FSL Trust reports a net profit of US$ 5.4 million for the 3rd quarter 2022 amid strong tanker markets and the sale of one chemical tanker
FSL Trust Management Pte. Ltd., the trusteemanager of First Ship Lease Trust announced the unaudited financial results of FSL Trust for the 3rd quarter and 9-months period ended 30 September 2022.
FSL Trust benefitted from the continuing strong tanker market, healthy freight rates and firm market values. For the 3rd quarter 2022, FSL Trust reported a net profit of US$ 5.4 million, which includes a net gain from the sale of the chemical tanker FSL London of US$ 2.0 million and compares to a net loss of US$ 2.5 million in the 3rd quarter 2021. For the 9-months period ended September 2022, the Trust reported a net profit of US$ 7.7 million, compared to a net loss of US$ 1.6 million in the corresponding period last year.
With the entire current fleet operating under fixed-rate period charters, the Trust has contracted future revenue of up to US$ 30.0 million2, including US$ 22.9 million of firm contracted revenue and US$ 7.1 million of optional contracted revenue. The Trust ended the 3rd quarter 2022 with a comfortable liquidity position of US$ 11.1 million and a very low net leverage3 of 0.4x. Post quarter-end, in October 2022, the Trust furthermore completed the disposal of the product tanker FSL Singapore, which generated net sales proceeds of US$16.7 million and resulted in a net gain of US$ 5.0 million.
Commenting on the results, Roger Woods, Chief Executive Officer, said: “The 3rd quarter 2022 was very successful for FSL Trust. We reversed the quarterly loss from last year, when tanker markets were suffering from the pandemic and low oil demand, and reported the 3rd highest quarterly net profit in the history of the Trust. Whilst the outlook for the tanker markets generally remains positive with healthy supply-side fundamentals, we are mindful of the geopolitical and macroeconomic uncertainties, which may have an adverse impact on ton-mile demand. As all of FSL Trust’s vessels are now chartered on fixed-rate period charters, the Trust’s market exposure is very limited, providing meaningful downside protection.”
Stathis Topouzoglou, Chairman of the Board of Directors, commented:
“In executing our strategy of selling older, less environmentally friendly vessels without period employment to reduce market and regulatory risks, we have successfully taken advantage of the exceptionally strong tanker market in the 3rd quarter 2022, by selling the remaining two vessels without period employment for very firm prices, maximising value to the Trust and its unitholders.
FSL Trust’s remaining fleet is all employed on period charters, providing steady cash flow and considering the current liquidity position, provides a healthy basis for rebuilding the fleet.”
Source: First Ship Lease Trust