Global Ship Lease Hits Seven-Month High on Strong Q1 Earnings and Dividend Boost
Global Ship Lease (NYSE: GSL) shares surged as much as 5.8% on Monday, reaching a seven-month peak after reporting better-than-expected first-quarter results, raising its dividend, and highlighting robust forward charter coverage amid ongoing global shipping volatility.
The containership owner posted a 35% year-on-year rise in net income to $121 million. Adjusted EBITDA increased 5.5% to $132.3 million, while adjusted earnings per share of $2.65 topped Wall Street expectations of $2.33.
Revenue grew 6.3% to $191 million, exceeding consensus estimates of $172.2 million. The increase was driven by higher charter rates and the addition of four newly acquired 9,000-TEU eco-efficient vessels.
Reflecting confidence in its cash flow and charter visibility, Global Ship Lease raised its quarterly dividend to $0.525 per share, translating to an annualized payout of $2.10.
The company has secured forward contract coverage for 93% of 2025 charter days and 75% of 2026, amounting to nearly $1.9 billion over an average weighted period of 2.3 years, CEO Thomas Lister noted.
Additionally, Global Ship Lease recorded a $28.5 million gain from the sale of three older vessels and refinanced debt with a new $85 million credit facility from UBS, reducing its weighted average cost of debt to 3.99% and extending maturities beyond five years.
The fleet now comprises 69 containerships, maintaining high utilization and completing scheduled drydockings. The company also retains $33 million in share repurchase capacity.
Executive Chairman George Youroukos emphasized the company’s strategic agility amid geopolitical uncertainties, stating, “We have managed to continue to build our charter coverage at attractive rates despite global challenges.”
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