First Ship Least Trust (FSL Trust) has extended the bareboat charters for five small product tankers in its fleet by up to eight years, according to an exchange filing.
The Singapore-listed shipowner said it agreed with James Fisher Everard to renew the charters for the 4,426-dwt Speciality, Seniority (both built 2006) and Superiority (built 2007).
The charters for the 5,421-dwt Shannon Fisher and Solway Fisher (both built 2006) were also extended.
FSL Trust did not disclose further details for the renewal.
The charterer, part of London-listed marine services group James Fisher, is expected to deploy the ships in the European coastal trade carrying petrol, diesel, kerosene and biofuels.
James Fisher Everard operates 16 product tankers with carrying capacity between 3,000 dwt and 35,000 dwt. Seven are chartered from FSL Trust.
Other than the aforementioned five ships, James Fisher Everard also has the 12,921-dwt Cumbrian Fisher (built 2004) and the 12,984-dwt Clyde Fisher (built 2005) on bareboat charters that will expire at end-2023.
FSL Trust has fixed nine of its 12 vessels on period and bareboat charters. The remaining three are trading in the spot markets via pool arrangements with Hafnia and Teekay Tankers.
The shipowner has been selling vessels built in the 2000s in recent quarters, and the sales have strengthened its balance sheet further.
Between January and October 2020, FSL Trust disposed of the 115,000-dwt aframax FSL Shanghai (built 2007) and the 109,670-dwt LR2s FSL Piraeus and FSL Perth (both built 2006). It booked a gain of $2.68m for those sales.
Separately, the shipowner exited the container shipping segment by selling three traditional panamax boxships: the 4,250-teu FSL Eminence, FSL Elixir and YM Enhancer (all built 2008).
Aside from those deals for older assets, the shipowner also secured lease financing for the 114,000-dwt FSL Suez and FSL Fos (both built 2021) .
The LR2 ships were sold to a Chinese lessor and leased back for 10 years. FSL Trust is obliged to buy them back at the end of the term.
In November, the shipowner announced a dividend of 1.50 US cents for the third quarter despite a decline in net profit.
