First Ship Lease Trust (FSL Trust) is aiming to expanding its portfolio beyond tankers to include renewable and energy-related offshore assets.
The Singapore-listed shipowner has said it is challenging to develop a competitive edge in the volatile and cyclical business of owning vessels due to market fragmentation and fierce competition.
The Efstathios Topouzoglou-led company believes that an expansion of the scope of investments allowed under its trust deed may present “significant investment opportunities” for the future growth and sustainability of the business.
Assets under consideration include things such as floating solar photovoltaic systems which are said to be more industrial in nature and are also in line the changing environmental regulations and the global energy transition.
FSL Trust said it will be able to leverage on its management expertise and experience in operating its existing vessel business to manage investments in other maritime assets.
It added that several members of the board, as well as senior management, have “substantial experience” in maritime assets other than shipping, such as offshore energy.
Company chairman Efstathios Topouzoglou is the founding partner and substantial shareholder in Energean, an independent exploration and production (E&P) company which is listed on the London Stock Exchange.
The company took delivery of a newbuilding floating production, storage and offloading vessel from Singapore’s Sembcorp Marine earlier this year.
Prime Marine Energy, a subsidiary of Topouzoglou’s tanker arm Prime Marine, was lead hull subcontractor for the FPSO’s construction in China.
In June 2022 the Energean Power FPSO arrived offshore Israel and is due to deliver the first gas from the Karish field in the third quarter of this year.
Installed 90 km offshore, the floater is said to be the first FPSO ever to operate in the Eastern Mediterranean.
FSL Trust’s current vessel portfolio comprises nine tankers of various sizes. Of these, eight vessels are chartered to UK shipowner James Fisher on fixed-rate period charters, whilst the other vessel is employed in the spot market.
FSL Trust recently reported a first-half net profit of $2.2m against $900,000 a year ago as results were boosted by the improvement in tanker markets the sale of two vessels earlier this year.
The recent vessel sales included its last crude tanker – the 115,000-dwt FSL Hong Kong (built 2007) and the 20,000-dwt chemical tanker FSL London (built 2006).
Singapore’s experiment with shipping-related business trusts has not been a particularly successful exercise with two of the three trusts being delisted.
Only FSL Trust remains a public company following the failures of Pacific International Lines-backed Pacific Shipping Trust (PST) and the Rickmers Group-backed Rickmers Maritime Trust (RMT).
