FSL Trust Management Pte. Ltd., as trustee-manager of First Ship Lease Trust, announced that the company revenue for the full year FY2012 decreased 4.2% to US$106.1 million against the previous year (“FY2011”).
On a bareboat charter equivalent (“BBCE”) basis, revenue fell 7.9% to US$84.8 million year-on-year. Excluding the impairment loss of US$22.1 million recognised in FY2011 in relation to the redelivery of the three chemical tankers, other operating expenses declined marginally by 1.6% to US$65.5 million in FY2012. After accounting for net finance expenses, the Trust reported a net loss of US$8.4 million. Consequently, net cash generated from operations declined 25.4% year-on-year to US$47.6 million.
As for Trust’s vessels portfolio it is announced that 20 out of 25 vessels are employed on long-term bareboat charters and two vessels are employed on time charters. As at 31 December 2012, these 22 vessels have a dollar-weighted average remaining lease period of approximately five years (excluding extension periods and early buy-out options). Including the remaining three chemical tankers employed in the pool, the combined portfolio of 25 vessels has a dollar-weighted average age of approximately seven and a half years.
The Trust is currently in restructuring discussions with two of its lessees. The discussions are in their preliminary stages and are subject to the Trust lenders’ final approval. FSLTM expects these restructurings, on a combined basis, to have a material impact on revenue from the first quarter of 2013.
However, taking into consideration the potential outcomes of the restructuring discussions and barring unforeseen circumstances, the Trust will still have sufficient financial flexibility to honour its contractual debt repayments. Further details will be announced as and when there are material developments in these matters.
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