Global Ship Lease reports net income of $8.0m for Q1, 2012
Global Ship Lease has announced the financial performance results for the first quarter of 2012. Revenue for the period totaled $38.4 million, down from $39.1 million for the first quarter 2011 mainly due to 48 days offhire in the first quarter 2012 for three planned drydockings, compared to three days in the first quarter 2011, the Company press release said.
Net income of GSL was $8.0 million for Q1, 2012, including a $2.7 million non-cash interest rate derivative mark-to-market gain. Reported net income for the first quarter 2011 was $10.8 million, including $5.0 million non-cash mark-to-market gain
Othe financial highlights:
- Generated $25.2 million EBITDA(1) for the first quarter 2012, compared to $26.2 million for the first quarter 2011 due mainly to additional offhire and increased maintenance spend
- Excluding the non-cash mark-to-market items, normalized net income(1) was $5.3 million for the first quarter 2012 compared to normalized net income of $5.9 million for the first quarter 2011
- Repaid $11.8 million of debt in the first quarter 2012 for a total debt repayment of $127.3 million since August 2009, when we commenced amortization of our credit facility balance
EBITDA was $25.2 million the three months ended March 31, 2012, down from $26.2 million for the three months ended March 31, 2011.
Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "We continued to generate strong financial results and achieve high utilization levels during the first quarter of 2012, as our entire fleet remained secured on long-term fixed rate charters. During a time in which we completed three of seven scheduled drydockings for 2012, we achieved EBITDA of $25.2 million and utilization of 97%. Despite continuing macro-economic uncertainty, a welcome positive development in our industry has been the recent successful implementation by the liner companies of freight rate increases. Global Ship Lease remains well positioned for long-term success as our fleet has a weighted average remaining lease term of 8.1 years with a contracted revenue stream of $1.2 billion."
Mr. Webber continued, "Complementing our success generating stable and predictable results, we further strengthened our balance sheet for the benefit of the Company and its shareholders. At a time when we have no purchase obligations, we have used our free cash flow to reduce our debt, paying down $11.8 million in the first quarter and $127.3 million since August of 2009."
Global Ship Lease (GSL), a Marshall Islands Corporationis with offices in London, is a containership lessor, publicly traded since 15th August 2008 on the New York Stock Exchange (GSL). The GSL owns a fleet of containerships that are leased out under long-term, fixed-rate time charters. GSL is a provider of quality chartered containership tonnage for top tier liner shipping companies.