operator Sea Containers Ltd. has posted strong year and fourth quarter earnings.

And Sea Containers president James Sherwood said the company was well positioned for even better results in 1997.

For the year ended December 31, 1996, the company made $30.6 million, or $1.20 per share.

In 1995, the company made $107.4 million, or $8.27 per share, but that included a $100 million gain on the $160 million sale of its Wightlink ferry unit to a group of investors.

Excluding the $100 million gain, earnings for 1996 were up 314 percent from the year earlier.

Quarter earnings were $7.9 million, or 30 cents per share, compared to $1.7 million in the prior year's final frame.

Year revenue rose substantially to $871.7 million from $497.4 million in 1995.

Fourth quarter revenue more than doubled to $289.9 million from $123.3 million.

Sea Containers president James Sherwood said that the "net earnings gain, excluding the sale of the ferry unit, demonstrates the strength of the company's earnings growth.'' Mr. Sherwood predicted continued improvement in container utilisation, improved passenger transport results through introduction of two new SuperSeaCats, more profitable use of first generation SeaCats, and improved leisure business earnings through expansion of existing and new hotels.

Sea Containers has applied to incorporate Bermuda limited liability companies SuperSeaCat 1 Ltd. and SuperSeaCat 2 Ltd.

Tourism trains and cruising reported earnings gains in 1996 and forward bookings suggest 1997 will see further improvements, the company said.

At the operating level, profits from marine container leasing declined four percent to $81.8 million compared to $85.4 million. The drop was due to the bankruptcy of a major lessee and a soft northern European re-leasing market.

All containers from the lessee have been recovered and largely re-leased.

Mr. Sherwood said that container leasing had shown an improvement in recent months. He also said that the company's SeaCell containers, on limited trial, are showing excellent results.

"Despite losses on an experimental fast ferry service between Denmark and Norway, now withdrawn, and a reduction in profits on the fast ferry service between Scotland and Northern Ireland, due to resumption if IRA violence in Northern Ireland, and the new fast ferry competition, the company's passenger transport operations showed significant improvement over 1995,'' Sea Containers said.

Hoverspeed, the company's English Channel fast ferry, enjoyed near record year earnings despite Eurotunnel competition, the company said.

Ferry, train and port operations increased from $7.7 million, excluding the gain on the sale of the ferry unit, to $19.8 million, aided by earnings from the Great North Eastern railway and improved results from the Isle of Man Steam Packet Company and Hoverspeed Ltd. Year revenues in this sector vaulted to $502.7 million from $162.4 million.

The hotel division reported operating profits of $30 million compared to $17 million.

Mr. Sherwood added that the company would not be taking over the InterCity West Coast 15 year rail franchise in the UK.

The obligation to fund up to $1 billion of improvements in unproven technology combined with very aggressive revenue assumptions made by Virgin, the winner of the franchise, constituted unacceptable risks for Sea Containers.

Assets rose to $2.0 billion at December 31, 1996 from $1.7 billion while shareholders equity was $777.9 million compared to $732.9 million.

BUSINESS BUC