FSL in the black for third quarter running

Nov 08 2019

FSL Trust Management, as trustee manager of First Ship Lease Trust achieved a third consecutive profitable quarter in 3Q19, with a net profit of $1.6 mill - a turnaround compared to a $2 mill net loss suffered in the same period last year.

Revenue in 3Q19 rose by 3.5% to $15.5 mill, compared to the same period in 2018, driven by improved charter rates in pools and spot markets.

In 3Q19, the Trust continued to generate positive cash flows from operations of $15.9 mill.

Of the $31 mill net proceeds FSL Trust raised from a preferential offering on 7th June, 2019, $10.2 mill was used to set-off against the outstanding amount and accrued interest of the bridging loan from the sponsor, while $4.9 mill was used to pay the second instalment of 10% of the consideration for newbuilding Hull No. 944.

The remaining $15.9 mill balance was placed on fixed deposits with Singapore banks, to be used for the next instalments due to the shipyard.

Commenting on the results, CEO Roger Woods, said: “Our focus on strengthening the balance sheet was further supported by steadily improved profitability and cashflow. 

“Despite market volatility, we remain cautiously optimistic about market conditions in the remainder of 2019 amid reduced tonnage supply with vessels being docked for IMO2020 scrubber installations, combined with the incremental demand stemming from the anticipated change in trading patterns due to the new low sulfur fuel requirements,” he said.

Stathis Topouzoglou, Chairman of the Trust, added: “The close collaboration between the Board and the management team has been reflected on the improved and de-leveraged financial position of the Trust which I am pleased to report.

“We are focusing on further optimising the balance sheet, allowing the Trust to pursue future market opportunities. Going forward, we will continue to explore strategic alternatives for the benefit of the unitholders,” he concluded.


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June 2020

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