Global Ship Lease, Inc. (NYSE:GSL) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 10:30 am ET
million for our two vessels held for sale. For the six months of 2020, we generated net income of $13.2 million after a non-cash impairment charge of $8.5 million, all related to our two vessels held for sale and $2.3 million premium paid on the redemption of $46 million for 2022 notes compared to $18 million in the comparative period. We are still experiencing extended shipyard time due to the effects of the virus and congestion as well as extended idle time due to operational difficulties on executing the sale of our vessels.
As a result, in the second quarter of 2020, there were 210 planned offhire days for one vessel for regulatory dry-docking and the scrubber installation of two other vessels, all in progress as of end of quarter. 20 days of unplanned offhire and 194 days of idle ballast time related mainly to our two vessels held for sale and delayed by COVID-19 port restrictions, giving utilization of 89.6%. The average operating expenses per ownership day, including management fees in the quarter, was $5,902, down $57 per day year-over-year despite the acquisition of the seven vessels noted above, all of which are Post-Panamax with higher daily operating expenses. The average operating expenses for the six months ended June 30, 2020, was $6,125 per day compared to $6,042 per day in the comparative period.
Now the general and administrative expenses were $2.3 million for second quarter of 2020 compared to $2.5 million in the same quarter in 2019. The average and administrative expenses per ownership day in the second quarter of 2020 went down to $567 from $710 [Phonetic] in the same quarter in 2019, a decrease of $153. The total cash on hand as of end of the quarter of 2020 was $89.7 million after the redemption and purchase year-to-date for 2022 notes for about $57.8 million and $23 million for purchase of two vessels. I won't go through them in detail now. But as always, we have also included on Slides 17 and 18 our detailed capex guidance and adjusted EBITDA calculator to assist you with your modeling.
I would now like to turn the call back to George for closing remarks.
Thank you, Tassos. I will briefly summarize on Slide 20 before moving to your questions. As we know, the global economy continues to be disrupted by COVID-19. However, Global Ship Lease has been well served by our extensive contract cover, fully employed fleet and our focus on business resilience. During the second quarter, our attractive fleet of low slot costs, high reefer capacity, midsized and smaller container ships, supported by our well-established relationships with lead liner operators, enabled us to maximize on hire time and secure strong stable cash flows despite a challenging market with an oversupply of ships in some size segments.
The timing and shape of global economic recovery remains difficult to call, but we see a number of reasons for cautious optimism. Following the sharp declines over most of the first half