Atlas Corp. Common Shares

Welcome to the Atlas Corp First Quarter 2022 Earnings Conference Call. I would like to remind everyone that this conference call is being recorded today, May 12, 2022. I would now like to turn the call over to Will Koslovy, Head of Investor Relations at Atlas Corp.

Thank you. Good morning, everyone, and thank you for joining us today to discuss Atlas Corp's First Quarter 2022 Earnings Report. We issued our earnings yesterday. released yesterday evening after market close. We will refer to our quarterly earnings release, accompanying earnings presentation, and earnings supplemental workbook today in this conference, which all can be found on the investors tab of our website, atlascorporation.com. I would like to remind you that our discussion today contains forward-looking statements, and I draw your attention to the disclaimer on slide two in the accompanying earnings presentation. Please note that we report non-GAAP measures which we believe provide investors a clearer understanding of the performance of our businesses. The earnings release contains supplemental financial tables and information pertaining to our quarterly 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 may also be found in the appendices at the back of the earnings presentation, which we may refer to in our call, and can be found on our website. Please turn to slide three. On the call with me are Bing Chen, President and CEO of Atlas Corp, and Graham Talbott, Chief Financial Officer of Atlas Corp. Joining us on the call during the Q&A session is C-SPAN's Chief Commercial Officer, Peter Curtis, and C-SPAN's Chief Operational Officer, Torsten Petersen. Following our prepared remarks, we will open up the forum to a question and answer session. With that, I am pleased to now turn the call over to Atlas Corp's CEO, Bing Chen.

Thank you, Will, and good morning, everyone, and thank you for joining our call. Today, my comments will focus on key developments at C-SPAN and APR, and then I will hand over to Grant Talbot to present our Q1 2022 results and financial updates. Please turn to slide four. I would like to start by reviewing our major developments at C-SPAN. In a quarter, we continue to benefit from a robust market, as up to 15% of our fleet is based on floating index rates, and we continue to develop our long-term strategic partnerships with our customers. Leveraging our creative customer solutions, we forwarded a fixed 18 vessels with a global liner customer, contributing over $150 million to our gross contracted cash flow of $18.1 billion. This leads to no charter roll-offs in 2022, only eight in 2023, and 16 in 2024 as of the quarter end. We continue to diligently execute our new build program. In April, we delivered the fourth vessels of our 40 vessel new build program, all of which have been delivered ahead of the schedule. With our track record of successfully delivering 114 new builds since our IPO in 2005, we are confident in delivering this unprecedented program on schedule and on budget with possibilities of some early deliveries despite all the logistic challenges. We also continued taking advantage of the current market to recycle capital through the divestment of non-strategic assets. We completed one vessel sale in Q1 and three additional vessel sales are in advanced stages of divestment as of the quarter end. Going forward, we will continue to seek opportunities to optimize our fleet and recycle capital, which Graham will share more about later. During the first quarter, our vessel utilization rate was 98.5%, slightly below our average historical rate. This is due to the unplanned off-hire of one vessel and minor COVID cases on three vessels. We also achieved historical low lost time injury frequency of 0.26 as we continue to focus on the safety of our people. Our team's seamless execution differentiated business model together with our consistent operational excellence and a strong container shipping fundamentals drove our strong performance in this quarter. Please turn to slide five. Now let's review some key developments at APR. In the first quarter, APR entered into three new deployments, which includes a renewal of APR's IIED contract in California of three turbines for 74 megawatts, a new market contract for eight turbines in Brazil for 226 megawatts, and the dry leasing of five turbines for 120 megawatts for a total of 16 turbines deployed. We continued to transform the business by strengthening APR's business development focus on long-term contracts. The recent extension of APR's Brazil contract from 12 months to 44 months evidences the successful execution of its strategy to migrate to long-term cash flow contracts. As mentioned at our investor day, APR completed its five-year contract in Argentina in January at its Zabrato plant, and as of today, demobilization is materially completed. Our other plan, Imathale, will commence demobilization upon finishing its contract in late May. We expect successful demobilization and redeployment of all Argentina turbines by the second half of this year. And similar to C-SPAN's strong safety culture, APR achieved a historically low lost time injury frequency rate of 0.23. With the increasing demand of a grid stability, APR continues to enhance its platform by extending its customer base with turnkey solutions and remain disciplined in evaluating potential long-term power opportunities across multiple geographies and industry sectors. Thank you for your time today. I will now turn the call over to our CFO, Grant.