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First Ship Lease Trust Q4 profit falls 98.9% to US$83,000; no distribution for quarter

FIRST Ship Lease Trust's net profit fell 98.9 per cent to US$83,000, or 0.01 US cents per unit, in the fourth quarter of 2015, and the shipowner and boat charter provider will not distribute any cash for the quarter or the year.

For the full year ended Dec 31, 2015, net profit more than tripled to US$14.1 million, or 2.19 US cents per share.

The trust's income available for distribution fell 37.3 per cent to US$4.7 million for the quarter. For the full year, distributable income rose 32.3 per cent to US$18.8 million. But First Ship Lease will retain all the profits for the year.

Rentals from vessels on bareboat charter increased by 5.8 per cent to US$14.2 million during the quarter. But First Ship Lease's recognised a 33.4 per cent increase in depreciation expense on vessels, to US$15.3 million.

The company said it expects to recognise a US$4.2 million loss on disposal relating to two Panamax container ships. The recoverable value of those vessels dropped significantly in the first quarter as prices of steel fell, the trust said.