Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q3 2016 Earnings Presentation
19 slides from Global Ship Lease Inc New's earnings presentation, 2016
Slide 1: Third Quarter 2016 Results Presentation
Third Quarter 2016 Results Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease’s current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease’s expectations, beliefs, plans, objectives, i
Slide 3: Disclaimer
Disclaimer The financial information and data contained in this communication is unaudited and does not conform to the U.S. Securities and Exchange Commission Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, Global
Slide 4: Global Ship Lease: Q3 2016
Global Ship Lease: Q3 2016 Stable, predictable earnings and cashflow with no spot market exposure Revenues – Reported revenue of $41.2 million for the third quarter 2016 Reported Net Loss – Reported net loss of $23.7 million for the third quarter 2016, after $29.4 million non-cash impairment cha
Slide 5: GSL Performance
Continue to Demonstrate Strong Results and Stability Throughout the Cycle Market Timecharter Index 150 140 130 Market Cycle 120 110 100 90 80 Timecharter Rate Index Five Year Average 70 60 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ‘11 ‘12 ‘12 ‘12 ’12 ‘13 ’13 ‘13 ‘13 ‘14 ’14 ‘14 ‘14
Slide 6: Full Contract Coverage and Significant Cashflow Visibility Provide Stable Platform for Growth
Full Contract Coverage and Significant Cashflow Visibility Provide Stable Platform for Growth Fully contracted fleet, with $680 million(1) contracted revenues 4.2 years(1) weighted average remaining contract coverage; No exposure to the spot market Charter Details Expiration Charters amended Vessel
Slide 7: Strategic Relationship with CMA CGM, an Industry Leader & Consolidator
Strategic Relationship with CMA CGM, an Industry Leader & Consolidator Top 20 Liners by Operated Capacity (TEU)¹ CMA CGM & APL (Acquisition Completed 3Q2016) 3.50 Owned Chartered Orderbook Capacity (TEU million) 3.00 2.50 Fleet (ships / TEU)²: 462 / 1.82 mm 85 / 535 kk 2.00 Chartered (ships)²: 81% 3
Slide 8: Strategic Vision
Strategic Vision Charter Strategy and • Maintain quality fleet with primary focus on longer-term charters to established counterparties Operational Risk • Contractual protections, comprehensive insurance, no fuel risk, limited FX risk Management • Acquisitions to be immediately cash generative • Con
Slide 9: Trade Fundamentals Remain Weak, but Supply Growth is Slowing
Trade Fundamentals Remain Weak, but Supply Growth is Slowing Demand Growth v. Capacity Growth¹ Composition of Global Containerized Trade in 2015¹ 9.0% 8.1% 8.0% Transpacific 7.2% 6.5% 13% Year-on-Year Growth 7.0% 5.6% Far East - Europe 6.0% 5.4% 5.0% 4.1% 40% 12% 3.9% Transatlantic 4.0% 3.4% 3.4% 3.
Slide 10: Spot Market Charter Rates & Asset Values Remain Under Pressure
Spot Market Charter Rates & Asset Values Remain Under Pressure Charter, Secondhand Price & Newbuilding Price Indices¹ Charter Rates for Different Size Segments² 260 Timecharter Rate Index 240 Newbuilding Price Index 220 Index (100 = Average Since Jan-2000) Secondhand Price Index 200 Average Since Ja
Slide 11: Scrapping of Mid-Size & Smaller Tonnage Accelerating
Scrapping of Mid-Size & Smaller Tonnage Accelerating Evolution of Idle Capacity¹ Scrapping Activity¹ Commentary Chartered Tonnage by Size Segment¹ 70.0% Increased idle capacity: predominantly made up of mid-size 61.2% Proportion Chartered (%) 60.0% 55.4% and smaller tonnage; mostly lessor-owned 51
Slide 12: Mid-Size & Smaller Ships Key to Most Tradelanes
(1) # Ships Tradelane Vessel Size (TEU) - 10,000 12,000 14,000 16,000 18,000 20,000 2,000 4,000 6,000 8,000 210 Europe-Africa 193 Europe-Latam MSI as at December 31, 2015 76 Europe-M.East/ISC 190 F.East-Africa 331 F.East-Europe 155 F.East-Latam 283 F.East-M.East/ISC 154 F.East-Oceania 53 Intra-Afric
Slide 13: Favorable Medium-Term Demand-Supply Outlook for Mid-Size & Smaller Ships
Favorable Medium-Term Demand-Supply Outlook for Mid-Size & Smaller Ships Evolution of the Global Fleet & Orderbook-to-Fleet Ratio (at Year-End)¹ Orderbook-to-Fleet by Segment² 60.0% 20 100% 52.9% 12,000 + TEU Orderbook-to-fleet ratio peaked Orderbook-to-Fleet Ratio above 60% in 2007; Now below 50.0%
Slide 14: Q3 2016 Financials
Q3 2016 Financials oF GLOBAL SHIP LEASE
Slide 15: Consolidated Income Statement Q3 2016 and 2015 (unaudited)
Consolidated Income Statement Q3 2016 and 2015 (unaudited) $000’s Three months ended September 30, 2016 2015 Operating Revenues Time charter revenue $ 9,444 $ 8,561 Time charter revenue – related party 31,710 33,623 41,154 42,184 Operating Expenses Vessel operating expenses 11,362 12,324 Vessel oper
Slide 16: Consolidated Balance Sheet at September 30, 2016 and December 31, 2015 (unaudited)
Consolidated Balance Sheet at September 30, 2016 and December 31, 2015 (unaudited) September 30, December 31, 2016 2015 $000’s Assets Cash and cash equivalents $ 48,746 $ 53,591 Accounts receivable 55 87 Due from related party 1,567 2,124 Prepaid expenses 1,527 1,101 Other receivables 394 118 Invent
Slide 17: Consolidated Cash Flow Statement Q3 2016 and 2015 (unaudited)
Consolidated Cash Flow Statement Q3 2016 and 2015 (unaudited) Three months ended September 30, $000’s 2016 2015 Cash Flows from Operating Activities Net loss $ (22,919) $ (40,318) Adjustments to Reconcile Net loss to Net Cash Provided by Operating Activities Depreciation 10,578 11,524 Vessel impairm
Slide 18: Concluding Remarks
Concluding Remarks Fully chartered fleet provides stable, long-term cash flows: – Contracted revenue of $680 million with weighted average remaining contract term of 4.2 years – Successfully extended two of our earliest expiring charters for a period of up to 3.25 years, at GSL's option – Three op
Slide 19: Q&A
Q&A oF GLOBAL SHIP LEASE