FIRST Ship Lease Trust's net profit fell 55.1 per cent to US$2.3 million in the first quarter of 2016 after incurring losses from selling vessels, and all of the earnings will be retained with no distribution planned for the quarter.
The trust, which owns ships and provides leasing services on a long-term bareboat charter basis, reported that profit fell to 0.36 US cent per share for the three months ended March.
Income available for distribution increased by 70.8 per cent to US$5.4 million, but the trust will continue to retain all of those profits.
Operating profit increased by 35.5 per cent to US$9.1 million during the quarter as revenue grew 7.6 per cent to US$26.7 million. But First Ship Lease Trust recorded a US$4.2 million loss from the disposal of two panamax vessels, dragging the bottom line lower.
The managers of the trust said its "strong charter book and diversified fleet will continue to ensure that the Trust is well positioned in 2016, despite the challenges facing the various sectors of the global shipping market".