First Ship Lease Trust, Shipping, Financial Results

First Ship Lease Trust, Shipping

FSL Trust’s Q2 net profit drops 34.7%; no distributions due to Covid-19

FSL Trust’s Q2 net profit drops 34.7%; no distributions due to Covid-19

4/8/2020 3:35:00 PM

FSL Trust’s Q2 net profit drops 34.7%; no distributions due to Covid-19

WITH a weaker showing in its top line, First Ship Lease (FSL) Trust, which leases vessels to the shipping industry, posted a 34.7 per cent drop in net profit to US$1.33 million for Q2 FY2020 ended June. Read more at The Business Times.

Tell us what you think. Email us atbtuserfeedback@sph.com.sgThe bottom line was boosted by a US$2.7 million gain from the sale of two product tankers and a crude oil tanker in March, as well as a fall in voyage expenses and vessel operating expenses by 35.6 per cent and 25.2 per cent respectively.

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FSL Trust said that it is continuing to pare down its debt and improve its capital structure. In addition to scheduled debt amortisation, the firm voluntarily prepaid US$2.94 million to optimise its debt profile.FSL Trust’s net leverage stands at 0.1 times as at end-June, compared to 1.0 times a year ago. The firm has US$33.28 million in cash, against US$39.66 million outstanding under loan facilities.

Its vessel portfolio comprises 17 vessels, including 15 container ships and tankers of different sizes on the water and 2 tanker newbuildings under construction, which are expected to be delivered in late 2020 and early 2021.FSL Trust said that the tanker markets are firm. In May 2020, the charterer of the two chemical tankers, headtopics.com

FSL LondonFSL New York, exercised its option to extend the charters by one year each.Chief executive Roger Woods noted that the Covid-19 pandemic has posed unprecedented challenges to the shipping industry, with obstructions to crew changes and the sale and purchase market.

“Whilst we have seen a very firm tanker market in the first five months of the year, supporting FSL Trust to deliver strong results for the first half 2020, the market has corrected in June as a result of the combination of seasonality and the impact of the global pandemic on vessel demand,” Mr Woods said.

He added: “Whilst we expect a rough sea ahead for the industry in the second half of the year, our strong financial position coupled with limited new tonnage entering the market, keeps us cautiously optimistic for the overall performance of the trust in 2020.”

Mr Topouzoglou noted that there are zero cases of Covid-19 among the company’s offices and vessels.Shares of FSL Trust closed at S$0.082 on Tuesday, up 1.24 per cent before the results release.BT is now on Telegram! Read more: The Business Times »

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