Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q3 2020 Earnings Presentation
27 slides from Global Ship Lease Inc New's earnings presentation, Nov 9, 2020
Slide 1: Third Quarter 2020 Results Presentation
Third Quarter 2020 Results Presentation PwC 1
Slide 2: Disclaimer
Disclaimer 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 of, or be relied on
Slide 3: 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 4: Recent Highlights and Overview of 3Q and 9M 2020 Results
Recent Highlights and Overview of 3Q and 9M 2020 Results Remarkable rebound in charter market $ 70.5 million $212.8 million Total Revenue in 3Q 2020 Total Revenue in 9M 2020 Freight markets at record highs Global idle capacity below 2% $ 41.6 million $123.0 million Adjusted EBITDA in 3Q 20203 Adjust
Slide 5: Our Fleet: Mid-Size Post-Panamax & Smaller Containerships
Our Fleet: Mid-Size Post-Panamax & Smaller Containerships A fleet of well-specified, operationally flexible, fuel-efficient, high-reefer-capacity, low-slot-cost containerships Our fleet consists of mid-size and smaller containerships that can be deployed on a wide range of trading routes. As at Sept
Slide 6: Mid-Size & Smaller Ships: Flexible Assets & Backbone of Global Trade
Mid-Size & Smaller Ships: Flexible Assets & Backbone of Global Trade GSL focus High-reefer, mid-size & smaller containerships 70%+ Proportion of global containerized trade volume in non-mainlane trades² Deployment of sub-10,000 TEU ships: everywhere¹ Sub-10,000 TEU Non-mainlane trades predominantly
Slide 7: Our Contract Cover: Insulation Against COVID-19 & Strong Platform
Our Contract Cover: Insulation Against COVID-19 & Strong Platform 2020 2021 2022 2023 Vessel TEU Built Charter Agreed Charterer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Keta 2,207 2003 4Q19/1Q20/3Q20 OOCL $9,400 $8,000 $8,000 $9,400 Julie 2,207 2002 3Q19/2Q20/3Q20 CMA CGM / Seacon $8,500 $6,6
Slide 8: Macro Picture: Challenging 1H 2020, Followed by Rebound
Macro Picture: Challenging 1H 2020, Followed by Rebound Global GDP & Container Trade Growth 2000 – 2021F¹ 250.0 20.0% 4.7% down¹ Year-on-Year Growth (Red & Black Lines) 9M 2020 container volumes v. 9M 2019 15.2% 15.0% Containerized Volume (TEU mm) 200.0 150.0 7.1% 10.0% 3.5% down¹ FY 2020F container
Slide 9: Our Liner Customers: Capacity Discipline, Resilience, Strong Earnings
Our Liner Customers: Capacity Discipline, Resilience, Strong Earnings Liner Operator Freight Rate Indices for China Exports, 2019 - 9M2020¹ 1,500 Chinese New Year & commencement of COVID-19 lock-down 27-100% Y-o-Y increase in CCFI & SCFI indices 1,400 1,300 10+ years¹ Freight Rate Index 1,200 Record
Slide 10: Positive Supply-Side Trends: Idle Capacity Down, Ship Recycling Active
Positive Supply-Side Trends: Idle Capacity Down, Ship Recycling Active Idle Fleet Peaked in 2Q2020; Now Trending Down Sharply¹ idle 3.0 16.0% 1.6% Idle Fleet Ratio (Red Line) 12,000 + TEU 7,600-11,999 TEU Idle Capacity (TEU mm) 2.7 14.0% capacity² 5,200-7,599 TEU 3,900-5,200 TEU 2.4 Down from ~12% a
Slide 11: Supportive Fundamentals: Negligible Fleet Growth, Minimal Orderbook
Supportive Fundamentals: Negligible Fleet Growth, Minimal Orderbook Net Fleet Growth 2016 – 8M 2020¹ Minimal Orderbook for our Focus Segments¹ 5.0 Delivered Scrapped Net Growth 1.6 40+ years¹ 1.4 Record low orderbook to fleet (7.8%) 4.0 Capacity on Order (TEU mm) Fleet Growth (TEU mm) 1.2 3.0 2.0 Ou
Slide 12: Outcome: Remarkable Charter Market Rebound
Outcome: Remarkable Charter Market Rebound Short Term Charter Market Rates, 2019 – 9M 2020¹ 45,000 98% Av. charter rate increase Post-panamax: end-Sep. v. 2Q20-low¹ 40,000 35,000 Charter Rate ($ / Day) 9,000 TEU ECO 30,000 138% Av. charter rate increase Panamax: end-Sep v. 2Q20-low¹ 25,000 8,500 TEU
Slide 13: Financial Statements: Balance Sheet at September 30, 2020 (Unaudited)
Financial Statements: Balance Sheet at September 30, 2020 (Unaudited) (Expressed in thousands of U.S. dollars, except share data) September 30, 2020 December 31, 2019 ASSETS CURRENT ASSETS Cash and cash equivalents $ 98,964 $ 138,024 Restricted cash 8,728 3,909 Accounts receivable, net 2,356 2,350 I
Slide 14: Financial Statements: P&L for 3Q 2020 & 9M 2020 (Unaudited)
Financial Statements: P&L for 3Q 2020 & 9M 2020 (Unaudited) (Expressed in thousands of U.S. dollars, except share data) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 OPERATING REVENUES Time charter revenue (includes related party revenues of $37,027 and $40,409
Slide 15: Financial Statements: Cash flows for 3Q 2020 & 9M 2020 (Unaudited)
Financial Statements: Cash flows for 3Q 2020 & 9M 2020 (Unaudited) (Expressed in thousands of U.S. dollars) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cash flows from operating activities: Net income $ 14,547 $ 11,572 $ 29,563 $ 31,095 Adjustments to reconci
Slide 16: Adjusted EBITDA and Operating Cash Flow calculator (illustrative)
Adjusted EBITDA and Operating Cash Flow calculator (illustrative) The table below presents our calculator for our current fleet for 2020 and 2021, based on historical performance, contracted revenue, assumed expenses, CAPEX , Net Interest Expense and Debt Amortization 1 2020 2021 10Y 15Y TEU Categor
Slide 17: CAPEX Guidance
CAPEX Guidance (Expressed in millions of U.S. dollars) Revisions to the dry-docking schedule disclosed in our 20-F ➢ Please refer to summary table below for revised guidance, updated November 2, 2020 ➢ Where possible, in order to minimize off-hire, we arrange for regulatory dry-dockings and upgrade
Slide 18: Diversified Counterparty Base: Charterers & Lenders
Diversified Counterparty Base: Charterers & Lenders Evolution of Charterer Diversification: 2018 – 9M2020 Sources of Debt Capital as at September 30, 2020 80.4% Proportion of Overall Charter Revenue, by Period (%) 2024 Senior Unsecured CIT Notes 58.8% CACIB 52.4% Blue Ocean 2022 Senior Secured Notes
Slide 19: Highlights & Strategy
Highlights & Strategy $674 million & 2.3 years TEU-weighted contract cover as at September 30, 2020 Extensive contract cover Debt service & CAPEX covered by contracted cash flows Proven platform for selective & accretive growth $114 million cash on balance sheet as at September 30, 2020 Strong balan
Slide 20: Appendix
Appendix ▪ EBITDA & Net Income Reconciliation ▪ Debt Structure ▪ Segment Analysis ▪ Additional Market Data PwC ▪ ESG
Slide 21: Adjusted EBITDA & Normalized Net Income Reconciliation
Adjusted EBITDA & Normalized Net Income Reconciliation (Expressed in thousands of U.S dollars) Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDA - unaudited Nine Nine Adjusted EBITDA Months Months Ended Ended Adjusted EBITDA represents net income available to common shareholders bef
Slide 22: Debt Structure as at September 30, 2020
Debt Structure as at September 30, 2020 (Expressed in millions of U.S dollars) Outstanding Balance Balloon Installment Collateralized Ship Interest Repayment Maturity as of 30 Sep 2020 (excl. cash sweep) Citi Super Senior loan $4.7 3.25%+L Combined annual amortization of $40 - 31-10-20 mm 16 of GSL
Slide 23: Segment Analysis as at September 30, 2020
Segment Analysis as at September 30, 2020 (Expressed in thousands of U.S dollars) As of September 30, 2020 As of September 30, 2020 Issuer & Guarantors (i) Non - Guarantors (ii) Total Gross Debt 328.8 501.5 830.3 NIL NIL NIL Debt between (i)Issuer & Guarantors and (ii)Non-Guarantors Total Cash and C
Slide 24: Evolution of Charter Rates, Asset Values, and Scrap Prices
Evolution of Charter Rates, Asset Values, and Scrap Prices Short-Term Market Charter Rates & Asset Values, 2000 – 9M 2020¹ Charter Rates: Index (100 = Av. 2000 – 9M20) Leading Indicator Idle Fleet Ratio (Red Line) 300 Newbuild Price Index Sharp up-turn in earnings in 3Q2020 250 TC Rate Index 200 Sec
Slide 25: ESG Overview
ESG Overview¹ 80% of global trade is carried by sea Shipping is a low carbon form of transportation Shipping contributes to the United Nations Sustainable Development Goals As an industry, shipping has a number of strengths. However, that is not to understate the magnitude of the challenges we need
Slide 26: Energy Efficiency and Emissions
Energy Efficiency and Emissions Monitoring and control of emissions is increasingly important. Our EEOI Profile (gr CO2 / tonnes - mile) Our GHG emissions (‘000 tonnes CO2e) and The container shipping industry represents a low carbon form of transportation, with EEOI (gr CO2 / TEU - mile) GHG emissi
Slide 27: Corporate Governance
Corporate Governance Our Board of Directors Conflicts Committee The Board of Directors of Global Ship Lease (GSL) is committed to its fiduciary The primary purposes of our Conflicts Committee are to review, evaluate, and approve responsibility to represent shareholder interests and oversee the manag