FSL Trust takes further impairment charges

Nov 10 2017


FSL Trust Management (FSLTM), as trustee-manager of First Ship Lease Trust (FSL Trust), announced a net loss of $21.7 mill in the third quarter of this year.

In light of the ongoing volatility affecting shipping markets and vessel values, the Trust has recognised an impairment charge of $22.2 mill on three chemical tankers and three product tankers. 

The Trust reported revenue of $18.7 mill for 3Q17, registering a year-on-year decrease of 18.5%, compared to $22.9 mill reported in 3Q16.

The decline in revenue was mainly due to softening rates across all shipping markets, which weighed on earnings from LR2s, Aframax crude oil tankers and container vessels.

Despite the impairment charge and protracted market downturn, the Trust continued to register another quarter of positive cash generation, with net cash generated from operations of $9.1 mill in 3Q17.

As at 30th September, 2017, FSL said it remained in a good position with $19.6 mill in cash and cash equivalents, having repaid $52 mill of debt during 2017, and in compliance with the terms of its loan covenants.

Commenting on the Trust’s performance, Roger Woods, FSLTM CEO, said: “Shipping markets globally continue to face difficult environments, and that in which FSL operates has not been spared.

“Despite market challenges, we are committed to the operational performance of our fleet and we are pleased to have delivered another quarter of positive cash flows. The Board of Directors and management continue to pursue refinancing opportunities and it remains our priority to ensure the ongoing stability and future of the Trust,” he said.



Previous: Odfjell - Challenging chemical tanker market continued into third quarter

Next: Reedy joins DHT Holdings board


Oct 2017

2020 bunker rules - Wallem interview - massflowmeters for bunkers - Ardmore Shipping - Thun Tankers



Visit Tanker Operator's online social network site