Singapore-listed First Ship Leasing Trust (FSL Trust) has secured charter extensions for two tankers from long-term client UK shipowner James Fisher Everard.
The charters of the 12,984-dwt Clyde Fisher and 4,426-dwt Speciality (both built 2006) have been extended for two and three years, respectively.
The deals give FSL Trust contracted revenue of $25.6m as of 31 December 2022 with all eight ships in its fleet employed under fixed-rate period charters.
News of the extended charters came as FSL Trust reported a significant improvement in fourth-quarter net profit on the back of a tanker disposal.
Net profit for the three months was $5.6m which included a net gain from the sale of the 47,500-dwt product tanker FSL Singapore (built 2006) of $5.2m.
This compares to a net profit of $100,000 in the same period of the preceding year.
FSL Trust said it benefited from the strong tanker market, healthy freight rates and firm market values, and reported a full-year net profit of $13.3m, compared with a net loss of $1.5m in the preceding year.
“The fourth quarter of 2022 continued to show positive results as seen earlier in 2022, even with the geopolitical events in Europe creating a more volatile market,” said FSL Trust CEO Roger Woods.
“FSL Trust was able to take advantage of this positive market environment to dispose of the last of its older tankers.”
Company chairman Stathis Topouzoglou said 2022 completed a “successful year of transition for the trust”, while still being able to distribute in excess of $28.2m to shareholders.
“With the significant cash balance and low debt level, this gives the trust a strong platform for future growth,” he said.
“Following the strategy from 2018, the trust will now focus on acquiring new technologically efficient vessels which can meet new and prospective lower emissions directives.”
FSL Trust has previously stated that it aims to expand its portfolio beyond tankers to include renewable and energy-related offshore assets.
Singapore’s experiment with shipping-related business trusts has not been a particularly successful exercise, with two of the three being delisted.
Only FSL Trust remains a public company following the failures of Pacific International Lines-backed Pacific Shipping Trust and Rickmers Group-backed Rickmers Maritime Trust.
