Slide 1: 2nd Quarter 2024 Results Presentation
| 2Q 2024 Results 1 nd 2 Quarter Results 2024 Presentation
Slide 2: Disclaimer
Disclaimer | 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 basis
Slide 3: Safe Harbor Statement
Safe Harbor Statement | 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, as
Slide 4: 2Q & 1H 2024 Highlights and Results
2Q & 1H 2024 Highlights and Results | 2Q 2024 Results 4 Macro & geo-political uncertainty remains high 2Q 2024 1H 2024 Strong market & continued Red Sea disruption Revenue $175.0 million $354.6 million $403 million added to contracted revenues in 1H24 Net Income $85.6 million $175.1 million Adjusted
Slide 5: Increasing Contract Cover with Financially Strong, Diversified Charterer Base
Increasing Contract Cover | 2Q 2024 Results 5 with Financially Strong, Diversified Charterer Base ONE 1% Matson 1% Wan Hai 1% COSCO / OOCL 2% MSC 11% CMA CGM 19% $1.8 billion Contracted revenues @ June 30, 2024¹ ZIM 10% Share of 2.2 years of average remaining contract cover TEU-weighted cover @ June
Slide 6: Dynamic Capital Allocation
Dynamic Capital Allocation | 2Q 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 capital to investors
Slide 7: Using the Cycle to Create Significant Long-Term Value
Using the Cycle | 2Q 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 2023) 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: 1H 2024 Financials & Highlights
1H 2024 Financials & Highlights | 2Q 2024 Results 8 P&L Balance Sheet Shareholder Returns Revenue: $354.6 million, up from $321.4 Gross debt: $721.1 million, down from Supplemental dividend to increase quarterly million for 1H 2023 $823.2 million at December 31, 2023 dividend by 20%, to $0.45 ($1.80
Slide 9: De-levering to De-risk, Grow Equity Value, and Increase Optionality
De-levering to De-risk, | 2Q 2024 Results 9 Grow Equity Value, and Increase Optionality De-Risking of Balance Sheet Continues¹ Financial Leverage Increasingly Robust2 1000 950 9.0 8.4 Adj. Net Debt / Adj. EBITDA (x)2 Debt Outstanding ($ mm)¹ 900 8.0 800 823 7.0 700 6.0 630 600 5.0 485 5.0 4.3 500 4.
Slide 10: Low Cost of Debt and Low Break-Even Rates
Low Cost of Debt | 2Q 2024 Results 10 and Low Break-Even Rates Reducing Cost of Debt1 Lowering Vessels’ Average Daily Break-Even Rates 2 Margin/Coupon Daily interest expense paid (net of paid interest rate caps income) 8.00% 7.56% 7.59% $14,000 Daily Voyage Expenses (excl. brokerage commissions) 3 A
Slide 11: Mid-Size & Smaller Containerships: Flexible Assets & Backbone of Global Trade
Mid-Size & Smaller Containerships | 2Q 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 | 2Q 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 0.8% Idle Capacity (TEU mm) 5,200-7,599 TEU 12.0% 2.4 3,900-5,200 TE
Slide 13: Orderbook is Meaningful, but Sector-Focused Fundamentals Remain Positive
Orderbook is Meaningful, | 2Q 2024 Results 13 but Our Sector-Focused Fundamentals Remain Positive Orderbook & Fleet Ratios, by Size Segment¹ Sub-10,000 TEU Deliveries v. Age Profile¹ 5.0 21.4% 2.5 Implied net fleet shrinkage (4.2%) through 2027 if all existing capacity 25+ years old were to be scrap
Slide 14: Re-routing Suez Trades via Cape of Good Hope Absorbs Effective Capacity
Re-routing Suez Trades via Cape of Good Hope | 2Q 2024 Results 14 Absorbs 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 containershi
Slide 15: Market Rates & Asset Values were Normalizing, but Demand & Red Sea Disruptions are Supportive
Market Rates & Asset Values were Normalizing, | 2Q 2024 Results 15 but Demand & Red Sea Disruptions are Supportive¹ Short Term (6 – 12 Months) Charter Market Index, 4Q 2020 – 2Q 2024² 250 Market Rates (Indicative) Charter Rate Index (100 = Average 4Q20 to 2Q24) Ship Size (TEU) $ / Day 200 2,200 – 2,
Slide 16: Summary
Summary | 2Q 2024 Results 16 1 $403 million added to contracted revenues, growing forward contract cover to $1.8 billion over 2.2 years¹ 2 Macro & geo-political uncertainty remains high; but market conditions are supportive, compounded by continued Red Sea disruption 3 Focused on increasing contract
Slide 17: Appendix
| 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 June 30, 2024 (Unaudited)
Financial Statements: Balance Sheet at June 30, 2024 (Unaudited) | 2Q 2024 Results 18 (Expressed in thousands of U.S. dollars, except share data) June 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 171,279 $ 138,640 Time deposits 53,000 14,000 Restricted cash 58,864 56,
Slide 19: Financial Statements: P&L for 2Q24 & 6M 2024 (Unaudited)
Financial Statements: P&L for 2Q24 & 6M 2024 (Unaudited) | 2Q 2024 Results 19 (Expressed in thousands of U.S. dollars) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 OPERATING REVENUES Time charter revenues $ 173,495 $ 160,399 $ 351,553 $ 316,326 Amortization of intangible
Slide 20: Financial Statements: Cash Flow for 2Q24 & 6M 2024 (Unaudited)
Financial Statements: Cash Flow for 2Q24 & 6M 2024 (Unaudited) | 2Q 2024 Results 20 (Expressed in thousands of U.S. dollars) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $ 88,027 $ 77,776 $ 179,917 $ 152,380 ADJUSTMENTS TO
Slide 21: Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative)
Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative) | 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 Expense
Slide 22: CAPEX Guidance
CAPEX Guidance | 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 (12 ve
Slide 23: Adjusted EBITDA & Normalized Net Income – Reconciliation (1/2)
Adjusted EBITDA & Normalized Net Income – Reconciliation (1/2) | 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 Six months Six months ended ended ended ended Adjusted EBITDA June 30,
Slide 24: Adjusted EBITDA & Normalized Net Income – Reconciliation (2/2)
Adjusted EBITDA & Normalized Net Income – Reconciliation (2/2) | 2Q 2024 Results 24 (Expressed in thousands of U.S dollars) Normalized Net Income Normalized Net Income - Normalized net income represents net income, after adjusting for Unaudited certain non-recurring items. Normalized net income is a
Slide 25: Year-End Adj. Net Debt to TTM Adj. EBITDA - Reconciliation
Year - End Adj. Net Debt to Trailing 12M (TTM) Adj. EBITDA - Reconciliation | 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-De
Slide 26: EPS & Normalized EPS – Reconciliation (1/2)
EPS & Normalized EPS – Reconciliation (1/2) | 2Q 2024 Results 26 (Expressed in thousands of U.S dollars, except share data) EPS – Basic & Fully Diluted Normalized EPS – Basic & Fully Diluted Three months Three months Six months Six months Three months Three months Six months Six months ended ended e
Slide 27: EPS & Normalized EPS – Reconciliation (2/2)
EPS & Normalized EPS – Reconciliation (2/2) | 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 Six months Six months Three months Three mont
Slide 28: Debt Structure as at June 30, 2024
Debt Structure as at June 30, 2024 | 2Q 2024 Results 28 (Expressed in millions of U.S dollars) Collateralized Outstanding Balance Balloon Interest Repayment Maturity Ships as of 30 June 2024 Installment Interpolated interest rate 2027 USPP Notes 20 of GSL ships $258.13 15% p.a ($13.1 million quarter
Slide 29: Decarbonization Update 1/3
Decarbonization Update 1/3 | 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 Intensity
Slide 30: Decarbonization Update 2/3
Decarbonization Update 2/3 | 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 dis
Slide 31: Decarbonization Update 3/3
Decarbonization Update 3/3 | 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 valu