Strong demand for freight container lessor
Bermuda-based Triton International Ltd, the world’s largest lessor of intermodal freight containers, has reported net income attributable to common shareholders of $54.7 million or 81 cents per diluted share for the second quarter of the year.
The company said it includes $89.9 million of make-whole and other debt termination costs primarily related to the prepayment of $821 million of senior secured institutional notes.
The second quarter results compare to net income attributable to common shareholders of $60.1 million or 86 cents per diluted share for the same period a year ago.
Net income in the first quarter of this year was $129.3 million or $1.92 per diluted share.
Adjusted net income for the second quarter was $144.2 million or $2.14 per diluted share, an increase of 148.8 per cent from the second quarter of 2020 and 12 per cent from the first quarter of 2021.
Triton said trade volumes and container demand continued to be exceptionally strong in the second quarter.
The company placed more than 400,000 20-foot equivalent units of new containers on-hire during the quarter and utilisation increased to 99.5 per cent as of June 30.
As of July 23, Triton said it has purchased more than $3.4 billion of new containers for delivery in 2021, most of which have already been committed to high value, long duration leases.
Triton issued $1.7 billion of senior secured investment grade bonds during the quarter at an average effective interest rate of 2.2 per cent.
The company’s board of directors announced a quarterly dividend of 57 cents per common share payable on September 23 to shareholders of record as of September 9.
Brian Sondey, chief executive officer of Triton, said: "Triton's outstanding results in the second quarter reflect our success in capturing the many opportunities presented by the current very strong market conditions.
“Trade volumes remain strong and we continue to see incremental demand for containers due to operational disruptions that are slowing our customers' container turn-times.”
He added: “The very large block of new containers on attractively priced long-term leases and extended lease durations for our container fleet will provide strong foundations to our profitability and cashflow for years to come."
Triton said it has a container fleet of 6.9 million twenty-foot equivalent units. The company’s global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.