Singapore tanker owner First Ship Lease Trust (FSL Trust) has posted a much smaller loss in the third quarter as costs fell.
The company said the net deficit to 30 September was $2.08m against $21.65m in the same period of 2017.
Revenue was down 20% at $15m, primarily due to ongoing rate pressures across all shipping markets, a reduction in its fleet and time lost due to post re-delivery repairs of two LR2s.
But operating costs were cut by 61.7%, from $38.2m in 2017 to $14.6m, due to the smaller fleet and the absence of last year's one-off impairment charge of $22.2m.
CEO Roger Woods said: “The trust continues to improve its operational performance, reporting a positive net operating profit and continued cash generation, despite the challenging market conditions.
"We remain committed to establishing a strong operational foundation for the ongoing stability of the trust.”
The company has a fleet of 19 vessels, of which 19 are on long-term bareboat charters and nine are on time charters or in pools.
Its remaining contracted revenue stood at $59m at the end of the quarter.
FSL is active in the container and feeder container sectors and the crude and product tanker spaces.
"Sectors of the market which the Trust has exposure are improving. These positive signs are expected to continue into the next year," the shipowner said in its quarterly report.
Now backed by Greek shipowner Stathis Topouzoglou, the company concluded a key refinancing this summer.
