Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q1 2025 Earnings Presentation
33 slides from Global Ship Lease Inc New's earnings presentation, May 19, 2025
Slide 1: 1Q 2025 Results Presentation
| 1Q 2025 Results 1 st 1 Quarter Results 2025 Presentation
Slide 2: Disclaimer
Disclaimer | 1Q 2025 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 | 1Q 2025 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: 1Q 2025 Results, and Selected Highlights
1Q 2025 Results, and Selected Highlights | 1Q 2025 Results 4 Unprecedented levels of macro uncertainty 1Q 2025 1Q 2024 $352 million contracted revenues added in 1Q25 Revenue $191.0 million $179.6 million 93% contract cover for 2025; 75% for 2026 Net Income $121.0 million $89.5 million Adjusted¹ Sele
Slide 5: Continuing to Build Contract Cover with Top Tier, Diversified Charterer Base
Continuing to Build Contract Cover | 1Q 2025 Results 5 with Top Tier, Diversified Charterer Base ONE 2% Others <1% COSCO / OOCL 7% CMA CGM 18% $1.87 billion MSC 13% Contracted revenues @ March 31, 2025¹ Share of 2.3 years of average remaining contract cover TEU-weighted cover @ March 31, 2025¹ Contr
Slide 6: Dynamic Capital Allocation through the Cycle
Dynamic Capital Allocation through the Cycle | 1Q 2025 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 | 1Q 2025 Results 7 to Create Significant Long-Term Value June 2021 500 February 2021 June 2021 May 2023 4 x ultra-high 7 x 6,000 TEU ships 12 Borealis ships 4 x 8,500 TEU ships Charter Rate & Asset Value Indices (100 = Average 2003 to 2024) reefer ships 450 400 May 2019 November 201
Slide 8: 1Q 2025 Financials & Highlights
1Q 2025 Financials & Highlights | 1Q 2025 Results 8 P&L Balance Sheet Shareholder Returns Revenue: $191.0 million, up from $179.6 Gross debt: $777.7 million, up from $691.1 Supplemental dividend introduced in 2Q24, million for 1Q24 million at December 31, 2024 increasing quarterly dividend by 20%, t
Slide 9: De-levering to De-risk, Grow Equity Value, and Increase Optionality
De-levering to De-risk, | 1Q 2025 Results 9 Grow Equity Value, and Increase Optionality De-Risking of Balance Sheet Continues¹ Financial Leverage Now Below 1x² 1000 950 9.0 8.4 Adj. Net Debt / Adj. EBITDA (x)2 900 8.0 Debt Outstanding ($ mm)¹ 823 800 7.0 691 695 700 6.0 600 5.0 547 5.0 4.3 4.2 500 4
Slide 10: Low Cost of Debt & Low Break-Even Rates
Low Cost of Debt & Low Break-Even Rates; | 1Q 2025 Results 10 Strong Platform to Manage Cycle & Build Value Reducing Cost of Debt1 Minimizing Vessels’ Average Daily Break-Even Rates Daily interest expense paid (net of paid interest rate caps income) 2 8.00% 7.56% 7.59% Margin/Coupon $14,000 Daily Vo
Slide 11: Mid-Size & Smaller Containerships; Flexible Assets & Backbone of Global Trade
Mid-Size & Smaller Containerships; | 1Q 2025 Results 11 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 12: Impact of Red Sea Disruption has been Significant
Impact of Red Sea Disruption has been Significant; | 1Q 2025 Results 12 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 13: US Tariffs & USTR: FAQ
US Tariffs & USTR: FAQ¹ | 1Q 2025 Results 13 Tariffs & containerized trade flows² USTR² & containerized trades / global fleet² US tariffs on imports from China: [30%]¹ China-built ships as a share of global fleet: 28% China tariffs on imports from US: [10%]¹ China-built ships as a share of global or
Slide 14: Impact on Demand from US Tariffs is Unpredictable
Impact on Demand from US Tariffs is Unpredictable; | 1Q 2025 Results 14 2019 Trade Tensions may be Instructive (Directionally) China / US Mainlane Reduced direct trade, following 2019 tariffs Disruption to China-focused supply chains Negative impact on very large containerships dependent on (direct)
Slide 15: Supply-Side Trends
Supply-Side Trends | 1Q 2025 Results 15 Idle Capacity Minimal, Scrapping Still Largely on Hold Idle Capacity of Global Containership Fleet Remains Negligible¹ 3.0 12,000 + TEU 14.0% Idle Fleet Ratio (Green Line) 7,600-11,999 TEU 2.7 0.7% Idle Capacity (TEU mm) 5,200-7,599 TEU 12.0% 2.4 3,900-5,200 T
Slide 16: Overall Orderbook is Meaningful, but Sector-Focused Fundamentals Remain Supportive
Overall Orderbook is Meaningful, | 1Q 2025 Results 16 but Our Sector-Focused Fundamentals Remain Supportive Orderbook & Fleet Ratios, by Size Segment¹ Sub-10,000 TEU Deliveries v. Age Profile¹ 8.0 29.5% 2.5 • • Median age for 10,000+ TEU fleet: 7 years Median age for sub-10,000 TEU fleet: 17 years 2
Slide 17: Market Rates & Asset Values
Market Rates & Asset Values: | 1Q 2025 Results 17 1Q 2025 Still Supportive, but Forward Visibility is Limited Short Term (6 – 12 Months) Charter Market Index, 4Q 2020 – 1Q 2025¹ 250 Market Rates (Indicative) Charter Rate Index (100 = Average 4Q20 to 1Q25) Ship Size (TEU) $ / Day 200 * Average break-
Slide 18: Summary
Summary | 1Q 2025 Results 18 1 Increasing cash flows at strong rates: $352 million added to contracted revenues in 1Q 2025, resulting in forward contract cover of $1.9 billion over 2.3 years¹ 2 High levels of macro, geo-political, and regulatory uncertainty; we are focused on maximizing optionality,
Slide 19: Appendix
| 1Q 2025 Results 19 ▪ Financial Statements ▪ EBITDA Calculator & CAPEX Guidance Appendix ▪ ▪ Reconciliation of Non-GAAP Financial Measures Debt Structure ▪ Decarbonization & Associated Regulations
Slide 20: Financial Statements: Balance Sheet at March 31, 2025
Financial Statements: Balance Sheet at March 31, 2025 (Unaudited) | 1Q 2025 Results 20 (Expressed in thousands of U.S. dollars, except share data) March 31, 2025 December 31, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 323,252 $ 141,375 Time deposits 10,450 26,150 Restricted cash 53,165 5
Slide 21: Financial Statements: P&L for 1Q25
Financial Statements: P&L for 1Q25 (Unaudited) | 1Q 2025 Results 21 (Expressed in thousands of U.S. dollars) Three months ended March 31, m 2025 2024 OPERATING REVENUES Time charter revenues $ 187,761 $ 178,058 Amortization of intangible liabilities-charter agreements 3,214 1,503 Total Operating Rev
Slide 22: Financial Statements: Cash Flow for 1Q25
Financial Statements: Cash Flow for 1Q25 (Unaudited) | 1Q 2025 Results 22 (Expressed in thousands of U.S. dollars) Three months ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $ 123,394 $ 91,890 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITI
Slide 23: Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative)
Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative) | 1Q 2025 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 | 1Q 2025 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 (12 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) | 1Q 2025 Results 25 (Expressed in thousands of U.S dollars) Reconciliation of Non-U.S. GAAP Adjusted EBITDA - Unaudited Financial Measures Three months ended Three months ended Adjusted EBITDA March 31, March 31, 2025 2024 Adjusted EBIT
Slide 26: Adjusted EBITDA & Normalized Net Income – Reconciliation (2/2)
Adjusted EBITDA & Normalized Net Income – Reconciliation (2/2) | 1Q 2025 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 TTM Adj. EBITDA - Reconciliation
Year - End Adj. Net Debt to Trailing 12M (TTM) Adj. EBITDA - Reconciliation | 1Q 2025 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 TTM 31-Dec-2018 31-De
Slide 28: EPS & Normalized EPS – Reconciliation (1/2)
EPS & Normalized EPS – Reconciliation (1/2) | 1Q 2025 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 ended Three months ended Three months ended Three months ended
Slide 29: EPS & Normalized EPS – Reconciliation (2/2)
EPS & Normalized EPS – Reconciliation (2/2) | 1Q 2025 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 ended Three months ended Three months ended Three months e
Slide 30: Debt Structure as at March 31, 2025
Debt Structure as at March 31, 2025 | 1Q 2025 Results 30 (Expressed in millions of U.S dollars) Collateralized Outstanding Balance Balloon Interest Repayment Maturity Ships as at March 31, 2025 Installment Interpolated interest rate 2.84% 2027 USPP Notes 17 of GSL ships $218.75 15% p.a ($13.1 millio
Slide 31: Decarbonization Update 1/3
Decarbonization Update 1/3 | 1Q 2025 Results 31 Evolving Regulatory Environment (Highlights) EEXI – (IMO) 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 – (IMO) Carb
Slide 32: Decarbonization Update 2/3
Decarbonization Update 2/3 | 1Q 2025 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 | 1Q 2025 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