Global Ship Lease Announces Results for the Third Quarter Ended September 30, 2017
October 20 2017 - 3:00AM
Global Ship Lease, Inc. (NYSE:GSL) (the “Company” or “Global Ship
Lease”) announced today certain unaudited results for the three and
nine months ended September 30, 2017.
The Company’s fleet generated operating revenues
from fixed-rate time charters of $41.2 million in the three months
ended September 30, 2017, the same as in the comparative period in
2016. There has been a modest reduction in revenue from amendments
to the charters on Marie Delmas and Kumasi agreed in August 2016,
offset by lower offhire. Operating revenue was $121.1 million for
the nine months ended September 30, 2017, down $4.0 million on
operating revenues of $125.1 million for the comparative period in
2016. The decrease in revenue is mainly as a consequence of the
amended rates in the charters of Marie Delmas and Kumasi. There was
no offhire in the three months ended September 30, 2017, giving
utilization of 100.0%. There were 38 days of planned offhire from
regulatory dry-dockings only in the comparative period in 2016,
giving an overall utilization of 97.7%. Utilization for the nine
months ended September 30, 2017 was 98.1% compared to 98.2% in the
comparative period in 2016.
As a result of a reduction in vessel operating
expenses and stable general and administrative costs, Adjusted
EBITDA was $29.3 million for the three months ended September 30,
2017, up from $28.1 million in the comparative period in 2016.
Adjusted EBITDA for the nine months ended September 30, 2017 was
$85.4 million, down slightly from $86.2 million for the comparative
period in 2016. This press release does not include a
reconciliation of Adjusted EBITDA from the most directly comparable
U.S. GAAP measure, net income, for such periods because such
reconciliation is not yet available.
Net income available to common shareholders in
the three months ended September 30, 2017 was $8.9 million,
compared to a net loss of $23.7 million in the comparative period
in 2016, after a non cash impairment charge of $29.4 million
related to the Marie Delmas and Kumasi triggered by the amendments
to the charters effective August 1, 2016. Net income for the nine
months ended September 30, 2017 was $22.5 million compared to a net
loss of $13.1 million in the comparative period in 2016 after the
$29.4 million non-cash impairment charge.
As at September 30, 2017, the Company had cash
and cash equivalents of $65.6 million, compared to $54.2 million as
at December 31, 2016. Gross debt at September 30, 2017 was $401.1
million compared to $429.4 million at December 31, 2016.
The Company’s financial statements for the three
and nine months ended September 30, 2017 are not yet available.
About Global Ship Lease
Global Ship Lease is a containership charter
owner. Incorporated in the Marshall Islands, Global Ship Lease
commenced operations in December 2007 with a business of owning and
chartering out containerships under mainly long-term, fixed-rate
charters to top tier container liner companies.
Global Ship Lease owns 18 vessels with a total
capacity of 82,312 TEU and an average age, weighted by TEU
capacity, at August 31, 2017 of 12.7 years. All 18 vessels are
currently fixed on time charters, 15 of which are with CMA CGM. The
average remaining term of the charters at August 31, 2017 is 3.1
years or 3.4 years on a TEU weighted basis, taking into account the
two charter extensions announced on September 11, 2017 and the new
charter for the OOCL Tianjin, announced on October 19, 2017.
Forward-Looking Statements
This press release contains forward-looking
statements. Forward-looking statements provide the Company’s
current expectations or forecasts of future events. Forward-looking
statements include statements about the Company’s expectations,
beliefs, plans, objectives, intentions, assumptions and other
statements that are not historical facts. Words or phrases such as
“anticipate,” “believe,” “continue,” “estimate,” “expect,”
“intend,” “may,” “ongoing,” “plan,” “potential,” “predict,”
“project,” “will” or similar words or phrases, or the negatives of
those words or phrases, may identify forward-looking statements,
but the absence of these words does not necessarily mean that a
statement is not forward-looking. Forward-looking statements are
subject to known and unknown risks and uncertainties and are based
on potentially inaccurate assumptions that could cause actual
results to differ materially from those expected or implied by the
forward-looking statements. Actual results could differ materially
from those expressed or implied by the forward-looking statements
as a result of various factors, including the factors described in
“Risk Factors” in the Company’s Annual Report on Form 20-F and the
factors and risks the Company describes in subsequent reports filed
from time to time with the U.S. Securities and Exchange Commission.
New risks can emerge from time to time, and it is not possible for
the Company to predict all such risks, nor can the Company assess
the impact of all such risks on its business or the extent to which
any risks, or combination of risks and other factors, may cause
actual results to differ materially from those contained in any
forward-looking statements. Accordingly, you should not unduly rely
on these forward-looking statements, which speak only as of the
date of this press release. The Company undertakes no obligation to
publicly revise any forward-looking statement to reflect
circumstances or events after the date of this press release or to
reflect the occurrence of unanticipated events.
Investor and Media Contact:The IGB GroupBryan
Degnan646-673-9701orLeon Berman212-477-8438
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