- Global Ship secured two 5-year time charters with CMA CGM for two containerships at 30% above current rates.
- The new charters will commence during the second quarter of 2019.
- Contracted revenue to increase by approximately $94 million.
- The contract expected to generate approximately $68 million of EBITDA.
Global Ship Lease, Inc. has agreed to five-year charters with CMA CGM for the 2015-built, 6,882 TEU containerships UASC Bubiyan and UASC Yas says Global Ship Lease in a press release.
What is in the contract?
The new charters, which are in addition to the four similar charters announced on November 9, 2018, will commence upon the expiry of the current charters during the second quarter of 2019, are for a period of five years and are at a rate of $25,910 per day, up from $20,000 per day under the current charters.
Ian Webber, Chief Executive Officer of Global Ship Lease, stated that these new long-term charters with CMA CGM demonstrate the clear market demand for the modern, high-specification, eco, wide-beam containerships acquired through their recent strategic combination with Poseidon Containers.
Profits from Poseidon Legacy
In addition to the substantial value of the merger as originally announced, their subsequent chartering activity related to Poseidon legacy vessels continues to produce the incremental value that was anticipated, having now added more than $280 million of incremental contracted revenue and over $200 million of incremental EBITDA, while increasing their weighted average remaining charter term beyond that of the GSL legacy fleet and bringing their charter-attached NAV to over $500 million as of September 30, 2018.
In this way, GSL’s earnings profile and long-term cash flow visibility are significantly improving and they benefit from the substantial value brought to the table by Poseidon Containers.
About Global Ship Lease
Global Ship Lease is a leading independent owner of containerships with a diversified and fuel-efficient fleet of containerships. Global Ship Lease owns 38 vessels ranging from 2,207 to 11,040 TEU, of which nine are a Post-Panamax new-design eco wide beam, with a total capacity of 198,793 TEU and an average age, weighted by TEU capacity, of 10.7 years determined as at September 30, 2018.
The average remaining term of the time charters on September 30, 2018, including those on the Poseidon Container vessels acquired on November 15, 2018, and subsequent charter agreements, was 2.7 years on a weighted basis.
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Source: Global Ship Lease