JOC Staff | Nov 15, 2012 9:31PM EST
Global Ship Lease’s third quarter net income rose to $6.9 million from $5.2 million a year ago as the NYSE-listed container ship owner kept its entire fleet of 17 vessels on charter.
The improved result, which excludes mark-to-market items, was struck on increased revenue of $39.5 million, up from $38.7 million mainly due to improved utilization of ships as a result of fewer dry dockings.
There was a net loss of $1.8 million on revenue of $117 million for the first nine months of 2012 after a $13.6 million impairment charge relating to the fair value of purchase options for two ships and a non-cash interest rate derivative loss of $4.9 million.
GSL, which charters all its ships to French carrier CMA CGM, paid down $23 million of debt during the quarter, cutting net bank debt to $407.4 million as of September 30.
The company said its stable business model enabled it to agree with its lenders to waive for a further two years an upcoming loan-to-value test due Nov. 30.
“With contracted revenue for our 17 vessels of $1.1 billion and an average remaining charter term of 7.6 years, we are optimistic about the outlook for our business,” said Global Ship Lease CEO Ian Webber.
CMA CGM, which floated Global Ship Lease on the YSE in 2008, still retains a significant minority holding in the London-headquartered company.
