Sponsored By

FSL Trust posts 30.8% fall in first half profitFSL 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.

Lee Hong Liang, Asia Correspondent

August 5, 2016

1 Min Read
Kalyakan - stock.adobe.com

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.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like