Global Ship Lease, Inc. (NYSE:GSL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:30 am ET

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Global Ship Lease, Inc. (NYSE:GSL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
George Youroukos

We're prioritizing the safety and welfare of our personnel at sea and onshore, and we're taking all appropriate steps to protect and support our colleagues. We're focused on maintaining strong liquidity and a healthy balance sheet in order to remain strong, flexible and resilient throughout all market conditions. Our strategy and charter portfolio put us in a good position here as we have $660 million of contracted revenue over an average of more than 2.3 years and only $5 million of debt maturities between now and late 2022. We continue to engage constructively with capital providers on the intended refinancing of our 2022 bond, ultimately due November 2022, and it remains our intention to pursue that refinancing on an opportunistic basis when market conditions are sufficiently supportive.

In order to benefit fully from our extensive contract cover, we strive to maximize commercial and operational uptime of our ships. Further, we have remained active in chartering and with our high-quality, well-specified fleet, I'm pleased to say that we currently have our entire fleet employed on time charters. Despite the fact the global fleet show idle tonnage spiked into the double digits on a percentage basis in the second quarter as the liner companies have managed capacity to meet reduced demand.

This charter's success is closely related to our ability to offer consistently excellent service to our liner operator partners, providing them with reliability, operational flexibility, low slot costs and high reefer capacity that they rely upon every day. Tom will address this in more detail during his market overview, but it is worth noting that a number of the world's leading liner companies, our customers amongst them, have now reported results for the first half of the year that have significantly exceeded expectations against what was widely expected to be a major test of their ability to operate in a challenging market, the liners overall have thrived, supported by a far higher degree of pricing and capacity discipline that has ever been seen in the past as well as an increasing preference for not barely the larger ships for the trade, but those with a lower slot cost, flexibility and appropriate reefer capacity to enable them to maximize their profitability in good times and bad.

Finally, while we're primarily focused on vigilance and resilience, we also recognize that there are tentative signs of a potential economic recovery. Our balance sheet and charter coverage being that we're not dependent upon the recovery being a near-term event, but we're making sure that Global Ship Lease is in a position to fully benefit from the recovery when it does take place.

With that, I will turn the call to Ian for a review of our fleet and charter portfolio as well as an overview of recent highlights.

Executive
Ian J. Webber

Thank you, George. On Slide 4, you can see our charter portfolio, from which I'll highlight a few points. We have some $659 million of contracted revenue with a TEU weighted average remaining contract duration of 2.3