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

Officer of FSL Trust Management, the Trustee Manager for FSL Trust. We have announced the unaudited half year 2025 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. Before we begin, please note that today's discussions contain 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 today's views and expectations communicated in this presentation, and you're 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 the recording will be available on our website from Thursday afternoon. We start the presentation by looking at the operational and financial highlights of the half year 2025 results. On the operational side, we have seen a softening tanker market. from the very high levels at the end of 2024, the markets still benefit from those cargo dislocations and change in trade patterns, which led to the increase in tonne miles. However, confidence in the future is clouded by the ever-changing trading environment. You'll note fleet utilization was 100%. On the financial side, we ended the first half year with a net profit of USD 1.7 million. The adjusted EBITDA was USD 2 million for the period. In terms of capital structure, the liquidity position of the trust on the 30th of June 2025 was USD 20.2 million in cash, whilst the interest-bearing debt was USD 2 million. Taking a look at the operational performance of the fleet on Page 4 of the presentation. The adjusted EBITDA for the Trust's fleet of specialized tankers was USD 2.3 million. The adjusted EBITDA and ownership days for the vessels under bareboat charters, which are all the specialized tankers remained stable. The Clyde Fisher was sold during February 2025. Moving on to the fleet employment. The trust contracted future revenue as at the 30th of June stood at approximately USD 13.5 million. The revenues are spread over the next few years and includes USD 7.7 million of firm contracted revenue and up to an additional USD 5.8 million as optional contracted revenue. The optional revenues are dependent on the charter of the relevant vessels extending those charters. On the next Slide 6 is the employment profile of the trust fleet as at the 30th of June 2025. 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 6 months in comparison to the first half of 2024. The impact of the smaller fleet is now being reflected in the revenue and adjusted EBITDA. The net profit for the first half of 2025 was USD 1.7 million and the adjusted EBITDA was USD 2 million. In terms of financial leverage of the trust, which is presented on the graph on the left-hand side of Slide 8, the trust had 0 net interest-bearing debt at the end of the half year 2025. In terms of balance sheet, on the right-hand side of the slide, the equity ratio was very healthy with USD 13.5 million in contracted future revenue and cash of USD 20 million. The financial position of the trust provides optionality as well as downside protection in the face of the macroeconomic headwinds in the changing trading environment. Ladies and gentlemen, this concludes the half year financial results presentation, and we're now open to -- for any questions you may have. [Operator Instructions] Please click on the next Present before we appear to not have any questions. So thank you very much for joining this presentation. We've come to the end of the results webcast. Thank you for joining us, and we wish you a good day and look forward to speaking to you again next year. Bye.