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 2024 Financial Results live webcast. My name is Roger Woods, and I'm the Chief Executive Officer of FSL Trust Management, the trustee-manager of FSL Trust. We have announced our unaudited second half and full year 2024 financial results for FSL Trust yesterday evening, and the relevant materials are available on our website www.firstshiplease.com as well as on the SGX website. During this live webcast, we will discuss the Trust's activities and the operational and financial performance in the second half and the full year 2024. 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 future results may, therefore, differ materially from our today's view and expectations communicated in this presentation, and you are advised to read the disclaimer in the financial results presentation. Please also note that this live webcast, including the Q&A session will be recorded and a recording will be available on our website from tomorrow [ after ]. We start the presentation by looking at the operational and financial highlights of the second half of 2024 and the full year 2024 results. On the operational side, we have seen a weakening of the markets from the highs experienced earlier in 2024. Geopolitical tensions and inflation still exceeding central bank targets, along with weak consumer confidence in some markets has taken the market lower. Although the Sale and Purchase market still remains a firm level historically. Fleet utilization during the second half was at 100% as the remaining 8 vessels are all employed on period bareboat charters. On the financial side, we ended the second half with a net profit of USD 6.9 million. The 12-month results for 2024 was a net profit of USD 8.3 million. Within these results, the profit was increased by the reversal of an impairment from Clyde Fisher of $1.9 million and a gain on disposal of the Cumbrian Fisher at $2.3 million. In the second half, the adjusted EBITDA was USD 3.4 million, and we ended the 12 months with an adjusted EBITDA of $6.5 million. In terms of capital structure, the liquidity position of the Trust on the 31st of December 2024 was USD 14.8 million, whilst the interest bearing debt was USD 5.2 million. So we're having a 0 net debt. Taking a look at the operational performance of the fleet on Page 4 of the presentation, the adjusted EBITDA for the Trust core fleet, the specialized tankers, remained stable when compared to the same period in 2023. We sold the Cumbrian Fisher in December 2024. Moving on to the fleet employment on Page 5. The Trust contracted future revenue as at the 31st of December 2024 stood at approximately USD 10.7 million. The revenues are spread over the next few years. And in addition, we have $5.8 million of optional contracted revenues. The optional revenues are dependent on the charter of the relevant vessels extending those charges. On the next page, slide on Page 6 is the employment profile of the Trust fleet as at 31st of December. Moving on to the financial performance review. You can see the development of the revenue, the adjusted EBITDA and the net income over the last half years -- half year is in comparison to previous periods. The impact of a smaller fleet is now being reflected in the revenue and adjusted [ EBITDA ]. In terms of financial leverage of the Trust, which is presented in the graph on the left-hand side of Slide 8, the Trust has 0 net interest-bearing debt. Ladies and gentlemen, this concludes the second half and full year 2024 financial results presentation, and we're now open for any questions you may have.

[Operator Instructions] A question from [ Amelia Wang ].

Amelia Wang from [ Transport Capital ]. Can I just confirm, has the debt for Cumbrian Fisher been fully settled upon the [indiscernible]?

Yes. Yes, the Cumbrian Fisher is settled. Yes.

All right. Sure. That's all for me.

Okay. Thank you very much for the questions. We've come 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 with you again in the next half year. Goodbye.