Core Viewpoint - Global Ship Lease, Inc. will hold a conference call on May 19, 2025, to discuss its first quarter 2025 financial results, which will be released before market trading begins on the same day [1]. Company Overview - Global Ship Lease is an independent owner of containerships, operating a diversified fleet of mid-sized and smaller vessels. The company was incorporated in the Marshall Islands and began operations in December 2007, focusing on owning and chartering containerships under fixed-rate charters to top-tier container liner companies. It was listed on the New York Stock Exchange in August 2008 [2]. Fleet Information - As of December 31, 2024, the company had a fleet of 71 vessels with an average age weighted by TEU capacity of 17.6 years. The company has recently acquired new vessels, with three delivered in December 2024 and one in January 2025. Additionally, the company has sold older vessels, including Tasman, Akiteta, and Keta, with expected delivery dates in early 2025 [3]. Charter and Revenue Details - The average remaining term of the company's charters, weighted by TEU capacity, was 2.3 years as of December 31, 2024. The contracted revenue on this basis was $1.88 billion. Including options under charterers' control, the total contracted revenue was $2.37 billion, representing a weighted average remaining term of 2.9 years [4].

Group 1: Global Ship Lease (GSL) - GSL shares increased by 6.9% to close at $19.50, following President Trump's announcement to pause reciprocal import taxes for 90 days [1] - The stock experienced a significant decline of 21.9% over the past four weeks prior to this increase [1] - The upcoming quarterly earnings are expected to be $2.27 per share, reflecting a year-over-year decrease of 10.3%, with revenues projected at $166.46 million, down 7.3% from the previous year [2] Group 2: Earnings Estimates and Stock Performance - The consensus EPS estimate for GSL has remained unchanged over the last 30 days, indicating a lack of upward momentum in earnings estimate revisions [3] - A strong correlation exists between earnings estimate revisions and near-term stock price movements, suggesting that monitoring GSL's performance is crucial [2][3] - GSL currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] Group 3: Industry Context - GSL operates within the Zacks Transportation - Shipping industry, which includes other companies like Genco Shipping & Trading (GNK) [3] - GNK shares closed 10% higher at $12.50, despite a 15.9% decline over the past month [3] - GNK's consensus EPS estimate has remained unchanged at -$0.20, representing a significant year-over-year decline of 140.8% [4]

Company Overview - Global Ship Lease, Inc. is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships [3] - The company commenced operations in December 2007 and was listed on the New York Stock Exchange in August 2008 [3] Fleet and Operations - As of December 31, 2024, the company had a fleet of 71 vessels with an average age weighted by TEU capacity of 17.6 years [4] - The company agreed to purchase newly acquired vessels, with three delivered in December 2024 and one in January 2025 [4] - The company sold an older vessel, Tasman, with expected delivery in late March 2025, and two more vessels, Akiteta and Keta, with deliveries in February and March 2025 respectively [4] Charter Agreements and Revenue - The average remaining term of the company's charters, on a TEU-weighted basis, was 2.3 years as of December 31, 2024 [5] - Contracted revenue on a TEU-weighted basis was $1.88 billion, while total contracted revenue, including options under charterers' control, was $2.37 billion, representing a weighted average remaining term of 2.9 years [5]

Industry Trends - The compound annual growth rate (CAGR) of containerized trade volumes from 2010 through 2024 is projected to be 3.0%, despite fluctuations due to COVID-19 and geopolitical tensions [30]. - The container shipping industry has experienced a cyclical downturn from 2008/2009 through 2016, with improvements noted from 2017 through 2019 [30]. - The container shipping market is cyclical and volatile, with growth and long-term profitability reliant on demand for containerships and charter market conditions [28]. - The container shipping industry is cyclical, with demand influenced by global economic conditions, trade policies, and geopolitical events [102]. - The net supply CAGR for the containership fleet from 2021 to 2024 is estimated at 7.5% [102]. - The ongoing geopolitical conflicts, including the Russia-Ukraine war and tensions in the Middle East, are expected to adversely impact the company's financial results and cash flows [114]. - The economic uncertainty due to the Ukraine conflict has led to increased inflationary pressures, particularly in fuel and grain prices, which may affect charter rates and operating expenses [115]. Financial Performance and Risks - The company is dependent on charterers fulfilling their obligations, with any failure potentially leading to reduced revenues and cash flow [30]. - The company has substantial indebtedness, which could limit its ability to raise additional capital and react to changes in the economy [28]. - The company faces risks from geopolitical events, including the ongoing wars and trade tensions, which may disrupt supply chains and affect charterers' operations [30]. - The company may struggle to recharter vessels at profitable rates upon expiry of existing charters, with several charters set to expire in the first half of 2025 [56]. - The company may encounter difficulties in obtaining new charters or financing due to perceived credit quality issues with charterers [36]. - The company is exposed to risks from vessel value fluctuations, which could affect financial condition and result in losses upon disposal [70]. - The company must satisfy financial covenants, including minimum liquidity and value adjusted leverage ratio, which depend on ongoing financial performance [60]. - The company may need to recognize impairment charges if vessel values decline, which could significantly reduce earnings and net assets [72]. - The company’s ability to raise capital may be limited by declining vessel values, affecting refinancing options and collateral availability [72]. - Weak conditions in the containership sector may hinder the company's ability to generate cash flows and maintain liquidity, affecting financing options [103]. Operational Challenges - The company may need to make substantial expenditures to maintain its fleet and meet new regulatory requirements [28]. - The company is dependent on third-party managers for ship operations, which may pose risks if these managers face financial difficulties [48]. - The company may incur substantial expenditures to maintain its fleet and comply with new regulatory requirements, which could increase due to rising labor and material costs [77]. - Extended periods of off-hire for vessels could materially adversely affect the company's business and financial results [75]. - The company relies on a stable supply of consumables and spare parts; delays or unavailability could lead to off-hire days and negatively impact revenues [145]. Competition and Market Dynamics - The company faces substantial competition in acquiring vessels, with limited financing options and high costs impacting growth potential [36]. - Increased competition in technology and innovation could reduce charter hire income and the value of the company's vessels [28]. - The competitive landscape may limit the company's ability to purchase additional vessels or expand relationships with existing charterers [40]. - An oversupply of containership capacity, currently at approximately 27.4% of the total fleet capacity, may lead to reduced charter hire rates and profitability [128]. - Increased competition from more technologically advanced vessels could adversely affect the company's ability to re-charter and the resale value of its vessels [129]. Regulatory and Compliance Issues - Environmental regulations, including compliance with sulfur emission limits, may require significant retrofitting of vessels, impacting future performance and cash flows [161]. - The company must adhere to the International Ship and Port Facilities Security Code (ISPS Code), with potential costs and liabilities associated with compliance and certification maintenance [159]. - Climate change regulations may impose additional operational challenges and costs, as countries and organizations adopt frameworks to reduce greenhouse gas emissions from ships [162]. - Compliance with ballast water discharge regulations may require substantial costs for installing treatment systems on vessels [174]. - The U.S. EPA is finalizing national standards for ballast water discharges, which may impose additional compliance costs [175]. Economic and Trade Factors - China's GDP growth rate for the year ended December 31, 2024, was approximately 5.0%, a decrease from 5.2% in 2023, indicating potential economic challenges in the Asia Pacific region [110]. - The U.S. imposed tariffs of 10% on all imported goods from China and 25% on steel and aluminum imports, effective February and March 2025, respectively, which may adversely affect shipping demand [112]. - The implementation of trade protectionism by the U.S. and retaliatory measures from other countries could significantly impact the volume of exported goods and demand for shipping services [113]. Cybersecurity and Operational Risks - The company faces risks related to cybersecurity, as successful cyber-attacks could materially disrupt operations and adversely affect financial results [101]. - The company is exposed to risks from marine accidents, bad weather, and other operational challenges that could impair charterers' ability to make payments, potentially leading to financial losses [141]. Shareholder and Tax Considerations - Future sales of common stock could depress the market price, impacting the company's ability to raise additional capital [193]. - The company may issue additional shares of common stock without shareholder approval, which could dilute existing shareholders' ownership and affect dividend payments [194]. - The ability to pay dividends on Series B Preferred Shares is limited by cash generated from operations, which may fluctuate significantly [197]. - The company believes it qualifies for the Section 883 exemption for U.S. federal income tax for 2022 through 2024, but future compliance is uncertain [204]. - There are potential adverse U.S. federal income tax consequences for U.S. holders due to the company's classification as a "passive foreign investment company" (PFIC) [205].

Financial Data and Key Metrics Changes - The company generated $9.74 earnings per share (EPS) for 2024, which rises to just below $10 EPS on a normalized basis [7] - The company reduced its outstanding debt by more than $130 million from the end of the previous year, with a current cash position of $274 million [26][28] - The cost of debt has decreased to 3.85%, with a breakeven rate just above $9,200 per day at year-end 2024 [30][49] Business Line Data and Key Metrics Changes - The company added $714 million of contracted revenues in 2024, with $118 million added in the fourth quarter [10] - As of December 31, 2024, the company has close to $1.9 billion in contracted revenues, amounting to 2.3 years of average remaining contract cover [16][46] Market Data and Key Metrics Changes - The disruptions in the Red Sea have led to a rerouting of vessels, absorbing ship capacity equivalent to around 10% of global supply, which has increased earnings in both freight and charter markets [33][44] - The order book for vessels under 10,000 TEU is modest at 11.3%, with a potential negative net fleet growth through 2028 if older vessels are scrapped [43] Company Strategy and Development Direction - The company is focused on renewing its fleet by purchasing high specification eco vessels while rotating out older ships [12][24] - The company aims to maximize optionality and manage risks while seizing opportunities in a complex market environment [13][50] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the geopolitical uncertainty and its impact on shipping routes, but remains optimistic about the demand for midsize and smaller container ships [8][32] - The management believes that the current macro and geopolitical environment presents both challenges and opportunities, and they are well-positioned to navigate these [48][49] Other Important Information - The company announced an increase in its annualized dividend to $2.10 per share, reflecting a 40% increase since the introduction of the supplemental dividend [11][47] - The company has maintained a strong balance sheet with long-dated debt maturities and one of the highest credit ratings in the industry [48] Q&A Session Summary Question: What is the appetite of liner companies for vessels opening for re-charter? - The company is not seeing rates coming down in the charter market and continues to see strong appetite for midsize and smaller container ships due to limited availability [57][58] Question: Are there plans for more asset divestments? - The company aims to maintain the age and cash flows of its fleet, and while they sold three older vessels opportunistically, they believe holding onto assets is key to making money in containership owning and leasing [60][62]

Global Ship Lease, Inc. (NYSE:GSL) Q4 2024 Earnings Conference Call March 5, 2025 10:30 AM ET Company Participants Thomas Lister - Chief Executive Officer George Youroukos - Executive Chairman Tassos Psaropoulos - Chief Financial Officer Conference Call Participants Liam Burke - B. Riley Operator Thank you for standing by, and good day, everyone. My name is Argy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Global Ship Lease, Inc. 2024Q4 earnings confer ...

4 th Quarter 2024 Results Presentation | 4Q 2024 Results 1 Disclaimer | 4Q 2024 Results 2 This presentation does not constitute or form part of, and should not be construed as, an offer to sell or an invitation, solicitation, or inducement to purchase or subscribe for securities with respect to any transaction, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This presentation does not constitute either advice or a recommendation re ...

Core Insights - Global Ship Lease, Inc. reported a strong financial performance for the year ended December 31, 2024, with significant increases in both revenue and net income, driven by higher charter rates and fleet expansion [2][3][11]. Financial Performance - 4Q 2024 operating revenue reached $182.4 million, while full year operating revenue totaled $711.1 million, marking a 5.4% increase from 2023 [2][17]. - Net income available to common shareholders for 4Q 2024 was $90.2 million, translating to $2.54 EPS, and for the full year, net income was $344.1 million, or $9.74 EPS, reflecting a 16.6% increase from 2023 [2][38]. - Normalized net income for 4Q 2024 was $90.4 million, with a normalized EPS of $2.55, and for the full year, normalized net income was $352.7 million, or $9.99 normalized EPS, up 10.3% from 2023 [3][39]. Operational Highlights - The company added $884.8 million in contracted revenues during 2024 and early 2025, bringing total contracted revenues to $1.88 billion as of December 31, 2024 [6][11]. - Fleet utilization for 4Q 2024 was 94.5%, down from 98.1% in the prior year, primarily due to increased off-hire days for scheduled drydockings [16][17]. Fleet Management - The company acquired four high-reefer, ECO-9,000 TEU containerships for $274 million, with financing terms set at SOFR + 2.50% [4][11]. - Three older vessels were sold for a total of $54.5 million, significantly above their book value of $24.9 million, as part of the fleet renewal strategy [5][11]. Dividend and Shareholder Returns - The Board of Directors announced a quarterly supplemental dividend increase of $0.075 per share, raising the total annualized dividend to $2.10 per share, a 40% increase from the previous year [7][11]. - The company repurchased 251,772 Class A common shares for approximately $5.0 million in 2024, with a total of $57.0 million spent on share repurchases since Q3 2021 [8][11]. Debt and Financing - As of December 31, 2024, total debt was $691.1 million, down from $823.2 million in the previous year, with a significant reduction in interest expenses due to refinancing [31][34]. - Interest expense for 4Q 2024 was $7.8 million, a decrease from $11.2 million in the prior year, attributed to a lower blended cost of debt [33][34]. Market Outlook - The company expressed confidence in sustaining shareholder value through operational excellence and capital allocation discipline, despite a volatile geopolitical environment [11][10].

Core Viewpoint - Global Ship Lease, Inc. will hold a conference call on March 5, 2025, to discuss its financial results for the fourth quarter and full year 2024, with results to be released before market trading on the same day [1][2]. Company Overview - Global Ship Lease is an independent owner of containerships, operating a diversified fleet of mid-sized and smaller containerships since its inception in December 2007 [3]. - The company was listed on the New York Stock Exchange in August 2008 [3]. Fleet and Capacity - As of September 30, 2024, Global Ship Lease owned 68 containerships with capacities ranging from 2,207 to 11,040 TEU, totaling an aggregate capacity of 376,723 TEU [4]. - Among these, 36 ships are classified as wide-beam Post-Panamax [4]. Chartering and Revenue - The average remaining term of the company's charters, on a TEU-weighted basis, was 2.3 years as of September 30, 2024 [5]. - Contracted revenue, based on the same basis, was reported at $1.78 billion, while total contracted revenue, including options under charterers' control, was $2.15 billion, with a weighted average remaining term of 2.8 years [5].

Core Viewpoint - Global Ship Lease, Inc. has declared a dividend of $0.45 per Class A common share for Q4 2024, to be paid on March 6, 2025, to shareholders of record as of February 24, 2025 [1] Company Overview - Global Ship Lease is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships [2] - The company was incorporated in the Marshall Islands and commenced operations in December 2007, focusing on owning and chartering containerships under fixed-rate charters to top-tier container liner companies [2] - It was listed on the New York Stock Exchange in August 2008 [2] Fleet and Capacity - As of September 30, 2024, Global Ship Lease owned 68 containerships, with capacities ranging from 2,207 to 11,040 TEU, totaling an aggregate capacity of 376,723 TEU [3] - Among these, 36 ships are classified as wide-beam Post-Panamax [3] Charter Terms and Revenue - The average remaining term of the company's charters, on a TEU-weighted basis, was 2.3 years as of September 30, 2024 [4] - Contracted revenue on the same basis was reported at $1.78 billion [4] - Including options under charterers' control and with the latest redelivery date, contracted revenue was $2.15 billion, representing a weighted average remaining term of 2.8 years [4]