First Ship Lease Trust *Official* (SGX: D8DU)

[battledome64]

Anyone stuck in this counter like me?

Dividend dropped 90%

 

[Dividends Warrior]

Luckily I divested after the Japan earthquake last year.

 

[Cheepoozz]

not to mentioned the stock price also dip by a big gap..
what was your entry price? Now is trading on 52week low

 

[battledome64]

not to mentioned the stock price also dip by a big gap..
what was your entry price? Now is trading on 52week low

40 cents. 70 cents.

I hope this is only for this quarter

 

[Mecisteus]

40 cents. 70 cents.

I hope this is only for this quarter

excluding dividends, i thought ~50% loss is a big deal when i sold at 56 cents. looking back i think im fortunate to have sold earlier.

by the way, hope is a dangerous thing to do. my advice is better get out if you have a chance.

 

[Mad_Stranger]

excluding dividends, i thought ~50% loss is a big deal when i sold at 56 cents. looking back i think im fortunate to have sold earlier.

by the way, hope is a dangerous thing to do. my advice is better get out if you have a chance.

I sold at a 35% loss earlier in July last year too. It was painful. Looking back, I feel fortunate too.

 

[Some-one]

I face the same problem with Cityspring Infrastructure Trust. I have also since divested it with 6% loss. If I sold it now, I would have incurred a bigger loss than 6%. This is a stark reminder to investors who buy stocks based on dividend yield alone. Dividends can be cut at any time. Investors are reminded to buy stocks that are fundamentally strong with good dividends. A good article can be found in yesterday's business times.

 

[dreamer75]

I read some analysis by a forumer that the dividend might increase to 0.6c for next qtr.

It was based on some calculations on the B/S.

Not sure whether accurate.

 

[Laguna123]

anyone know what happen to this company ?
why this quarter dividend so little compared to last year ?

 

[Pocoyoz]

Navios Maritime Acquisition Corporation ("Navios Acquisition") (NYSE: NNA), an owner and operator of tanker vessels, announced today that the Chemical Tankers Nave Cosmos of 25,130 dwt and the Nave Polaris of 25,145 dwt have had their charters extended for an additional six month period with the current charterer at an increased net rate of $11,700/day (Time Charter) with 40% profit sharing.

fsl: 19,700 dwt $13,000/day (bareboat charter)
Rickmers: Vessel operating expenses/revenue is 22%
anyhow calculate: maybe about $9100/day (bareboat charter) 30% lower

 

[battledome64]

How cut loss? Bad news after another. Why can't they sell the ships n pay out all the dividends and stop this management of ship business?

 

[skymusic72]

Looks like it will break 20 cts next week.

 

[xBbx07]

shipping industry is in a bad state right now. new supply is coming on without similar increases in demand.

FSL is cutting its dividends to keep cash - as it foresees that it will need to pay down on its loans to maintain its loan-to-value covenants with its debtors.

 

[Dividends Warrior]

Looks like it will break 20 cts next week.

Bottomless pit........

 

[skymusic72]

Anyone with strong heart to pickup this?

 

[Mancunian2]

no end in sight,
pickup now later must bend down

 

[Pocoyoz]

wait to see how berlian and torm debt talks proceed

 

[WindBoi]

do not lose faith in the business trust structure. the problem is the ****ing management most of the time. pacific shipping trust and rickmers are held up despite gloomy business fundamentals. u need good leaders

 

[Pocoyoz]

Defaulting lessees to impact NTA of FSL Trust

By CARINE LEE

First Ship Lease Trust on Tuesday said that it has issued written notice to the three lessees of three chemical tankers who have defaulted on their lease payments under their respective lease agreements in February.

First Ship has demanded payment to be made no later than March 8.

The vessels, Pertiwi, Prita Dewi and Pujawati, were leased to wholly-owned subsidiaries of PT Berlian Laju Tanker Tbk (BLT).

Each lessee is obliged to pay the relevant charter hire due under the relevant lease agreement on the first day of each calendar month, and the obligations of the lessees under the lease agreements are guaranteed by BLT.

The lessees' contribution to FSL Trust's total revenue for FY2011 was 12.8 per cent and the default would have a material impact on the net tangible assets (NTA) per unit of FSL Trust.

Based on the financial statements announced for the year ended December 31, 2011, the NTA per unit is expected to decrease by US$0.03 from US$0.53 to US$0.50.

However, the default will not cause First Ship to be unable to continue to servie the debt obligations under its loan agreement.

 

[Pocoyoz]

Standard & Poor’s downgrades FSL

Move follows termination of charter contracts with BLT and Torm, exposing vessels to spot market

STANDARD and Poor’s has lowered the long-term credit rating of Singapore-based First Ship Lease Trust to B+ from BB- following the termination of charter contracts with FSL’s troubled counterparties Berlian Laju Tanker and Torm.

The rating agency also reassessed FSL’s liquidity to “less than adequate” from “adequate”.

The agency said that it was making the changes because contract terminations had increased FSL’s exposure to the spot market.

FSL repossessed three chemical tankers leased to BLT earlier this year. It will deploy them in the Nordic Siva tanker pool. FSL also announced that it is renegotiating charter terms with Torm for two product tankers. The charter arrangement is likely to be adjusted to reflect variable rates that Torm achieves in the freight market, according to S&P.

Torm is amid renegotiations to restructure its debt with its lenders.

The rating agency also noted that another lessee, Groda Shipping & Transportation, returned two vessels in June 2010. FSL will deploy one of these two vessels on time charter with Petrobras.

S&P said that it expects FSL’s earnings before interest, tax, depreciation and amortisation would fall in 2012 “because it will have six vessels in the spot market”.

It projected that the vessels will generate margins of less than 20%, as against the 80% to 90% margins for chartered vessels. It said that FSL’s cash flows are likely to be lower.

As for liquidity, the rating agency said that FSL will be at risk of breaching covenants if its ebitda declines by more than 10%. Currently, the agency said, FSL has cash and cash equivalents of $17m as of December 31, 2011, after excluding the $15m minimum the company is required to maintain under loan covenants. It also has estimated funds from operations of about $50m.