FSL Trust Management Pte. Ltd. (“FSLTM”), the trustee- manager of First Ship Lease Trust (“FSL Trust” or the “Trust”), today announced the unaudited financial results of FSL Trust for the 4th quarter and full year ended 31 December 2021.

For the 4th quarter 2021, FSL Trust reported a net income of US$ 0.1 million, compared to a net loss of US$ 2.2 million in the same period of the preceding year. Driven primarily by the weak tanker market environment in 2021, impacting the Trust’s vessels operating in pools and the spot market, and non-cash impairments of US$ 2.7 million, the Trust reported a net loss of US$ 1.5 million for the full year 2021, compared to a net profit of US$ 6.2 million in the preceding year. The adjusted EBITDA1 in the 4th quarter and full year of 2021 was US$ 1.4 million, up from US$ 0.6 million in the 3rd quarter of 2021, and US$ 6.8 million, respectively.

As at 31 December 2021, with 8 vessels operating under fixed-rate period charters, the Trust has contracted revenue of US$ 28.6 million, which is more than 2x the net debt of US$ 13.2 million, following the closing of the refinancing of the recently acquired vessel Pelican Fisher in October 2021.

Commenting on the results, Roger Woods, Chief Executive Officer, said:

“Whilst we have seen a slight improvement in freight rates for the tanker sizes relevant to the Trust towards year-end and in January 2022, the winter season has disappointed with unsatisfactory freight rates so far weighing on our results. Yet, we were able to end the 4th

1 Excluding gains/losses from the disposal of vessels and vessel impairments quarter 2021 with a small profit, thanks to the majority of our vessels operating under fixed-rate period charters and the low leverage of our fleet.”

Stathis Topouzoglou, Chairman of the Board of Directors, commented:

“Our read on the Tanker Market for 2021 had proven correct and the decision to continue offloading not only order tonnage but also the Trust’s two LR2 product tanker newbuildings has protected substantial value for the unitholders.

With 75% of the remaining portfolio on long-term employment, we can weather a continuation of the depressed tanker market as long as it lasts. In parallel we continue to look at new opportunities which can deliver sustainable returns to the Trust.”

Source: First Ship Lease Trust