Joseph Bonney | Aug 15, 2011 10:27AM EDT
Container ship owner-charterer Global Ship Lease said scheduled drydockings and non-cash charges caused a second quarter net loss of $11.7 million, compared with $5 million a year ago. Revenue slipped to $38.8 million from $39.6 million.
The company’s earnings before interest, taxes, depreciation and amortization declined to $25.7 million from $27.4 million earlier, mainly due to reduced revenue and increased costs as a result of planned drydockings.
The $11.7 million net loss resulted from a $13.6 million non-cash impairment charge related to fair market of purchase options and a $3.8 million non-cash interest rate derivative mark-to-market loss. Excluding those items, normalized net income was $5.8 million, compared with $7.5 million a year earlier.
“Although we are currently seeing a slowdown in the recovery of containerized shipping, our business model insulates us from the direct impact of volatile freight markets,” said CEO Ian Webber.
“With EBITDA of $25.7 million for the second quarter, our 17 long-term, fixed-rate time charters continue to generate consistent, stable and predictable cash flows,” Webber said.
Global said its vessel charters have an average remaining term of 8.8 years on a weighted basis and provide a contracted revenue stream of $1.3 billion. Webber said Global has no purchase obligations and has paid down $90.1 million of debt since August 2009, including $23.9 million this year.
-- Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney.