264.6% increase in net profits for Giorgos Giouroukos’ Global Ship Lease

By Anastasia Vamvaka

Net profits of 124.7 million dollars were recorded by the listed Global Ship Lease interests of Giorgos Giouroukos, in the first half of 2022 against 34.2 million in the corresponding period of 2021 with an increase rate of 264.6%. Q2 earnings rose to $54.5 million from $30 million in 2021, an 81.1% increase.

According to the company’s Executive Chairman, Giorgos Giouroukou, the container charter market is currently on hold, as macroeconomic uncertainty has become more intense and charterers tend to take smaller charters,

The company’s operating income was $154.5 million for the second quarter of 2022, nearly double the $82.9 million reported in Global Ship Lease’s financial report. For the six months ended June 30, 2022, operating income was $308.1 million, up 97.6% from $155.9 million in the first half of 2021.

The company’s fleet is fully chartered for 2022 and almost all of 2023. Adjusted EBITDA was 189.9 million in the first half compared to 93.8 in 2021 and 95.3 million in the second quarter compared to 49.5 the corresponding quarter of 2021.

The company is focusing on solutions to improve fuel efficiency while keeping a close eye on new technologies for fuel carbonization, such as the Aqualung carbon capture venture in which it even made a limited investment during the quarter.

Giorgos Giouroukos, Executive Chairman of Global Ship Lease, said: “driven by accelerated growth and extensive new longer-term charters at higher rates that we secured mainly last year and which come into full force in 2022, we have shown a significant increase in earnings which are largely committed for many years.Our adjusted EBITDA for the first half of 2022 is more than double its level in the corresponding period of the previous year.

After the near-continuous strengthening of interest rates since mid-2020, the charter market is currently on hold as sources of macroeconomic uncertainty have become more pronounced and charterers tend to take smaller charters on a very limited number of vessels that have enter the charter market. In the medium and smaller vessel categories where we operate, the increase in supply over the next few years is modest compared to that of larger vessels. We believe that the combination of increasing decarbonisation regulations, a relatively aging global fleet and almost no scrapping in recent years suggests that net fleet growth in the mid and smaller segments will remain very limited for the foreseeable future.”

Global Ship is mainly active in the transportation of containers with a diversified fleet of medium and smaller vessels. Global Ship Lease, which is incorporated in the Marshall Islands, began operations in December 2007 and was listed on the New York Stock Exchange in August 2008. As of August 3, 2022, Global Ship Lease owned 65 container vessels, ranging from 1,118 to 11,040 TEU, with a total capacity of 342,348 TEU. 32 vessels are Post-Panamax wide beam.

Source: Capital

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