FSL Trust posts Q1 DPU of 1.5 US cents

FIRST Ship Lease Trust's (FSL Trust) board has approved a distribution per unit (DPU) of 1.5 US cents for its first quarter ended March 31. 

This is the business trust's second consecutive distribution payment in more than seven years, its manager announced on Monday after market close. The vessel owner did not provide a distribution in the year-ago quarter. 

Net profit more than doubled to US$6.7 million for the quarter, from US$3 million a year earlier. 

This was mainly attributable to the gain from the sale of two product tankers, FSL Piraeus and FSL Perth, in January this year, and one crude oil tanker, FSL Shanghai, in March, as well as reduced finance expenses resulting from further deleveraging, the manager said. 

Revenue slipped 3.6 per cent to US$18.4 million, from US$19.1 million a year ago due to a smaller fleet. 

Meanwhile, net distributable amount for the first quarter came in at US$26.5 million. This distribution will be paid out on June 12, after books closure on May 13.

Said FSL's chief executive Roger Woods: "Despite the adverse effects of Covid-19 on global trade and shipping, FSL Trust had a strong start to the new year 2020, thanks to strong tanker markets, supported by the oil price fall.

"Capitalising on the improved market, the trust managed to sell three older vessels at firm prices, reducing debt and strengthening its capital structure, providing downside protection against the economic effects of Covid-19. On that basis, we remain cautiously optimistic in our outlook."

Units of FSL closed at 6.6 Singapore cents on Monday, up 0.1 cent or 1.5 per cent, before its results announcement.