First Ship Lease Trust (D8DU.SI) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome, and thank you for joining FSL Trust's Second Half and Full Year 2023 Financial Results Live Webcast. My name is Roger Woods, and I'm the Chief Executive Officer of FSL Trust, the Trustee Manager of FSL Trust. We have announced the unaudited second half and full year 2023 financial results for FSL Trust yesterday evening, and the relevant materials are available on our website at www.firstshiplease.com as well as on the SGX website. During this live webcast, we will discuss the Trust activities and operational and financial performance in the second half and the full year 2023. After the presentation, we will take questions from the audience. Before we begin, please note that today's discussion contains forward-looking statements based on the environment as we currently see it and certain assumptions, which are subject to risks, uncertainties, and external factors. The actual results may, therefore, differ materially from our today's views and expectations communicated in this presentation, and you are advised to read the disclaimer in the financial results presentation. Please note that this live webcast, including the Q&A session will be recorded and the recording will be available on our website from tomorrow afternoon. We start the presentation by looking at the operational and financial highlights for the second half 2023 and the full year 2023 results. On the operational side, we've seen a continuation of the geopolitical tensions. This has led to a firm tanker markets to continue and the historically high prices in the sale and purchase market. Our fleet utilization in the second half was 100% as the remaining 8 vessels are all employed on period bareboat chances. On the financial side, we have ended the second half with a net profit of USD 1.9 million, and the 12-month result for 2023 was a net profit of USD 3.7 million. In the second half, the EBITDA was USD 3.3 million, and we ended the 12 months with an adjusted EBITDA of USD 6.4 million. In terms of capital structure, the liquidity position of the Trust in the 31st of December 2023 was USD 32.2 million. The interest-bearing debt was USD 10.3 million. So we are having effectively 0 net debt. The Board of Directors have announced the distribution of USD 0.015 for the second half of 2023. Taking a look at the operational performance of the fleet on Page 4 of the presentation, the adjusted EBITDA for the Trust's core fleet and specialized tankers has remained stable when compared with the period in 2022. So moving on to the fleet employment on Page 5. The Trust contracted revenue as at the 31st of December 2023 stood at approximately USD 18.8 million. The revenues are spread over the next few years. And in addition, we have USD 5.8 million of optional revenue. This optional revenue is dependent on the charter at the relevant vessels extending those charters. We're also pleased to confirm our oldest vessel, the Cumbrian Fisher, has been extended until the 30th of November 2023. On the next Slide 6, you can see the employment profile of the Trust fleet as at the 31st of December 2023. This includes the Cumbrian Fisher extension. Moving on to the financial performance review. You can see the development of the revenue and the adjusted EBITDA and the net income over the last half year periods as a comparison to the current period. The impact of the smaller fleet is now being reflected in the revenue and adjusted EBITDA. In terms of financial coverage of the Trust, which is presented in the graph on the left-hand side of Slide 8, the Trust had 0 net interest-bearing debt at the end of the year 2023. On Slide 9, we show the time take for the forthcoming distribution payment with the final payment date occurring on the 28th of March 2024. With this, we come to the last part of the presentation on Page 10. You can see the development of the tanker charter markets in the recent past. You can see where the market has fallen from the highest levels in the autumn of 2022. The new building price in this period are still elevated at extremely high levels. Ladies and gentlemen, this concludes the second half 2023 financial results presentation. And we are now open for any questions you may have. [Operator Instructions] We appear to not have any questions. So this brings us to the end of our results webcast. Thank you for joining us today, and we wish you a good day, and look forward to speaking to you with you at the next half year early results. Goodbye.