First Ship Lease Trust posts Q3 net loss of $186,000
First Ship Lease Trust (FSL Trust) remained in the red in the third quarter and revenue slipped following a tough period of vessel charter payment defaults and lower rentals, but managed to narrow losses quarter-on-quarter, Seatrade Asia online reports.
The Singapore-listed shipping trust posted a third quarter net loss of $186,000 as against a net profit of $152,000 in the same period of last year. Revenue fell 6.5% year-on-year to $26.72m.
The trust, however, narrowed its losses from a second quarter loss of $2.5m.
Rentals from vessels on bareboat charter fell 22.6% year-on-year to $18.3m due mainly to payment default by Indonesia's Berlian Laju Tanker for three chemical tankers since February 2012 and lower rentals from vessels leased to Torm as the leases were being restructured.
During the quarter, FSL Trust delivered three chemical tankers into the Nordic Siva pool and a second product tanker on a three-year time charter to Brazil's Petrobras.
“With the successful redeployment of our two product tankers and three chemical tankers from spot market to time charter and pool employment, we can expect more stable earnings from our vessel portfolio,” said Philip Clausius, ceo of FSL Trust.
Out of 25 vessels in the trust's portfolio, 20 are employed on long-term bareboat charters and two are on time charters.