First Ship Lease Trust (D8DU) H1 2024 earnings summary

Executive summary

• H1 2024 net profit was US$1.377m, down 24.4% YoY; adjusted EBITDA was US$3.067m, up 0.7% YoY.

• All eight vessels were employed on fixed-rate period charters; fleet utilization was 100% and contracted future revenue reached up to US$20.5m.

Financial highlights

• Revenue was US$4.096m, down 0.1% YoY; operating profit was US$1.583m, down 21.3%, and profit before tax was US$1.403m, down 25.3%.

• Prior-year net profit of US$1.82m included a US$0.4m vessel-disposal gain.

• Finance expenses fell 24.8% YoY to US$0.499m, mainly due to lower debt outstanding and lower amortization of debt transaction costs.

Outlook and guidance

• Contracted future revenue at 30 June 2024 was US$14.7m firm and US$5.8m optional, up to US$20.5m; optional revenue depends on charter extensions.

• Fixed-rate period charters are expected to secure employment through H2 2024; investments will be pursued only if accretive and supported by secure employment.

• Tanker supply-demand fundamentals are expected to remain positive into next year, with newbuilding deliveries posing a later supply risk.