Q4 2020 Atlas Corp (Canada) Earnings Call

[music].

Welcome to the Atlas Corp, fourth quarter, 2020 earnings Conference call.

And like to remind everyone that this call is being recorded day March 9th 2021.

I would now like to turn the call over to Robert Weiner head of Investor Relations of Atlas Corp.

Yeah.

Thank you and good morning, everyone. Thank you for joining us today to discuss Atlas Corp. 's fourth quarter 2020 earnings we issued our earnings release last evening after market close we will refer to our quarterly earnings release accompanying earnings presentation and supplemental documents today and this conference, which all can be found.

And the Investor relations debt on our website.

Ww Atlas Corporation Dot com.

On the call with me today are David Sokol, Chairman of the Board of Atlas Corp, Bing Chen President and Chief Executive Officer of Atlas Corp, and Grant Talbot, Chief Financial Officer of Atlas Corp, joining us on the call. During the Q&A session are seats me as Chief Commercial Officer, Peter Curtis and <unk> Chief operational Officer.

Tourists from PRC.

And like to remind you that our discussion today contains forward looking statements, which are noted on slide two and the income.

Company and earnings presentation.

Actual results may differ material from those stated or implied due to risks and uncertainties associated with our business are known risk factors are discussed in our form 20-F, and our reports on form 6K filed from time to time and in connection with our quarterly financial results, which are all available on.

On our website.

With this quarterly report you will note that we continue to report non-GAAP measures, which we believe provide investors a clearer understanding of the performance of our business. The fourth quarter earnings release contains supplemental financial tables and information pertaining to our fourth quarter earnings report.

And includes definitions of non-GAAP financial measures and reconciliations of such non-GAAP measures to the most closely comparable U S. GAAP measures. These definitions.

<unk> may also be found and the appendices at the back of the earnings presentation, which we will refer to and our call discussion and it can also be found on our website. In addition, we have provided historical financial information through 2018, which are also available in the Q4 supplemental workbook on our website.

Please turn to slide number four.

I am now pleased to turn the call over to Atlas Corp, Chairman of the Board David Sokol.

Thank you Rob and good morning, everyone. This is Dave Sokol speaking chairman of the board of Atlas Corp, and I would like to welcome all participants today and express my appreciation for your time and attention to our presentation.

And how that's being to allow me to open today's call with a bit of a look back over the past three years, which encompasses the time since being joined as CEO in January of 2018.

What Bing and his team have accomplished is extraordinary and deserving a clear recognition.

We have a wonderful company a global multi platform business that our team is very excited about.

Atlas is uniquely positioned as a long term capital allocation global multiplatform investment opportunity with key attributes.

Three of those attributes are first our resilient business model, which ended 2020 with nearly $11 billion and total gross contracted cash flow pro forma for $5 9 billion of gross contracted cash flow.

And from recent vessel acquisitions, including 31, new builds and two secondhand vessel acquisitions.

Create greater clarity for investors, we will be discussing total contracted cash flow today and in the future.

Secondly, Atlas this core competencies are consistent operational excellence creative customer partnerships.

Solid financial strength.

<unk> growth and disciplined capital allocation.

This is what drives our execution and results.

And thirdly, the team has been delivering quality growth and enhancing fleet and asset composition and creating greater diversification of our customers through the addition of quality assets with long term quality margin contracted revenue.

Our 2020 performance clearly depicts a divergence analysis performance as compared to our peers and even more broadly as a benchmark against other and mid cap investment opportunities.

And the team's positioning of Seaspan has allowed per Atlas to aggressively take advantage of current industry dynamics growing the business dramatically with excellent margin long term charters and taking advantage of shipyard opportunities due to our team's industry relationships and design and construction oversight talents.

The container shipping industry dynamics were not meaningfully set back by Covid.

And in some ways.

Covid Cheyenne light upon the importance of our world global container shipping efficiency.

Our other platform APR energy was substantially more affected by Covid is developing governments were virtually shut down and the resulting economic slowdowns materially reduced electricity demand.

However, these delays should turn into opportunities when the global Covid pandemic is resolved.

The three year performance you see on this slide.

Which depicts the management team's performance since 2017.

Show strong growth and revenues cash flow and earnings yet with little contribution from APR as it was only closed in February of 2020.

This performance is reflective of processes program strategies and leadership that being and his teams have built and developed over the past three years.

And the first success leveraging the company's five key competencies to produce these results.

We are confident that as we now begin to apply that formula to APR, we will drive similar progress and the future to that to that of Seaspan.

A closer look at the results illustrates the very impressive performance and execution of this team.

From the 2017 results through 2020, the performance is quite extraordinary.

Revenue increased by 79% from $831 million to 1.42 billion at the end of 2020 and.

And 19, 6% compounded growth rate.

Adjusted EBITDA increased from $496 million to $924 million at the end of 2020, representing a 23% compounded growth rate.

Funds from operation increased by 146% from $253 million.

$622 million at the end of 2020 or 35% compounded growth rate and.

And cash flow from operations went from $391 million to 694.002 million 20.

This represents a cumulative annual growth rate of 21, one per cent.

And we also made significant progress with our balance sheet and the capital structure measurements.

Now please turn to slide five.

This slide depicts what I view as very impressive progress in fact, I would say great results.

This is the performance that growth stocks are made of and we are doing this with significant identifiable and easily valued assets that are backed by long term gross contracted cash flows and earnings performance.

It may be difficult to find other companies with nearly $11 billion of future long term gross contracted cash flow Atlas is that company.

Atlas has added long term gross contracted cash flows by a whopping five $9 billion and about the last three months.

This is very impressive and it may seem that it occurred surprisingly quickly.

The foundation for this growth had been laid during the prior three years through disciplined execution and a total focus upon the customers' needs and expectations.

Since 2017, we've added 71, new vessels and over 890000, Teus and 80% increase a little over three years, while at the same time strengthening that fleet with newer larger vessels are longer tenured charters. This.

This is exceptional performance, especially when you consider the myriad of challenges posed over the last year from Covid.

The board of directors and I are very pleased with the team's commitment to high quality growth and high performance.

Please turn now to slide six.

On the left of this slide you'll see Seaspan vessel categories. When this team started on a path to high performance.

Our vessels were more concentrated and smaller less desirable categories and with a more spot oriented mix.

Now in 2020, one you see growth to 160 vessels from 89 at the end of 2017, and the depth and breadth of today's fleet is a far higher quality with enhanced environmental equipment, thereby developing and more desirable and attractive offering to the customers.

<unk> primary focus is on expanding the 10 to 15000 Teu fleet category.

As these are attractive vessels from major trade lanes and are expected to be the workhorses of the global fleet and the coming decades.

These vessel sizes are preferred from major routes given their operating scale and efficiency.

79% of our fleet on a teu weighted basis is greater than 10000, Teus with an average age of five three years, which we believe is unmatched in the industry and significantly differentiate our value proposition with our customers.

Please turn to slide seven.

This slide importantly depicts the significant diversification of the company's credit risk profile, which has been a focal point for bank and the board.

We went from a very concentrated customer mix to a very balanced mix of customers and revenue sources, which drastically reduces our credit risk.

This transformation is even more compelling when you evaluate over the same period 2017 through 2020, the dramatic uptick and the health of the industry and the much improved credit ratings of our customers, which had been on a steady rise during this period.

Atlas is now positioned more securely dynamically and any.

The point in the past with a diversified customer mix and much strengthened and improved quality of our fleet, a strong market and increasingly positive credit ratings within the industry.

We begin 2021 with a strong tailwind and we're very well positioned to execute future quality growth and value creation for our shareholders.

Now please turn to slide eight.

We have a strong safety culture at Atlas It is integrated and everything we do as a company.

Our priority will always be the safety and wellbeing of our team and business partners through operational excellence and every aspect of our business.

Tourists and and his team work this talk every day.

We take this very seriously at the board level and the teams have robust programs to ensure safe operations successfully executed and our daily work streams.

We value our team members and we want them to return home healthy and safely after every shift.

We also have a strong commitment to social responsibility and.

Investing and our team providing the tools training and programs to be good corporate citizens.

You'll see on this slide that our safety record has dramatically improved and sits near an all time record lows and it's being maintained.

This was a focus of ours when I came in as chairman and again the team has delivered.

We are optimizing the success formula at Seaspan, which we are carrying over into a P. R. Whitt.

And you're seeking ISO 14001 certification and 2021.

Now if you would please turn to slide nine.

As you can see from the graph on slide nine the Formula. This management team is implementing is working and effectively increasing value for shareholders.

The team has executed with a high level of performance.

Illustrated by the 90% total return delivered to shareholders of Atlas over the past three years far.

Far outperforming competitive peers, and even more so the broader equity markets.

Before I turn it over at the forum to being our Chief Executive I want to conclude my remarks by pointing out the philosophy and practice of the board of directors and the management team.

And that is simply that Atlas is clearly a shareholder focused company.

Falling for all of our shareholders small and large and consistently delivering increasing value for the shareholders.

We expect to continue to deliver exceptional value and returns demonstrating atlas is compelling investment opportunity.

We remain optimistic determined and focused on achieving sustainable value and growth.

Please turn to slide 11.

And lastly, the board and I are extremely pleased with the team's progress to date and we look forward to more success.

We're pleased but we're never satisfied thank.

Thank you again for your attention I will now turn the forum over to Atlas CEO Bing Chen.

Thank you David and good morning, everyone I would like to first welcome our new CFO Graham Towboat.

Graeme it's a full fledged CFO with a world class finance background and decades of experience at global organizations.

Since joining in February and he's already a key contributor to our organization.

In 2021, I look forward to working with members of the investment community, along with Graham and Rob to increase awareness and appreciation of Atlas is resilient and differentiated business model.

Now, let me try and to our performance I'm pleased to turn to slide 13.

Looking back at our 2020, what a year. It has been for the world and markets and a pandemic shutdowns uncertainties economic opportunities and consequences and the volatility caused by it at all.

Plenty of 'twenty was quite a year of unprecedented challenges.

Happy to and we support that not only have we exceeded our financial guidance for 2020, but we have emerged stronger more resilient and have proven our operational excellence I'm very proud of Atlas as achievements in 2020, but especially.

And our team stood ready adapt well stayed focused and overcame obstacles and execute with precision safety and compassion.

Our 2020 performance was very strong ability and significantly upon 2019 some momentum.

Atlas achieved the following and financial milestones in the fourth quarter of 2020, our core financial metrics, all improved quite dramatically in the fourth quarter of 2020, including total revenue growth of 25, 9%.

Adjusted EBITDA growth of 32% funds from operations or S. S. O grew significantly by 45, 2%.

S. S O per diluted share gross was 26% cash flow from operations growth of 53, 6%.

This is quality gross all matrix generated strong double digit growth. Despite the operational challenges posed by the pandemic.

This is a testament of our differentiated and resilient business model and our team's commitment to consistent operational excellence and our strong execution.

Our 2020 results included a impairment offset and APR assets under purchase accounting principle. Following the acquisition in February of 2020. The impairment resulted from an independent asset valuation assessment, which also had further third party opinion and verification.

<unk>.

We acquired API and February 2020, and this process is a typical analysis, which is completed following the first year ownership of acquired assets.

But I would like to reiterate that we do not view this as a changing of our principles and the reasons why we acquire APR the APR acquisition and value proposition stands strong the business is stable and the platform remains viable for future expansion.

<unk> has a strong track record and reputation and the fast power solutions space. As we look ahead, we are confident in the prospects of APR I will work well. It takes some time to generate desired results, but we have a good path to follow the Seaspan formula and Atlas is finished.

Cost discipline and capital allocation.

Please turn to slide 15.

Atlas Seaspan and APR, all made progress in 2020 Seaspan had a record year, while we focused on integrating API into the Seaspan model by executing our five key competencies.

I'll briefly highlight some major achievements.

At the Atlas level. The most significant flowers shareholders is the over achievement of our 2020 financial guidance that is the result of diligence discipline and execution based on long term fundamental and strategic planning.

The formation of Atlas as an asset owner and operator created a business platform that can leverage seaspan and execution and strategy, which was developed when our chairman David Sokol and I teamed up late in 2017.

At that time, we set a course to strengthen the seaspan model by focusing on our five key competencies.

2020 see spend performance demonstrates that our strategy has been effective and the business has significantly improved.

With the acquisition of APR weekend and platform with an established presence and energy markets.

Yet a business that requires us to apply the <unk> formula to improve and create opportunities for growth in the future.

We are confident that we will be effective in fueling APR to the next level.

At Seaspan.

Between December 2019, and 2020, we acquired 15 high quality secondhand vessels growing quality fleet approximately one 1 million Teu, we have seen announced quality gross of 487000 Teu growing 45, 4% in very short.

<unk> per.

Primarily through new builds which may appears as and returned to Seaspan and history of Newbuild.

But that is not the case as we are applying our disciplined capital allocation strategies, which remains agnostic to new builds all secondhand vessels.

Seaspan is driving quality growth through both channels. This is because we are growing discretely and close partnerships with our customers to fulfill their business needs and provide win win solutions.

Very importantly, our new vessel gross of 487000 Teu has added five $9 billion of gross contracted cash flow to seaspan within the last few months.

And I'm, particularly proud of our partnership with them to close 10, Newbuild 15000, Teu dual fuel LNG vessels backed by 12 years charger.

Through this transaction, we further strengthened our commitment to ESG principles, we continue to expand the scope of our customer solutions by elevating our focus on low and the impact of emissions. So with the addition of LNG powered vessels to our fleet.

And I've seen seaspan execute sustainability linked financing.

Which parallel.

To this fleet expansion and illustrates our resolve to contribute to the green and the business community.

And so our long term objective is to achieve and investment grade corporate credit rating. During 2020, we made significant strides forward in our pursuit.

And we achieved investment grade of Chipotle minus senior secured rating from Kroll Bond rating agency and closed $250 million of sustainability linked loan and <unk>.

First in container shipping add into innovative portfolio financing program to reach about $1 $8 billion at the year end and.

And we closed and initial placement in unsecured credit market of $200 million.

Three seven and 5% coupon exchangeable senior notes.

At API, we closed $285 million of financing program, ensuring flexibility and liquidity.

Well it was a year filled with transition through the team's resolve and despite the energy market during the pandemic.

APR secured contracts to provide 200 265 megawatts of peaking power in Mexico.

Very importantly, API was the only company to execute a mobile gas turbine and development. During 2020, historically Aps model built a strong reputation for delivering when others could not and primarily focused on serving the situations where in developing countries that need scalable.

Power quickly.

In areas that require power periodically or in peak demand and all were APL force Geos rescue power during natural disasters or other type of disruptive situations.

As we developed API, we will focus on continuing to leverage our expertise in these key markets, while seeking to expand to long term contracts.

Also we are adding new avenues of growth through longer duration contracts in large scale power projects.

Our continuous laser focus on our five key competencies is the driving force behind all of these achievements.

The main confidence that we will carry the momentum into 2021.

Please turn to slide 17.

Atlas was certainly not immune to the effects of Covid one of our key markets energy was significantly impacted months after we acquired APR.

While continued global trade helped fuel a fast recovery and maritime and specifically container shipping many APR peers, however suffered through the global impacts resulting from the Pandemics.

Atlas and our shareholders benefited from our resilient and differentiated business model and our operational excellence delivered consistent and dependable financial performance throughout the entire year.

Other businesses in our markets experienced great variability less consistency and dependability and for some.

Energy markets, a significant decline in business activities.

We stayed resilient and deliberate.

It is important to note the differentiation of our business model creates a high quality investment profile compared to many in our markets.

What sets Atlas apart competitively is our focus on the gross and the quality of our predictable cash flows and providing greater long term visibility and dependability flower investors.

Over the last three months, we have added $5 $9 billion of gross contracted cash flow.

At 2020 year and more than 93% of <unk> 'twenty 'twenty, one revenue guidance at the midpoint is already contracted.

That is a resilient and differentiated business model.

We are increasing the quality of our assets compared to our peers. Our fleet is younger and larger and more sought after by our customers.

We have the scalable operation versus how fleet and integrated platform to deliver a best in class solutions that maximize value creation for our customers.

We have the financial strength to create value in partnership with our customers and we are focused on ESG principles to each enrich our business model and to innovate positive changes within our industry.

The attributes on this slides reiterate our competitive advantage and set our business model apart.

Now I'm excited to update you on our recent announcement yesterday, we issued a press release regarding our new joint venture with John and Energy group.

Atlas together with Z group will form a new entity to be incorporated in the China's hanzo free trade zone.

JV will invest in projects in the global Maritime and power industries.

Z group is a leading global company with a strong track records of successful energy related projects and infrastructure design and development.

We're excited by the prospects of the JV and anticipate jointly developing meaningful projects and the future.

Please turn to slide 19.

Now I would like to tend to a brief update and outlook for our markets and 2021.

I'm pleased to say that container shipping market is very strong and the energy markets are becoming incrementally stronger.

Which we view as highly positive developments following all of the uncertainty and disruption last year.

The container shipping and that she continues to strengthen at a rapid pace from the market.

Due to the pandemic.

Idled vessel counts are at historical lows with charter rates at near historical highs and availability of any vessels above 4000 Teu is very scarce.

While the current container market is a great seaspan at any given time only have about 10% to 15%.

Exposure as the majority of our fleet is secured by long term contracts.

As of 2020 year and more than 93% of Seaspan and 2021 revenue guidance at the midpoint, it's under contract.

Yes, the current rate environment helped.

Us to renew the <unk>.

Contracts, but the resiliency of our model is not dependent on those upswings in the market. We remain optimistic about the strength in the rates and the global trade to achieve quality growth for Atlas.

Todays balance of supply and demand is fundamentally stronger than it has been in the past.

Global demand is expect to continue to rise this year with some catch up due to the pandemic, but also forecast to continue in years to come.

The health of market participants balance sheets and liquidity have strengthened over the past years, and we are seeing greater sophistication and automation and the markets.

Technologies, enabling and decision, making planning and execution have been much more precise.

Versus the past.

This is great for the industry to achieve gains, while adopting new green and <unk>.

Emission reduction initiatives.

You can see from the slides the protection of a global recovery in 2021 is strong with forecasted growth in the range of approximately 5% to 6%.

This should support a continuing strong performance for Seaspan.

We are confident that.

Our focus at APR will produce incrementally positive outcomes and increase returns for our shareholders.

Please turn to slide 20.

The new gross we have announced since 2020 year and is a very exciting development as you can see from this slides and we have announced the addition of 33 new vessels to be added to our fleet. These new additions are in very attractive categories.

31 vessels in the 10 to 15000 Teu category, a 59% increase and two new ultra modern 24000, Teu vessels and ultra launch category and new category for us positioning us as the only full spectrum teu providers in the marketplace.

<unk>.

What is most important is the $5 $9 billion of long term gross contracted cash flow that we have secured with these new vessels.

This brings our total long term gross contracted cash flow and saw our chairman mentioned earlier 211 billion U S dollars with an average duration of six five years.

You can also see that we are diversifying our revenue sources, particularly as a result of our growing partnership with Zim, we have a well diversified revenue base with very strong customers.

This strong growth demonstrates the resilient and differentiated business model, we enjoy at Atlas.

That concludes my formal remarks, and I'm now pleased to turn the call over to Graeme <unk>, our new CFO.

Good morning, everyone.

I'd like to thank Ben for the warm welcome to Atlas.

And look forward to working with you and Rob as we engaged investment community going forward.

I'll begin my remarks by saying that I'm very excited to join the Atlas thing.

We have a very robust core business platform and significant opportunity to continue to develop both our maritime and energy businesses.

We simultaneously optimize the Atlas shared services model.

Consistency is the best way to characterize our financial performance.

That is consistency in relation to our core asset cash flows and consistency in relation to quality growth.

Atlas is fourth quarter financial performance was very strong.

Compared to Q4 2019, our total revenue increased by 25, 9%.

The $362 7 billion.

56% from the increase in revenue was due to the contribution from ATR.

<unk> revenue increased 11, 3% to $326 million, primarily due to the expansion of athletes.

The 32% year over year increase and adjusted EBITDA was driven by increased revenue.

Operating expense leverage and lower than expected G and I and both Seaspan and APR.

And so I would increase by 45, 2% as a result of the acquisition of IPR and continued gross and Seaspan.

We ended the year with over $770 million and liquidity.

And paid out 62nd consecutive dividend.

Since then and closed out the year with vessel utilization of 99, 6%.

And that's pretty close to perfection, reflecting the very robust container shipping market, coupled with operational excellence.

IPR is asset utilization, while this forecast of 61, 8%.

Reflecting lower utilization as we demobilize, the Mexicali project and Q3.

During 2020, Seaspan fleet capacity reached approximately $1 1 million Teu.

Reflecting the 15 vessels, we added during 2020, which would begin to add light and Q4 of 2019.

At the same time is delivering these great results. We also improved our safety performance.

As measured by a lost time injury frequency, which declined by 32% to 0.4 dollars seven at Seaspan.

And sits at near record lows observed 76 at ICR.

Key investment attribute of Atlas as a long term gross contracted cash flow.

Which stood at $4 $8 billion at year and Seaspan.

And $294 million of IPR and the total gross contracted cash flow of $5 $1 billion.

This does not include any of the recently announced acquisitions and new builds which will contribute.

Further in the coming years.

Also note that at $5 1 billion of contracted cash flow.

Pictures and average remaining lease period of approximately four years at Seaspan and just under two years at IPO.

Beginning late in 2019 and consistently throughout 2020.

And we grew our fleet by acquiring existing young high valued vessels.

These vessels flow the strength and the quality debt.

And the utility of our fleet, while also increasing our overall scale, which is an important element of our success.

We actively screened but you and secondhand vessel acquisitions and during the year, we turned down a number of opportunities, which did not meet our investment criteria.

Each transaction that makes it through our screening has to be driven by customer needs and the creation of mutually economic solutions.

Quality growth is a key distinguishing characteristic of our company but.

And investors should also take note and be sure by our strong financial and capital allocation discipline.

Our investments capital expenditures and acquisitions are all governed by strict capital allocation disciplines, which target at a minimum high single digit unlevered returns coupled with risk mitigation that we diligently.

Every incremental investment dollar.

Our ability to continuously deliver high quality results and growth is not due to a single factor.

And it's a combination of many factors that provide a unique full cycle platform.

Delivery of unmatched and timely customer solutions.

Is a distinguishing attributes which not only differentiates us from our market piece.

But also and many mid cap equity investment choices and today's financial markets.

Atlas closed out 2020 with continued strong performance delivering value for our customers business partners shareholders and employees.

Use of the company and I must point out that I find out team's commitment and day to day performance gratifying and inspiring which gives me confidence and our ability to sustain our high performance.

Please turn to slide number 23.

Now, we will turn to the full year financial performance to 2020.

Again, as an outsider coming in the growth is weighted stunning to me.

Many of and guide the sector are cyclical and driven by external factors outside of management control.

It's clear from our 2020 revenue growth of 25, 6%.

This is not true.

They just decided 2020 has set a benchmark for the organization going forward.

Highlights for Atlas full year 2020 performance include.

Revenue growth of 25, 6% compared to 2019 free.

And a record.

One $4 billion to $1 billion.

It's a solid growth of 65, 8% to a record of $622 $3 million.

If I heard per diluted share growth of 45% to $2 48.

And adjusted EBITDA growth of 29, 3% to a record $923 million.

And you're seeing from a recent news together with our customers we've been working on Newbuild opportunities, which resulted in 31 newbuild vessels under contract.

Yes, we continue to have some secondary market opportunities as well.

As Bill mentioned, we have added $5 9 billion of gross contracted cash flows with industry leading customers.

This brings our total long term gross contracted cash flow to $11 billion and.

And with a total fleet average charter duration of six five years.

This is a fantastic accomplishment.

Please turn to slide number 24.

Now looking at our liquidity and balance sheet.

We've strengthened our liquidity by 64, 1% during 2022 $771 3 million at year end.

And IPO, we conducted an extensive third party asset value assessment, which resulted in an impairment of $117 $9 million.

A number of factors drove the change including.

The continuing impact of lower power demand globally, which is increasingly affecting the market value of assets.

Our strategic decision to progressively exit diesel power generation market due to our ESG principles and.

And finally, the consolidation and streamlining warehousing facilities and Jacksonville.

The lack of a rebound and new projects within the overall energy markets, primarily and our view associated with Covid and lasted longer than many anticipated.

And has resulted and restraints on new capital commitments, which we see continuing.

We will never desirable, but reduction and asset values are primary associated with legacy technologies and fuel sources that do not represent where we plan to take the business and the future.

And 2020, the team completed several progressive financing, including a 250 million sustainability linked loan.

And just added to our portfolio financing program.

Both which are first but the container shipping industry.

This types out facility up to approximately $1 $8 billion at year end.

And this is an important step aligning our capital structure to green and sustainability linked financial incentives.

This is a key focus area for us and is linked to our ESG initiatives, which you'll hear more about at our upcoming Investor day.

Seaspan achieved and the investment grade Triple B minus and senior secured rating from Kroll bond rating and.

In relation to our portfolio financing program.

This is an important step on our path to achieve an investment grade corporate rating from one of the major agencies.

Over the next two to four years, we anticipate being positioned to achieve this milestone.

Seaspan also closed and initial placement and the unsecured credit markets $201 3 million $3 75 per se exchangeable senior notes.

These notes carry and effective strike price of $17 85.

Which we view as more closely aligned with everybody today.

The notes mature in 2025, unless earlier exchanged repurchased by the company.

Ipi at close to $295 million financing during 2020, providing continued flexibility and liquidity.

Package includes the revolver term loans and a fixed rate privately placed component.

And January 2021, Seaspan issued $200 million.

And senior unsecured sustainability linked bonds and the Nordic market.

Which is again.

Creating increasing alignment to green initiatives and further diversifying our capital base.

And the bottom half of slide number 24 is an important shop.

As the new management team and board came together and mid to late 2017.

<unk> abuse 2018, as the starting point and measurement about progress and performance.

And when you look at this chart and see growth of 38 vessels, while at the same time, you see an increase of nine unencumbered vessels.

Very high and sustained utilization flat debt to assets and all with a one one times and improvement of the net debt to EBITDA ratio.

This is excellent performance.

In summary, our balance sheet is strong and we.

Increasing capacity and access and the capital markets.

Going forward, we will continue to actively manage our capital structure to fuel growth and optimize our cost of capital as we progress towards an investment grade corporate rating.

Although we upgraded our guidance twice during the year, our final performance was at or above guidance or within the communicated ranges.

And this demonstrates the high degree of consistency and transparency and outperformance, which we continually strive to sort it out.

We are proud to have delivered these results for our shareholders and remain focused on continuing to execute efficiently effectively and with high performance utilizing our five key competencies to go on that progress.

Now look at our initial 2021 financial guidance.

Please turn to slide number 26.

With a very strong 2020 performance now behind US we are initiating our 2021 financial gardens Tabetic.

It is important to note that more than 93% of <unk> 'twenty 'twenty, one revenue guidance at the midpoint is under contract as of 2020 year and and the majority of Ipl's forecasted revenue anticipated through 2021.

This creates a very strong visibility dependability and consistency of our cash flows, which typically is awarded high multiples and valuation or investors.

Our guidance for the full year 2021 is as follows.

Revenues and the range of $1 three to five.

And 135 $5 billion for Seaspan and <unk>.

Hundred $90 million to $205 million from IPO.

Operating expense of $276 million to $290 million from Seaspan.

And $35 million to $37 million for IPO.

G&A expense of $41 million to $46 million since then.

And 45% to $47 million for IPO.

Operating lease expense of 144 to 152 million for Seaspan.

And $3 million per IPO.

Adjusted net EBITDA in the range of $839 million to $874 million for Seaspan.

And $97 million to $119 million per I P O.

Financial objectives for 2021 reflects continued significant progress.

We have work to do.

And that has consistently delivered for shareholders. We are committed and confident in our resolve to perform at a high level.

Please turn to slide number 28.

I'll wrap up my remarks by discussing why we believe Atlas represents an excellent investment.

I hope investors will come to see the clear competitive differentiation and Martin and.

And the ability to.

And to consistently deliver performance.

We believe Atlas represents an excellent investment opportunity across all market cycles.

Our business model is resilient and consistent with $11 billion of long term gross contracted cash flows.

And an average charter duration remaining of approximately six five years.

Yeah.

We have proven the power of about five key competencies to develop atlas into and increasingly differentiated best in class business solution provider.

Our financial position is strong with increasing liquidity and access to capital.

And our focus on delivering solutions for our customers.

We'll continue to drive quality growth.

Yeah.

These are key investment attributes, which are unique to Atlas.

And offer investors a significant opportunity to partner with an industry leader.

While 2020 was a very challenging year for all of US the team of Atlas post the bid is being mentioned.

And delivered excellent performance.

I'm very honored to join the team and I look forward to continuing to build the business and stay in front of that competition.

Operator, we would now like to open the line for questions.

Yes.

Thank you to ask a question you will need to press Star then one on your telephone to withdraw your question. Please press the pound key.

Our first question will come from the line of Randy given its with Jefferies. Your line is now open.

Howdy gentlemen, how's it going.

Thanks Randy.

So I guess first question, it's been a while from Seaspan or Atlas.

<unk> numerous new buildings, and so I guess around that and why so many maybe so quickly and and what kind of returns should we expect on these time charters.

Are they that much better than some secondhand acquisitions or otherwise that's the preference on new buildings.

And good morning, Randy This is Spain I tried to answer your question yes.

Yes, I think you see the numbers of new order can quite.

Quite day.

Intense over the past three months, but this has actually been working quite over a period of time with our global customers.

This is really a situation, where it's driven by the customer demand. Okay. This is very different from what you have seen in the past maybe few cycles, where it one is the you know driven by the German kg, whereas the tax driven and then the other one was around 2000.

13, where you have those pe's that come in and they thought that they had and it would be able to.

Bottom fishing and the market those are primarily driven and not by the demand side, rather spider speculation this time around.

These newbuild driven by a fundamental change in the in the container shipping market, where today, our liner customers a very disciplined debt.

Market is very consolidated liner companies and companies are looking for quality of service instead of prior theyre looking for more of a.

Market share sort of market fundamentals are different.

These new build was driven by our customers and also these new build vessels as we noted.

12000, 15000, Teu and 24000 Teu. These are the young large fuel efficient vessels that is very versatile and day represents the best assets in.

And in this in this industry.

So this time around you know once again I think it's very different and it seems to be very fast, but at the same time really it's been market driven and most importantly, all all our 31, new build a bear.

Backed by long term charter so does this is.

This is a very important factor and I think that that's and that's something that we want to highlight.

In terms of the return as we said it before and we also highlight do and our our our.

A discussion earlier is that we are very disciplined in terms of only grow with the quality and whatnot qualities and two aspects one is the day.

And the quantitative and the other one is qualitative as we stated earlier.

Our our criteria in terms of return.

It has never changed.

I mentioned before an unlevered and Levered IRR basis, our returns are very high single digits and on the leverage basis on a normal leverage I think it will be a very high.

PS.

At least so that's the kind of return we had before when we acquired those 15 secondhand vessels.

During 2020 and now we have these new builds.

The criteria actually is the same and with slight improvement. So we never compromise in terms of return. So this is why we're saying these are the quality growth and we.

We're very excited and you know.

The other part of this growth is as David has mentioned earlier is the diversification of our customer base and further enhance of our fleet composition. So from all of these aspects of these are the very quality growth and we are very excited we're able to partner with our.

Global liner customers and have this kind of trust.

And then opportunity to support their growth.

Got it and then does that mean, no real appetite for kind of secondhand and.

These levels.

Or just a newbuild that much better.

Yes, once again as you might be aware and also at the same time I think about a week ago. We also acquired two.

And 15000, Teu secondhand vessels and about one year old and those that are vessels is also under the long term contract with the customer so and you're actually asking a very good question is that we actually are looking at the we do not differentiate discriminating, whether it's a newbuild or secondhand.

Rather we're looking at our customer needs and we're looking at the returns we're looking at the asset how that fits into the overall our debt the fleet strategy and how we're going to get the best assets that has the highest residual value. So that's the criterias just to name a few debt.

How we decide to deploy the capital and.

And.

Again looking forward, we will continue to evaluate those attractive.

Investment opportunities.

And that brings that kind of return and enhance our fleet and meet our customer.

Requirement again all of these.

And is primarily driven by our customer not driven by any speculation.

Right. Okay, and then lastly from me you just mentioned kind of deploying capital and so on the financing side, what's the total capex for these 33 vessels and how are you going to finance the acquisitions from a debt equity split and then lastly in terms of the dividend and any plans for possibly growing it with the <unk>.

New build orders.

So a good question thanks Randy.

I think I'd, probably start answering that by saying that.

The balance sheets very much managed and the same way as we manage our vessels.

So and very active management continuous optimization and continuous innovation.

So whenever we look at any of these transactions are a core part of the capital allocation process is to look at our long term liquidity.

And we also and often had.

Non binding term sheets associated with each of the deals that we look at.

So it's not really an issue of how do we get the capital and that's how do we get the right capital and then how does it fit into our longer term capital structure.

To optimize.

Both gross capacity, but also cost.

So when we look at this Newbuild program, we've got a range of different options and I would say, there's a bottoms up view of how we sort of couldn't.

And the finance those with the regular.

Tools and instruments that we use but then there's the top down layer as well, which is why we look at that longer term cash.

Capital strategy, where we have to sort of think outside the box a bit and.

And we've demonstrated that in the past with some of the more innovative financing and I think we're going to be continuing to look at how we can learn from other industries other sectors and how.

And we optimize but debt and equity going forward.

So at the moment all of these new builds forecast into our cash flows and.

Net is keeping us well with and our.

Covenants that we have with all of our existing financing partners.

And.

And we're very comfortable so it's really around optimization, rather than obtaining when we think of financing expenses.

Okay and in terms of total capex.

I don't have the number off top of my head at the moment, Randy and I wouldn't get it back to you though.

Sounds good I'll turn it over from there and looking forward to the Investor day. Thank you.

Thanks Ryan.

Thank you.

Next question comes from the line of Sadie trauma with BMO capital markets. Your line is now open.

Thank you and good morning of course, maybe.

Gratulation on a really great results from the last few years.

My question is kind of a little bit of a follow up from the previous question I want it and why.

And what the pro forma.

And <unk>.

Leverage look like once you kind of have these 31 newbuild and two years.

And two and two into a good cash flow.

I thought it scribe.

Very good question and something that we obviously spend a bit upon looking at as well as we model all of this out.

The.

Sort of outside and that this on delivery, we're looking at just around 60%.

And we Havent internal hurdle rate of 65, which relates to some of the covenants but.

That's where it's at and you know it was as big and I discuss that's the forecast. So we know we are well within al.

Covenant range on a forecast basis, but we've also got a few years.

Work to do on how we optimize that going forward.

Okay.

Yeah.

Okay and then.

Given the nature of these assets are.

And the largest ships with longer duration and thumbs up.

Cash flow commitment from the customer.

Does it play.

Are you inclined to maybe use model average because theres more contracted revenue.

And you're going to stick to.

And kind of goal of improving financial leverage and the next few years.

No I think we'll definitely stick to the Gulf and proving out grow cash.

Capital structure.

And yes, and as we've mentioned a few times getting to investment grade debt provides us with the and additional debt.

And of capital and future growth and also improve and ramp costs. So at this stage there's no.

Movement away from that direction.

Okay and.

And one follow up on the JV conversation and I think you mentioned some opportunities and the maritime industry would that be the same vertical euro and today the container shipping or are there other opportunities and the JV to maybe.

Expand outside of that and the maritime.

And industry.

Yeah. Good morning, Shlomo This is Bing Chen our tried to answer that question yes.

Yes.

JV that we have formulated with a Z group, which is a maybe I can give you just a quick overview of who is day.

John Energy group and this is a holding company with over 20 years of history.

Similar to that of.

Costco.

And in the.

And the energy.

Business in China. This is a state owned integrated energy company.

And there are many engaged in the power plant construction and power generation and natural gas development.

<unk> energy services, which includes the debt development trading and transportation of petroleum and coal natural gas and energy services, including Environmental protection technologies. So this is a.

And as I said is a conglomerate that has a variety of their businesses. The entities that we are directly joint venture with is the 10 D Environmental protection company and they actually focusing on areas of.

And the air and water and.

Waste substance and also noise and other type of pollution control.

The areas debt.

Because this is a service company within the Z group debt, you know as a power energy company and they need to have the environmental improvement services and that's what this company is focusing on so that being the case the areas that we can we can potentially cooperating with our JV partner.

Through this JV venture joint venture is in the mere time, because they're engaged in the.

Transportation and some of the maritime and transportation of those natural gas coal and <unk>.

Our children and those are the areas that.

We could potentially are cooperating.

And.

In the power space, because they have a track record of building the launch.

And large scale and long term power project and that will be complementary to what apr's fast power.

International.

Experience versus what GE.

<unk> today is primarily steel domestic focused and in the environmental areas and particularly in the maritime and also in the average energy area.

He is joined and the joint venture partner. They actually also provides the.

The scrubber.

Manufacturing and installation services and this is something that is immediately.

Applicable and to what Mary time, cooperations, and so theres a variety of areas that we could cooperate both in terms of maritime and also in the energy space and that's what we are very excited about to have such a very credible.

Our partner for us to jointly develop the business across these two platforms both of the company's debt, we have and focus on developing the business.

That's helpful. Thank you very much.

Thank you.

Yes.

Thank you. Our next question will come from the line of Liam Burke with B. Riley. Your line is now open yes. Thank you Bing you laid out and an earlier question on the IRR.

Unlevered IRR on the project on the new acquisitions were more than acceptable to your hurdle rates.

And by definition higher returns get competed away and the future. So how do we think about.

What you can do and future investment projects to maintain these types of returns.

Hey, good morning.

As we said debt.

We have been very disciplined if.

And if we're looking at the past what we have been.

And our deploying that capital over the past three years, we actually have been very consistent in achieving this investment and return. The only difference is debt doing a different cycles of different market conditions that we make and different type of investments if you're looking back about a year ago, we did not have any and.

New builds and provider.

<unk> on our second half because we think that is a great time and the opportunity where we can create.

Those you know.

Gross opportunities by close and the working with our customers understanding their needs their challenges and be able to develop the solutions and at the same time by making those capital allocation decisions to support our customers gross so going forward, if you're looking at Atlas.

And I think the broadly today, we have two platforms. One is the maritime and the other one is the energy platform.

If you're looking at about a year and half ago, a year ago when we.

Wired APR and formulated Atlas group and I think there was a lot of concerns.

Yes.

And in a market that people are thinking debt, we are exiting the shipping business and focusing on and energy business, but the reality is I think that just the opposite and why is that is this because the market condition and that is also exactly the reason why we.

Created Atlas platform, because that gives us the flexibility.

Flexibility.

And opportunities to best allocating our capital and consistently achieving the returns that we set ourselves full so in the current market I think the shipping and particularly in the container shipping market that we see the great opportunity and that is why we were able to capture this opportunity within.

And a very short period of time, it seems to be very fast, but on the other hand, it's only us who are able and capable.

To be able to execute and in this short period of time, because we have the people we have the platform and the integrated platform and also we have the.

The partnerships with our shipyard with our financing partners and also with our customers. So looking at what we have done in the past and looking at our principles in terms of our people our.

Our people our.

<unk> business model and also.

And with a strong balance sheet that we have.

We will continue to seek the right opportunity and create those opportunities through the creative partnerships that we have with our customers whether it's in.

And shipping whether its in and energy.

That form and I'm confident that we have the right ingredients, we have the competencies.

You know highlighted by and by our Chairman and David.

With this competency what I believe is <unk>.

And the secret sauce that we will be able to consistently finding those type of opportunity create those opportunities and achieved and kind of return that we set out for flower sales.

Great and Bing.

Delighted.

Fleet side, where your investment sweet spot would be in terms of vessel classes.

Do have some smaller vessels and a fleet and the order book on those vessels are exceedingly lower down to zero would you be opportunistic on the other side of the equation and sell those assets and reinvestment and reinvest them and assets that are more in line with your core desire and the larger vessels.

Yes, that's a great question.

We actually we are in the business of managing the asset. So what you are talking it by something and we constantly evaluate and this is the core capability of our business is to manage and the assets and managing the risk.

And specifically to your question is is that for those smaller vessels as we as we shared earlier today about close to.

79% to be exact our fleet about above 10000, Teu, but then and it and sub $10 and which is about.

And.

And 20% out of these 20% we have the smallest vessel.

<unk> thousand 500.

And that's only 10 and 11 of them and then we have the 4500 and and 50 580 509000 vessels. All these vessels are all under a charter and most of them actually under long term charter so.

These assets, even though they're small.

Relatively older but because of our.

Partnership with our customers and because our reliable operations all of these vessels.

And demand by our customers under long term contract. So at this point Theyre generating part of this $11 billion of contracted.

Net cash flow. So they are working very well and will continue to deploy them at the same time, we also continue to evaluate it.

And when the right opportunity when these vessels come off to free.

For potential sales that we will consider that but this is something that definitely we will be evaluating constantly and we also actually have a team is called asset integrity group and they are the people and knows exactly.

The residual value the condition of the vessel and so we're very actively managing them and this is a part of what we call. The integrated platform. We manage the entire lifecycle of these assets and that's what we do and that's what we do divest.

Great. Thank you bank.

Oh scribe, yeah, I would just like to circle back to Randy's question. If that's okay. Just to clarify I just wanted to double check that.

My numbers included the two.

Secondhand vessels, so the total capex commitment and the entire portfolio of 33, new vessels is just under $3 9 billion.

And we have $559 billion billion.

Contracted cash flow.

For this three point some billion dollars and investments so you can understand.

The return of the.

Invested capital.

Thank you.

Our next question comes from the line of Chris Wetherbee with Citi. Your line is now open.

Hey, Thanks, good morning.

Maybe just sort of following up on that Graham do you have the six vessels that you announced yesterday the capex associated with those.

Yes, I do.

Included in that number.

Can you break it out.

Yes.

Approximately 700 million per bus.

Okay got it.

Alright, Thats helpful and then.

Maybe a bigger picture question I guess looking back to the APR acquisition and the question at the time was the relative size of that acquisition compared to the container ship fleet and portfolio and the relative small size of that.

Flash forward more than a year, you've done you've made some significant strides and building out the containership portfolio further minimizing the impact of APR on the total company. So.

When we think ahead does it still makes sense to treat this as a portfolio company with investments across a range of asset classes or because of the sort of overweight dynamic within the containership does it really kind of minimize the impact of something you do unless it's something significantly more dramatic in terms of size and APR. So.

It was a little curious and I guess I feel like it might even be more curious now so I'm kind of curious how you think about this going forward is this something that you'll be considering in terms of doing deals outside of containership or we kind of all and Alan containership.

This is David actually Chris I think it's an excellent question.

I think the importance of the if you will portfolio effect, particularly we're talking about these types of assets and frankly, just when you think about and energy asset.

And our aren't a lot different and chips in many ways and then the chips, obviously moving from place to place and Powerplant usually don't.

I think the importance of having the different platforms on one hand, the shipping industry right now the relationships that Seaspan has and the thing and the team have created.

And we're in a very good part of that cycle and.

The customer relationships and the demand for for new vessels meeting changed environmental requirements.

More efficient whole capabilities et cetera.

Allow per that could be exploited right now.

Hazing thing is when you look at the and.

And background and contracted cash flows there.

That carries the whole company on a substantial growth platform for the next three to four years just by itself and.

<unk> right now is and the kind of the downside of a cycle if you will.

And uncertain period, Covid has caused a lot of reduction and electricity demand and you're in the middle of a global <unk>.

And our middle transition regarding C O two from a power plant emissions capability hub and.

And my view and that's why I spent the bulk of my history, and that's going to create enormous opportunity, but you have to wait for the right opportunities.

And if I think back at mid American energy and when we joined Berkshire and 2000, and the company had about 10 billion and assets today 21 years later, there over and over 100 billion.

And but that wasn't that wasn't.

<unk> growth and each of the of the platforms, whether it was the pipeline platform that U S utility platform for and utility platform.

And to put a power they all came and cycles.

And opportunistic cycles and that.

And that's the important thing I think about this so for the near term. There is no question C-span's growth will over oil.

Atlas is overall.

Future.

The energy side, we will have its time.

And and there's going to be a digesting period at Seaspan.

As this new growth period shows up and I think what.

One thing I think touched on something about the difference in the past and the shipping industry and the future.

Important to take a minute and think back to how the.

Container shipping industry has grown and the difference there.

Was made when the major liners and decided to start looking at alliances very similar to the global airline industry and rationalize their capacity much more carefully.

And and get much more efficient and the marketplace.

That's really what's created the huge opportunity for seaspan and through the relationships that Peter and Bing and tourists and developed with our customers.

It's much more efficient for them to operate with someone like us who can consult with them and entire chain and ships for entire route.

Improve their environmental performance and efficiency rather than dealing with a lot of one off now we certainly have some capable competitors, but that dynamic is much more significant in the marketplace and I think a lot of people have recognized.

The energy and show at similar similar characteristics and theirs.

From my dollar the best time to be involved in and industry is when theres a lot of change going on and.

And that typifies the energy field for the next 20 years. So today no question and Seaspan will overwhelm.

The current gross.

Parts of Atlas.

But I think we're all confident that the APR side, we'll have it today, but we're not you know the one thing.

This team and the board wont do it and we're not going to do transactions just to look busy or.

And it looked like where we're doing something when the right opportunities aren't there and how we're going to pass on them and being has done that because last year. There have been numerous significant opportunities that the rates of return just weren't there and we're not going to give away. The quality of service that this organization has and we're also not going to mislead or our customers that.

And we can provide them the quality they werent.

And those kinds of returns.

It takes high performance staff and a very focused team to.

Deliver the kind of performance so.

So disciplined and I think and capital allocation is a critical thing.

And favorite and hopefully that answers your question.

And it's very helpful color. So I appreciate the detail and the answer is the follow up that I have is do you envision a scenario at some point and the next three to five years, where energy can be large enough as a portion of the portfolio to really move the needle in a public company sort of set aside the idea of and and sort of a portfolio approach from a cash flow generation standpoint, but in terms of actually moving.

Public company.

I think the opportunities will be there.

And.

Because energy projects tend to be very large and scale.

Very long in duration.

So I think I think the opportunities will be there.

Could it be up to us to execute on them, but yeah. It wouldn't shock me if 10 years from now.

The two platforms had almost an equal balance.

Earnings and capital deployed.

It will be in different chunks.

The energy cycle, typically largely come in and larger projects.

And with much longer duration.

But yes, I think the potentials, there, but we're going to have to again, if the rate of returns out there that we'll continue to grow APR and a very.

Slower steady pace. If the returns are there we'll be excited to to accelerate their growth.

Only only only if the capital dollars spent there is risk adjusted a better return than corporate Seaspan.

Okay. That's helpful. Thank you very much.

You bet.

Thank you.

Last question comes from the line of Ken <unk> with Bank of America. Your line is now open.

Hey, good morning.

Thing and and thanks for the great details.

And Glenn.

And you've been growing so rapidly on the container side, just maybe a little bit of insight into what gives you the sign of peak and the market what level of order book gets you concerned and I guess I'm trying to dig into it and stuff.

Marketplace and extremely tight right now given the need to catch up on inventories and where we are and and then once we recover.

You could be in a scenario by 'twenty three when these vessels start delivering that work on it now and are more of an overbuilt.

<unk> and and you start seeing returns or reinvestment and renewals start to decelerate.

Yes, good morning, Ken I will I will answer your question and my colleague Peter will be also here.

Feel free to chime in.

In terms of these new built right now.

Zinc is steel.

As I said it earlier, it's driven by the customer demand if you're looking at the fundamentals of demand and supply.

First of all we're looking at let's talk about the demand side demand side.

Today, it's very disciplined.

And discipline and a sense that debt.

The market has gone through the paradigm shift and our sense that if you're looking at today about eight nine.

Eight nine companies accounts for about <unk>.

$85, 90% of the total market, so and they're very much focusing on the quality of services versus before they're competing for the market share and are on.

And the demand side today, we are looking at the last year, even given the you know.

The pandemic of the closed down and logistics limitation and everything and also the year before 2019 was primarily.

Trade war rhetoric between USA, China I think for these two years, if you're looking at the demand side, the global container trade container shipping day.

And the volume last year was pretty much flat.

Over 2019, and 2019 will actually was growth over 2018, so the global trade and the demand is there if you're looking at the forecast.

And the next two to three years I believe to the Das and 21 is supposed to be somewhere around 4% to 5%.

And two is about 3% 23 about 2% according to the industry.

Forecast.

And the demand is there.

And the other hand, the supply side I think that you know as you know the over the past.

You know at least three or four five years. The order book has been in the historical lowest since I joined the industry about three years ago, and if you're looking at the with all of these newbuild today.

I think of debt.

These newbuild today first of all that day is filling in a segment, which is the 15 K that is rather new because this is the most diverse Italian and the sense that as I said it earlier that demand and also the size of the vessels both bringing both the advantage of the economic.

Myra mentor and technology advanced to the entire container shipping fleet. So that is like any other asset clients. These are the best new develop the assets and therefore that was the that was driven of the these new built including the 2000 and <unk>, which is a new completely new class.

And the ultra launch vessels debt I think and for obvious reasons, because the cost per unit and for the specific trade route between Asia and Europe. This is the best assets. So if you're looking at behind of these kind of supply and the <unk>.

And I.

Increase for a reason because there's.

Justification for those four.

Those supply because there is a demand for that so in our opinion I think this is a still a healthy development because the industry by the way also every year should also have a certain percentage of the vessel should be retired because they need to be replace tonnage and in today's environment I don't think.

That theres any.

Replacement tonnage that's been the scrap because there's a very tight market. So if we're looking at demand and supply fundamentals. So far we've seen this as a healthy development and from our perspective for <unk>, new build as I said earlier all of these new.

Built up and backed by long term.

And contract by these top global liners. So therefore this is this is not something that we will be exposed to any kind of a market fluctuation, whether it's up or down rather that we have already have secured these long term contract and this is again is the differentiation of our business from.

And so from this perspective, I think we think that the current development is still healthy and as market continue to evolve we will have to we are very disciplined.

The plant and we are very closely monitoring the development and working very closely with our customers and.

Understanding what their business needs are once again every investment and Newbuild is driven by the demand of our customers.

And so being would you say the lessors are taking share from the liners is that pretty steady in terms of their their contribution and then what are your thoughts about seaspan within the market itself versus the other lessor peers.

Yes, I think.

If you're looking at what we have been able to achieve over the past few months is very good Testament of one is the <unk> capability today.

I think we have the unique platform that allows us to be able to execute such a very complicated.

Newbuild project with our customer in different technologies different size within such a different within such a very short period of time and this is the one thing as I joined the company about three years ago I keep talking about the Seaspan has the integrated platform and this integrated platform comes in very very handy in situations like this.

And which is why we are able to differentiate ourselves by providing a device that the services to our customer and that's why we are able to.

Be able to <unk> and <unk>.

Situations like this and quickly come to that kind of a decision and execution working with multiple.

Parties throughout this debt.

The value chain as I mentioned and working with the customer and looking at the technology looking at different type of a propulsion system for example, LNG versus the conventional with this 24000 versus a 15000.

From a size of the ships different proportions with different design with all the different.

Features because these vessels are even though they are 15000, but they are different specs with different debt.

And with different features. So therefore this is something we're very proud that we have the people. We have the process. We have the system and we have to partners debt really is a solution driven to our customer and that's what I said at the very beginning and since that we are the solution.

And provide.

Two our customer we don't just offer a vessel so that's how we differentiate ourselves.

In the marketplace and and by the same token from.

And our customers perspective, as I also mentioned before and so you probably seen debt our liner customers today are really looking for the quality of their services for them to focusing on the quality of services. They need to have the quality of the partners that we'll be able to provide a variety of solutions and <unk>.

Just the vessel, but the reliability of this debt.

And the operations the most up to date and I think the industry trend and the development in terms of environmental which is one thing that is very important right today and what is the future. What is how do we have debt lower emission and things in that nature, and then deposits as to how you're going to actually manage.

And a project with a newbuild and which is very complicated.

<unk> that you need to have the team being able to supervise executing and then comes to the financing. So from all of these aspects I think and our customers are looking for a long long term partner, who has the scale and who has the flexibility.

And who has the quality of the service to support them.

To grow their business and the Seaspan is built exactly for that and that's what we've been spending the past three years and really focusing on these areas and that's why we come to the moment like this.

We were able to execute flawlessly, and that's where something that our team has been very very swift.

<unk> day.

And this type of service to our customers.

And maybe I was trying to get a more simple answer a numerical answer do you think the liners are taking more share I'm sorry, the lessors are taking more share from the liners and then in that market has ceased and taking a larger share of the leasing market or are you, saying the market right. Now overall is just growing rapidly and you're staying static.

On the ship side.

I think that today based on the information that we have I believe that she is seaspan actually took a.

Quite a significant share of this new built in the marketplace.

Overall that in today's market, we team up with the debt that the leasing companies for example, but I think at this point.

We do take a large share of debt Newbuild and overall I think and in terms of the numbers of the newbuild.

I don't have the exact number but I think theres another probably.

About 32020 to 30 vessels, either being financed by the liners themselves or being financed by leasing companies all of the and find financed by a few a few.

Ship owners.

Okay, and would love to see that that Dallas, and maybe a breakdown on kind of how the market is developing and then just a follow up on on Christmas Day Bobby's question on on the energy markets. What's the goal of the joint venture are you contributing anything right now was their initial investment.

The forming of the joint venture I mean, we're likely to hear something soon.

Or was there something being plan that you needed local expertise, maybe maybe just talk about that.

Yeah, and the joint venture is a joint venture and that is going to be based in China, Our Hangzhou special special trading zone.

The capital will be on encore basis is going to be 50, 50 with and it would be working with our joint venture partner in jointly developing opportunities in both maritime and energy projects and as I mentioned some of those immediate projects for example, and are in the shipping side.

We are cooperating on for example, the scrubber projects, where we have the needs and they can provide that service and also looking at.

Shipping in general in looking at.

Other other type of a shipping and transportation and other than transportation.

Other than container ships and the energy side I understood. Your answer from Friday I just wanted to understand was there anything thats imminent in terms of the forming of the joint venture and does that mean something is coming soon and did you contribute anything upfront just simply.

Yes, there are things for example, we're looking at some some.

And power projects together, because they are and looking at some of the projects that we can jointly looking at those type of opportunities, but that's the next step we will have to.

But right now we enter into the agreement then we also have to formulate a formally incorporate that joint venture and it's going to take.

Several months to formally.

Create that joint venture at the same time, we will be joined and looking at opportunities in power and shipping space.

Okay. So nothing and then and it takes a while to form the JV.

Yes.

And then the thoughts on my last one just on APR utilization.

It's built into the outlook there any significant change and post mexicali, the change and utilization for APR and in 'twenty one.

Yes, the utilization is actually reflected in our <unk>.

<unk> 'twenty 'twenty, one financial forecast on that.

And I think in terms of utilization. So far we have project is similar to that of 2020 at the same time team working.

Strengthening our business development team, we are looking at different type of opportunities. The one thing that we wanted to be.

And we wanted to be very much focused on is looking at the quality of those projects.

And it would be very selective.

And any type of projects, but anyway.

Your question is is it utilization due to the debt.

Short term nature the utilization it will not be the same as what <unk> seen at the <unk> spend which we achieve over 99% for APR that utilization will be in the range around.

And I would say 70, 70% to 80% and that would be very high.

Yeah.

Thanks, Pat Thanks for the time I appreciate the answers.

You bet.

Thank you.

No further questions at this time.

So thank you all very much I appreciate you taking the time to join this call and we look forward to seeing you all.

During our Investor day.

And conference and that's going to be on the 23rd.

And much so looking forward to seeing you all thank you all very much.

And ladies and gentlemen.

This concludes today's conference call. Thank you for your participation.

You may now disconnect.

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Okay.

Welcome to the Atlas Corp, fourth quarter, 2020 earnings Conference call.

I'd like to remind everyone that this call is being recorded day March nine 2021.

I would now like to turn the call over to Robert Weiner and head of Investor Relations of Atlas Corp.

Thank you and good morning, everyone. Thank you for joining us today to discuss Atlas Corp, 's fourth quarter, 2020 earnings we issued our earnings release last evening after market close.

We will refer to our quarterly earnings release accompanying earnings presentation, and supplemental Doc per day, and this conference, which all can be found on the investor relations debt on our website.

Ww Atlas Corporation Dotcom.

On the call with me today are David Sokol, Chairman and the board of Atlas Corp. They can Chen President and Chief Executive Officer of Atlas Corp, and Grant Talbot, Chief Financial Officer, and Atlas Corp, joining us on the call. During the Q&A session are Seaspan as Chief commercial officer, Peter Curtis cause he spans chief operational officer.

And Peter C L.

Like to remind you that our discussion today contains forward looking statements, which are noted on slide two.

Operating earnings presentation.

Actual results may differ material.

And those stated or implied due to risks and uncertainties associated with our business. Our non risk factors are discussed in our form 20-F, and our reports on form 6K filed from time to time and and can actually with our quarterly financial results, which are all available on our website.

With this quarterly report you will note that we continue to report non-GAAP measures, which we believe provide investors a clearer understanding of the performance of our business. The fourth quarter earnings release contains supplemental financial tables and information pertaining to our fourth quarter earnings report.

And includes definitions of non-GAAP financial measures and reconciliation of such non-GAAP measures to the most closely comparable U S. GAAP.

These definitions may also be found and the appendices at the back of the earnings presentation, which we will refer to and our call discussion and can also be found on our website. In addition, we have provided historical financial information through 2018, which are also available in the Q4 supplemental workbook on our website.

Please turn to slide number four.

I am now pleased to turn the call over to Atlas Corp, Chairman of the Board David Sokol.

Thank you Rob and good morning, everyone. This is Dave Sokol speaking chairman of the board of Atlas Corp, and I'd like to welcome all participants today and express my appreciation for your time and attention to our presentation.

And I best Bang to allow me to open today's call with a bit of a look back over the past three years, which encompasses the time since being joined us as CEO in January of 2018.

What Bing and his team have accomplished extraordinary and deserving a clear recognition.

We have a wonderful company a global multiplatform business that our team is very excited about.

Atlas is uniquely positioned as a long term capital allocation global multi platform investment opportunity with key attributes.

Three of those attributes are first our resilient business model, which ended 2020 with nearly $11 billion and total gross contracted cash flow pro forma for $5 9 billion of gross contracted cash flow.

Added from recent acquisitions, including 31, new builds and two secondhand vessel acquisitions.

To create greater clarity for investors, we will be discussing total contracted cash flow today and in the future.

Secondly, Atlas is core cup and fees are consistent operational excellence creative customer partnerships.

Solid financial strength.

Quality growth and disciplined capital allocation.

This is what drives our execution and results.

And thirdly, the team has been delivering quality growth and enhancing fleet and asset composition and creating greater diversification of our customers through the addition of quality assets with long term quality margin contracted revenue.

Our 2020 performance, clearly depicts a divergence and Alex that performance as compared to our peers and even more broadly as benchmark against other and mid cap investment opportunities.

Being in the teens positioning of Seaspan has allowed per Atlas to aggressively take advantage of current industry dynamics growing the business dramatically with excellent margin long term charters and taking advantage of shipyard opportunities due to our team's industry relationships and design and construction oversight talents.

The container shipping industry dynamics, and we're not meaningfully set back by Covid.

And in some ways.

Covid Cheyenne light upon the importance of our world global container shipping efficiency.

Our other platform APR energy was substantially more affected by Covid is developing governments were virtually shut down and the resulting economic slowdowns materially reduced electricity demand.

However, these delays should turn into opportunities when the global Covid pandemic is resolved.

The three year performance you see on this slide we.

Which depicts the management team's performance since 2017.

Shows strong growth and revenues cash flow and earnings yet with little contribution from APR as it was only closed in February of 2020.

This performance is reflective of processes program strategies and leadership that being and his teams have built and developed over the past three years.

Our formula for success, leveraging the company's five key competencies to produce these results we.

We are confident that as we now begin to apply that formula to APR, we will drive similar progress and the future to that it's true that at Seaspan.

A closer look at the results illustrates the very impressive performance and execution of this team.

From the 2017 results through 2020 the performance is quite extraordinary.

Revenue increased by 79% from $831 million to 1.42 billion at the end of 2020 and.

And 19, 6% compounded growth rate.

Adjusted EBITDA increased from $496 million to $924 million at the end of 2020, representing a 23% compounded growth rate.

Funds from operation increased by 146% from 253 million to $622 million at the end of 2000 2035 per cent compounded growth rate and.

And cash flow from operations went from $391 million to 694.002 million 20.

This represents a cumulative annual growth rate of 21, one per cent.

And we also made significant progress with our balance sheet and the capital structure measurements.

Now please turn to slide five.

This slide depicts what I view as very impressive progress in fact, I would say great result.

This is the performance that growth stocks are made of and we are doing this with significant identifiable and easily valued assets that are backed by long term gross contracted cash flows and earnings performance.

It may be difficult to find other companies with nearly $11 billion of future long term gross contracted cash flow Atlas is that company.

Atlas has added long term gross contracted cash flows by a whopping $5.9 billion and about the last three months.

This is very impressive and it may seem that it occurred surprisingly quickly.

The foundation for this growth had been laid during the prior three years through disciplined execution and a total focus upon the customers' needs and expectations.

Since 2017, we've added 71, new vessels and over 890000, Teus and 80% increase a little over three years, while at the same time strengthening that fleet with newer larger vessels are longer tenured charters. This.

This is exceptional performance, especially when you consider the myriad of challenges posed over the last year from Covid.

The board of directors and I are very pleased with the team's commitment to high quality growth and high performance.

Please turn now to slide six.

On the left of this slide you'll see spans vessel categories. When this team started on a path to high performance.

Our vessels were more concentrated and smaller less desirable categories and with a more spot oriented mix.

Now in 2020, one you see growth to 160 vessels from 89 at the end of 2017, and the depth and breadth of today's fleet is a far higher quality with enhanced environmental equipment, thereby developing and more desirable and attractive offering to the customers.

<unk> primary focus is on expanding the 10 to 15000 Teu fleet category and these are attractive vessels from major trade lanes and are expected to be the workhorses of the global fleet and the coming decades. These.

And these vessel sizes are preferred from major routes given their operating scale and efficiency.

79 per set of our fleet on a teu weighted basis is greater than 10000, Teus with an average age of five three years, which we believe is unmatched in the industry and significantly differentiate our value proposition with our customers.

Please turn to slide seven.

This slide importantly depicts the significant diversification of the company's credit risk profile, which has been a focal point for bank and the board.

We went from a very concentrated customer mix to a very balanced mix of customers and revenue sources, which drastically reduces our credit risk.

This transformation is even more compelling when you evaluate over the same period 2017 through 2020, the dramatic uptick and the health of the industry and a much improved credit ratings of our customers, which had been on a steady rise during this period.

Atlas is now positioned more securely dynamically and at any point in the past with a diversified customer mix and much strengthened and improved quality of our fleet, a strong market and increasingly positive credit ratings within the industry.

We begin 2021 with a strong tailwind and we're very well positioned to execute future quality growth and value creation for our shareholders.

Now please turn to slide eight.

We have a strong safety culture at Atlas and is integrated and everything we do as a company.

Our priority will always be the safety and wellbeing of our team and business partners through operational excellence and every aspect of our business.

Tourists and and his team work this talk every day.

We take this very seriously at the board level and the teams have robust programs to ensure safe operations successfully executed and our daily work streams.

We value our team members and we want them to return home healthy and safely after every shift.

We also have a strong commitment to social responsibility and.

Investing and our team providing the tools training and programs to be good corporate citizens.

You will see on this slide that our safety record has dramatically improved and sits near an all time record lows and it's being maintained.

This was a focus of ours when I came in as chairman and again the team has delivered.

We are optimizing the successful and that Seaspan, which we are carrying over into a P. R which is seeking ISO 14001 certification in 2020 one.

Now if you would please turn to slide nine.

As you can see from the graph on slide nine the forming of this management team is implementing is working and effectively increasing value for shareholders.

The team has executed with a high level of performance.

Illustrated by the 90% total return delivered to shareholders of Atlas over the past three years far.

Far outperforming competitive peers, and even more so the broader equity markets.

Before I turn it over at the Forum to Bang, our Chief Executive I want to conclude my remarks by pointing out the philosophy and practice of the board of directors and the management team.

And that is simply that Atlas is clearly a shareholder focused company.

Falling for all of our shareholders small and large and consistently delivering increasing value for the shareholders.

We expect to continue to deliver exceptional value and returns demonstrating atlas is compelling investment opportunity.

We remain optimistic determined and focused on achieving sustainable value and growth.

Please turn to slide 11.

And lastly, the board and I are extremely pleased with the team's progress to date and we look forward to more success.

We're pleased but we'll never satisfied thank.

Thank you again for your attention I will now turn the forum over to Atlas CEO Bing Chen.

Thank you David and good morning, everyone I would like to first welcome our new CFO Graham Towboat Graham is a full fledged CFO with a world class finance background and decades of experience at global organizations.

Since joining in February and he's already a key contributor to our organization.

In 2021, I look forward to working with members of the investment community, along with Graham and Rob to increase your awareness and appreciation of Atlas as a resilient and differentiated business model.

Now, let me try and to our performance I'm pleased to turn to slide 13.

Looking back at our 2020, what a year. It has been for the world and markets and a pandemic shut downs and uncertainties economic opportunities and consequences and the volatility caused by it at all.

So and your 'twenty was quite a year of unprecedented challenges and.

Happy to report that not only have we exceeded our financial guidance for 2020, but we have emerged stronger more resilient and have proven our operational excellence.

And I'm very proud of Atlas achievements in 'twenty, and 'twenty, but especially at how our team stood ready adapt well stayed focused overcame obstacles and execute with precision safety and compassion.

Our 2020 performance was very strong ability and significantly upon 2019 as momentum.

Atlas achieved the following and financial milestones in the fourth quarter of 2020, our core financial metrics, all improved quite dramatically in the fourth quarter of 2020, including total revenue growth of 25, 9%.

Adjusted EBITDA growth of 32% funds from operations or S. S. O grew significantly by 45, 2%.

S S old per diluted share gross was 26% cash flow from operations gross of 53, 6%.

This is quality gross all matrix generated strong double digit growth. Despite the operational challenges posed by the pandemic.

This is a testament of our differentiated and resilient business model and our team's commitment to consistent operational excellence and our strong execution.

Our 2020 results included a impairment offset and APR assets under purchase accounting principle. Following the acquisition in February of 2020.

And the impairment resulted from an independent asset valuation assessments, which also had further third party opinion and verification.

We acquired API and February 'twenty, and 'twenty and this process is a typical analysis, which is completed following the first share ownership of acquired assets.

But I would like to reiterate that we do not view this as a changing of our principles and the reasons why we acquire a tee off the APR acquisition and value proposition stands strong the business is stable and the platform remains viable for future expansion.

<unk> has a strong track record and reputation and a fast power solutions space. As we look ahead, we are confident in the prospects of a P. O I will work well. It takes some time to generate desired results, but we have a good path to follow the Seaspan formula and Atlas is finished.

Cost discipline and capital allocation.

Please turn to slide 15.

Atlas Seaspan and APR, all made progress in 2020 six men had a record year, while we focused on integrating API into the Seaspan model by executing our five key competencies.

I'll briefly highlight some major achievements.

At the Atlas level. The most significant flowers shareholders is the over achievement of our 2020 financial guidance that is the result of diligence discipline and execution based on long term fundamental and strategic planning.

If automation of Atlas as an asset owner and operator created a business platform that can leverage seaspan and execution and strategy, which was developed when our chairman David Sokol and I teamed up late in 2017.

At that time, we set a course to strengthen the seaspan model by focusing on our five key competencies.

2020 spend performance demonstrates that our strategy has been effective and the business has significantly improved.

With the acquisition of APR, we gain and platform with an established presence and energy markets.

Yet a business that requires us to apply the <unk> formula to improve and create opportunities for gross in the future.

We are confident debt, we will be effective in fueling APR to the next level.

At Seaspan.

Between December 2019 at 2020, we acquired 15 high quality secondhand vessels are growing a quality fleet approximately one 1 million Teu, we have seen announced quality gross of 487000 Teu growing $45 four per cent in very short.

Hi.

Primarily through new builds which may P S ass and retirements of Seaspan and history of Newbuild.

But that is not the case as we are applying our disciplined capital allocation strategies, which remains agnostic to new builds all secondhand vessels.

And it's driving quality growth through both channels. This is because we are growing discreetly in close partnerships with our customers to fulfill their business needs and provide win win solutions.

Very importantly, our new vessel gross of 487000 Teu has added $5.9 billion of gross contracted cash flow to seaspan within the last few months.

And I'm, particularly proud of our partnership with Zim to close 10, Newbuild 15000, Teu dual fuel LNG vessels backed by 12 years charter.

Through this transaction, we further strengthened our commitment to ESG principles, we continue to expand the scope of our customer solutions by elevating our focus on LOE and the impact of emissions. So with the addition of LNG powered and vessels to our fleet.

And I've seen and Seaspan execute sustainability linked financing.

Which parallel to.

To this fleet expansion and illustrates our resolve to contribute to the green and the business community.

And so our long term objective is to achieve and investment grade corporate credit rating. During 2020, we made significant strides forward in our pursuit.

We achieved investment grade of Chipotle minus senior secured rating from Kroll Bond rating agency and closed $250 million of sustainability linked loan and <unk>.

First in container shipping and into innovative portfolio financing program to reach about $1 $8 billion at the year end and.

And we closed and initial placement in unsecured credit market of $200 million, three seven and 5% coupon exchangeable senior notes.

At API, we closed $285 million of financing program, ensuring flexibility and liquidity.

While it was a year filled with transition through the team's resolve and despite the energy market during the pandemic.

APR secured contracts to provide 200 265 megawatts of peaking power in Mexico.

Very importantly, APR was the only company to execute a mobile gas turbine and development. During 2020, historically Aps model built a strong reputation for delivering when others could not and primarily focused on serving the situations where in developing countries that need ski.

Global power quickly and.

And areas that require power periodically or in peak demands all were ATR force Geos rescue power during natural disasters or other type of disruptive situations.

As we develop a pea we will focus on continuing to leverage our expertise in these key markets, while seeking to expand to long term contracts.

Also we are adding new avenues of growth through longer duration contracts in large scale power projects.

Our continuous laser focus on our five key competencies is the driving force behind all of these achievements.

And confident that we will carry the momentum into 2021.

Please turn to slide 17.

Atlas was certainly not immune to the effects of Covid one of our key markets energy was significantly impacted months after we acquired APR.

While continued global trade helped fuel a fast recovery and maritime and specifically container shipping many APR peers, however suffered through the global impacts resulting from the Pandemics.

Atlas and our shareholders benefited from our resilience and differentiated business model as our operational excellence delivered consistent and dependable financial performance throughout the entire year.

Other businesses in our markets experienced great variability less consistency and dependability and for some in the energy markets a significant decline in business activities.

We stayed resilient and deliberate.

It is important to note that differentiation of our business model creates a high quality investment profile compared to many in our markets.

What sets Atlas apart competitively is our focus on the gross and the quality of our predictable cash flows and providing greater long term visibility and dependability flower investors.

Over the last three months, we have added $5 $9 billion of gross contracted cash flow.

At 2020 year and more than 93% of Seaspan is 'twenty 'twenty, one revenue guidance at the midpoint is already contracted.

That is a resilient and differentiated business model.

We're increasing the quality of our assets compared to our peers. Our fleet is younger and larger and more sought after by our customers.

We have the scalable operation versus how fleet and integrated platform to deliver a best in class solutions that maximize value creation for our customers.

We have the financial strength to create value in partnership with our customers and we are focused on ESG principles to each enrich our business model and to innovate positive changes within our industry.

The attributes and this slide reiterate our competitive advantage and set our business model apart.

Now I'm excited to update you on our recent announcement yesterday, we issued a press release regarding our new joint venture with John and Energy group.

Atlas together with Z group will form a new entity to be incorporated in the China's hanzo free trade zone.

And this JV will invest and projects in the global Maritime and power industries.

Z group is a leading global company with a strong track records of successful energy related projects and infrastructure design and development.

We're excited by the prospects of the JV and anticipate jointly developing meaningful projects and the future.

Please turn to slide 19.

Now I would like to tend to a brief update and outlook for our markets and 2021.

I'm pleased to say that container shipping market is very strong and the energy markets are becoming incrementally stronger.

Which we view as highly positive developments following all the uncertainty and disruption last year.

The container shipping and that she continues to strengthen at a rapid pace from the market due to the pandemic.

Idled vessel accounts are at historical lows with charter rates at near historical highs and availability of any vessels above 4000 Teu is very scarce.

While the current contango market is a great seaspan at any given time only have about 10% to 15% market exposure as the majority of our fleet is secured by long term contracts.

As of 2020 year and more than 93% of <unk> 'twenty 'twenty, one revenue guidance at the midpoint is under contract.

Yes, the current rate environment, and helped us to renew the contracts, but the resiliency of our model is not dependent on those upswings in the market. We remain optimistic about the strength in the rates and the global trade to achieve quality growth for Atlas.

And.

Todays balance of supply and demand is fundamentally stronger than it has been in the past.

Global demand is expect to continue to rise this year with some catch up due to the pandemic, but also forecast to continue in years to come.

The health of market participants balance sheets and liquidity has strengthened over the past years, and we are seeing greater sophistication and automation to markets.

Technologies, enabling and decision, making planning and execution have been much more precise.

Versus the past.

This is great for the industry to achieve gains, while adopting new green and emission reduction initiatives.

You can see from the slides the protection of a global recovery in 2020. One is strong with forecasted growth in the range of approximately 5% to 6%.

This should support a continuing strong performance for Seaspan.

We are confident that our focus at APR will produce incrementally positive outcomes and increase returns for our shareholders.

Please turn to slide 20.

The new gross we have announced since 2020 year and is a very exciting development as you can see from the slides and we have announced the addition of 33 new vessels to be added to our fleet. These new additions are in very attractive categories.

And one vessel in the 10 to 15000 Teu category, a 59% increase and two new ultra modern 24000, Teu vessels and ultra large category and new category for us positioning us as the only full spectrum teu providers in the marketplace.

What is most important is the $5 $9 billion of a long term gross contracted cash flow that we have secured with these new vessels. This brings our total long term gross contracted cash flow.

Chairman mentioned earlier 211 billion U S dollars with an average duration of six five years.

You can also see that we are diversifying our revenue sources, particularly as a result of our growing partnership with Zim, we have a well diversified revenue base with very strong customers.

This strong growth demonstrates the resilient and differentiated business model, we enjoy at Atlas.

That concludes my formal remarks, and I'm now pleased to turn the call over to Graham Towboat, our new CFO.

Good morning, everyone, Firstly I'd like to thank Jamie for the warm welcome to Atlas.

And look forward to working with you and Rob as we engaged investment community going forward.

I'll begin my remarks by saying that I'm very excited to join the Atlas thing.

We have a very robust core business platform and a significant opportunity to continue to develop both at maritime and energy businesses.

We're simultaneously optimize the Atlas shared services model.

Consistency is the best way to characterize our financial performance.

That is consistency in relation to our core asset cash flows and consistency in relation to quality growth.

Atlas is fourth quarter financial performance was very strong.

Compared to Q4 2019, our total revenue increased by 25, 9%.

The $362 7 billion.

56% increase and revenue was due to the contribution from I P O.

Well Seaspan as revenue increased 11, 3% to $326 million, primarily due to the expansion of athletes.

The 32% year over year increase and adjusted EBITDA was driven by increased revenue.

Operating expense leverage and lower than expected G and I and both Seaspan and APR.

So I would increase by 45, 2% as a risk.

And the acquisition of IPR and continued growth from <unk>.

We ended the year with the $770 million and liquidity.

And paid out 62nd consecutive dividend.

Since then and closed out the year with vessel utilization of 99, 6%.

And that's pretty close to perfection, reflecting a very robust container shipping market coupled with operational excellence.

IPR is asset utilization, while this forecast of 61 point and 8%.

Reflecting lower utilization as we can mobilize the Mexicali project and Q3.

During 2020, Seaspan fleet capacity reached approximately $1 1 million Teu.

Reflecting the 15 vessels, we added during 2020, which would begin to add light and Q4 of 2019.

At the same time, that's deliberate and these great results. We also improved our safety performance.

As measured by a lost time injury frequency, which declined by 32% to 0.47 at Seaspan.

And sits at near record lows of <unk> 76, and I yeah.

Key investment attribute of Atlas is that long term gross contracted cash flow.

At $4 $8 billion at year end and Seaspan.

And $294 million of IPR and total gross contracted cash flow of $5 $1 billion.

This does not include any of the recently announced acquisitions and new builds which will contribute.

Further in the coming years.

Also note that at $5 1 billion of contracted cash flow.

Pictures and average remaining lease period of approximately four years at Seaspan and just under two years at IPO.

Beginning late in 2019 and consistently throughout 2020.

And we grew our fleet by acquiring existing young high valued vessels.

These vessels are the strength and the quality debt and versatility of our fleet.

While also increasing our overall scale, which is an important element of our success.

We actively screened but you and secondhand vessel acquisitions and during the day, we turned down a number of opportunities, which did not meet our investment criteria.

Each transaction that makes it through our screening has to be driven by customer needs and the creation mutually economic solutions.

Quality growth is a key distinguishing characteristic of our company.

And investors should also take note and be assured by our strong financial and capital allocation discipline.

Our investments capital expenditures and acquisitions are governed by strict capital allocation disciplines, which target at a minimum high single digit unlevered returns coupled with risk mitigation, but we didn't.