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Global Ship Lease Reports Results for the Third Quarter of 2013

Global Ship Lease, Inc. (GSL), a containership charter owner, announced yesterday its unaudited results for the three months and nine months ended September 30, 2013.

Third Quarter and Year To Date Highlights

- Reported revenue of $36.1 million for the third quarter 2013. Revenue for the nine months ended September 30, 2013 was $107.2 million

- Reported net income of $7.3 million for the third quarter 2013, including a $1.4 million non-cash interest rate derivative mark-to-market gain. For the nine months ended September 30, 2013, net income was $24.6 million, after an $11.8 million non-cash mark-to-market gain

- Generated $23.5 million of Adjusted EBITDA(1) for the third quarter 2013. Adjusted EBITDA for the nine months ended September 30, 2013 was $68.6 million

- Excluding the non-cash mark-to-market items, normalized net income(1) was $5.9 million for the third quarter 2013 and $12.8 million for the nine months ended September 30, 2013

- Repaid $15.8 million of debt during the third quarter 2013 for a total repayment of $214.8 million since the fourth quarter 2009

Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "During the third quarter, our fleet achieved 100 percent utilization, giving maximum possible revenue and enabling the Company to generate $23.5 million of Adjusted EBITDA. We used our robust cashflow to reduce our debt, repaying $15.8 million during the quarter for a total of $214.8 million repaid since the fourth quarter of 2009. With a fully time chartered fleet and nearly $1 billion in contracted revenues and a de-levered balance sheet, we remain in a strong position to generate stable cash flow for shareholders and further strengthen our balance sheet."

The 17 vessel fleet generated revenue from fixed rate long-term time charters of $36.1 million in the three months ended September 30, 2013, down $3.4 million on revenue of $39.5 million for the comparative period in 2012 due mainly to reduced revenue for two vessels following charter renewals at lower rates after the initial charters expired in September 2012, offset by less offhire from reduced levels of planned drydocking. There were 1,564 ownership days in the quarter, the same as the comparable period in 2012. There was no offhire in the three months ended September 30, 2013, giving utilization of 100.0%. In the comparable period of 2012, there were 12 days offhire, all for planned drydockings, for utilization of 99.2%.

For the nine months ended September 30, 2013, revenue was $107.2 million, down $9.8 million on revenue of $117.0 million in the comparative period, mainly due to lower revenue from charter renewals and 17 fewer ownership days as 2012 was a leap year, offset by 55 days less offhire, mainly from reduced levels of planned drydockings.

There were no drydockings in the second or third quarters of 2013. Two vessels were drydocked in the first quarter 2013. One further vessel has recently undergone its first special survey whilst afloat including an underwater inspection in lieu of a drydocking. As a result, the next scheduled inspection in a drydock is postponed to November 2016. Two drydockings are scheduled for 2014, and none for 2015.

Vessel Operating Expenses

Vessel operating expenses, which include costs of crew, lubricating oil, spares and insurance, were $11.1 million for the three months ended September 30, 2013. The average cost per ownership day in the quarter was $7,127, down $32 per day or 0.4% on $7,159 for the comparative period, with increased costs for crew and repairs and maintenance offset by prior period adjustments for port costs.

For the nine months ended September 30, 2013, vessel operating expenses were $34.3 million, or an average of $7,391 per day, compared to $34.1 million in the comparative period, or $7,315 per day. The increase of $76 per day, or 1.0%, is mainly due to increased costs for crew and repairs and maintenance offset by prior period adjustments for port costs.
Source: Global Ship Lease