FSL Trust Management Pte. Ltd. (“FSLTM”), the trustee-manager of First Ship Lease Trust announced the unaudited financial results of FSL Trust for the 2nd quarter and 1st half 2022.
Benefitting from firmer tanker markets, FSL Trust reported a net profit of US$ 2.1 million for the 2nd quarter 2022 and US$ 2.2 million for the 1st half 2022, which represents an y-o-y increase of 279% and 154%, respectively. Adjusted EBITDA1 declined 32% to US$ 1.5 million in the 2nd quarter 2022 and 33% to US$ 3.1 million in the 1st half 2022. The net profit reflects the improved tanker markets in the 2nd quarter 2022 as well as the disposal of the Aframax crude oil tanker FSL Hong Kong resulting in a gain of US$ 1.9 million, whilst the situation with the chemical tanker FSL London, which was held by the customs authorities in India and released in June 2022, was weighing on the results.
With 8 vessels operating under fixed-rate period charters, the Trust has contracted future revenue of up to US$ 31.8 million, including US$ 24.7 million of firm contracted revenue and US$ 7.1 million of optional contracted revenue. The Trust ended the 2nd quarter 2022 with zero net debt and a robust equity ratio3F 4 of 81%. Given the strong liquidity position, the Trust will pay a distribution to unitholders of 1.60 US cents per unit for the 2nd quarter 2022, whilst maintaining a healthy capital structure.
Commenting on the results, Roger Woods, Chief Executive Officer, said: “I am pleased to report that FSL Trust has ended the 2nd quarter 2022 with a higher net profit compared to last year amid the geopolitical and macro-economic uncertainties. The demand for oil products has continued its recovery from the COVID-19 pandemic and the overall tanker market sentiment has improved, resulting in a meaningful increase in freight rates and market values. This has not only benefitted our MR product tanker FSL Singapore operating in the spot
market, but we have sold two vessels for accretive prices, with one of the vessels delivered to the buyers post quarter end.”
Stathis Topouzoglou, Chairman of the Board of Directors, commented: “As FSL Trust is benefitting from the improved tanker markets and has sold two older, environmentally less friendly vessels and reduced market exposure, we have declared a cash distribution to unitholders of 1.60 US cents per unit. This brings the total distributions paid during the last 24 months to 6.60 US cents. At the same time, FSL Trust maintains a healthy capital structure with a low leverage and limited market exposure, which provides resilience in the face of macro-economic uncertainties.”