First Ship Lease Sinks into Red on Impairment Losses
Lower depreciation expenses and vessel impairments during 2018 led Singapore-based shipowner First Ship Lease Trust to end the year in loss.
The company managed to shrink the net loss on an annual basis,and in 2018 reported USD 18.9 million net loss, a cut of 74.3% compared to a net loss of USD 73.8 million seen a year earlier.
In the fourth quarter of 2018, FSL’s net loss stood at USD 18.5 million, against a net loss of USD 33.8 million reported in the same period in 2017.
Impairment charges for the quarter, and the full year, were at USD 20.6 million.
FSL generated revenue of USD 18.5 million for the fourth quarter of 2018 and USD 67 million for the full year, a 6.8% and 17.7% decline compared to the same period a year ago, respectively.
The company said the lower revenue for both the fourth quarter and full year was the result of a reduced fleet following the disposal of a chemical tanker in early 2018, and the disposal of two feeder containerships in late 2017 reducing the fleet size to 19.
In addition to a reduced fleet, the company said the revenues were impacted by the ongoing market volatility and continued softening of rates across all shipping sectors, which has weighed on FSL’s earnings.
“Having successfully completed a much needed refinancing in the summer of 2018, FSL’s balance sheet was strengthened and the viability of the business was protected. Profit before impairments during FY18 was USD 1.6 million,” Stathis Topouzoglou, Chairman of the Trust, said.
First Ship Lease Trust owns a fleet of 19 vessels, comprising three containerships, twelve product tankers, two chemical tankers and two crude oil tankers.