Global Ship Lease triples Q3 loss, but profit up in first 9 months

Global Ship Lease, a containership lessor and Marshall Islands company with administrative offices in London, has more than tripled its third quarter net loss year on year to US$$3.9 million, while at the same time posting a net gain of $30 million for the first nine months.
Third quarter revenue increased by 57 per cent year on year to $37.6 million due to the purchase of four additional vessels in December 2008 and one additional vessel in August 2009, a company statement said.
Global Ship Lease reported normalised net profit of $6.2 million for the third quarter, excluding an $8.1 million non-cash interest rate derivative mark-to-market charge and $2 million deferred financing costs written off on an accelerated basis, the company said.
The company generated $15.4 million in cash in the third quarter and $45.5 million in the first nine months.
Global Ship Lease said it negotiated an amendment to its credit facility in August to suspend loan-to-value tests until the second quarter of 2011, which allowed further borrowings to finance the purchase of the 6,627-TEU CMA CGM Berlioz in August for $82 million. The vessel has been chartered to CMA CGM for 12 years.
It also cancelled all undrawn commitments and requires prepayments based on free cash flow. As part of the amendment, no common dividends can be declared or paid until November 30, 2010 or when loan-to-value falls to 75 per cent or below.
"During the third quarter, Global Ship Lease`s entire fleet remained secured on long-term contracts and the business model continued to perform as expected. Our contracted revenue and capped operating cost agreements enabled the company to once again record strong and consistent revenue and cash flow," said CEO Ian Webber.