Global Ship Lease(US:GSL)2025-03-05 16:23Financial 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 has reduced its outstanding debt by more than $130 million from the end of the previous year [26] - The cost of debt has decreased to 3.85%, with a blended cost of debt lower than ten-year treasuries [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 absorbed ship capacity equivalent to around 10% of global supply, leading to 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 of up to 6.5% 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 geopolitical environment remains uncertain, but the company has positioned itself to manage both challenges and opportunities effectively [48] - The company expects attractive opportunities to invest in the business and renew its fleet in the coming years [49] Other Important Information - The company announced an increase in its annualized dividend to $2.10 per share starting in 2025, reflecting a 40% increase since the introduction of the supplemental dividend [11][47] - The company has a healthy cash position of $274 million, with $106 million restricted for specific uses [27] 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 appetite for midsize and smaller container ships due to limited availability [57][58] Question: Are there plans for more asset divestments? - The company sold three older vessels opportunistically but remains focused on holding assets to lock in cash flow while balancing fleet age [60][62]