Good afternoon ladies and gentlemen. Thank you for standing by and welcome to the Global Ship Lease Q2 Earnings Conference Call. Joining us on the call today are Ian Webber, Chief Executive Officer and Susan Cook, Chief Financial Officer of the company. I must advise that the conference is being recorded today, Monday 13, August 2012 and after the presentation, there will be a question and answer session and instructions given at that time. I would now like to hand the conference over to your speaker today, Ian Webber, please go ahead sir.

Thank you. Good morning everybody and thank you for joining us today. I hope you had a chance to look at the earnings release that we issued earlier today and have been able to access via our website the slides that accompany this call. As normal, slides 1 and 2 reminds you about the call may include forward looking statements that are based on current expectations and assumptions and are, by their nature, inherently uncertain and outside of the Company’s control. Actual results may differ materially from these forward looking statements due to many factors including those described in the safe harbor section of the slide presentation. We also draw your attention to the risk factors section of our annual report on Form 20-F, which we filed in April this year. You can access this via our website or via the SECs. All of our statements are qualified by these and other disclosures in our reports filed with the SEC. We do not undertake any duty to update forward looking statements. For reconciliations of the non-GAAP financial measures to which we will refer during this call to the most directly comparable measures calculated and presented in accordance with GAAP you should refer to the earnings release that we issued this morning. And this is also available on our website at www.globalshiplease.com. I would like to start by reviewing the second quarter highlights and then discuss our charter portfolio, including the two vessels that we’ve recently signed to new charters. After some comments on the industry overall, I’ll turn the call over to Susan for comments on our financials. But finally, after brief concluding remarks we’ll open the call out for questions. Slide 3, shows the company’s second quarter highlights. During the quarter, our entire fleet of 17 vessels which continued…

Thank you, Ian. Please turn to Slide 11 for a summary of our financial results for the 3 months ended June 30, 2012. With all of our vessels operating on fixed rate contracts, we generated revenue of $39.2 million in the second quarter of 2012. This result is up slightly on revenue associate $0.8 million for the comparative period in 2011, due mainly to 11 less offhire days in the 2012 period from fewer drydockings. Utilization for the second quarter of 2012 was 98.6% versus 97.9% in 2011. During the second quarter, we completed our fourth drydockings for the year and have three more scheduled to be completed in 2012. However, we only have two in each of 2013 and 2014 and none in 2015. With the lighter drydocking schedule, our results over the next 3 years will be less affected by planned offhire days. Our vessel operating expenses were $11.2 million for the second quarter of 2012. The average cost per ownership day was $7,253, down $161 or 2.2% on $7,414 for the rolling four quarters ended March 31, 2012. Increased spend on repairs, maintenance, and supplies were offset by a benefit during the quarter from exchange rate movements on costs denominated in euros. Interest expense, excluding the effect of interest rate derivatives which do not qualify for hedge accounting, for the three months ended June 30, 2012 was $5.3 million. During the second quarter, the company’s borrowings under its credit facility averaged $471.8 million and with $48 million of preferred shares throughout the period, total average borrowings were $519.8 million. The company’s derivatives hedging instruments resulted in a realized loss of $4.6 million in the three months ended June 30, 2012, the settlements of swaps in the period, as current LIBOR rates are lower than the average fixed…

Thanks, Susan. I would like to conclude our prepared remarks with Slide 14. This provides a summary of why we believe Global Ship Lease is well positioned to create value for shareholders over the long term. First, during the second quarter, general freight rate increases were implemented by most of the liner companies in the major trade lines and still mainly in place today. This should improve the profitability and the credit phases of the liner operators, including CMA CGM. Second, as we continue to emphasize, our business model is focused on chartering ships on long term fixed rate contracts. This provides us with significant contracted revenue and predictable cash flows, despite the volatile industry environment. Third, we continue to strengthen our balance sheet by paying down debt on a quarterly basis. We have got no purchase obligations and we have no debt maturities until the end of 2016 by eliminating our near-term exposure to financing or refinancing risk. Fourth, the cash flow effect of the revenue reductions from the new charters will be largely offset from reduced drydocking and the expiry of interest rate swaps. In the next 3 years, as we have said before, we have got a total of 4 scheduled drydockings which compares to 13 in the 2011 and 2012 two-year period. As I mentioned, five fewer drydockings in 2013 compared to 2012 based on average cost to date will save significant amounts of cash flow, a total of approximately $8.2 million. Turning to interest rates swaps, the benefit in 2013 from the expiry of $253 million of interest rate swaps in the middle of March next year the cash flow benefit is approximately $5.9 million. So between the two a lot number of drydockings and expiry of swaps there is a total cash flow benefit in 2013 of $14.1 million. So reverse engineering no worse than cash flow neutral on 2012, but charter rates on the two 4100-TEU vessels could be as low as $8,700 per vessel per day for the balance of 2013 after the expiry of the new charters in May. There is a few numbers in there, so we show more detail of these calculations on Slide 15 for the record. Finally, back to Slide 14, by continuing to delever our balance sheet, by maintaining a focus on generating strong cash flow, we are positioning ourselves to provide shareholders with a sustainable dividend once we are in full compliance with our loan-to-value covenant. That concludes our prepared remarks and now I would like to hand back to the operator who will explain the Q&A process.

Thank you very much sir. (Operator Instructions) And from Euro Pacific Capital, your first question comes from Mark Suarez, please go ahead sir. Mark Suarez – Euro Pacific Capital: Good morning everyone. Ian, I know you reported and you mentioned the recently re-chartered vessels for approximately a month here. Is the idea to continue to re-charter the two vessels a short term as long as those rates continue to only gradually improve going forward?

Hello, Mark. Yes, generally. As we have said before on previous calls, when the charter market is soft, fixings tend to be for a relatively short periods of time, 3, 6, maybe 9 months and conversely when the charter market is firm then fixings tend to be for longer periods, 2 or 3 years. So, if the current rate environment continues then I would expect a relatively short fixings after these ones expire. Mark Suarez – Euro Pacific Capital: Got it. I know you mentioned the S&P market has been sort of sticky, sort of moving sideways, we haven’t really seen a dramatic improvement. I know, there was a disruption by the Malaysian carrier that sort of led to sale prices. Since Q1 have you seen sort of the same story, no significant improvement – basically what have you seen from an asset value perspective when you guys do demarking?

Yes. There isn’t a huge amount of activity in the S&P market. On often times transactions that are being done have a sort of artificial element to them. You mentioned the Malaysian carrier and it’s (inaudible) as it decided to get out of the business and there have been some silent lease back transactions, as well, involving major carriers and some including some Greeks, but those to a degree are a bit artificial as well because the buyer is prepared to buy at higher price if he gets a higher charter rate. So, it’s really quite difficult to tell what’s going on underlying all of this. But we do say close to brokers, we look at all of the industries, we read brokers’ reports and we have seen that there has been (inaudible) asset values over the last 2 to 3 months since our last call. But it really hasn’t changed the picture dramatically. Hence in our prepared remarks we said that we are going to need to see some really improvements in asset values over the next 2 to 3 months if we are going to pass the loan-to-value test at the end of November. Mark Suarez – Euro Pacific Capital: Got it. Okay. Sort of turning to margins, I think yes looking on my numbers it came a bit higher than I expected during the quarter. I know, average cost per ownership day was essentially flat, I know you had some currency tailwinds. But going forward, if the annual rate of 2% to 3% for 0.4% expenses is that still a reasonable assumption here, or should we see some upside from then?

I don’t think you should look at it from a margin perspective because then you – if we have lower charter rates we will have lower cost and it doesn’t work like that. You should look at the operating cost line as a single line and what I can say is that we are not immune from inflation rate pressures, as an industry this isn’t just global ship lease. On the long term increase in operating cost is 2% to 3% per year. It oscillates a little bit from a quarter to quarter, but on average we would expect to see 2% or 3% increase year-on-year. Mark Suarez – Euro Pacific Capital: Got it, okay. That’s all I got for now, thank you.

Thanks, Mark.

Thank you. And from Sidoti & Company, you have a question from Chris Snyder, please ask your question sir. Chris Snyder - Sidoti & Company: Good morning, gentlemen, congratulations on the quarter.

Thank you. Hello, Chris. Chris Snyder - Sidoti & Company: My first question is about G&A expenses, I guess they really came down on a quarter-on-quarter basis, like six quarters, but this year so far they have kind of pretty decrease each quarter. What’s kind of causing that?

Well, just a couple of things going on here really. Firstly, we are spending less money on legal and professional and sort of consultancy fees at the moment. And secondly, we closed the day-to-day bookkeeping in-house, previously we had a third party doing it. And we are saving couple of hundred thousand dollars per month of costs from that – not for month, I am sorry, per quarter. Chris Snyder – Sidoti & Company: Okay. My next question is, I know you guys said and everyone knows, the liner companies have been increasing rates, but it seems like the past couple of months hasn’t really passed through the ship owners. I was wondering if you guys have any idea on, if you think it will pass through and then up in higher charter rates, or I guess timeframe, and maybe when that would happen?

That’s a really good question. My crystal ball is not sufficiently clear, I am afraid. Normally, as we said on the call, normally, the same supply demand pressures drive freight rates and charter rates. However, there’s been a disconnect in the last six months, a little bit longer actually. And the liner companies have sort of unilaterally increased freight rates despite there being an oversupply of tonnage and they are just safe to their customers. If you want just to ship cargo from China into Northern Europe, you are going to have to pay $2,000 more, and providing pricing discipline is retained, then the shippers have got nowhere else to go. Unfortunately, that has not been replicated in the ship charter market, which is very much more diversified and there are many, many more owners than operators of significance anyway. And the market is much more sort of transparent in that sense. And it has been negatively impacted by the oversupply of tonnage, principally big ships, but that has rippled down through the\ cascade effect through most vessel sizes. Chris Snyder – Sidoti & Company: Yes, thank you. And my last question is, I don’t know if there is any comparable transactions that you guys are kind of looking at as a value that you think will be placed on Panamax containers that you guys have --?

On the fleet as a whole? Chris Snyder – Sidoti & Company: Yes, or just individually. Has there been any like transactions that you guys think are really good match for the Panamax containers that you guys have?

Unfortunately not. As we said, many of the transactions that are being reported have got unusual features, tariff, and we have not had formal valuations for a long time. We haven’t made in, say, what’s in cycle 2011 when we passed loan to value. So, I am afraid I can’t help you with that. Chris Snyder – Sidoti & Company: Okay. Thanks a lot. It really helps with your inputs.

Thank you. Your next question from DRZ, comes from Zach Pancratz. Please ask your question. Zach Pancratz – DRZ: Good morning.

Hello, hi Zach. Zach Pancratz – DRZ: Just a quick question on the LTV. Obviously, it’s probably fair to assume this November test is going to be pretty tough to get into compliance. Assuming that, I mean, is it fair to assume that maybe the next test would come in April of 2013 or similar to when you guys got the waiver a couple of years ago?

I understand why you are asking the question. It’s actually very difficult to answer. We will continue to monitor asset values. If we need to talk to our bank group, then we will for the November test. We have got a strong record of reaching an agreement with them. It’s very difficult to speculate on the detail of any agreement should one be necessary on how many periods of test it would cover. Well, I think we would just have to wait and see. Zach Pancratz – DRZ: Okay. I mean, just looking at the way you guys are paying off debt, I would think by the end of April time period, even with that said, price is going nowhere I would think, the LTV would probably look a lot better in that timeframe?

It will obviously, even if that’s a value stayed flat, then value will increase as debt is being paid down. Will it be enough to part LTV hypothetically in April? I don’t know, I think crystal ball -- my crystal ball can’t see as far November, let alone April next year. April typically is a stronger month, the charter rates and asset values, as operators live to fix their fleet for the upcoming busy season, but our fleet will be a year older in April as well, which has an effect on theoretical values as well. So, there are a lot of factors that work, and it’s really difficult to speculate on where we will be in nine months time. Zach Pancratz – DRZ: Yes, that’s understandable. And just looking at charter rates, I know you guys in your presentation, you guys show the contract index, which is basically made up of vessels that are 4,000 TEU and below. Looking at charter rates for vessels that are 5,000 and above, I mean, those have been pretty strong. So, I am trying to get a sense of what the elasticity is there, the strength in larger assets. How does that, you know, and you are billing few kind of the smaller asset growth, so how long does that take? Obviously it depends on the demand environment. So, just kind of wondering your take on that.

Yes, it’s Clarksons rather than contracts that we show on page 4, but they show and broadly the similar thing, and you are right, most charter indices aggregate ones anyway are for smaller vessels up to 4,000, maybe 5,000 TEU. Simply because that’s the most anxious five segment in the charter market. And the number of fixings for 5,000s and above, and certainly sort of 7,000 to 7,500 and above TEU ships is minimal. And you are right, there has been more of an interest in the larger ships right now in the charter market, there earnings have been slightly better protected. I don’t think there is a huge difference between the 4,000 TEU ship and a 5,000 or 5,500 or 6,000 TEU ship in the charter market, just carriers, they offer a bigger ship, but it may be more efficient, maybe more fuel efficient on an individual slot basis. So, that may be driving operators to be prepared to pay a little bit more on charter hires. Zach Pancratz – DRZ: And then just lastly, I know this is pretty forward-looking, and I know you don’t look too far into the future, but looking at the 2014 order book, granted there is a lot of assumptions there with slippage, scrappage rates, whatnot, but with the kind of softness we have seen in ordering from the liners and from the charters over the last year-and-a-half, I got to think, come 2014 when those assets that would have been purchased over the past few years would come on water, that order book looks pretty slim for those out years.

Great, I agree with you, and we haven’t said it recently, but we have said on calls before that perversely the lack of finance for the maritime sector generally and obviously for us specifically containerships, is part of the answer to low charter rates and low freight rates. And the order books is going to be controlled. And there have been very few orders recently and as you said in the prepared remarks, the current order books is at almost 10-year low proportionate to the current fleet, and unless the purse strings are loosened, it seems as if it will continue that way. Zach Pancratz – DRZ: Right. So, I mean, looking at you guys, it would obviously be very beneficial for you to when the time comes to initiate a dividend, to get your equity value higher, which gives you a lever to call in the press market to be able to take advantage of that type market that’s probably coming in the out years.

Absolutely. And there are lots of arguments to say that, that the purchase environment today is very strong. If you have got capital, then it’s a great time to deploy it, but very few people have it. Zach Pancratz – DRZ: All right. Well, congrats on a good quarter and keep up the cash flows and all that you guys have been doing. Thank you.

Thanks Zach.

Thank you. Now, from Elevated Capital, you have question from Michael Demaray. Please ask your question. Michael Demaray – Elevated Capital: I think I know the answer to this, but I will try anyhow. What sort of valuation cushion are you, do you guys think will be necessary to restart the dividend? I mean, are we talking about 5% or 10% cushion on the LTV test or would you need greater than that?

Michael, I can’t remember exactly when you asked this last time, but it’s the same answer. We have not discussed it, and it’s mute at the moment. We want to be sure that we have passed loan-to-value clearly and the prospects are that we will continue to pass loan-to-value before we reinstate the dividend. We don’t want to turn it on and turn it off and turn it on again. I would suggest that, that’s just not in the interest of all of our shareholders. It’s just not something that the Board has discussed because they haven’t had to. Michael Demaray – Elevated Capital: Okay. Sure. Thank you very much.

Thank you sir. (Operator Instructions) Now, from Harbor Capital [ph], you have a question from Nathan Laffoon [ph]. Please ask your question. Nathan Laffoon – Harbor Capital: Good morning, Ian.

Hello, Nathan. How are you? Nathan Laffoon – Harbor Capital: I am fine. Thank you. Actually, you just touched on what my question was, which was about the trend in the financial market, and maybe you have said what needs to be said. I was mostly interested in how you find the trend of the banking climb, number one, and your specifically in general, the ability to finance whether it’s banking or some kind of to market exercise.

Yes, I am happy to comment. It’s tough, it’s really very tough. Nathan Laffoon – Harbor Capital: You mean, the banks really have closed the door on almost everybody?

No, not all of them. There are some that continues to lend on new business that many are focused on looking after what they have got rather than expanding their book, and there are a couple of banks that are on the phase of, that seems to want to exit their shipping portfolio. Debt finance is available. It’s a bit more expensive than it used to be, and it’s for shorter tenures, the amortization is more aggressive and the lending ratio is lower, but it is there against specific projects. The capital markets, well, how many know as well as I do that they are not really terribly active at the moment, it’s the wrong time of the year and the macroeconomic headwinds are against many industries including shipping. But for those guys who are sitting on cash that they raised through public offerings or their private companies that have got a cash mountain who can bolt on a little bit of debt as well, but there as I have indicated some we think quite good buying opportunities. We continue to monitor to that. We always look at for alternative sources of capital. Nathan Laffoon – Harbor Capital: That’s a kind of – that segues neatly into the second part of the question, which is if we’re talking dry bulk right now, apparently there are assets that are available under duress or highly motivated sellers, let’s say, do we see any correlation to that in the container market where there in fact distressed assets from various players who are not playing so well anymore?

Not obviously, which is bit of a slightly odd way of answering it, but I am sure there are some owners under pressure, particularly in the KG environment where they are very heavily exposed to the spot charter market, which as I have said, is very soft at the moment and is softening. But providing they can get some revenue for the ships, then they will be able to keep their lenders happy. But there hasn’t been the wholesale slew of distressed sales out of Germany, the various doom and gloom mongers have been forecasting for a while. Yes, that may come, but we haven’t seen anything so far, but – Nathan Laffoon – Harbor Capital: Well, all things being equal then, container assets are relatively more stable than drydock or some of the other.

I don’t know enough about dry-dock or tankers to comment. Nathan Laffoon – Harbor Capital: Well, I will draw my own conclusion. I think that’s all for me. Thanks, nice job. Keep it up.

Thanks. Nathan Laffoon – Harbor Capital: Good talking to you.

Thank you.

Thank you very much. As there are no further questions we now press the flow back to Ian Webber for closing remarks.

Thank you very much. Thanks for listening, thank you for questions. We look forward to talking to you in November on our third quarter call. Thank you.