Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q4 2024 Earnings Presentation
33 slides from Global Ship Lease Inc New's earnings presentation, Mar 5, 2025
Slide 1: 4th Quarter Results 2024 Presentation
| 4Q 2024 Results 1 th 4 Quarter Results 2024 Presentation
Slide 2: Disclaimer
Disclaimer | 4Q 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 | 4Q 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: 4Q & FY 2024 Results, and Other Highlights
4Q & FY 2024 Results, and Other Highlights | 4Q 2024 Results 4 Elevated macro uncertainty; Red Sea unpredictable 4Q 2024 FY 2024 $885 million contracted revenues added in 2024 + 2M25 Revenue $182.4 million $711.1 million Debt cost reduced to 3.85%; 4.2 years to average maturity Net Income $90.2 mill
Slide 5: Increasing Contract Cover with Financially Strong, Diversified Charterer Base
Increasing Contract Cover | 4Q 2024 Results 5 with Financially Strong, Diversified Charterer Base ONE 2% Matson <1% Wan Hai <1% COSCO / OOCL 4% MSC 8% CMA CGM 20% $1.88 billion Contracted revenues @ December 31, 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 | 4Q 2024 Results 6 Capital allocation driven by relative Consideration of risks to cash flows, Capitalize on cycle to generate long- returns, adjusted for risk and sustainability and profitability of term value for shareholders business through the cycle
Slide 7: Using the Cycle to Create Significant Long-Term Value
Using the Cycle | 4Q 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 2024) 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: ECO-9,000s Delivered, with Attractive Financing, Purchased at 30% Discount
ECO-9,000s Delivered, with Attractive Financing | 4Q 2024 Results 8 Purchased at 30% Discount to Market¹, with Significant Upside Potential Recently Purchased Ships Charters & Upside Potential Financing 4 x 9,000 TEU, built 2015/16 Chartered to Hapag-Lloyd with average 1.7 $274 million aggregate pur
Slide 9: 2024 Financials & Highlights
2024 Financials & Highlights | 4Q 2024 Results 9 P&L Balance Sheet Shareholder Returns Revenue: $711.1 million, up from $674.8 Gross debt: $691.1 million, down from Supplemental dividend introduced in 2Q24³, million for 2023 $823.2 million at December 31, 2023 increasing quarterly dividend by 20%, t
Slide 10: De-levering to De-risk, Grow Equity Value, and Increase Optionality
De-levering to De-risk, | 4Q 2024 Results 10 Grow Equity Value, and Increase Optionality De-Risking of Balance Sheet Continues¹ Financial Leverage Increasingly Robust2 1000 950 9.0 8.4 Adj. Net Debt / Adj. EBITDA (x)2 900 8.0 823 Debt Outstanding ($ mm)¹ 800 7.0 691 700 6.0 600 546 5.0 5.0 4.3 500 4
Slide 11: Low Cost of Debt & Low Break-Even Rates
Low Cost of Debt & Low Break-Even Rates; | 4Q 2024 Results 11 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) 0.08 7.56% 7.59% Margin/Coupon $14,000 Daily Voyag
Slide 12: Mid-Size & Smaller Containerships; Flexible Assets & Backbone of Global Trade
Mid-Size & Smaller Containerships; | 4Q 2024 Results 12 Flexible Assets & Backbone of Global Trade GSL focus High-reefer, mid-size & smaller containerships ~74% Deployment of sub-10,000 TEU ships: everywhere¹ Proportion of global containerized trade volume in non - Mainlane trades² Sub-10,000 TEU No
Slide 13: Impact of Red Sea Disruption has been Significant
Impact of Red Sea Disruption has been Significant; | 4Q 2024 Results 13 Going Forward, Red Sea Dynamics are Unpredictable 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 co
Slide 14: Impact on Demand from US Tariffs is Unpredictable
Impact on Demand from US Tariffs is Unpredictable; | 4Q 2024 Results 14 2019 Trade Tensions may be Instructive China / US Mainlane Reduced direct trade, following 2019 tariffs Disruption to China-focused supply chains Negative impact on very large containerships dependent on (direct) mainlane trade
Slide 15: Supply-Side Trends: Idle Capacity Minimal, Scrapping Still Largely on Hold
Supply-Side Trends | 4Q 2024 Results 15 Idle Capacity Minimal, Scrapping Still 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,
Slide 16: Overall Orderbook is Meaningful, but Sector-Focused Fundamentals Remain Positive
Overall Orderbook is Meaningful, | 4Q 2024 Results 16 but Our Sector-Focused Fundamentals Remain Positive Orderbook & Fleet Ratios, by Size Segment¹ Sub-10,000 TEU Deliveries v. Age Profile¹ 8.0 27.4% 2.5 • • Median age for 10,000+ TEU fleet: 7 years Median age for sub-10,000 TEU fleet: 17 years 27.
Slide 17: Market Rates & Asset Values Firmed in 2024
Market Rates & Asset Values Firmed in 2024; | 4Q 2024 Results 17 2M25 Still Supportive, but Forward Visibility is Limited Short Term (6 – 12 Months) Charter Market Index, 4Q 2020 – 4Q 2024¹ 250 Market Rates (Indicative) Charter Rate Index (100 = Average 4Q20 to 4Q24) Ship Size (TEU) $ / Day 200 * Av
Slide 18: Summary
Summary | 4Q 2024 Results 18 1 Increasing cash flows at strong rates: $885 million added to contracted revenues in 2024 & 2M25, resulting in forward contract cover of $1.9 billion over 2.3 years¹ 2 Macro & geo-political uncertainty remains high; we are focused on maximizing optionality, to manage ri
Slide 19: Appendix
| 4Q 2024 Results 19 ▪ Financial Statements Appendix ▪ ▪ EBITDA Calculator & CAPEX Guidance Reconciliation of Non-GAAP Financial Measures ▪ Debt Structure ▪ Decarbonization & Associated Regulations
Slide 20: Financial Statements: Balance Sheet at December 31, 2024
Financial Statements: Balance Sheet at December 31, 2024 (Unaudited) | 4Q 2024 Results 20 (Expressed in thousands of U.S. dollars, except share data) December 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 141,375 $ 138,640 Time deposits 26,150 14,000 Restricted cash 55
Slide 21: Financial Statements: P&L for 4Q24 & FY 2024
Financial Statements: P&L for 4Q24 & FY 2024 (Unaudited) | 4Q 2024 Results 21 (Expressed in thousands of U.S. dollars) Three months ended December 31, Years ended December 31, 2024 2023 2024 2023 OPERATING REVENUES Time charter revenues $ 181,430 $ 177,377 $ 705,529 $ 666,715 Amortization of intangi
Slide 22: Financial Statements: Cash Flow for 4Q24 & FY 2024
Financial Statements: Cash Flow for 4Q24 & FY 2024 (Unaudited) | 4Q 2024 Results 22 (Expressed in thousands of U.S. dollars) Three months ended December 31, Years ended December 31, 2024 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $ 92,564 $ 67,049 $ 353,628 $ 304,500 ADJUSTMENTS
Slide 23: Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative)
Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative) | 4Q 2024 Results 23 The table below presents our illustrative calculator for our fleet for 2025 and 2026, based on historical performance, contracted revenue, and assumed expenses, Capitalized and Drydocking Expenses, Finance Expense
Slide 24: CAPEX Guidance
CAPEX Guidance | 4Q 2024 Results 24 Indicative CAPEX, based on average costs FY2023 – FY2024 and adjusted for annualized inflation modelled at 2.6% and 1.18% for 2025 and 2026, respectively ▪ Average special survey & dry-docking for 2025 and 2026: ~$2.74 million (13 vessels) and $2.77 million (12 ve
Slide 25: Adjusted EBITDA & Normalized Net Income Reconciliation (1/2)
Adjusted EBITDA & Normalized Net Income – Reconciliation (1/2) | 4Q 2024 Results 25 (Expressed in thousands of U.S dollars) Reconciliation of Non-U.S. GAAP Adjusted EBITDA - Unaudited Financial Measures Three months Three months Year ended Year ended ended ended Adjusted EBITDA December 31, December
Slide 26: Adjusted EBITDA & Normalized Net Income Reconciliation (2/2)
Adjusted EBITDA & Normalized Net Income – Reconciliation (2/2) | 4Q 2024 Results 26 (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 is a
Slide 27: Year-End Adj. Net Debt to Adj. EBITDA Reconciliation
Year - End Adj. Net Debt to Adj. EBITDA - Reconciliation | 4Q 2024 Results 27 (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 31-Dec-2018 31-Dec-2019 31-Dec-2020 31-D
Slide 28: EPS & Normalized EPS Reconciliation (1/2)
EPS & Normalized EPS – Reconciliation (1/2) | 4Q 2024 Results 28 (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 Three months Three months Year ended Year ended Y
Slide 29: EPS & Normalized EPS Reconciliation (2/2)
EPS & Normalized EPS – Reconciliation (2/2) | 4Q 2024 Results 29 (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 Three months Three months Year ended Year end
Slide 30: Debt Structure as at December 31, 2024
Debt Structure as at December 31, 2024 | 4Q 2024 Results 30 (Expressed in millions of U.S dollars) Collateralized Outstanding Balance Balloon Interest Repayment Maturity Ships as at December 31, 2024 Installment Interpolated interest rate 2027 USPP Notes 20 of GSL ships $231.88 15% p.a ($13.1 millio
Slide 31: Decarbonization Update 1/3
Decarbonization Update 1/3 | 4Q 2024 Results 31 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 32: Decarbonization Update 2/3
Decarbonization Update 2/3 | 4Q 2024 Results 32 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 33: Decarbonization Update 3/3
Decarbonization Update 3/3 | 4Q 2024 Results 33 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