Atlas Corp. Common Shares

Welcome to Atlas Corp's third quarter 2022 earnings conference call. I'd like to remind everyone that this conference call is being recorded today, November 2nd, 2022. I would now like to turn the call over to Will Kostlevy, Head of Investor Relations at Atlas Corp.

Good morning, everyone, and thank you for joining us today to discuss Atlas Corp's third quarter 2022 earnings report. We issued our earnings release 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 investor 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 earnings presentation. Please note that we report non-GAAP measures, which we believe provide investors a clearer understanding of the performance of our business. 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 discussion. 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 Operating 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 President and CEO, Bing Chen.

Thank you, Will, and good morning, everyone. Thank you for joining our call. To begin, I would like to quickly cover the developments in the acquisition proposal. received by our Board of Directors on August 4th, 2022, from affiliates of Fairfax, the Washington family, David Sokol, and O&E. Yesterday, we announced that following the recommendations of the Independent Special Committee that was appointed by the Board of Directors to review and negotiate the proposal, Alice has entered into an agreement to be acquired by the Poseidon Consortium. The transaction is subject to several conditions, including approval of a majority of affiliated shareholders, regulatory approvals, and consents. We expect the transaction to close in the first half of 2023. For more information regarding the transaction, please refer to our public disclosures. In the meantime, management is focused on business as usual and continuing to successfully execute on our strategy. Today, my comments will focus on our key developments in our business. Then I will hand it over to Graham Talbot to present our Q3. 2022 results and provide a financial update. Please turn to slide four. I would like to start by reviewing the key developments at C-PLAN. Leveraging our creative customer solutions and partnerships, we forward fixed 14 vessels in the third quarter. These forward fixtures contribute over $1.1 billion of gross contracted cash flow to our total current balance of $18.6 billion. This leads to our fleet having an average TEU weighted charter duration of 6.9 years and being 100% contracted for the remainder of 2022. 99.6% for 2023, and 96.8% for 2024 on a TEU basis. In the quarter, we continued to diligently execute our new build program with the delivery of two 11,800 TEU new builds, which commenced five-year charter upon delivery. In October, we delivered another 11,800 TEU new builds and our first 15,000 TEU new builds, both of which commenced five-year charters. To date, the large majority of the 11 deliveries from our 70-vessel new build program have been ahead of the schedule, delivering incremental value to our customers and shareholders. This further demonstrates our consistent operational excellence and our confidence in delivering the remaining new builds on time and on budget, subject to third party circumstances. In September, we announced the contracts related to our order of four 7,700 TEU dual-fuel LNG new builds become null and void. This was due to the shipyard failing to obtain refund guarantees. In line with our no-risk discipline, refund guarantees are a required condition in all our new-build contracts, and therefore, no capital was deployed. During the third quarter, we continued to maintain a strong vessel utilization rate of 98.6%. We also maintained our industry-leading safety record with a lost time injury frequency of 0.22 delivered through a continued focus on safety of our people. Our team's diligent execution, coupled with our consistent operational excellence, continued to drive our performance in the quarter. Please turn to slide five. Now let's review some key developments at APR. APR successfully completed its four-month Imperial Irrigation District power generation contract in September and Mexicali dry leaf contract in October, with demobilization of a total seven turbines currently underway across both sites. APR also completed mobilization and installation of eight turbines in October under its 44-month contracts in Brazil, and APR's lifecycle contracts are continuing successful operation until early 2023. APR completed its five-year contract in Argentina earlier this year, and as of today, demobilization of the turbines at both sites is complete. During the third quarter of APR, achieved an asset utilization of 80% and achieved a perfect lost time injury rate of zero. Thank you for your time today. I will now turn the call over to our CFO, Grant Talbot.