First Ship Lease Trust (FSL Trust) reported a net loss of $500,000 in the second quarter compared to the previous year's quarter due to the provision of a banker's guarantee for court case, Seatrade Asia online reports. The net loss improved from a loss of $6.1m in the same period last year. The second quarter's loss is due to the provision of a $2.5m potential call of a banker's guarantee against a judgment passed by the Chinese court in favour of Daxin Petroleum for its bunker claims against its affiliate Rovina Shipping, the lessee of FSL Hamburg.
“Excluding this provision of $2.5m, the trust would have made a profit of $2m for the current quarter,” FSL Trust said. The quarter's revenue rose 27.4% year-on-year to $22.5m before accounting for the $6m one-off security deposit received due to the pre-mature termination of a bareboat charter arrangement relating to two product tankers FSL Hamburg and FSL Singapore. Distribution per unit was announced at $0.95m representing an annualised yield of 13.3%. The Singapore-listed trust now has a fleet of 25 vessels, of which 23 are on long-term bareboat charter with a remaining lease revenue of $635m and average lease term of 6.7 years as at 30 June 2011.
“Steady earnings from our long-term bareboat charters, including the newly minted sale and leaseback deals with TORM, is testimony that the trust is now back on course for growth,” said Philip Clausius, president and ceo of FSL Trust.
“Excluding this provision of $2.5m, the trust would have made a profit of $2m for the current quarter,” FSL Trust said. The quarter's revenue rose 27.4% year-on-year to $22.5m before accounting for the $6m one-off security deposit received due to the pre-mature termination of a bareboat charter arrangement relating to two product tankers FSL Hamburg and FSL Singapore. Distribution per unit was announced at $0.95m representing an annualised yield of 13.3%. The Singapore-listed trust now has a fleet of 25 vessels, of which 23 are on long-term bareboat charter with a remaining lease revenue of $635m and average lease term of 6.7 years as at 30 June 2011.
“Steady earnings from our long-term bareboat charters, including the newly minted sale and leaseback deals with TORM, is testimony that the trust is now back on course for growth,” said Philip Clausius, president and ceo of FSL Trust.