Global Ship Lease (NYSE: GSL) reported Q4 revenue for the quarter came in at $70 million versus the consensus estimate of $69.18 million.

George Youroukos, Executive Chairman of Global Ship Lease, stated, “Through the second half of 2020 and into early 2021, Global Ship Lease has taken decisive action in a uniquely strong market in ways that will benefit the Company for years to come. As our liner operator customers have increasingly found themselves short of containership capacity in the rapid rebound of demand, severe port congestion particularly on the US West Coast and in China, and the already tight vessel supply that preceded the onset of COVID-19, we have been able to secure and extend charters across our fleet of low slot cost, high reefer capacity, fuel efficient containerships at rates and durations well beyond what has been available in recent years.”

“On the back of these dramatic chartering successes, and supplemented by our deleveraging efforts, and game-changing capacity discipline by the liner companies, we were able to achieve the major goal of refinancing our 2022 Notes on dramatically improved terms. Eliminating the restrictive covenants that had previously limited our ability to pursue the full range of attractive market opportunities or to share the proceeds of those efforts with our shareholders, we moved quickly to initiate a sustainable quarterly dividend of $0.12 for our Class A Common Shares and announced an agreement to add a further seven vessels to our fleet in a transaction that will be immediately accretive, with strong downside protection and adding approximately $19 million to annual net income, based on today’s LIBOR, representing an increase of nearly 40% compared to normalized net income for the year ended December 31, 2020.”

“As we now move through a period of the year that typically sees the most pronounced seasonal weakness in our industry, we continue to see a highly supportive environment. This is driven by both a sustained high level of containership demand and a restricted near term supply of ships, reinforced for the mid term by a negligible orderbook for mid-sized and smaller vessels, constrained in part by uncertainty over future fuel and propulsion technologies. These factors point to highly supportive supply side fundamentals through the medium term. With an improved financial foundation, a highly in-demand fleet, and substantial momentum in unlocking value for our shareholders, we believe that GSL is well placed to continue executing our accretive growth strategy and taking full opportunity of the attractive opportunities ahead of us.”

Ian Webber, Chief Executive Officer of Global Ship Lease, commented, “The successful refinancing of our 2022 Notes earlier in 2021 is yet another step to further strengthen our balance sheet and is also a highly significant unlocking event in and of itself. By extending maturity from 2022 to 2026, eliminating incurrence covenants, and reducing annual cash debt service by up to $15 million, the refinancing provides us with a materially enhanced free cashflow profile and the flexibility to allocate that cashflow in a way that best creates long-term value for our shareholders. Following our initiation of a dividend on our Class A common shares and a successful equity offering that facilitates our ability to pursue further accretive growth, we are as financially strong as we have been at any point in our history.”

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