Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q3 2024 Earnings Presentation
32 slides from Global Ship Lease Inc New's earnings presentation, Nov 11, 2024
Slide 1: 3rd Quarter 2024 Results Presentation
| 3Q 2Q 2024 Results 1 rd 3 Quarter Results 2024 Presentation
Slide 2: Disclaimer
Disclaimer | 3Q 2Q 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 bas
Slide 3: Safe Harbor Statement
Safe Harbor Statement | 3Q 2Q 2024 Results 3 This presentation contains forward-looking statements. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions,
Slide 4: 3Q & 9M 2024 Highlights and Results
3Q & 9M 2024 Highlights and Results | 3Q 2Q 2024 Results 4 Macro uncertainty high, Red Sea disruption continues 3Q 2024 9M 2024 $597 million added to contracted revenues in 9M24 Revenue $174.1 million $528.6 million $300 million re-fi reduced average debt cost to 3.95%² Net Income $78.8 million $253
Slide 5: Increasing Contract Cover with Financially Strong, Diversified Charterer Base
Increasing Contract Cover | 3Q 2024 Results 5 with Financially Strong, Diversified Charterer Base ONE 3% Matson <1% Wan Hai <1% COSCO / OOCL 4% MSC 10% CMA CGM 17% $1.8 billion Contracted revenues @ September 30, 2024¹ ZIM 9% Share of 2.3 years of average remaining contract cover TEU-weighted cover
Slide 6: Dynamic Capital Allocation through the Cycle
Dynamic Capital Allocation through the Cycle | 3Q 2024 Results 6 Capital allocation driven by relative Consideration of risks to cash flows, Focus on generating long-term value returns, adjusted for risk and sustainability and profitability of for shareholders business through the cycle Return of ca
Slide 7: Using the Cycle to Create Significant Long-Term Value
Using the Cycle | 3Q 2024 Results 7 to Create Significant Long-Term Value June 2021 500 February 2021 June 2021 May 2023 4 x ultra-high Charter Rate & Asset Value Indices (100 = Average 2003 to 9M24) 7 x 6,000 TEU ships 12 Borealis ships 4 x 8,500 TEU ships reefer ships 450 400 May 2019 November 201
Slide 8: 9M 2024 Financials & Highlights
9M 2024 Financials & Highlights | 3Q 2024 Results 8 P&L Balance Sheet Shareholder Returns Revenue: $528.6 million, up from $495.9 Gross debt: $688.0 million, down from Supplemental dividend has increased million for 9M 2023 $823.2 million at December 31, 2023 quarterly dividend by 20%, to $0.45 ($1.
Slide 9: De-levering to De-risk, Grow Equity Value, and Increase Optionality
De-levering to De-risk, | 3Q 2024 Results 9 Grow Equity Value, and Increase Optionality De-Risking of Balance Sheet Continues¹ Financial Leverage Increasingly Robust2 1000 950 9.0 8.4 Adj. Net Debt / Adj. EBITDA (x)2 Debt Outstanding ($ mm)¹ 900 8.0 800 823 7.0 700 6.0 647 5.0 600 5.0 505 4.3 4.2 50
Slide 10: Low Cost of Debt & Low Break-Even Rates
Low Cost of Debt & Low Break-Even Rates | 3Q 2024 Results 10 Strong Platform to Manage Cycle & Build Value Reducing Cost of Debt1 Lowering Vessels’ Average Daily Break-Even Rates 2 Daily interest expense paid (net of paid interest rate caps income) 8.00% 7.56% 7.59% Margin/Coupon $14,000 Daily Voyag
Slide 11: Mid-Size & Smaller Containerships
Mid-Size & Smaller Containerships | 3Q 2024 Results 11 Flexible Assets & Backbone of Global Trade GSL focus High-reefer, mid-size & smaller containerships 73% Deployment of sub-10,000 TEU ships: everywhere¹ Proportion of global containerized trade volume in non - Mainlane trades² Sub-10,000 TEU Non
Slide 12: Supply-Side Trends: Idle Capacity Minimal, Scrapping Largely on Hold
Supply-Side Trends | 3Q 2024 Results 12 Idle Capacity Minimal, Scrapping Largely on Hold Idle Capacity of Global Containership Fleet is Currently Negligible¹ 3.0 12,000 + TEU 14.0% Idle Fleet Ratio (Green Line) 7,600-11,999 TEU 2.7 0.6% Idle Capacity (TEU mm) 5,200-7,599 TEU 12.0% 2.4 3,900-5,200 TE
Slide 13: Orderbook is Meaningful, but Our Sector-Focused Fundamentals Remain Positive
Orderbook is Meaningful, | 3Q 2024 Results 13 but Our Sector-Focused Fundamentals Remain Positive Orderbook & Fleet Ratios, by Size Segment¹ Sub-10,000 TEU Deliveries v. Age Profile¹ 7.0 26.2% 2.5 • • Median age for 10,000+ TEU fleet: 7 years Median age for sub-10,000 TEU fleet: 16 years 26.2% 46.1%
Slide 14: Re-routing Suez Trades via Cape of Good Hope Continues to Absorb Effective Capacity
Re-routing Suez Trades via Cape of Good Hope | 3Q 2024 Results 14 Continues to Absorb Effective Capacity, Tightening Supply 12,000 10,000 Distance (nm) 20% of global containerized trade volumes 8,000 Cargo passing via Suez, pre-Red Sea disruption¹ 6,000 4,000 2,000 0 Via COGH Via Suez 34% of global
Slide 15: Market Rates & Asset Values were Normalizing, but Demand & Red Sea Disruptions are Supportive
Market Rates & Asset Values were Normalizing, | 3Q 2024 Results 15 but Demand & Red Sea Disruptions are Supportive¹ Short Term (6 – 12 Months) Charter Market Index, 4Q 2020 – 3Q 2024² 250 Market Rates (Indicative) Charter Rate Index (100 = Average 4Q20 to 3Q24) Ship Size (TEU) $ / Day 200 2,200 – 2,
Slide 16: Summary
Summary | 3Q 2Q 2024 Results 16 1 Increasing cash flows at strong rates: $597 million added to contracted revenues, resulting in forward contract cover of $1.8 billion over 2.3 years¹ 2 Macro & geo-political uncertainty remains high; but market conditions are supportive, compounded by continued Red
Slide 17: Appendix
| 3Q 2Q 2024 Results 17 ▪ Financial Statements Appendix ▪ ▪ EBITDA Calculator & CAPEX Guidance Reconciliation of Non-GAAP Financial Measures ▪ Debt Structure ▪ Decarbonization & Associated Regulations
Slide 18: Financial Statements: Balance Sheet at September 30, 2024
Financial Statements: Balance Sheet at September 30, 2024 (Unaudited) | 3Q 2Q 2024 Results 18 (Expressed in thousands of U.S. dollars, except share data) September 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 260,456 $ 138,640 Time deposits 26,450 14,000 Restricted ca
Slide 19: Financial Statements: P&L for 3Q24 & 9M 2024
Financial Statements: P&L for 3Q24 & 9M 2024 (Unaudited) | 3Q 2Q 2024 Results 19 (Expressed in thousands of U.S. dollars) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 OPERATING REVENUES Time charter revenues $ 172,546 $ 173,012 $ 524,099 $ 489,338 Amortization
Slide 20: Financial Statements: Cash Flow for 3Q24 & 9M 2024
Financial Statements: Cash Flow for 3Q24 & 9M 2024 (Unaudited) | 3Q 2Q 2024 Results 20 (Expressed in thousands of U.S. dollars) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $ 81,147 $ 85,071 $ 261,064 $ 237,451
Slide 21: Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative)
Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative) | 3Q 2Q 2024 Results 21 The table below presents our illustrative calculator for our fleet for 2024 and 2025, based on historical performance, contracted revenue, and assumed expenses, Capitalized and Drydocking Expenses, Finance Expe
Slide 22: CAPEX Guidance
CAPEX Guidance | 3Q 2Q 2024 Results 22 Indicative CAPEX, based on average costs FY2022 – FY2023 and adjusted for annualized inflation modelled at 3.8% and 0.93% for 2024 and 2025, respectively ▪ Average special survey & dry-docking for 2024 and 2025: ~$2.40 million (15 vessels) and $2.43 million (13
Slide 23: Adjusted EBITDA & Normalized Net Income – Reconciliation (1/2)
Adjusted EBITDA & Normalized Net Income – Reconciliation (1/2) | 3Q 2Q 2024 Results 23 (Expressed in thousands of U.S dollars) Reconciliation of Non-U.S. GAAP Adjusted EBITDA - Unaudited Financial Measures Three months Three months Nine months Nine months ended ended ended ended Adjusted EBITDA Sept
Slide 24: Adjusted EBITDA & Normalized Net Income – Reconciliation (2/2)
Adjusted EBITDA & Normalized Net Income – Reconciliation (2/2) | 3Q 2Q 2024 Results 24 (Expressed in thousands of U.S dollars) Normalized Net Income Normalized Net Income - Unaudited Normalized net income represents net income, after adjusting for certain non-recurring items. Normalized net income i
Slide 25: Year-End Adj. Net Debt to TTM Adj. EBITDA – Reconciliation
Year - End Adj. Net Debt to Trailing 12M (TTM) Adj. EBITDA - Reconciliation | 3Q 2Q 2024 Results 25 (Expressed in thousands of U.S dollars) (Expressed in thousands of U.S dollars, except Adjusted Net Debt / LTM Adjusted EBITDA Ratio) Adjusted Net Debt / Adjusted EBITDA Year Ending TTM 31-Dec-2018 31
Slide 26: EPS & Normalized EPS – Reconciliation (1/2)
EPS & Normalized EPS – Reconciliation (1/2) | 3Q 2Q 2024 Results 26 (Expressed in thousands of U.S dollars, except share data) EPS – Basic & Fully Diluted Normalized EPS – Basic & Fully Diluted Normalized Net Income - Unaudited Three months Three months Nine months Nine months Three months Three mon
Slide 27: EPS & Normalized EPS – Reconciliation (2/2)
EPS & Normalized EPS – Reconciliation (2/2) | 3Q 2Q 2024 Results 27 (Expressed in thousands of U.S dollars, except share data) Reconciliations of Basic and Normalized Basic EPS Reconciliations of Diluted, and Normalized Diluted EPS Three months Three months Nine months Nine months Three months Three
Slide 28: Debt Structure as at September 30, 2024
Debt Structure as at September 30, 2024 | 3Q 2Q 2024 Results 28 (Expressed in millions of U.S dollars) Collateralized Outstanding Balance Balloon Interest Repayment Maturity Ships as of 30 September 2024 Installment Interpolated interest rate 2027 USPP Notes 20 of GSL ships $245.00 15% p.a ($13.1 mi
Slide 29: Decarbonization Update 1/3
Decarbonization Update 1/3 | 3Q 2Q 2024 Results 29 Evolving Regulatory Environment (Highlights) EEXI - Energy Efficiency Existing Ship Index. Determined by ship’s technical characteristics. Pass or fail. Compliance required by ship’s first annual IAPP survey after January 1, 2023 CII - Carbon Intens
Slide 30: Decarbonization Update 2/3
Decarbonization Update 2/3 | 3Q 2Q 2024 Results 30 Expected Implications for Global Containership Fleet Reduced operating speeds to disproportionately reduce fuel consumption and emissions. Decrease in average operating speed of global fleet by one knot would reduce effective supply by ~6% [Red Sea
Slide 31: Decarbonization Update 3/3
Decarbonization Update 3/3 | 3Q 2Q 2024 Results 31 GSL Actions to Maintain Commercial Positioning of Fleet¹ Engine Power Limiters (EPLs) installed, where appropriate, to facilitate compliance with EEXI Retro-fitting Energy Saving Technologies (ESTs) to ships, for regulatory compliance / commercial v
Slide 32: Our Four-Pillared Decarbonization Strategy Status Report
Our Four-Pillared Decarbonization Strategy | 3Q 2024 Results 32 Status Report 26.2% Orderbook to fleet ratio¹ Overall orderbook, all containerships 11.3% Orderbook to fleet ratio¹ Our focus segments 2,000 – 9,999 TEU Implied net growth (4.8%) of sub-10,000 TEU fleet through 2027 If all 25+ year old