Global Ship Lease (GSL) more than quadrupled its profit for the third quarter as the New York-listed containership owner grew its fleet with what are now fully-fixed vessels.
The results beat analyst expectations.
GSL reported net profit of $62.9m for the third quarter, which was far larger than the $13.6m earned in the same period of last year.
The containership tonnage provider reported operating revenue of nearly $139m — almost double the $70.5m booked in the third quarter of 2020.
The earnings growth was powered by an acquisition drive that has seen GSL purchase 23 ships so far this year, locking in charters for all of them.
"We have taken numerous steps to translate this extraordinary market environment into sustainable, long-term benefits for GSL, adding 48 charters in the year-to-date for incremental contracted revenues of $1.25bn of contracted revenues," executive chairman George Youroukos said.
"Notably, we have grown our fleet by more than 50% while maintaining strict pricing discipline and selectivity in regards to vessel specifications, condition and chartering prospects."
Adjusted Ebitda of $72.7m was higher than the $67m that analysts expected from the outfit, according to data from Fearnleys Securities.
The result lifted its nine-month profit to $97.1m, up from $26.8m in the first three months of 2020.
| Q3 2021 | Q3 2020 | |
| Operating revenue | $139m | $70.5m |
| Operating income | $79.6m | $28.8m |
| Adjusted Ebitda | $72.7m | $41.5m |
| Net income | $62.9m | $13.6m |
Youroukos said the factors driving containership demand and dampening supply will continue for "some time to come".
"Driven by the continued strength of underlying containerised freight volumes, supply chain congestion that shows little sign of near-term resolution, and the heightened competition between the liner companies to secure containership capacity, the demand for high-quality mid-sized and smaller containerships like those in the GSL fleet is as strong as it has ever been," he said.
He noted that there are few vessels delivering in the size range of the company's fleet in 2023 and 2024, so liner companies have proved willing to pay attractive rates to lock in tonnage.
"Moreover, liners have been eager to secure that capacity for extended durations spanning multiple years, significantly longer than has been the case historically and well-aligned with GSL's strategic preference to lock in value over time and provide forward visibility on cash flows while reinforcing our long-term relationships with our customers," he said.
