Global Ship Lease Reports Results for the Second Quarter of 2025
Forward contract cover locked in for 96% of 2025 days and 80% of 2026 daysMaximizing strategic optionality while also returning capital to shareholders via annualized dividend of $2.10 per Class A Common Share
ATHENS, Greece, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE:GSL) (the "Company", "Global Ship Lease" or "GSL"), an owner of containerships, announced today its unaudited results for the three and six-month periods ended June 30, 2025.
Second Quarter of 2025 and Year to Date Highlights and Other Recent Developments
- 2Q 2025 operating revenue of $191.9 million; up 9.7% on 2Q 2024. 1H 2025 operating revenue of $382.8 million; up 8.0% on 1H 2024.
- 2Q 2025 net income available to common shareholders of $93.1 million, or $2.61 Earnings per Share (EPS); up 8.8% on 2Q 2024. 1H 2025 net income available to common shareholders of $214.1 million, or $6.01 EPS; up 22.3% on 1H 2024.
- 2Q 2025 normalized net income3 of $95.1 million, or $2.67 normalized EPS³ up 9.7% on 2Q 2024. 1H 2025 normalized net income of $189.4 million, or $5.32 normalized EPS up 7.8% on 1H 2024.
- 2Q 2025 Adjusted EBITDA3 of $134.2 million; up 9.7% on 2Q 2024. 1H 2025 Adjusted EBITDA of $266.5 million; up 7.6% on 1H 2024.
- Added $397 million of contracted revenues during 1H 2025, bringing total contracted revenues as of June 30, 2025 to $1.73 billion, over a weighted average remaining duration of 2.1 years.
- On July 8, 2025 announced updates by three leading credit rating agencies. Moody's Investor Service maintained its Ba2 Corporate Family Rating for Global Ship Lease, with a stable outlook; S&P Global Ratings affirmed its long-term issuer credit rating of BB+, with a stable outlook; and Kroll Bond Rating Agency ("KBRA") kept the Company's corporate credit rating at BB+, with a stable outlook, while also affirming the BBB/stable investment grade rating and stable outlook for the 5.69% Senior Secured Notes due July 15, 2027 (the "2027 Secured Notes").
- In May 2025 Dimitris Y (5,900 TEU, built 2000) was contracted to be sold for $35.6 million, and is scheduled for delivery to the buyers in 4Q25, upon redelivery from the existing charter.
- Completed the sales of Tasman (5,900 TEU, built 2000), Akiteta (2,200 TEU, built 2002), and Keta (2,200 TEU, built 2003) for an aggregate gain of $28.3 million; the vessels were delivered to their new owners in 1Q 2025.
-Took delivery, in January 2025, of Czech, the last in a series of four high-reefer, ECO-9,000 TEU containerships contracted for purchase with charters attached in 4Q 2024 ("Newly Acquired Vessels").
- Agreed, in March 2025, to an $85.0 million Credit Facility with UBS to fully prepay certain of our outstanding credit facilities which would otherwise have matured between May 2026 and July 2026. The new loan is priced at SOFR + 2.15%, matures in the second quarter of 2028, and brings the weighted average cost of our debt, as at June 30, 2025, to 4.18% and weighted average maturity to 4.9 years.
- Declared a dividend of $0.525 per Class A common share for the second quarter of 2025, to be paid on or about September 4, 2025 to common shareholders of record as of August 22, 2025. Paid a dividend of $0.525 per Class A common share for the first quarter of 2025 on June 3, 2025.
- Approximately $33.0 million of capacity remains available under our opportunistic share repurchase authorization.
George Youroukos, our Executive Chairman, stated: "Even in a macro environment that has become as complex, volatile, and unpredictable as any in the modern history of our industry, we are proud to deliver yet another quarter of strong results and growth. By continuing to sign attractive charters for our fleet of well-specified, mid-sized and smaller containerships, we have during the first half of 2025 added almost $400 million of contracted revenue, bringing our forward contracted revenues to $1.73 billion, our 2025 contract cover to 96%, and our 2026 cover to 80%.
In the volatile aftermath of Liberation Day in early April, which was itself preceded by a spike in cargo movements aimed at getting ahead of forthcoming tariffs, both containerized freight and charter markets experienced something of an air pocket, as parties across the supply chain became focused almost exclusively on solving for short-term tactical challenges while pausing longer term commitments on shipping capacity or capital beyond what seemed necessary for the immediate future. Meanwhile, with recent cautious optimism about the Red Sea and a potential pathway towards normalization having been undermined by multiple Houthi attacks, it seems likely that extensive re-routing around the Cape of Good Hope will continue to extend voyage lengths at the same time as macro volatility continues to impact supply chain efficiency and thus increase the number of ships needed to carry any given quantity of cargo. Given these dynamics, as well as the continued feast-or-famine reaction of underlying freight demand to the imposition, amendment, or delay of tariffs, we are exceptionally pleased to have extensive forward charter cover, a robust balance sheet, and a fleet that offers our customers the operational flexibility and optionality they need. Forward visibility on the market and macro environment is very limited, but our financial strength, discipline, and contracted cash flow generation position us well to continue to create value for our shareholders almost regardless of underlying market dynamics."
Thomas Lister, our Chief Executive Officer, stated: "Maximizing optionality while strengthening the long-term resilience of our business remains our key strategic focus. Following years of disciplined de-leveraging, we have established a fortress balance sheet with financial leverage below 1x and a low cost of debt corresponding to our strong credit rating. This robust foundation, combined with over two years of weighted average forward contract cover, provides us with optionality and confidence to seize the kinds of value-accretive opportunities that often emerge from complex, volatile conditions such as those currently prevailing. It also positions us to pursue selective fleet renewal, as well as vessel upgrades that both increase our earnings power and enable us to meet evolving and tightening regulations. Consistent with our dynamic capital allocation policy, we believe that we best serve the interests of our investors by both continuing to return significant capital to shareholders via our dividend and remaining nimble, disciplined, and opportunistic in order to capitalize upon the inherent cyclicality of our industry."
SELECTED FINANCIAL DATA, UNAUDITED
(thousands of U.S. dollars)
Three
Three
Six
Six
months ended
months ended
months ended
months ended
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Operating Revenues (1)
191,859
174,997
382,834
354,558
Operating Income
101,762
93,842
230,260
190,941
Net Income (2)
93,053
85,643
214,063
175,149
Adjusted EBITDA (3)
134,183
122,349
266,481
247,712
Normalized Net Income (3)
95,149
86,657
189,426
175,712
(1) Operating Revenues are net of address commissions which represent a discount provided directly to a charterer based on a fixed percentage of the agreed upon charter rate and also includes the amortization of intangible liabilities, the effect of the straight lining of time charter modifications and the compensation from charterers for drydock and for other capitalized expenses installation. Brokerage commissions are included in "Time charter and voyage expenses" (see below).
(2) Net Income available to common shareholders.
(3) Adjusted EBITDA, Normalized Net Income, and Normalized Earnings per Share are non-U.S. Generally Accepted Accounting Principles ("U.S. GAAP") financial measures, as explained further in this press release, and are considered by Global Ship Lease to be useful measures of its performance. For reconciliations of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measure, please see "Reconciliation of Non-U.S. GAAP Financial Measures" below.
Operating Revenues and Utilization
Operating revenues derived from fixed-rate, mainly long-term, time-charters were $191.9 million in the second quarter of 2025, up $16.9 million (or 9.7%) on operating revenues of $175.0 million in the prior year period. The period-on-period increase in operating revenues was principally due to (i) the net effect of higher rates on charter renewals, (ii) the addition of the four Newly Acquired Vessels and (iii) a non-cash $1.8 million increase in the amortization of intangible liabilities arising from below-market charters attached to certain vessel additions. There were 182 days of offhire and idle time in the second quarter of 2025, of which 145 were for scheduled drydockings, compared to 184 days of offhire and idle time in the prior year period, of which 153 were for scheduled drydockings. Utilization for the second quarter of 2025 was 97.1% compared to utilization of 97.0% in the prior year period.
For the six months ended June 30, 2025, operating revenues were $382.8 million, up $28.2 million (or 8.0%) on operating revenues of $354.6 million in the comparative period, mainly due to (i) the net effect of higher rates on charter renewals (ii) the addition of the four Newly Acquired Vessels and (iii) a non-cash $1.5 million increase in the effect from straight lining time charter modifications and a non-cash $3.5 million increase in the amortization of intangible liabilities arising from below-market charters attached to certain vessel additions offset by an increase in off hire days. There were 588 days of offhire and idle time in the six month period ended June 30, 2025 of which 475 were for scheduled drydockings, compared to 257 days of offhire and idle time in the prior year of which 186 were for scheduled drydockings. Utilization for the six month period ended June 30, 2025 was 95.4% compared to utilization of 97.9% in the prior year period.
Our revenue origin by country, using the respective head office location of each of our charterers as a proxy for origin, for the six-month periods ended June 30, 2025 and 2024, respectively, was as follows:
Revenue origin by country 1
Six months ended June 30, 2025
Six months ended June 30, 2024
Revenue (USD million)
Percentage of revenue
Revenue (USD million)
Percentage of revenue
Denmark (Maersk)
122.00
31.87
%
115.23
32.50
%
Germany (Hapag Lloyd)
73.03
19.08
%
17.84
5.03
%
France (CMA CGM)
71.14
18.59
%
87.84
24.78
%
Switzerland (MSC)
42.99
11.23
%
33.32
9.40
%
Israel (ZIM)
33.75
8.81
%
44.13
12.45
%
China, including Hong Kong (COSCO & OOCL)
21.99
5.74
%
25.38
7.16
%
Singapore (ONE, Swire Shipping)
9.85
2.57
%
14.84
4.18
%
USA (Matson)
5.80
1.51
%
6.39
1.80
%
Taiwan (Wan Hai)
2.28
0.60
%
6.91
1.95
%
Denmark / Dubai (Unifeeder) 2
-
-
2.68
0.75
%
Total
382.83
100.00
%
354.56
100.00
%
Based on jurisdiction of head office of each charterer
Unifeeder is headquartered in Denmark, but owned by DP World (Dubai)
The table below shows fleet utilization for the three and six months ended June 30, 2025 and 2024, and for the years ended December 31, 2024, 2023, 2022 and 2021.
Three months ended
Six months ended
Year ended
June 30,
June 30,
June 30,
June 30,
Dec 31,
Dec 31,
Dec 31,
Dec 31,
Days
2025
2024
2025
2024
2024
2023
2022
2021
Ownership days
6,279
6,188
12,683
12,376
24,937
24,285
23,725
19,427
Planned offhire - scheduled drydock
(145
)
(153
)
(475
)
(186
)
(807
)
(701
)
(581
)
(752
)
Unplanned offhire
(29
)
(29
)
(70
)
(69
)
(144
)
(233
)
(460
)
(260
)
Idle time
(8
)
(2
)
(43
)
(2
)
(15
)
(62
)
(30
)
(88
)
Operating days
6,097
6,004
12,095
12,119
23,971
23,289
22,654
18,327
Utilization
97.1
%
97.0
%
95.4
%
97.9
%
96.1
%
95.9
%
95.5
%
94.3
%
As of June 30, 2025, two regulatory drydockings were in progress and six further regulatory drydockings are anticipated.
Vessel Operating Expenses
Vessel operating expenses, which are primarily the costs of crew, lubricating oil, repairs, maintenance, insurance and technical management fees, were up 7.0% to $50.5 million for the second quarter of 2025, compared to $47.2 million in the prior year period. The increase of $3.3 million was mainly due to (i) the addition of the four Newly Acquired Vessels, (ii) an increase in crew expenses following our decision to increase the number of seafarers on board to improve the vessels' conditions, (iii) an increase in stores, spares and maintenance expenses for planned main engine maintenance and overhaul of diesel generators as well as main engine annual spares delivery due to timing of planned schedule, and (iv) the impact of inflation on fees and expenses, including management fees. The average cost per ownership day in the quarter was $8,045, compared to $7,624 for the prior year period, up $421 per day, or 5.5%.
For the six month period ended June 30, 2025, vessel operating expenses were $100.5 million, or an average of $7,925 per day, compared to $95.0 million in the comparative period, or $7,679 per day, an increase of $246 per ownership day, or 3.2%. The increase of $5.5 million was mainly due to (i) the addition of the four Newly Acquired Vessels offset by the sale of Tasman, Keta and Akiteta in 1Q25, (ii) an increase in crew expenses following our decision to increase the number of seafarers on board to improve the vessels' conditions, (iii) an increase in stores, spares and maintenance expenses for planned main engine maintenance and overhaul of diesel generators as well as main engine annual spares delivery due to timing of planned schedule, and (iv) the impact of inflation on fees and expenses, including management fees.
Time Charter and Voyage Expenses
Time charter and voyage expenses comprise mainly commission paid to ship brokers, the cost of bunker fuel for owner's account when a ship is off-hire or idle, and miscellaneous owner's costs associated with a ship's voyage. Time charter and voyage expenses were $5.1 million for the second quarter of 2025, compared to $5.4 million in the prior year period due to (i) a decrease in voyage administration costs and operational requests from charterers and (ii) a decrease in bunkering expenses during off hire days offset by increased commissions on charter renewals at higher rates.
For the six-month period ended June 30, 2025, time charter and voyage expenses were $11.6 million, or an average of $915 per day, compared to $10.6 million in the comparative period, or $859 per day, an increase of $56 per ownership day, or 6.5% mainly due to increased commissions on charter renewals at higher rates and increase in bunkering expenses due to higher off hire days.
Depreciation and Amortization
Depreciation and amortization for the second quarter of 2025 was $30.3 million, compared to $24.5 million in the prior year period. The increase was mainly due to the 16 drydockings completed after June 30, 2024 and the addition of the four Newly Acquired Vessels in December 2024.
Depreciation and amortization for the six-month period ended June 30, 2025 was $60.1 million, compared to $48.8 million in the comparative period, mainly due to the factors noted above plus the acquisition of the four Newly Acquired Vessels in December 2024.
General and Administrative Expenses
General and administrative expenses were $4.1 million in the second quarter of 2025, the same as in the prior year period.
General and administrative expenses were $8.7 million for the six-month period ended June 30, 2025, compared to $9.1 million in the comparative period. The movement was mainly due to the decrease in payroll expenses following the retirement of our former Chief Executive Officer effective March 31, 2024 plus a reduction in the non-cash charge for stock-based compensation expense.
Gain on sale of vessels
Tasman (5,900 TEU, built 2000), Akiteta (2,200 TEU, built 2002), and Keta (2,200 TEU, built 2003) were sold for an aggregate gain of $28.3 million in the first quarter of 2025.
Adjusted EBITDA1
Adjusted EBITDA was $134.2 million for the second quarter of 2025, up from $122.3 million for the prior year period, with the net increase being mainly due to increased revenue from charter renewals at higher rates and the addition of the four Newly Acquired Vessels.
Adjusted EBITDA for the six-month period ended June 30, 2025 was $266.5 million, compared to $247.7 million for the comparative period, an increase of $18.7 million or 7.6% mainly due to increased revenue from charter renewals at higher rates.
Interest Expense and Interest Income
Debt as at June 30, 2025 totaled $768.5 million, after inclusion of the four Newly Acquired Vessels, comprising $349.0 million of secured bank debt collateralized by vessels, $205.6 million of 2027 Secured Notes collateralized by vessels, and $213.9 million under sale and leaseback financing transactions. As of June 30, 2025, 16 of our vessels were unencumbered.
Debt as at June 30, 2024 totaled $721.1 million, comprising $371.8 million of secured bank debt collateralized by vessels, $258.1 million of 2027 Secured Notes collateralized by vessels, and $91.2 million under sale and leaseback financing transactions. As of June 30, 2024, five vessels were unencumbered.
Interest and other finance expenses for the second quarter of 2025 were $10.6 million, up from $9.9 million for the prior year period. The increase was due to (i) additional floating debt was not covered by the caps since our interest rate caps hedge 77% of our floating rate debt, (ii) a prepayment fee of $0.2 million following the full repayment of Macquarie Credit Facility and (iii) the non-cash write off of deferred financing costs of $0.6 million on the full repayments of the Macquarie Credit Facility and the HCOB-CACIB Credit Facility. In March 2025, we entered into a loan agreement with UBS for $85.0 million, to refinance certain of our existing loans. The agreement is priced at SOFR + 2.15% and has a maturity of three years. During March of 2025, we fully repaid the outstanding balance of ESUN Credit Facility amounting to $5.9 million. During April of 2025, we fully repaid the outstanding balance of the Macquarie Credit Facility amounting to $17.5 million and the outstanding balance of the HCOB-CACIB Credit Facility amounting to $46.8 million.
Interest and other finance expenses for the six-month period ended June 30, 2025 were $20.5 million, up from $20.3 million for the prior year period. The increase was due to the factors mentioned above plus the non-cash write off of deferred financing costs of $0.1 million on the full repayment of the ESUN Credit Facility.
Interest income for the second quarter of 2025 was $4.7 million, up from $4.1 million for the prior year period mainly due to higher invested amounts.
Interest income for the six-month period ended June 30, 2025 was $7.9 million, up from $7.8 million in the comparative period.
Other income, net
Other income, net was $0.8 million in the second quarter of 2025, compared to $1.0 million in the prior year period.
Other income, net was $4.0 million for the six-month period ended June 30, 2025, compared to $2.3 million for the comparative period.
Fair value adjustment on derivatives
In December 2021, we entered into a USD 1-month LIBOR interest rate cap of 0.75% through the fourth quarter of 2026 on $484.1 million of floating rate debt, which reduces over time in line with anticipated debt amortization and represented approximately half of the outstanding floating rate debt. In February 2022, we entered into two additional USD 1-month LIBOR interest rate caps of 0.75% through the fourth quarter of 2026 on the remaining balance of $507.9 million of floating rate debt. As a result of the discontinuation of LIBOR, on July 1, 2023, our interest rate caps automatically transited to 1 month Compounded SOFR at a net rate of 0.64%. A negative fair value adjustment of $1.2 million for the second quarter of 2025 was recorded through the statement of income. The negative fair value adjustment for the six-month period ended June 30, 2025 was $2.8 million.
Earnings Allocated to Preferred Shares
Our Series B Preferred Shares carry a coupon of 8.75%, the cost of which for the second quarter of 2025 was $2.4 million, the same as in the prior year period.
The cost for the six months ended June 30, 2025 was $4.8 million, the same as for the comparative period.
Net Income Available to Common Shareholders
Net income available to common shareholders for the second quarter of 2025 was $93.1 million. Net income available to common shareholders for the prior year period was $85.6 million.
Earnings per share for the second quarter of 2025 was $2.61, an increase of 7.4% from the earnings per share for the prior year period, which was $2.43.
For the six months ended June 30, 2025, net income available to common shareholders was $214.1 million. Net income available to common shareholders for the six months ended June 30, 2024 was $175.1 million.
Earnings per share for the six months ended June 30, 2025 was $6.01, an increase of 20.7% from the earnings per share for the comparative period, which was $4.98.
Normalized net income1 for the second quarter of 2025 was $95.1 million. Normalized net income for the prior year period was $86.7 million. Normalized earnings per share1 for the second quarter of 2025 was $2.67, an increase of 8.5% from Normalized earnings per share for the prior year period, which was $2.46.
Normalized net income1 for the six-month period ended June 30, 2025 was $189.4 million. Normalized net income for the prior year period was $175.7 million. Normalized earnings per share1 for the six-month period ended June 30, 2025 was $5.32, an increase of 6.6% from Normalized earnings per share for the prior year period, which was $4.99.
1 Adjusted EBITDA, Normalized net income, and Normalized earnings per share are non-U.S. GAAP financial measures, as explained further in this press release, and are considered by Global Ship Lease to be useful measures of its performance. For reconciliations of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measure, please see "Reconciliation of Non-U.S. GAAP Financial Measures" below.
Fleet
As of June 30, 2025, there were 69 containerships in the fleet, detailed in the table below:
Vessel Name
Capacity in TEUs
Lightweight (tons)
Year Built
Charterer
Earliest Charter Expiry Date
Latest Charter Expiry Date (2)
Daily Charter Rate $
CMA CGM Thalassa
11,040
38,577
2008
CMA CGM
3Q28
4Q28
47,200 (3)
ZIM Norfolk (1)
9,115
31,764
2015
ZIM
2Q27
4Q27
65,000
Anthea Y (1)
9,115
31,890
2015
MSC
4Q28
1Q29
Footnote (4)
ZIM Xiamen (1)
9,115
31,820
2015
ZIM
3Q27
4Q27
65,000
Sydney Express (1)
9,019
31,254
2016
Hapag-Lloyd
1Q26
4Q29
Footnote (5)
Istanbul Express (1)
9,019
31,380
2016
Hapag-Lloyd
3Q26
2Q30
Footnote (5)
Bremerhaven Express (1)
9,019
31,199
2015
Hapag Lloyd
1Q26
3Q29
Footnote (5)
Czech (1)
9,019
31,319
2015
Hapag-Lloyd
4Q26
3Q30
Footnote (5)
MSC Tianjin
8,603
34,243
2005
MSC (6)
3Q27
4Q27
Footnote (6)
MSC Qingdao
8,603
34,586
2004
MSC (6)
3Q27
4Q27
Footnote (6)
