just of bit of looks trying you. Thank more potentially of attractive, the you sort M&A are, And sort something what through good I you. just have and or get term, moment understand of a at Thank want the in appetite what to then the sort and touch sense priorities that capital on basically the those capacity the a upside near sort then of inorganic? maybe and to

Bing Chen

tight know, side. very right you Yes, supply now the is as shipping, now side on market on M&A right the for

I We capital, would services, or on I vessels being the and think capital of the other for in example, that second disciplined side the side, can said, vessels allocating with of fuel the be That the advice design obvious on our, newbuild fuel hand leveraging the reasons. for the, value we are will the example, for allocation on are very value in added that for terms where it. development of added terms newbuild the opportunity of combine whether we say the

capital answer are there, in the we shipping very the on and we shipping the container when we'll the also on only right right side, So, selective capital, with think deploying and to are the you very opportunity -- we're be, we the is return. disciplined but the deploying see I the opportunity

side, same discipline. are energy allocation capital the the applying On we

world. type or FSRU of gas those to We around are to opportunities power, evaluating the energy opportunities in power, renewable

of the we have process are APR However, very the sense where I the business with we to and right in is in transforming. synergy have that the we also say, opportunity currently, right think that disciplined need the right, find we the I to will have at this be angle point, the

so we in we opportunities the we allocation. we capital, be forward, quite past over are is I capital year have very far, the will in a continue said, think $X.X we going general, billion disciplined. of will amount we And this deployed significant evaluate year, of but as to both segments, which So,

Unidentified Analyst

Thank you.

Operator

you. Thank

comes question of next Our Randy from Jefferies. Giveans

open. is line Your

Christopher Robertson

This is Chris Robertson Randy. Good gentlemen. are for morning, How on you?

Bing Chen

you. Hi, Chris. Good, thank

Christopher Robertson

Great.

So you known partnerships with for your your obviously are strategic guys customers.

conversations terms how even compared customers to to regulations three about initiatives further ago to upcoming buildings? just or about you months relates six ESG-related it pertains as ESG your just now your for could appetite wanted needs new environment? it I upgrades, as in to maybe or are and So talk ask And of the efficiency as

Peter Curtis

it's Chris. Yes Curtis Hi, topical indeed. It's here. Peter a very question

I to a back to many what know, You fleet large in least is at said as times well going ESG be to year, manage as that we've of the come a a demand the aging. is purposes, the over portion for past, there

mentioned, to As TEU XX% built of I the around somewhere years. fleet nothing XX been XX the is before, below in X,XXX past has and

up our as appear do indeed such to There's discussions with the our And So main leads engine [ph]. them. will fleet, in own regards we equipments this Exactly customers designs, quite be are This discussed many XX-ship of that these to -- fuels, manufacturers their for it the will doesn't providers a in discussion bit have. order immediately and customer are decisions these coming the when cetera. is required ESG, like. our that In But is with actually to in et make of aspects each to around we're technologies regards existing continuous and replacement. novel to new the convergence we up obvious book. that

so, sure. next journey, will over So provide for that indeed a or opportunities be the this one decade will probably

Christopher Robertson

along over need that model. wanting further to type assets, you to process Okay, about compared APR longer far it take term term previously business the what steps business this longer APR spoken to is to target with How to and current great. Switching model? the transform of you've projects into

Bing Chen

nature business Yes, on would that, be To gas contracted long-term that, services. course, similar that today we a of APR business. many to transform at you Yes, different you do To when know, fast is the model looking out the that business model do term, you're into for goal that, to Bing focusing the these from are know, is you short is our are powered renewable oriented there this again. business that there, projects is of cash know our power Seaspan's projects. the right or those you flow as primarily are opportunities

into business also to we is make I return to that in us be look have the the think the at earlier, kind has long-term capital itself the that I to considering us and profile. rationale, as allocating of for the from way that in to the However, an sense return, way the risk risk, the priority a has investment projects in today that from have of that, and the angle the project from for stated

the take So, things to make we we investments. when those those need consideration that into are

right As evolution. now you the is energy in evolution. itself market The market know, still at is in

terms time when the with which needs similar done. we Energy be and holding that two that we obviously we to significant The sure is Power shipping that to one that at And right that want of as capital, Seaspan we right understand COVID step acquired, with allocation or back, need have have on Atlas company, the the platform shared down past take over thirdly, Seaspan the platforms, has earlier, an was we have the the slowed the in So, market power the we we the Container when And the segment. is lot to in think mentioned the built at the transformed capital as investment plus the one developments. that made side, we the idea allocating because a starting also a characteristics APR side. that choosing reason I work other as infrastructure then months we development, we maybe being make platform find into is a being Shipping, opportunity, XX the is now we’re point, the this that that in a as the

I we behind the in been expected, we uncontrollable are outcome has also investment as that process finding it, back that because some if because reason behind we those factors is right the speed, of the the still level to the are we that today in and said, opportunities. are it. looking there are But external think Now I

So, so we take making work the investment, are long-term that of that investment find right a to making has it same will not investment actually the for us some time, those that done. sake been for At of into contracts. the there's lot time the

to continue quality for the we of still of us risk Now in this are in new as terms to to this improve part that on are work the as into behind the this even though the the on. things the a today projects we to the are our a the against we the are opportunity working And and is regions, platform, a we to contract, basis we’ll and short-term power strengthening of working will right get terms of of timeline. prepare the that the the business, that scenes ourselves market, something of the contracted in locations, specific is of quality the long-term find have these owner, but these profile, instead again, areas that type

Graham Talbot

place. one part say, so Bing, quite of, much Bing more business infrastructure the traffic deal also stand says, you to development all building consistent of But as opportunities then Africa America to opportunities. Central in a our bit we're our it’s Asia, in investment if criteria. sort of just find thing building I add out but taken And flow, and a the we have in this, pipeline be right as on that meet the just of have terms could our internal that of there's resources building effort and

We’re to going rush that. not

Christopher Robertson

followup APR One year? A supplement your just gas is part. to revenue you of at or do I the looking guess a related can units something shipping contribution guidance, two you related the And the in as or are that, regasification that this expect question Bing’s businesses comments, power it's such floating kind from generation what to any is, help but floating front? shipping, storage LNG then, tangentially on on

Peter Curtis

the a of it's a a the I M&A things will there's to say March, growth but adjacencies obviously which this one actually subject is, of Yes across for we lot and think, and core Investor both platforms. obviously opportunities, we're to can look, thing our and probably again, at of developing the part earlier next that I that yes, criteria around as But Day that the periphery up of looking There’s of more what coming question consistently end we're then screen ones once around lot the meet have is consequences. logical the and thresholds in all thing scream find then opportunities for. is

at are active those opportunities. So we all and looking

Day. up and cautious think more the So, on the in we be to pick will sure have to Investor just patient, I make that find we I that right ones.

Christopher Robertson

time. you Thank for your gentlemen. right, All

Bing Chen

Thank you.

Operator

you. Thank

Ben Our Nolan from Stifel. comes question of next

Your open. line is

Benjamin Nolan

thanks. Yes,

Bing Chen

Ben. Hi,

Benjamin Nolan

little think in few, but than there? what is, your evening own clarity your It in a lower Kong. just could see how then it that. to is APR, more bit little, I I how of maybe thinking or guidance parts also If guidance why I I that broken followup just bit good and it a about terms appreciate the you're whatever a is on Two to the presentation this, it hey of in XXXX. morning Hong about time just in a saw have we the in should as we cadence out

Bing Chen

that of you're we’ve and in Good presentation the a for APR included breakout right question there's So, Ben. the guidance. thanks

first I’ll for and APR our with guidance So, we've that on ’XX, that's is in the quite thing significant start material. got quite a beat

The ’XX. off high into going So, we’ve to relates a XXXX of got a sort coming issue main in Argentina.

currently a got we’ve And that's with be the turbines, then across completing been May demobbed. contract another those a off being number Argentina rolls conclusion Brazil. off and contracts January long-term been of are in in and to during XX X So, they're place that turbines rolling of in XXXX, has migrated then will and also which then

guidance for our is do this year. have, which from you impact as say, transition, on that actually has down softened previous year, So, so we the it main

originally our primary $XXX revenue to, in XXXX, was $XXX the up for million and units at we're being million midpoint We’re to of million looking as $XXX XXXX driver guidance for Argentina. of the out repositioning

Benjamin Nolan

you. Got Okay.

think year the fair be half and pickup So it normal back is lower probably and first is about see lower the way perspective, a some little about a than year, should in of we if to years long-term half then that from of a the the it? this think then

Graham Talbot

the have sure That's to correct. revenue correct, other clear Methaio that also how yes, people we given works. that thing the mentioned are make historical the [ph] And average reporting is on that's

I as an aware, you but [ph] So contractors the under at are injunction contract it's the throughout vendor. moment, think with indemnified Methaio

So, that, reported but for is we it get item. line a different in proceeds

So, that’s earnings the in release. isolated

just want it take to I people that that to So clear forecasting. need consideration they’re make into when

Benjamin Nolan

I colour. X a you are they're that over appreciate there that I side you've business said sold just signing the prices Maybe are Should contract. Bing, those, there? Certainly, moment, monetize switch think more as are those could just I the to to looking for contracts If any of Seaspan coming thoughts X or candidates ships, well? here about new or potential we sales off think as you on the thinking elevated selling

Bing Chen

X those So, divestment with link cross I Ben. wouldn't the

Benjamin Nolan

Okay.

Bing Chen

And to use we obviously XXXX, potentially XXXX balance coming monetize it's the potentially an the to activity, necessarily that obviously order roll-off these be those future cash new vessels some XXXX. not the divestment sheet, in to excellent terms generate the and noncompliant there's the good future our around these in And to predominantly is are in requirements, around aspects, specifically one of So, the challenged market that to can with secondly but opportunity for could those. focus as Panamaxes which from are the going those that a efficient vintage. lot less of our us five off, ones are got fleet, two vessels. The coming opportunity in be of are are we've more build manage is early a may so be end exit

five. So all can't I'm is, those saying you link

Benjamin Nolan

done have not guys fixed. if I from then a procuring you all me job good, And excellent of financing, Understood. lastly some could, fixed,

begins over think and the we of as floating, that sheet, has a debt interest especially of we we versus How should is fixed rates the if balance your debt debt but you forward, rates? could or your about that on some hedged years, think Graham? next hit elaborate how that As to on look that interest the do hedged, position few about right component bit

Graham Talbot

contracts taken out That's Day, at $XXX I the hedge switch and and up from good that we picking to million fixed also recently do this something actually Investor floating to wouldn't manage a a actively have we that's just but mind our question to of we chartered of are XX% We're debt. our at ratio long-term fixed debt against some running fixed, on revenues. business, focus the on contracted about which fixed obviously, because therefore to the hedged XX% our matching and

something and it's we So every month positions monitor take on.

then longer So assessment we we given recently, how into, if we're see been more curves an that that and in every to we the at right make we're another positioned, review of spot. adjusted forward moving look term and environment hedging When inflationary these hedges we've in, the we're material have it, terms quarter. locking the in in

So share details I'm it's more a to Day. managed the part happy of Investor business and on the fairly at that proactively

Benjamin Nolan

Thank well All about guys. forward I hearing to look right, great. more And that. you,

Bing Chen

have of Markets. Thanks next, Up we Goldie BMO a lot, Capital you. Michael Ben. Thank

open. is line Your

Michael Goldie

for guys. taking very question. Hi you Thank much my

or can peaking will very of QX? the half year addressed year, the be as being moment we think how guidance back should a these for the with months a with again On this announced newly look but smoother about one year, bit we when APR, summer contracts power bit including kind we contracts those for just of little a high at the this -- you ago, utilization

Graham Talbot

options through that deployment a in it's question, potential year. good more Brazil that and should the until end The to contract, discussion stable be Yes, last so forecast commences the past of this May for we've with straight the runs got XX year the Michael, of end we've deployment year, had given months extend. the around the of in which

both So QX that that with will with based run X one company, both Texas we've deployments and the link with and QX. the other through of those put those the units

at end more of provide the the should back year. that So stability

new round, of we we've of arrangement those expect We a more will year be know, the this in for for is the and that year hits for be sort still I much deployments that, would really few which that been from once stable we've of because Mexicali now power participation again, that peaking we second and in participate in got. two very a in But But QX. the would apart you obviously that half forecast say should looking in the that. years a

Michael Goldie

in that correct? Mexicali, the And APR not guidance, is included

Bing Chen

total of in for for of is Michael, out been way the Actually turbines No. total three maybe Brazil is at counterparty the already the has Texas zero. the the APR other also look has IID. for right Graham Out is the Mexicali, now of rest which which XX and XX that said that and this XX is just for also that for EEP -- in contracted this Bing. turbine, year, to

complete have that them So equipment export going its to start Four services out started demobilized, then once we and is be then the XX other XX in is scheduled take of the some the of demobilization contracted end which we demobilize Argentina. to just following of and is turbines Argentina country, the to will turbines by of again. the is time in and May, to

those the for be be equipment months to to So taking that next deployment. will repositioned

nature XX you that's business. that is year, in just transition, mode this in that the -- consideration turbines will So that of into in and mobilization demobilization can they're and take you the of

provided up been we just taking other now, finishing and are mobilization. I have in XX the of as consideration process meaning in said deployed is demobilization right full is the guidance of XX, the therefore now, of operations, the So they period what starting and

Michael Goldie

then of that time or year taxes, of this obviously APR the this that high demobilizations can was each was to very the And this about kind expect are on it quarter. seasonally of of something you. the some one business thank we Is nature on happen? based Okay, more of a

Graham Talbot

was tax to that was Argentina. item related the from a Yes, that expense one-off exit

that carrying a deferred at we So in country. Argentina we'd contracts, asset were be our declared tax the sort conclusion exiting we of in October, when of the

be Given won't our we exit, that utilizing asset. tax

of tax line adjustment the So there's that off approximately expense as adjustment a million, a which exit. for $XX one non-cash non-cash hit

Michael Goldie

Okay. the outlook And then more final question from of derisking me. these we potentially Obviously, with Is with vessels. you're of job something any sale this of then, doing a see vessel other could the are that in and kind time tools fixing older to to XXXX to the position frame? there sales, forward And that continue addition other for ships? yourself good XXXX,

Graham Talbot

ahead you we that, Yes, do Bing. at have go more vessels sorry

Bing Chen

go ahead please. You

Graham Talbot

older just going was It they so we marketed are being factors Now those more vessels. that contracted, going of in of to appropriate, where they're just on I all of and but we fleet them. to it's part have the a a that are we're do vessels exit of say, selling depends that actively on other in blanket not working actively terms more number how some of

them that of ZE sold a are at more as to sold able as Day. third parties, fulsome vessels explain the the And joint a also, view from the you these mechanism to of with the release, give at being be of into our we'll works but direct And venture we'll earnings are also have of Day. Investor well, So number JV. noted how would being that Investor some

Michael Goldie

much. very Perfect, thank you

Bing Chen

Michael. Thanks,

Operator

Thank you.

question America. Bank next Ken Our of comes of from Hoexter

open. Your line is

Bing Chen

Good morning, Ken.

Operator

please. moment, One

Hoexter me, line is... Let Ken your

Ken Hoexter

again? morning. Hi, hear Hello? good Good and Can you afternoon

Bing Chen

Yes I hear you, yes. can

Ken Hoexter

I So, yes for before, getting what dropped thanks happened, got but me know don't back I in.

the ever followup that answer. So can followup recall to vessels, last first that think just I on I've that, selling so Seaspan it's time seen to on just I

you it market, rechartering in life versus of take end just you given see was you the the versus there? the what those sale rates through made then And talk joint Graham, in maybe what the So, the the market high that demand strong versus moves, this are to about selling to continuing why versus that? walk running the versus to the charter venture, market the mentioned benefit done advantages maybe

Bing Chen

Sure, Ken.

is a vessels because, so, because to regarding Maybe is will seen always typically assets absolutely we charter, up is, customer. the not basis a is fleet right. long-term in that point vessel maybe this sale managing first from and our this Ken to reason therefore, really that time managing you -- competencies lifecycle than the your is second On I can the try from to half industry the So, our terms answer under the demand have of yes two we this Seaspan, years of the do general, is One younger is the whole follow that with -- the reason reasons; young. residual six fleet the is that our of the A perspective, are core, you're the of The are is average. say you fully because the surprising, actually in have I delivered our what vessels, selling we're question about risk and see us selling the the assets. always

end asset depends the they're on till to to the to the really them it depends much Whoever sail really get or the flow, how, back see them you're it you the assets. is You comes be to the work cash projected divestment, whether you able then going generate of asset value. assets, future know, to be when how going buys the able life, they how to the and going utilize to on discount

As see sells, they charter charter you as when free. attached, know, you say, the there's that a typically, or vessel

we're reasons because buy actually attached, we can because to always vessels. is XX customer of have second assets, that and their about those talking is good talking one our is charter XX%, be the fleet XX to doing has newbuild still then as That's with fleet when our longer much a about age, quality it's TEU. the then of fleet charter our we vessels, XXXX, in of attached value those XX,XXX order, XXXX been The the are other why can the now around, charter the typically, have if we and buy a TEU. size little about have vessels is before because this than And somebody to XX% the lot able of demand these So is at size buy about is able Actually current charter attached lower of market, flipping XXXX times better newbuild, higher, will vessels very it. you're value. assets we we bought be One wants In can vessels fleet XX,XXX or XXXX we to we part have our a create turn because fleet it charter case, management looking will always we sizes. exactly active of free as the and ours, XX buy is at that we about attached to side optimization. around obviously, this for hand we we

in in the also continue the and we fleet the to composition efficiency, design, terms So of fuel. now the manage the size,

our you need I making we terms that I of trying we residual type we're take is either of and Also, or at their our with vessels life, the the end management, the of our we is words in currently them these is to always position customers' these in keep, current sold, been on. this to opportunistically other work to or has think in will between market to be take we being will continue opportunities are needs, see than the we we so of coming multiple opportunities. offer be scenario, in in making sold, But sure able the this overall, into till looking of process into something up or those the that core charter where what always sales. what want those So focusing those potentially obviously is make until that's the And better sale them capture life to or decisions. selectively the an risk use been the the the that that considerations if consideration best will sales and where of opportunity has way again, market of end -- there's going

David Sokol

tell look the not more have our with joined think default that risk of the Board, what really this debt plan could, was as and X/X had company Bing we on recognize echo the I company managing no in in is we today. and near this then frankly XXXX, can when a many on the what period. and and Dave, grown at of from its under notch funds has because I adverse It's that maybe XXXX, almost default management million is little also that than have at if in is, model operation credit more bit look a over and they only made one the term rating has to from $XXX near $XXX investment was pleased points Board grade. today important, long fleet I some you team of others, what million after Bing, you and Sokol And said, Yes, look back done the extremely being the customer it's I but business centric years four last is

has rate torsions at even of that though when they an quality And ships So that in times meet XXXX, that to of also inevitably number but the with argue prices, largest not while so, four company to you was, last advantages recycling XX% imbalances of quality be model the the said has back advancements all flow. could just cash job reinvest utilization difference but with the sensitive one take of going the of the the that along model that demands and model. peaks, Curtis's to occur. in the in all avoid was injury the environmentally only the and procuring in business fair of we not done the business have us, of three them, to to XXXX. long-term we had group, element fact And made to market fair the ships lock the not not avoid the customers, frequency coming. been that high to advantage is future so But trough contracted meet know, The that flow, the order taking have environmental three it, out that Today, then the ships, is plus much in team avoid of only in the to incredible older spot industry, XXXX, supply-demand and they're partnerships should of that look the demands. our long-term importantly, to cash course the And of that also going openly of allows Peter are fleet over that and ships much, have the a mean, quality, lowest forward, other years, high higher times we customers, was and you earnings. in ships, that I

a being really management the fences that building that, year partnerships, anyway team to few every one, so work. adequate to taking. announced you're If got opportunities high that very good to to think this the you they're of to back extremely perspective, equity significant them and want way be returns programs. two finance the team, you've just along steps base if again, for the number value those large Board's prouder charters, have and them notice, have basis. billion Seaspan to in do don't they've team cash want be seven couldn't want up reasons term for credit of has and to we there's And quality And to need long customers built and quality clear for of them. And flow have build quality, performance projects and for going And continue want credit that. the competitors any fact the financing that swinging adequate don't put the a But or half we the the dollars long-term to

Ken Hoexter

want followup us you Investor up if with company, is or you on sale give the what quick joint that there?. said thought know was but maybe know wanted just would if but up Graham to Day, there staying actually a Dave, really, wrap just don’t sale a love to on or is that independent I the a to truly Bing maybe APR, an perspective on to the at I I throw that's there's know, that venture, you if in the more I don't quickly? well, question purpose the

Graham Talbot

The between Sure, arm's just of power value. joint preventional venture. joint a is XX-XX company and venture that and length Atlas joint is very which ZE, quickly, in venture a is Seaspan a so transaction energy in is at a China, terms us between

an So venture continue of unplanned it transaction that no of value. ownership spaces market but the the to ship assets. is different to really commercial other based management And and is Seaspan a take that's party, fair than services. that and provide a the joint we will selling any management the related The ship on management, then provide and that it party, will arrangement third except it's

Peter Curtis

The venture, sold then that vessel into refinanced within it's is that venture.

for the with joint cash extract full proceeds recourse non-consolidated debt. venture and sale from we the us the the is no So on

it got we've I at it actually that to all there, So more well said, because I'd works for quite a that's structure so like bit why Day, in unique very it detail cover Investor parties. a is

Ken Hoexter

great. Sounds

So can be Seaspan had and organization? consistency, within that's blending in time APR earlier if can has in the concept of but M&A, terms likes stage revisit very of see here to a the call APR, to the maybe what potential the you they've think Bing lot the the of set long-term it's the terms we just, noted contracts, predictable taken management, do how we've of the a he contracts, seemed -- anything, deployment maybe obviously on contracts, of capital and in mentioned you the business I you just whole but change the yet and since of shifts rolling the market segment, you or acquired that expanding

Peter Curtis

APR recognize lot of to work be had also through indemnified through lot Yes, the owners us first we and former have two you we we of a I I issues all, One, issues. But to had acquired those things. step to back what of when model mean, was knew what worked be think, was, and a business and to it. knew appropriately they their able that

lumpiness us place along, to the is is be there. so the transition yes, for as to that's a goal time. over The to energy taking segments energy utilize said the business, not of platform so, ultimate in And it we all into there's get globally short that term just

megawatts is they've And of from today term good done, offset of so, we for only, the that some only short the been some the regions. that one help expertise that providing the power in overbuilt frankly, companies had, limitations significant actually that's the work think U.S. they've renewable to

when said with world them, because To been business then going they've done obviously or certainly transitions you models, platform that's the power forward. when COVID, is know, ability can't think slowed meet long-term deal completely player, a will with think be what business You that goal enough, this good the the Atlas' we've around has you be market that not fits model, can't you fair continue energy year, each to us is travel a know, much but in term more down, they short but for involved markets a job, to be I to we our to but the of with significant.

much much down want don't although market. be a and significant North relationships. energy many be. they have side, the future, different long-term relationships. shipping to sense in still going then you're be regulatory that's But much we straight think or to larger the happening industry reality that can more are to countries Americas. want where that can relationships Contracts in We the broader locked They contractual this change in in to both, necessarily see or I year than the

seeing but things there's I a if that adjusted through think think potential, risk we're jump at And and going I my APR followed of you return. global so a lot our a Bing's lot we're don't opportunity expertise, to more but of there, have there's past, is past not a appropriate which

not to APR where there to allocate to that lot going potential. risk is opportunities time, have unless capital outcome getting it's take going right the going a to but we So be to and have we wanted we're be of

you have will five that last to at part Seaspan the just Ken, well But APR you as and and have days. greatly took to you that's at have frankly it's team to, that we're transition that and know, see through. sector but So, over also the by business, But place want to extraordinary early excited I'd look of opportunities, the done the some point, been you there. have at similar years suggest

is for things You provide you're business years that the bankruptcy. know, of particularly had filed the investing models, happen can't know, jump in about every to forget, industry. those into But five in in levelized they when for the XX my years different business, looking industries, enormous Enron experience opportunity. and I'll last quite when you in seven predict just each I never you we're things on best they and the energy they know, in followed to time, the XX you happen up opportunities industry energy over months them. the happen just investment come. and in And not things, going ever

for and involved value cash build to We long-term we the can where develop us. continue sustainable we can we flows shareholder will know

Ken Hoexter

Bing. Thank for [indiscernible] time Wonderful, I appreciate you the

Robert Weiner

Bing. Sorry

Bing Chen

[Indiscernible]

Operator

further no call. are all queue. There you. will then conclude Thank conference the participating. for questions This you in Thank today's

disconnect You have good may and now a day.

Bing Chen

Thank all XX. everyone. to forward which on our Day Investor I look on you. seeing is you Thanks, March

you and all you soon. thank So see

Atlas (ATCOL) 17 Feb 222021 Q4 Earnings call transcript