FSL Trust Q1 distributable income slips into negative territory

DISTRIBUTABLE income for First Ship Lease (FSL) Trust slipped into negative territory despite an increase in first quarter profit.

Income available for distribution was negative US$18.26 million for Q1, a reversal from a positive US$5.44 million for the year-ago period.

This was mainly due to a US$20 million prepayment of secured bank loans the trust took in to reduce the outstanding loan balance.

The shipping trust widened its profit for the quarter to US$3.45 million, up from US$2.27 million in the absence of a US$4.16 million loss in disposal of vessels posted a year ago.

Revenue fell 17.7 per cent to US$21.95 million. The trust said that shipping markets across all sectors have come under pressure in the near-term though the impact on its finances is expected to be mitigated by its ongoing efforts to secure contract cover.

Units in FSL Trust closed at S$0.095, down 0.4 Singapore cent.