TEXTAINER Group Holdings, a major lessor. of intermodal containers, reversed
itself from a US$9.35 million quarterly net loss in 2017 into a second
quarter net profit of $17.5 million, drawn on revenues of $140.7
million, up 17.6 per cent year on year.
Year to date, Textainer again reversed
from a first half net loss in 2017 of $16.3 million to a net profit of
$36.2 million, drawn on revenues of $273.9, million, up 11.5 per cent
year on year.
Recent good fortune was driven by the positive momentum from favourable market conditions and strong capital expenditure.
Lease rental inome come rose by 11.8 per cent to $121.6 million - its
sixth consecutive quarter of growth - primarily due to higher
utilisation and increases in the average rental rates and the average
fleet size.
Utilisation averaged 97.9 per cent for the quarter, an improvement of
160 basis points from the average in the second quarter the previous
year.
New container investments totalled $700 million ordered and/or received
year-to-date. Gain on the sale of containers, net increased $5.5 million
compared to the second quarter of 2017 due to an increase in average
sales proceeds per unit, partially offset by a decrease in the volume of
sales.
Said Textainer CEO Philip Brewer: "We saw a significant surge in
lease-outs, starting late June and continuing throughout July,
associated with the traditional peak season increase in demand. The
steady investments in new containers during the first and second
quarters positioned us well to benefit from this surge.
Mr Brewer said that over the past two months customers took on more than
110,000 TEU, yielding a lease-out to turn-in ratio of 2.5 to one. The
associated revenue will be fully reflected in our third quarter results.
"We have ordered and/or received delivery of 360,000 TEU totalling $700
million in 2018. New container prices remain stable at $2,200/CEU. Depot
inventory remains at historically low levels and we continue to place
new orders to replenish lease-outs of our factory inventory."
Looking ahead, Mr Brewer said: "The increased lease-out demand we have
seen in June and July will continue through the third quarter. Lessors
have purchased more than 60 per cent of this year's production. Shipping
lines continue to rely on lessors to provide the majority of their
container needs for several reasons, including the impact of increased
bunker prices on their profitability and an uncertain outlook due to
actual and proposed tariffs."
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