Global Ship Lease (GSL) has announced a small rise in quarterly profits while being linked to the purchase of four neo-panamax boxships.
The 9,000-teu Bremerhaven Express (built 2015) and three sisters, with a combined charter-free value of $400m, have been sold in an en-bloc deal, say shipbroking sources.
The sister ships are the Istanbul Express, Sydney Express (both built 2016) and Czech (built 2015).
They are listed with a charter-free value not far short of $100m each, according to VesselsValue.
The four vessels have been time-chartered to Germany’s Hapag-Lloyd for seven of the past eight years.
They were contracted for $80m each in December 2013 by Turkey’s Ciner Group.
The vessels were taken over by Chinese lessor Minsheng Financial in early 2021 and have since been managed by Schulte Group.
New York-listed GSL has a policy of not commenting on speculation. “But if we have a deal, then obviously we’re obliged to make disclosures about that deal, so no comment,” chief executive Thomas Lister told a conference call on Monday.
The deal would, if confirmed, mark its first big purchase in more than a year.
GSL’s last major acquisition was four 8,650-teu container vessels of around 20 years old purchased from AP Moller-Maersk in May 2023.
The 8,650-teu GSL Lydia (ex-Axel Maersk, built 2003) and three sisters were purchased with a charter back to the Danish operator for $123.3m.
Profit edges up
GSL owns a fleet of 68 container vessels that continue to churn out a profit.
Normalised net income in the third quarter was 5.1% higher at $86.6m, although operating revenue slipped 0.2% to $174.1m.
Reported net income available to common shareholders dipped 4.7% to $78.8m.
Executive chairman George Youroukos said the factors that had generated significant container ship charter market strength throughout 2024 remain firmly intact.
“With supply limited, and high-quality tonnage at a premium, we are continuing to lock in the current market strength with attractive multi-year charters for even some of the oldest vessels in our fleet, adding almost $600m of contracted revenues year to date — including just under $200m during the third quarter,” he said.
“Looking forward, the limited orderbook for midsized and smaller container ships like those in the GSL fleet is further counterbalanced by relatively lower-quality, less-efficient vessels that will increasingly struggle to compete and will likely be scrapped out over time.”
The company opportunistically refinanced $300m of debt during the third quarter, CEO Lister added, bringing the weighted average cost of debt down to 3.95%.
“We have simultaneously built crucial optionality in a cyclical market, and we are ready to act quickly if an acquisition opportunity emerges that meets our strict criteria, consistent with our disciplined track record,” he said.
