Global Ship Lease (GSL) released their results in early Mar (03/05). I am just getting around to taking a look at the results.
- Rev of $182.4M
- Adjusted EBITDA of $123.7M
- Net Income of $90.2M
- Q4 div is 45c/sh. But, it sounds like there is another div bump.
- Added 4 larger (9000-TEU) vessels in Dec 2024 (a couple delivered in early 2025
On the four additions to the fleet, GSL has existing vessels of a similar variety. Thus, GSL think they have secured a good deal. But, the vessels only have 1.7 years of attached fixed charters, and 5.1 years if options are exercised. At a cost of $274M, the four vessels reflect a major investment. On the flip side, GSL have sold three older (2000 - 2003 builds) vessels at almost $30M over book value.
On the div, 45c/sh div for Q4 2024. But next payout gets bumped to 52.5c (Slide 9). I guess the 2024 increase was supplemental of 7.5c, and in Q1 2025, the company plans to double the supplemental payout. Seems like there is a set-up similar to INSW, but with a larger regular payout 37.5c (vs 12c/sh for INSW). In INSW’s case, the supplemental is much greater.
GSL are doing a good job with their leverage, Debt keeps coming down (ended the year 2024 below $700M ). Not sure if end of year number includes all four vessel additions.
Not entirely sure on the trading patterns of GSL fleet. Also, have not looked closely on the build location of the vessels. But, I am going to guess mostly non-US trading routes. The age of vessels, plus previous owners (generally liner entities) would suggest non-Chinese yards. Still, the markets don’t think that way, so I guess, to be prepared, one should dig a little more to determine that risk.
Good shipping idea. Have to look deeper than just the age of the vessels