Seaspan Reports Financial Results for the Three and Six Months Ended June 30, 2017

Achieves Strong Operating Results, Grows Operating Fleet and Further Strengthens Financial Position HONG KONG, July 30, 2017 Seaspan Corporation (“Seaspan”) (NYSE: SSW) announced today its financial results for the three and six months ended June 30, 2017. Key Financial Metrics

• Total revenues of $204.6 million for the second quarter and $405.9 million for the six months.
• Earnings per diluted share of $0.11 for the second quarter and $0.33 for the six months.
• Normalized earnings per diluted share⁽¹⁾ of $0.17 for the second quarter and $0.32 for the six months.
• Cash available for distribution to common shareholders⁽¹⁾ of $95.0 million for the second quarter and $155.4 million for the six months.
• Adjusted EBITDA⁽¹⁾ of $153.9 million for the second quarter and $273.2 million for the six months.

Highlights

• Accepted delivery of one 14000 TEU vessel on long-term charter with Yang Ming Marine Transport Corp. (“Yang Ming Marine”).
• Achieved reductions of 13.8% and 12.3% in ship operating expense per ownership day during the three and six months ended June 30, 2017, respectively, compared to the same periods in 2016.
• Achieved vessel utilization of 98.2% and 95.0% for the three and six months ended June 30, 2017, respectively.
• Raised gross proceeds of $33.9 million through common equity sales in “at-the-market” offerings during the three months ended June 30, 2017 and $58.6 million for the six months ended June 30, 2017.  
• Currently eight unencumbered vessels in the Company’s operating fleet: 2 x 3500 TEUs, 2 x 4500 TEUs and 4 x 4250 TEUs.
• In July 2017, declared a quarterly dividend of $0.125 per common share for the second quarter of 2017.

Gerry Wang, Chief Executive Officer and Co-Founder of Seaspan, commented, “During the second quarter, Seaspan grew its operating fleet with the delivery of the YM Wind, a 14000 TEU containership on a long-term fixed rate time charter. We also achieved strong operating results, highlighted by our ongoing success in reducing costs and our high utilization rate for the quarter.” Mr. Wang added, “We took important steps to further strengthen our financial position during the quarter, including entering into a sale-leaseback transaction to fund the YM Wind delivery and renewing our unsecured revolving loan facility. Both of these transactions demonstrate the company’s strong access to capital. We remain committed to creating long-term shareholder value and are pleased to enter the second half of the year with a strong cash position and the financial flexibility to capitalize on future opportunities.”  Summary of Key Financial Results (in thousands of US dollars): Second Quarter Developments Vessel Delivery and Financing In May 2017, Seaspan accepted delivery of one 14000 TEU vessel, the YM Wind. The vessel was constructed at CSBC Corporation, Taiwan using our fuel-efficient SAVER design and commenced a 10-year fixed rate time charter with Yang Ming Marine in June 2017. In May 2017, Seaspan entered into a sale-leaseback transaction with special purpose companies (“SPCs”) for the YM Wind for gross proceeds of $144.0 million. Under the lease, Seaspan sold the vessel to the SPCs and leased the vessel back for 12 years, with an option to purchase the vessel at the 9.5 year anniversary for a pre-determined fair value purchase price. Seaspan used approximately $53.2 million of the proceeds to repay a credit facility. Revolving Credit Facility In April 2017, Seaspan completed the renewal of its 364-day unsecured, revolving loan facility for a total commitment of up to $120.0 million. The facility includes features providing for an increase in commitments by up to $30.0 million, enabling a total facility size of up to $150.0 million. At-the-Market Offering of Class A Common Shares During the first quarter of 2017, Seaspan entered into an equity distribution agreement under which it may, from time to time, issue Class A common shares in at-the-market (“ATM”) offerings for up to an aggregate of $75.0 million. During the three and six months ended June 30, 2017, Seaspan issued a total of 5,650,000 and 9,350,000 Class A common shares under the ATM offerings for gross proceeds of approximately $33.9 million and $58.6 million, respectively. Subsequent Events Dividends In July 2017, Seaspan declared quarterly cash dividends on its common and preferred shares. Results for the Three and Six Months Ended June 30, 2017 At the beginning of 2017, Seaspan had 87 vessels in operation. Seaspan acquired one 4250 TEU vessel and accepted delivery of one 14000 TEU vessel during the six months ended June 30, 2017, bringing its operating fleet to a total of 89 vessels as at June 30, 2017. Revenue is determined primarily by the number of operating days, and ship operating expense is determined primarily by the number of ownership days. The following table summarizes Seaspan’s vessel utilization by quarter and for the six months ended June 30, 2017 and 2016: The following table summarizes Seaspan’s consolidated financial results for the quarter and six months ended June 30, 2017 and 2016: Revenue Revenue decreased by 8.8% to $204.6 million for the three months ended June 30, 2017, compared to the same period in 2016, primarily due to lower average charter rates for vessels that were on short-term charters. The decrease was partially offset by the delivery of newbuilding vessels in 2016 and 2017 and the addition of two leased-in vessels in 2016. Revenue decreased by 7.7% to $405.9 million for the six months ended June 30, 2017, compared to the same period in 2016, primarily due to lower average charter rates for vessels that were on short-term charters and an increase in unscheduled off-hire, primarily relating to vessels being off-charter. For the six months ended June 30, 2017, 200 of the off-charter days related to three 10000 TEU vessels that were previously on long-term charters and commenced short-term charters with Hapag-Lloyd AG commencing in March and April 2017. The remaining off-charter days primarily related to panamax vessels, including four secondhand vessels purchased in December 2016. The decrease was partially offset by the delivery of newbuilding vessels in 2016 and 2017 and the addition of two leased-in vessels in 2016. The increase in operating days and the related financial impact thereof for the three and six months ended June 30, 2017, relative to the same periods in 2016, are attributable to the following: