FIRST SHIP LEASE TRUST FIRST SHIP LEASE TRUST - CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE SECOND QUARTER AND SIX- MONTHS PERIOD ENDED 30 JUNE 2022
Corporate Information
First Ship Lease Trust ("FSL Trust" or the "Trust") is a Singapore-based business trust which owns a fleet of well-maintained, oceangoing tankers across different segments.
As at 30 June 2022, the vessel portfolio comprised 10 tankers of different sizes. Of the 10 vessels, 8 vessels are employed under fixed-rate period charters, whilst the other 2 vessels are trading in the spot market. Post quarter end, FSL Trust sold one vessel, reducing the fleet to 9 vessels, of which 8 vessels are employed under fixed-rate period charters and one vessel is trading in the spot market.
The combined portfolio of vessels had an average age of approximately 16 years and a dollar- weighted average remaining lease period of approximately 3 years (excluding optional extension periods and early termination options).
References to the term "Group" mean FSL Trust and its subsidiaries on a consolidated basis.
Summary of FSL Trust Consolidated Results
2Q 2022 | 2Q 2021 | Change | 6 Months | 6 Months | Change | ||
2022 | 2021 | ||||||
US$'000 | US$'000 | % | US$'000 | US$'000 | % | ||
Revenue | 7,345 | 6,229 | 17.9 | 13,420 | 12,807 | 4.8 | |
Adjusted EBITDA(1) | 1,471 | 2,169 | (32.2) | 3,134 | 4,693 | (33.2) | |
Profit for period | 2,060 | 543 | 279.4 | 2,232 | 879 | 153.9 | |
Net distributable amount | 1,025 | - | 100.0 | 1,025 | 1,310 | (21.8) | |
Amount to be distributed | 28,289 | - | 100.0 | 28,289 | 35,361 | (20.0) | |
Distribution per unit (US | 1.60 | - | 100.0 | 1.60 | 2.00 | (20.0) | |
Cents) | |||||||
Average number of vessels | 10.9 | 11.0 | (0.9) | 10.9 | 11.5 | (5.2) |
Note(s):
- Excluding gains/losses from the disposal of vessels and vessel impairments.
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FIRST SHIP LEASE TRUST - CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE SECOND QUARTER AND SIX- MONTHS PERIOD ENDED 30 JUNE 2022
1(a)(i) Condensed Interim Consolidated Income Statement
Revenue
Depreciation expense on vessels
Gain on disposal of vessels
Impairment on vessels Voyage expenses
Vessel operating expenses Managementfees Trustee fees
Other Trust expenses
Results from operating activities Finance income Finance expenses
Profit before tax Income tax expense
Profit for the period
Earnings per unit (US cents)
Basic
Diluted
Note(s):
Group | ||||||
2Q 2022 | 2Q 2021 | Change | 6 Months | 6 Months | Change | |
2022 | 2021 | |||||
Note | US$'000 | US$'000 | % | US$'000 | US$'000 | % |
7,345 | 6,229 | 17.9 | 13,420 | 12,807 | 4.8 | |
(a) | (1,079) | (1,622) | (33.5) | (2,343) | (3,302) | (29.0) |
(b) | 1,899 | 102 | N.M. | 1,899 | 567 | 234.9 |
- | - | - | - | (619) | (100.0) | |
(3,244) | (741) | 337.8 | (5,295) | (1,188) | 345.7 | |
(2,167) | (2,875) | (24.6) | (4,116) | (6,098) | (32.5) | |
(142) | (111) | 27.9 | (257) | (238) | 8.0 | |
(4) | (7) | (42.9) | (8) | (15) | (46.7) | |
(317) | (326) | (2.8) | (610) | (575) | 6.1 | |
2,291 | 649 | 253.0 | 2,690 | 1,339 | 100.9 | |
2 | 13 | (84.6) | 3 | 20 | (85.0) | |
(233) | (119) | 95.8 | (461) | (480) | (4.0) | |
2,060 | 543 | 279.4 | 2,232 | 879 | 153.9 | |
- | - | - | - | - | - | |
2,060 | 543 | 279.4 | 2,232 | 879 | 153.9 | |
0.12 | 0.03 | 300.0 | 0.13 | 0.05 | 160.0 | |
0.12 | 0.03 | 300.0 | 0.13 | 0.05 | 160.0 | |
- Including amortisation of dry-docking costs.
- This relates to the sale of one crude oil tanker (FSL Hong Kong) in June 2022.
1(a)(ii) Condensed Interim Statement of Comprehensive Income
Group | |||||
2Q 2022 | 2Q 2021 | 6 Months | 6 Months | ||
2022 | 2021 | ||||
Profit for the period | US$'000 | US$'000 | US$'000 | US$'000 | |
2,060 | 543 | 2,232 | 879 | ||
Total comprehensive income, net of tax | 2,060 | 543 | 2,232 | 879 |
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FIRST SHIP LEASE TRUST - CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE SECOND QUARTER AND SIX- MONTHS PERIOD ENDED 30 JUNE 2022
1(a)(iii) Distribution Statements
Profit for the period
Add: Non-cash adjustments
Net cash generated from operations
Less: Repayment of secured bank loans Prepayment of secured bank loans
Income available for distribution
Add: Utilisation of cash retained from previous periods
Less: Cash retained in the current period
Net distributable amount
Capital distribution
Total distribution
Comprising:(i) Tax-exempt distribution
- Tax-exempt(one-tier) dis- tribution
Amount to be distributed
Units at end of period ('000)
Distribution per unit (US Cents)
Note(s):
-
Non-cashadjustments
Depreciation expense on vessels^ Impairment on vessels
Gain on disposal of vessels Amortisation of initial direct costs^^
2Q 2022 | 2Q 2021 | 6 Months | 6 Months | |
2022 | 2021 | |||
Note | ||||
US$'000 | US$'000 | US$'000 | US$'000 | |
2,060 | 543 | 2,232 | 879 | |
(a) | (924) | 1,375 | 188 | 3,046 |
1,136 | 1,918 | 2,420 | 3,925 | |
(891) | - | (1,782) | (1,241) | |
(b) | - | - | - | - |
245 | 1,918 | 638 | 2,684 | |
(c) | 780 | - | 387 | 544 |
- | (1,918) | - | (1,918) | |
1,025 | - | 1,025 | 1,310 | |
27,264 | - | 27,264 | 34,051 | |
(d) | 28,289 | - | 28,289 | 35,361 |
28,282 | - | 28,282 | 35,335 | |
7 | - | 7 | 26 | |
28,289 | - | 28,289 | 35,361 | |
1,768,058 | 1,768,058 | 1,768,058 | 1,768,058 | |
1.60 | - | 1.60 | 2.00 | |
Group | ||||
2Q 2022 | 2Q 2021 | 6 Months | 6 Months | |
2022 | 2021 | |||
US$'000 | US$'000 | US$'000 | US$'000 | |
974 | 1,477 | 2,085 | 2,994 | |
- | - | - | 619 | |
(1,899) | (102) | (1,899) | (567) | |
1 | - | 2 | - | |
(924) | 1,375 | 188 | 3,046 |
^ Excluding amortisation of dry-docking costs.
^^ Excluding amortisation of deferred arrangement fees.
- In 1Q 2021, US$28.8 million of the cash proceeds from the disposal of the two LR2 product tanker newbuildings was used to prepay secured bank loans. However, as these amounts were not generated from operations, it had not been included in this statement.
- Distributions are not limited to the amount of the net distributable amount as distributions can also be made from proceeds from the sale of vessels.
- A distribution was approved by the Board of Directors for 2Q 2022. The distribution includes a net distributable amount of US$1.0 million in 2Q 2022 and a capital distribution of US$27.3 million. The capital distribution is a partial distribution of proceeds from the disposal of vessels.
For the period ended 30 June 2022, the Board of Directors has determined that the Distribution Reinvestment Scheme will not apply to the distribution declared for 2Q 2022.
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FIRST SHIP LEASE TRUST - CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE SECOND QUARTER AND SIX- MONTHS PERIOD ENDED 30 JUNE 2022
1(b)(i) Condensed Interim Statements of Financial Position
Non-current assets
Vessels
Subsidiaries
Current assets
Inventories
Trade and other receivables Cash and cash equivalents
Non-current assets classified as held-for-sale
Total assets
Equity attributable to uni- tholders of FSL Trust
Units in issue
Reserves
Total equity
Non-current liabilities
Secured bank loans
Current liabilities
Trade and other payables Secured bank loans Income tax payable
Total liabilities
Total equity and liabilities
30 June 2022 | 31 December 2021 | |||
Note | Group | Trust | Group | Trust |
US$'000 | US$'000 | US$'000 | US$'000 | |
(a) | 47,663 | - | 66,171 | - |
- | 28,318 | - | 28,318 | |
47,663 | 28,318 | 66,171 | 28,318 | |
440 | - | - | - | |
2,538 | 45 | 4,946 | 83 | |
(b) | 24,643 | 514 | 3,667 | 792 |
(a) | 8,890 | - | 8,890 | - |
36,511 | 559 | 17,503 | 875 | |
84,174 | 28,877 | 83,674 | 29,193 | |
561,332 | 561,332 | 561,332 | 561,332 | |
(492,940) | (539,646) | (495,172) | (539,235) | |
68,392 | 21,686 | 66,160 | 22,097 | |
(c) | 11,815 | - | 13,507 | - |
584 | 7,191 | 645 | 7,095 | |
(c) | 3,383 | - | 3,361 | - |
- | - | 1 | 1 | |
3,967 | 7,191 | 4,007 | 7,096 | |
15,782 | 7,191 | 17,514 | 7,096 | |
84,174 | 28,877 | 83,674 | 29,193 |
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FIRST SHIP LEASE TRUST - CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE SECOND QUARTER AND SIX- MONTHS PERIOD ENDED 30 JUNE 2022
1(b)(i) Condensed Interim Statements of Financial Position (cont'd)
Note(s): | ||||
(a) Vessels | Initial | |||
Vessels | direct costs | Total | ||
Group | US$'000 | US$'000 | US$'000 | |
6 months ended 30 June 2022 | ||||
Cost | ||||
At 1 January 2022 | 249,988 | 2,237 | 252,225 | |
Additions | 603 | - | 603 | |
Disposal | (70,156) | - | (70,156) | |
At 30 June 2022 | 180,435 | 2,237 | 182,672 | |
Less: | ||||
Accumulated depreciation/ | ||||
amortisation and impairments | ||||
At 1 January 2022 | 183,866 | 2,188 | 186,054 | |
Depreciation/amortisation charge | 2,343 | 2 | 2,345 | |
for the period | ||||
Disposal | (53,390) | - | (53,390) | |
At 30 June 2022 | 132,819 | 2,190 | 135,009 | |
Carrying amount | ||||
At 30 June 2022 | 47,616 | 47 | 47,663 | |
As at 31 December 2021 | ||||
Cost | 249,988 | 2,237 | 252,225 | |
Less: Accumulated depreciation/ | 183,866 | 2,188 | 186,054 | |
amortisation and impairments | ||||
Net book value | 66,122 | 49 | 66,171 |
During the six-month period ended 30 June 2022, the Group disposed one crude oil tanker (FSL Hong Kong) in June 2022 for a total net cash consideration of approximately US$18,665,000, resulting in a gain on disposal of US$1,899,000.
During the six-month period ended 30 June 2022, no further impairment is recorded for the vessels as the recoverable amount based on value in use calculations/fair value less costs of disposal was higher than their carrying values (6 Months 2021: US$619,000 based on value in use calculations). As at 30 June 2022, the carrying amount of the vessels was US$47,663,000 (FY 2021: US$66,171,000).
As at 31 December 2021, the Group reclassified one chemical tanker, FSL London, as non- current assets classified as held-for-sale.
The value in use calculations use discounted cash flow projections based on the projected cash flows over the remaining useful life of each vessel and its projected residual value, which was based on the average scrap steel price per lightweight ton in recent years or the values obtained from third party sources.
The fair value less costs of disposal is based on the sale of similar vessels and is therefore within Level 2 of the fair value hierarchy.
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FSL - First Ship Lease Trust published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 10:37:05 UTC.
