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FSL Trust posts 30.8% fall in first half profit

FSL Trust posts 30.8% fall in first half profit
First Ship Lease Trust (FSL Trust) has reported a drop in first half earnings following its disposal of two boxships and a weaker tanker shipping market.

The Singapore-listed shipping trust recorded a first half net profit of $7.76m, a fall of 30.8% from $11.22m in the previous corresponding period.

Revenue in the first six months inched down by 0.5% year-on-year to $52.01m due mainly to a reduced fleet size after the disposal of two panamax containerships in February, as well as softening rates in some tanker markets.

“Market conditions are likely to remain difficult in the near term, however, the trust’s exposure to markets under pressure remains limited,” said Alan Hatton, ceo of FSL Trust Management, trustee-manager of FSL Trust.

“There has been some downward pressure on spot rates, which has affected the trust’s earnings in the LR2 market,” Hatton said.

He added that FSL Trust has made debt repayments of over $50m over the last 12 months, and its financial and operational performance remained stable during the second quarter.

Looking ahead, FSL Trust expects its third quarter earnings to be affected by the dry docking of all three of its chemical tankers.