FSL Trust Management (FSLTM), as trustee-manager of First Ship Lease Trust (FSL Trust), reported a net profit of $3.4 million for the three months ended March 31, 2017, compared to $2.3 million reported in 1QFY16.
This positive result was achieved despite challenging industry conditions and a 17.7 percent decline in revenue to $21.9 million for 1QFY17, compared with $26.7 million reported in 1QFY16.
The decrease in revenue is primarily due to the dry-docking of two crude oil tankers in 1QFY17, a smaller fleet following the disposal of two panamax containerships in February 2016, and overall lower market rates.
Roger Woods was confirmed as Chief Executive Officer of FSLTM. He said, “We are pleased to report a profitable and cash positive quarter in spite of the volatile and difficult operating environment across various shipping markets. As part of our ongoing efforts to secure quality contract cover for our fleet, we have successfully employed FSL Hong Kong in the Teekay Group Revenue Sharing Agreement following its dry-docking in March 2017."
"This arrangement builds on our partnership with the world’s largest Aframax owner, which began in 2013, and it provides the Trust with the flexibility to capitalise on market upsides that may arise in the future."