Singapore-based First Ship Lease Trust (FSL Trust) posted a net loss of USD 21.8 million in the second quarter of 2017 due to USD 24.1 million of non-cash impairment on eight ships in its fleet.
The loss was reported against a USD 7.7 million profit booked for the corresponding quarter in 2016.
Revenue declined 17.4% year-on-year, primarily due to softening of rates across all sectors which resulted in the renewal of bareboat agreements for vessels Speciality, Seniority, and Superiority at lower rates.
In addition, the trust’s both Aframax tankers went into drydocking during the period.
The trust’s revenue stood at USD 20.9 million, down from last year’s USD 25.3 million. The revenue decrease was mainly ascribed to pressure on some spot/floating bareboat rates.
Furthermore, the trust said it repaid more than USD 62 million of debt in 12 months.
Separately, the trust signed a short-term time charter for FSL Shanghai for minimum 40 days to maximum 120 days at charterer’s option.
FSL Trust said it has four vessels slated for redelivery in FY2017, FSL Hamburg, FSL Singapore, Cumbrian Fisher and Clyde Fisher.
The charterer has the option of extending the time charters for FSL Hamburg and FSL Singapore three
months prior to the end of the base period, while talks are underway for the renewal of bareboat charters for Cumbrian Fisher and Clyde Fisher.
Speaking of the outlook, the trust said the financial effects of pressures across the shipping market should be mitigated by its charter book, while its business performance in the third quarter of this year is expected to be affected by the dry docking of one MR.
FSL Trust owns over 2o oceangoing vessels comprising containerships and tankers.