Bruce Barnard, Special Correspondent | May 14, 2012 1:50PM EDT
Global Ship Lease’s first quarter net income fell to $8 million from $10.8 million a year ago as the NYSE-listed container ship owner’s revenue dipped to $38.4 million from $39.1 million.
The reduced income was blamed on 48 days off hire as three ships were dry-docked compared with three days in the first three months of 2011, the London-based company said.
The first quarter net income included a $2.7 million non-cash derivative gain compared with a $5 million gain in first quarter 2011.
The company, which charters its 17 container ships to French ocean carrier CMA CGM, earned $25.2 million before interest, tax, depreciation and amortization, compared with $26.2 million last year.
Global Ship Lease is “well positioned for long-term success as our fleet has a weighted average remaining lease term of 8.1 years with a contracted revenue stream of $1.2 billion,” CEO Ian Webber said.
The company continued to reduce its debt, paying down $11.8 million of debt in the first quarter and $127.3 million since August 2009.
CMA CGM, which floated Global Ship Lease on the NYSE in 2008, still retains a significant minority share in the company and manages its ships.
Contact Bruce Barnard at brucebarnard47@hotmail.com.