Singapore's FSL 2012 Profits Slump

Singapore’s First Ship Lease Trust (FSL) report US$ 8.4-million loss for 2012, revenue slipped 4.2%.

Financial report highlights:

• Successfully redeployed all spot vessels, but overall FY2012 performance affected by tough market conditions
• Continues to pare down outstanding loan balance and build up cash reserves; cash flow from portfolio sufficient to service principal and interest obligations
• Outlook remains challenging and revenue continues to be at risk

Philip Clausius, CEO, said:  “2012 has been very challenging, but the trust’s disciplined approach and wide network have helped to deploy our spot vessels to longer term arrangements within a relatively short time frame. This has enhanced our revenue visibility and improved our operational profile."
 
Mr. Philip Clausius, Chief Executive Officer of FSLTM said: “2012 has been very challenging, but the Trust’s disciplined approach and wide network have helped to deploy our spot vessels to longer term arrangements within a relatively short time frame. This has enhanced our revenue visibility and improved our operational profile. However, the prolonged crisis has taken a toll onmany shipping companies.

We are cognizant of the pressures that some of our lessees are under as can be seen from the restructuring discussions we are currently having. The outlook remains uncertain as the industry continues to work its way through the record level of newbuilding deliveries. We remain vigilant and committed to steer FSL Trust through this unprecedented shipping down cycle, which we believe is near, if not at the bottom.”

FSL Trust currently owns a diversified portfolio of 25 vessels with an average age of seven and a half years primarily on a long-term bareboat charter basis.