Global Ship Lease(US:GSL)2025-03-05 21:14Financial 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]