Global Ship Lease, the NYSE-listed container shipowner, slumped to a net loss of $4 million in 2010 from a $42.2 million profit in 2009 as revenue grew 7 percent to a record $158.8 million.
The loss was struck after a $15.3 million loss on interest rate derivatives and a $17.1 million impairment charge for converting contracts to buy two new ships into options to purchase.
Global Ship Lease, the NYSE-listed container shipowner, slumped to a net loss of $4 million in 2010 from a $42.2 million profit in 2009 as revenue grew 7 percent to a record $158.8 million.
The loss was struck after a $15.3 million loss on interest rate derivatives and a $17.1 million impairment charge for converting contracts to buy two new ships into options to purchase.
The company, which has 17 ships on charter to French ocean carrier CMA CGM, moved into the black in the fourth quarter with $1.2 million net income compared with $12.3 million in the final three months of 2009.
Fourth quarter revenue increased marginally to $40 million from $39.9 million in the year earlier period.
"2010 was a year of significant progress. … We achieved almost 100 percent utilization of our vessels and posted record revenues," said Ian Webber, CEO of the London-headquartered company.
"We entered 2011 well positioned to continue to benefit from our fully time chartered fleet and sizeable contracted revenue stream."
GSL has until September/October to exercise options to buy two new 4,250 20-foot equivalent unit vessels from German interests for $61.25 million each.
GSL paid down $55.4 million of debt in 2010 and filed a shelf registration statement in February to raise up to a maximum of $500 million.
CMA CGM, which owns around 45 percent of GSL, manages the company's ships.
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