Latest news with #GlobalShipLease
Yahoo
20-05-2025
- Business
- Yahoo
Global Ship Lease Inc (GSL) Q1 2025 Earnings Call Highlights: Strong Contracted Revenues and ...
Contracted Revenues: Added $352 million in Q1, bringing 2025 contract cover to 93% and 2026 cover to 75%. Annualized Dividend: Increased to $2.10 per share, up 40% from the previous year. Contracted Revenues as of March 31: Nearly $1.9 billion with 2.3 years of average remaining contract cover. Gross Debt: Increased to just under $778 million due to recent vessel acquisitions. Cash Position: $428 million, with $95 million restricted. Net Debt to EBITDA: Reduced to under 1 as of the end of Q1 2025. Cost of Debt: Lowered to a blended cost of 3.99%. Fleet Break-even Rate: Approximately $9,300 per vessel per day. Refinancing: Recent $85 million refinance extended average maturity to 5.1 years. Warning! GuruFocus has detected 3 Warning Sign with GSL. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Global Ship Lease Inc (NYSE:GSL) added $352 million of contracted revenues in Q1 2025, bringing their 2025 contract cover to 93% and 2026 cover to 75%, providing insulation against market uncertainty. The company has increased its annualized dividend to $2.10 per share, up 40% from the previous year, reflecting strong cash flow and commitment to returning capital to shareholders. GSL has a robust balance sheet with a cash position of $428 million, allowing for flexibility in managing risks and seizing opportunities. The company has successfully reduced its cost of debt to a blended rate of 3.99%, enhancing financial resilience amidst macroeconomic volatility. GSL's focus on mid-sized and smaller container ships provides operational flexibility and positions the company well in the current market environment, which favors these types of vessels due to trade complexities. The macroeconomic and geopolitical environment remains volatile and uncertain, posing potential risks to future operations and profitability. Despite strong charter rates, some charters fixed during the COVID-19 peak may see a decrease in rates upon renewal, potentially impacting revenue. The company faces challenges from proposed US tariffs and port fees on Chinese-built and operated ships, which could affect fleet operations and costs. There is limited availability of tonnage in the charter markets, which could constrain growth opportunities if demand increases. The order book for ships over 10,000 TU is significantly larger than for smaller vessels, which could lead to increased competition and pressure on rates in the future. Q: You've mentioned the rate environment is strong despite freight rates. Are charter customers interested in extending existing charters at better rates, or are you seeing a good environment as charters roll over? A: Thomas Lister, CEO: It depends on which charters are rolling off. Some charters fixed during the COVID high are still at high levels, and refixing them now might be a notch down. However, there's still appetite to fix at attractive rates, as shown on slide 17 of our presentation. Q: You sold assets to build dry powder. Are there any acquisition plans, or are asset prices not reasonable now? A: George Giouroukos, Executive Chairman: We are always looking at deals but maintain strict criteria. We don't acquire for growth's sake; it must make financial sense. We sold older ships at lucrative prices compared to chartering them and are keeping cash for future acquisitions and investments. Q: How would you characterize the charter markets over the past week, especially after the China-US deal? A: Thomas Lister, CEO: The sentiment and momentum in the charter market mirrored the freight market. There was a pause in April as people assessed the situation, but interest and appetite have picked up again recently. Charter rates remain high due to limited tonnage availability. Q: With rising cash and reduced leverage, what is your strategy for cash management if there are no deals? A: Thomas Lister, CEO: We continue to delever and maintain a strong cash position for flexibility. In uncertain times, having robust cash reserves allows us to manage risks and quickly seize opportunities. Our financial leverage ratio is now under 1x, which we consider a good position. Q: How has the recent surge in spot freight rates affected the term-charter market? A: Thomas Lister, CEO: The charter market has seen similar sentiment changes as the freight market. While there was a slowdown in April, interest has increased recently. Despite limited activity, charter rates have remained high due to the scarcity of available tonnage. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Washington Post
19-05-2025
- Business
- Washington Post
Global Ship Lease: Q1 Earnings Snapshot
KIFISIA, Greece — KIFISIA, Greece — Global Ship Lease Inc. (GSL) on Monday reported profit of $123.4 million in its first quarter. The Kifisia, Greece-based company said it had profit of $3.40 per share. Earnings, adjusted for non-recurring gains, were $2.65 per share. The containership owner posted revenue of $191 million in the period.
Bloomberg
15-04-2025
- Business
- Bloomberg
Size Matters for Global Ship Lease's Fleet: Talking Transports
The global container liner industry is facing increased uncertainty stemming from the protectionist measures coming out of Washington. Trade between Asia and North America account for about 13% of global container trade, with the majority from China to US. In this Talking Transports podcast, Thomas Lister, CEO of Global Ship Lease, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his insights about its fleet of small-to-midsize containerships could provide some insulation from the growing trade war between the US and China. Lister also talks tariffs, potential for fees places on Chinese built ships, the orderbook, remaining disciplined through the cycle, capital allocation and how he talked his way into the marine shipping industry following graduation from university.
Yahoo
09-04-2025
- Business
- Yahoo
Global Ship Lease's (NYSE:GSL) earnings growth rate lags the 41% CAGR delivered to shareholders
It might be of some concern to shareholders to see the Global Ship Lease, Inc. (NYSE:GSL) share price down 22% in the last month. But that doesn't undermine the fantastic longer term performance (measured over five years). In that time, the share price has soared some 322% higher! Arguably, the recent fall is to be expected after such a strong rise. Of course what matters most is whether the business can improve itself sustainably, thus justifying a higher price. Since the long term performance has been good but there's been a recent pullback of 21%, let's check if the fundamentals match the share price. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over half a decade, Global Ship Lease managed to grow its earnings per share at 45% a year. The EPS growth is more impressive than the yearly share price gain of 33% over the same period. So it seems the market isn't so enthusiastic about the stock these days. The reasonably low P/E ratio of 1.90 also suggests market apprehension. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Global Ship Lease has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts . When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Global Ship Lease's TSR for the last 5 years was 458%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! We regret to report that Global Ship Lease shareholders are down 7.7% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 4.5%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 41%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Global Ship Lease better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Global Ship Lease you should be aware of. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
Global Ship Lease (GSL): Among the Best Marine Shipping Stocks to Invest in Now
We recently published a list of . In this article, we are going to take a look at where Global Ship Lease, Inc. (NYSE:GSL) stands against other best marine shipping stocks to invest in now. According to Dr. Shashi Kumar of the US Naval Institute, geopolitical developments tend to have a greater impact on the highly volatile shipping market compared to market forces. Since the 2007–08 financial crisis, the broader global shipping market continues to face a series of new challenges. However, the challenging conditions this industry faced in 2024 were unmatched over the past decade and a half, says Kumar. The year's challenging conditions included the prolonged war in Ukraine, wanton Houthi attacks in the Red Sea as well as increased tensions in the South China Sea. Kumar also noted that container ships decided to avoid the Suez Canal and chose to transport goods around southern Africa, which increased transit time and greenhouse gas emissions. Despite this, the owners of these container ships saw a profitable year. The marine vessels market is expected to reach US$133.63 billion by 2030 from US$111.10 billion in 2024, as per Research and Markets. While global trade continues to fuel the demand for different types of ships, the military navy growth has also been lending support to expand the market. Notably, the requirement for larger and more versatile vessels stems from the demand for efficient transportation of goods. Also, increasing passenger and tourism needs continue to fuel fleet expansion and technology upgrades. The firm believes that several cruise lines have been adding more ships to cater to the needs of travelers focusing on unique experiences. Overall, the strategic fleet renewal remains critical for market improvement. New and fuel-efficient vessels have been supporting to meet environmental standards and lower costs, says Research and Markets. The transition towards sustainable shipping practices continues to become more critical to obey the international rules targeting reduced emissions. READ ALSO: and . Research and Markets believes that cargo vessels continue to become a critical part of commercial shipping. Such vessels tend to play a vital role in global trade by transporting numerous goods across the seas. With the demand for faster and more reliable shipping increasing, the broader industry remains focused on adopting new technologies. Notably, modern navigation systems, eco-friendly fuels, and automation tend to enhance efficiency, improve safety, and reduce the environmental impact. Therefore, as global trade has been expanding, cargo vessels remain critical when it comes to international commerce and economic growth. To list the 11 Best Marine Shipping Stocks to Invest in Now, we used a screener to shortlist the companies catering to the broader marine shipping industry. Next, we mentioned the hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A large cargo ship in a harbor port, teeming with Twenty-Foot Equivalent Units (TEUs).Global Ship Lease, Inc. (NYSE:GSL) operates in the container shipping industry. It owns and charters out containerships under long-term, fixed-rate charters to container liner companies. The demand for the company's well-specified, fuel-efficient vessels remained robust across 2024. Global Ship Lease, Inc. (NYSE:GSL) took advantage of such tailwinds in a bid to secure extended charter coverage throughout its fleet, resulting in the addition of $885 million of contracted revenues to its substantial backlog. The company has been able to secure attractive, multi-year coverage, even for its oldest ships. Amidst a volatile and uncertain geopolitical environment, the company continues to benefit from optionality and deployment flexibility represented by Global Ship Lease, Inc. (NYSE:GSL)'s fleet of mid-sized and smaller containerships. The company remains well-placed to sustain its track record of creating shareholder value via operational excellence, capital allocation discipline, and opportunistic acquisitions. Over the past several years, Global Ship Lease, Inc. (NYSE:GSL) has benefited from the shipping up-cycle, capitalizing on its healthy cash flow and forward visibility to opportunistically refinance, extend its debt maturities, and reduce the borrowing costs. Moving forward, the company remains focused on continuing its fleet renewal and optimization strategy. As of December 31, Global Ship Lease, Inc. (NYSE:GSL) had $1.88 billion, resulting in 2.3 years of average remaining contract cover. Furthermore, during 2024 and the first couple of months of 2025, the company added 50 charters for ~$885 million of additional contracted revenues. Overall, GSL ranks 6th on our list of best marine shipping stocks to invest in now. While we acknowledge the potential of GSL as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than GSL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. 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