US-listed container shipowner Global Ship Lease (GSL) has seen profits surge on the back of strong charters secured at the peak of the market.
The London-and Athens-based tonnage provider saw net income climb 41.2% to $75.4m for the second quarter of the year.
Operating revenue edged up 4.9% to $162.1m compared with the same prior year period.
Executive chairman George Youroukos said the company benefitted from “strong contract cover at attractive rates, even as prevailing market charter rates and vessel values normalise”.
Chartering activity remained modest by historical standards, with limited capacity coming available outside the feeder segment.
Idle capacity in the market is hovering around 1%, he said.
“While limited liquidity and the current macroeconomic uncertainty make it difficult to predict the market over the quarters ahead, charters agreed in the second quarter have shown some stability at rates that compare favourably to those that prevailed before the Covid-driven rate spike of 2021 and 2022,” he said.
GSL was in active discussions with liners on additional opportunities to expand its current forward charter cover of $1.97bn over 2.3 years.
However, the company’s fleet had only a limited number of open days to the end of 2024, Youroukos said.
Potential purchases
There remains a good chance that the company could re-enter the sale-and-purchase market in the near future.
It has taken delivery of four older S-class post-panamax container ships that it purchased in May for $123m.
The 8,650-teu GSL Lydia (formerly Axel Maersk), Anna Maersk, Arnold Maersk (all built 2003) and Adrian Maersk (built 2004) have been chartered back to AP Moller-Maersk for at least two years.
“Should current trends be sustained, we expect to see an increased number of potential purchase opportunities come into the market over time,” Youroukos said.
GSL’s improved financial position saw it receive updates from three leading credit rating agencies in June.
The upgrades from Moody’s Investor Service, S&P Global Ratings and Kroll Bond Rating Agency reflect the company’s efforts to deleverage, reduce the cost of debt, and increase its overall financial strength, said chief executive Ian Webber.
That had enabled the company to conclude its recent vessel acquisitions at a highly competitive cost of capital, he said.
GSL has a fleet of 68 boxships with a total capacity of 375,404 teu.
