Global Ship Lease (NYSE: GSL), a leading owner of containerships, saw its shares soar 5.78% in pre-market trading on November 11, 2024, after reporting robust financial results for the third quarter of 2024.
The company reported operating revenue of $174.1 million for Q3 2024, a slight 0.2% decrease year-over-year but still a strong performance. Net income available to common shareholders came in at $78.8 million, down 4.7% from the prior year, while normalized net income (a non-GAAP measure) rose 5.1% to $86.6 million.
Adjusted EBITDA, a key profitability metric, increased 1.1% to $123.3 million, reflecting higher charter rates and improved operating efficiency. Earnings per share stood at $2.22, down 5.1% year-over-year, but normalized earnings per share (non-GAAP) grew 5.2% to $2.45.
Global Ship Lease's strong performance was underpinned by its strategic efforts to lock in forward contract cover for a significant portion of its fleet in 2025 and 2026. As of September 30, 2024, the company had secured forward cover for 76% of its 2025 days and 49% of its 2026 days, positioning it for continued profitability and cash flow generation.
During the quarter, the company also refinanced $300 million of debt, reducing its weighted average cost of debt from 4.57% to 3.95% and extending its weighted average maturity to four years. This strategic move, combined with the company's financial discipline, enhances its ability to return capital to shareholders while pursuing selective fleet renewal and growth opportunities.
Reflecting its strong performance and positive outlook, Global Ship Lease declared a quarterly dividend of $0.45 per Class A common share, consistent with its previous payouts.
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