Singapore's First Ship Lease Trust (FSL Trust) has secured more profit by extending term coverage for two product tankers.
The company said Golden Stena Baycrest Tankers has stretched existing time charters by a year each for the 20,000-dwt FSL London and FSL New York (both built 2006).
The deal with the Golden Agri-Stena and Bay Crest Management joint venture will see adjusted Ebitda of $4m added to FSL Trust's backlog.
This is without taking into account the profit-share element of the contracts.
The company's website shows that the options stretch into the middle of 2021.
The ships have been deployed in the spot market under commercial management by the joint venture.
Product tanker rates hit record highs in April and May as storage bookings reduced the available fleet.
Vessels refinanced
In 2018, FSL Trust clinched an $18m deal to refinance the vessels.
The Stathis Topouzoglou-led tanker and boxship owner accepted a bank offer for a senior secured amortising loan.
But the shipowner had previously been considering sale options for the units, although it was deterred by what was then a weak market.
FSL Trust posted net income of $6.7m for the three months ending on 31 March 2020, which is a year-on-year increase of 122%.
The company sold the 109,670-dwt tankers FSL Piraeus and the FSL Perth (both built 2006) in January. This was followed by the 115,000-dwt FSL Shanghai (built 2007) in March.
FSL Trust said it booked a gain on the disposals during the quarter of $2.68m.
