CONTAINERSHIP charter owner Global Ship Lease (GSL) posted a 9.9 per cent quarterly net profit decline to US$7.2 million year on year, drawn on revenues of $35.2 million, down 8.8 per cent.
In the company's first quarter of it fiscal year 2013, it generated $22.2 million in Adjusted EBITDA.
Global Ship Lease (GSL) is the surviving entity of the merger of the CMA CGM's once wholly owned unit GSL, and Marathon Acquisitions owned by Michael Gross, who, like CMA CGM, continue to hold shares in the ship lessor today.
GSL also signed one-year charters for two 4,113-TEU vessels which commenced on May 1 at $7,000 per vessel per day. The new charters expire on April 30, 2014 plus or minus 30 days at charterer's option.
The company also repaid $14.8 million of debt in the first quarter 2013 for a total debt repayment of $188.2 million since August 2009, when it commenced amortisation of the balance of the credit facility.
"With all 17 of our vessels on time charters and fewer offhire days from reduced numbers of drydockings, as planned, we achieved utilisation of 98.3 per cent for the quarter. As a result, we generated adjusted EBITDA of $22.2 million, using our cash to continue to de-lever our balance sheet, amortising an additional $14.8 million of debt," said Global Ship Lease CEO Ian Webber.
"We've chartered the two vessels whose contracts were due to expire this month, agreeing to new one-year charters with CMA CGM, underlining the strength of our relationship.
"Notwithstanding many vessels being idle, we have secured employment for these two vessels until April 2014, thereby maintaining a fully chartered fleet for at least one more year," Mr Webber said.
Other than for these two vessels, we have no other charter expirations until late 2016. Importantly, by continuing the charters with CMA CGM, we will not experience any offhire days, incur any costs associated with repositioning the vessels or pay any third party brokerage fees," he said.
"We remain well positioned to continue to de-lever our balance sheet, owing to our high level of contracted charter coverage which allows us to generate consistent revenue and strong, stable cash flow. We also continue to actively explore opportunities to enhance our financial flexibility and create incremental value for our shareholders," said Mr Webber.
MARKETS
04 November 2013 - 22:38
Global Ship Lease profit off 9.9pc to US$7 million as revenues slip 8.8pc
CONTAINERSHIP charter owner Global Ship Lease (GSL) posted a 9.9 per cent quarterly net profit decline to US$7.2 million year on year, drawn on revenues of $35.2 million, down 8.8 per cent.
MARKETS
04 November 2013 - 22:38
Global Ship Lease profit off 9.9pc to US$7 million as revenues slip 8.8pc
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