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no wonder what if there are more companies want to renegotiate their charters
will this be another rickmers
Tuesday: 4 MAY 2010 12:30pm
S$0.545 -S$0.060
FIRST SHIP LEASE TRUST REQUESTED TO TAKE
RE-DELIVERY OF TWO VESSELS ‘VERONA I’ AND ‘NIKA I’
Singapore, 4 May 2010
Ship Lease Trust (“FSL Trust”) wishes to announce that the lessees (the “Charterers”) of the
vessels ‘Verona I’ and ‘Nika I’, which are affiliates of Groda Shipping & Transportation Ltd.
(“Groda Shipping”), have requested FSL Trust to take re-delivery of the two vessels on the basis
that they do not intend to continue to make full lease payments under the lease charter
agreements.
FSL Trust currently leases the two product tankers, ‘Verona I’ and ‘Nika I’, each under a sevenyear
base term bareboat charter to the Charterers until November 2014. Under the lease
charter agreement, the bareboat charter rate of each vessel is fixed at US$20,700 per day and
the Charterers are obligated to pay FSL Trust the lease rental in full on a monthly basis in
advance. For the month of May 2010, the Charterers have made full payment for only ‘Nika I’
but not for ‘Verona I’. FSLTM has been informed by Groda Shipping that from June 2010
onwards, full payments should not be expected for either vessel.
The lease charter agreements with the Charterers are structured with certain credit
enhancement features. Most significant are a cash security deposit of US$3 million per vessel
and an assignment of the long-term Contract of Affreightment (“COA”) between each of the two
Charterers and OJSC Rosneft Oil Company (“Rosneft”). Both vessels continue to be employed
under the COA. Rosneft is a Russian state-controlled energy company which is listed on the
Russian securities market and its global depositary receipts are traded on the London Stock
Exchange.
Best efforts will be made to ensure the uninterrupted operation of the vessels. FSLTM is
currently in discussions with Groda Shipping and exploring available legal and commercial
options. FSLTM will evaluate all options with a view to safeguarding the interests of unitholders
of FSL Trust.
FSLTM will make further announcements as and when there are material developments in this
matter.
uploaded more.....dun scare me
Hi grandmaster89
Why do you think this counter is falling by as much as 6 cents today. Any dangers ahead
FIRST SHIP LEASE TRUST
ANNOUNCES CHANGES IN
INVESTMENT ADVISORY COMMITTEE AND MANAGEMENT
• Mr Ingmar Loges is appointed as Investment Advisory Committee
member with effect from 1 May 2010
• Mr Torsten Temp, an incumbent member of the IAC, relinquishes
appointment after serving on the committee since February 2007
• Mr Ronald Anthony Dal Bello resigns as Senior Vice-President and
Head of Sales, West of Suez
Singapore, 30 April 2010 – FSL Trust Management Pte. Ltd. (“FSLTM”), the Trustee-Manager of First Ship Lease Trust (“FSL Trust”), announced today personnel changes in its Investment Advisory Committee (the “IAC”) and management team.
INVESTMENT ADVISORY COMMITTEE
FSLTM is pleased to announce that the Board has appointed Mr Ingmar Loges as member of the IAC with effect from 1 May 2010. Mr. Ingmar Loges is currently Managing Director at Unicredit Bank AG, and is responsible for the ship finance business within the bank. Mr Loges, a veteran in international ship finance, has formerly held similar appointments at HypoVereinsbank (now part of UniCredit Bank), Deutsche Bank and HSH Nordbank. Mr. Loges holds a degree in Economics from the University of Hamburg.
Mr Torsten Temp, an incumbent member of FSLTM’s IAC, has relinquished his appointment after serving on the committee for more than three years since February 2007.
Mr Wong Meng Meng, Chairman of FSLTM said: “Mr Temp is a pioneer member of the IAC since it was established in February 2007. The Board wishes to express its sincere appreciation to Mr Temp for his invaluable advice and contributions to the growth of FSL Trust. We would like to extend a warm welcome to Mr Loges. Mr Loges brings with him many years of experience in international ship finance, which will further enhance the diversity and depth of the expertise within the IAC.”
The IAC is an external committee appointed by the Board of Directors of FSLTM and currently comprises four distinguished maritime industry professionals. The IAC provides FSLTM with perspectives on the maritime industry and advice with respect to assessing and evaluating potential lease transactions.
RESIGNATION OF MR RONALD ANTHONY DAL BELLO
Mr Ronald Anthony Dal Bello has resigned from his position as Senior Vice-President and Head of Sales, West of Suez. Mr Dal Bello, who is currently based in Zurich, plans to return to the United States to pursue other interests.
FSLTM has no immediate plans to replace Mr Dal Bello and will henceforth consolidate all marketing and sales activities in its Singapore headquarters.
Philip Clausius, Chief Executive Officer of FSLTM said: “Ron is part of the management team who contributed to the successful constitution and the listing of FSL Trust. We would like to express our appreciation to Ron for his significant contribution to the growth of the Trust. We wish him well in his future endeavors.”
INVESTMENT ADVISORY COMMITTEE AND MANAGEMENT
• Mr Ingmar Loges is appointed as Investment Advisory Committee
member with effect from 1 May 2010
• Mr Torsten Temp, an incumbent member of the IAC, relinquishes
appointment after serving on the committee since February 2007
• Mr Ronald Anthony Dal Bello resigns as Senior Vice-President and
Head of Sales, West of Suez
Singapore, 30 April 2010 – FSL Trust Management Pte. Ltd. (“FSLTM”), the Trustee-Manager of First Ship Lease Trust (“FSL Trust”), announced today personnel changes in its Investment Advisory Committee (the “IAC”) and management team.
INVESTMENT ADVISORY COMMITTEE
FSLTM is pleased to announce that the Board has appointed Mr Ingmar Loges as member of the IAC with effect from 1 May 2010. Mr. Ingmar Loges is currently Managing Director at Unicredit Bank AG, and is responsible for the ship finance business within the bank. Mr Loges, a veteran in international ship finance, has formerly held similar appointments at HypoVereinsbank (now part of UniCredit Bank), Deutsche Bank and HSH Nordbank. Mr. Loges holds a degree in Economics from the University of Hamburg.
Mr Torsten Temp, an incumbent member of FSLTM’s IAC, has relinquished his appointment after serving on the committee for more than three years since February 2007.
Mr Wong Meng Meng, Chairman of FSLTM said: “Mr Temp is a pioneer member of the IAC since it was established in February 2007. The Board wishes to express its sincere appreciation to Mr Temp for his invaluable advice and contributions to the growth of FSL Trust. We would like to extend a warm welcome to Mr Loges. Mr Loges brings with him many years of experience in international ship finance, which will further enhance the diversity and depth of the expertise within the IAC.”
The IAC is an external committee appointed by the Board of Directors of FSLTM and currently comprises four distinguished maritime industry professionals. The IAC provides FSLTM with perspectives on the maritime industry and advice with respect to assessing and evaluating potential lease transactions.
RESIGNATION OF MR RONALD ANTHONY DAL BELLO
Mr Ronald Anthony Dal Bello has resigned from his position as Senior Vice-President and Head of Sales, West of Suez. Mr Dal Bello, who is currently based in Zurich, plans to return to the United States to pursue other interests.
FSLTM has no immediate plans to replace Mr Dal Bello and will henceforth consolidate all marketing and sales activities in its Singapore headquarters.
Philip Clausius, Chief Executive Officer of FSLTM said: “Ron is part of the management team who contributed to the successful constitution and the listing of FSL Trust. We would like to express our appreciation to Ron for his significant contribution to the growth of the Trust. We wish him well in his future endeavors.”
Is it wise to borrow debts with interest rates of 13% to purchase vessels yielding 15% at the bottom of the shipping crisis ?
The returns from the vessels - interest = profit for the Trust
Selling the vessels in the subsequent shipping boom might lead to a capital gain hmm...
Somehow, I don't foresee them raising bonds at such high yields for the next few quarters. They did mention that numerous Asian Banks have approached FSLT in 1Q 2010 with the intention to fund any acquisitions at Libor + 2.50 and VTL of 167%.
Either way, I am looking forward to their first post-crisis acquisition in the coming 'weeks or a month or two'.
pharoah88 ( Date: 22-Apr-2010 18:51) Posted:
|
The trade-off versus secured debt (costing roughly 6% today) is large,
but this may be a necessary evil to remove the VTL covenant overhang, once and for all.
Balance sheet issues are not eliminated completely,
and we maintain our HOLD rating with revised S$0.59 fair value.
An INTRICATE BALANCING EXECUTION FOR GOOD 13% YIELD
FSL
Trust: Asset values edge up versus October (OCBC)
DPU in line. FSL Trust (FSLT)'s 1Q10 DPU of 1.5 US cents was flat QoQ but fell 38.8% YoY because of a lower payout policy and a larger unit base post-placement. Guidance for 2Q10 DPU is flat at 1.5 US cents, offering an annualized yield of 13%. The manager quite emphatically stated it would not return to the days of a 100% payout; it prefers a "fixed dividend + incremental growth" strategy that will allow it to retain some excess cash.
Acquisition plan hits the "homestretch". FSLT has yet to deploy the US$28.3m net proceeds from its Sep 2009 placement; so for roughly seven months, the larger unit base has not been offset by additional income or lower expenses - creating a shortfall between cash generated and cash paid out. The manager is now saying an announcement is likely in "a matter of weeks / possibly in a month of two". FSLT reiterated its target asset yield of 15% and its plan to further diversify into a previously untapped vessel sub-sector (for example, offshore). A significant change in guidance is that FSLT is "now hopeful of lifting acquisition projects over and above" the placement proceeds because of increasing access to capital.
Asset values edge up. In a Mar 2010 charter-free revaluation of its portfolio, FSLT recorded a 5.5% gain in asset values versus Oct 2009. The current value-to-loan (VTL) coverage of 129% is comfortably above the current reduced 100% VTL requirement but below the 145% threshold required after end-2Q FY11. Assuming asset values remain stable and taking US$8m quarterly repayments into account, FSLT can touch 140% coverage by Jun 2011. Cash in hand and the planned unencumbered acquisition adds further cushion. Still, FSLT is taking no chances and may opportunistically issue unsecured debt (the manager guided that BB- high yield debt in Asia is attracting pricing of 10-13% at present). The trade-off versus secured debt (costing roughly 6% today) is large, but this may be a necessary evil to remove the VTL covenant overhang, once and for all.
Valuation. We have revised FY10 estimates to reflect an assumed acquisition completion date of 01 Jun (prev: 01 Jan). In light of increased stability in FSLT's operating environment, we are 1) lowering our discount rate from 13% to 11.5%; and 2) now derive our fair value estimate using a 20% discount to this discounted FCFE value (prev: 25%). But balance sheet issues are not eliminated completely, and we maintain our HOLD rating with revised S$0.59 fair value [prev: S$0.53]. (Meenal Kumar)
First Ship Lease Trust: BUY; S$0.64; Bloomberg Code: FSLT SP
Buy for yield and underlying recovery (DBSV)
Price Target : S$ 0.78
by: Suvro Sarkar +65 6398 7973
Predictable results again; declares DPU of 1.50UScts for 1Q10, maintains
similar guidance for 2Q10
Provides “charter-free” vessel valuation of US$623m – 24% discount to
NBV but well within covenant limits
Share price re-rating still lagging those of ship operators
Maintain BUY with TP S$0.78
Comment on Results
There was again no surprise in 1Q10 as far as operational results were
concerned. Revenue came in at US$24.4m, stable q-o-q, and the Trust
generated net cash of US$16.3m from operations, in line with our estimates.
As guided previously, the Trust paid out 1.50UScts as distribution for
1Q10, though they had to depend slightly on cash retained in previous
periods to meet the guidance. As in previous quarters, US$8m was earmarked
to prepay loans, which should bring outstanding loans to US$477m in April
2010.
Outlook and Recommendation
The Trust also took the opportunity to announce the independent
charter-free valuations of its 23 vessel-fleet, which stood at US$623m as
of March 2010. This is about 6% higher than a similar valuation of US$590m
obtained in October 2009, pointing to a gradual recovery in asset values in
line with demand recovery. The “charter-free” valuation, while not fully
relevant to FSLT’s business model, represents a 24% discount to the
vessels’ NBV of US$821m.
The valuation also represents 129% of current indebtedness of US$484m, well
within the revised LTV limit of 100%, which is applicable until 2Q11. Based
on the expected indebtedness of US$440m at end-2Q11, the charter-free value
required to fulfil the original 145% LTV covenant would be US$638m, or only
about 2.5% higher than current valuations. Thus we would not be unduly
worried at this stage about the chances of future technical defaults.
Hence, we are maintaining our BUY call on FSLT at a TP of S$0.78 (10%
target yield), given the visibility in payouts, possibility of acquisitions
in 2H10 and our perception of it being a laggard stock
DPU in line. FSL Trust (FSLT)'s 1Q10 DPU of 1.5 US cents was flat QoQ but fell 38.8% YoY because of a lower payout policy and a larger unit base post-placement. Guidance for 2Q10 DPU is flat at 1.5 US cents, offering an annualized yield of 13%. The manager quite emphatically stated it would not return to the days of a 100% payout; it prefers a "fixed dividend + incremental growth" strategy that will allow it to retain some excess cash.
Acquisition plan hits the "homestretch". FSLT has yet to deploy the US$28.3m net proceeds from its Sep 2009 placement; so for roughly seven months, the larger unit base has not been offset by additional income or lower expenses - creating a shortfall between cash generated and cash paid out. The manager is now saying an announcement is likely in "a matter of weeks / possibly in a month of two". FSLT reiterated its target asset yield of 15% and its plan to further diversify into a previously untapped vessel sub-sector (for example, offshore). A significant change in guidance is that FSLT is "now hopeful of lifting acquisition projects over and above" the placement proceeds because of increasing access to capital.
Asset values edge up. In a Mar 2010 charter-free revaluation of its portfolio, FSLT recorded a 5.5% gain in asset values versus Oct 2009. The current value-to-loan (VTL) coverage of 129% is comfortably above the current reduced 100% VTL requirement but below the 145% threshold required after end-2Q FY11. Assuming asset values remain stable and taking US$8m quarterly repayments into account, FSLT can touch 140% coverage by Jun 2011. Cash in hand and the planned unencumbered acquisition adds further cushion. Still, FSLT is taking no chances and may opportunistically issue unsecured debt (the manager guided that BB- high yield debt in Asia is attracting pricing of 10-13% at present). The trade-off versus secured debt (costing roughly 6% today) is large, but this may be a necessary evil to remove the VTL covenant overhang, once and for all.
Valuation. We have revised FY10 estimates to reflect an assumed acquisition completion date of 01 Jun (prev: 01 Jan). In light of increased stability in FSLT's operating environment, we are 1) lowering our discount rate from 13% to 11.5%; and 2) now derive our fair value estimate using a 20% discount to this discounted FCFE value (prev: 25%). But balance sheet issues are not eliminated completely, and we maintain our HOLD rating with revised S$0.59 fair value [prev: S$0.53]. (Meenal Kumar)
First Ship Lease Trust: BUY; S$0.64; Bloomberg Code: FSLT SP
Buy for yield and underlying recovery (DBSV)
Price Target : S$ 0.78
by: Suvro Sarkar +65 6398 7973
Predictable results again; declares DPU of 1.50UScts for 1Q10, maintains
similar guidance for 2Q10
Provides “charter-free” vessel valuation of US$623m – 24% discount to
NBV but well within covenant limits
Share price re-rating still lagging those of ship operators
Maintain BUY with TP S$0.78
Comment on Results
There was again no surprise in 1Q10 as far as operational results were
concerned. Revenue came in at US$24.4m, stable q-o-q, and the Trust
generated net cash of US$16.3m from operations, in line with our estimates.
As guided previously, the Trust paid out 1.50UScts as distribution for
1Q10, though they had to depend slightly on cash retained in previous
periods to meet the guidance. As in previous quarters, US$8m was earmarked
to prepay loans, which should bring outstanding loans to US$477m in April
2010.
Outlook and Recommendation
The Trust also took the opportunity to announce the independent
charter-free valuations of its 23 vessel-fleet, which stood at US$623m as
of March 2010. This is about 6% higher than a similar valuation of US$590m
obtained in October 2009, pointing to a gradual recovery in asset values in
line with demand recovery. The “charter-free” valuation, while not fully
relevant to FSLT’s business model, represents a 24% discount to the
vessels’ NBV of US$821m.
The valuation also represents 129% of current indebtedness of US$484m, well
within the revised LTV limit of 100%, which is applicable until 2Q11. Based
on the expected indebtedness of US$440m at end-2Q11, the charter-free value
required to fulfil the original 145% LTV covenant would be US$638m, or only
about 2.5% higher than current valuations. Thus we would not be unduly
worried at this stage about the chances of future technical defaults.
Hence, we are maintaining our BUY call on FSLT at a TP of S$0.78 (10%
target yield), given the visibility in payouts, possibility of acquisitions
in 2H10 and our perception of it being a laggard stock
| First Ship Lease off 0.8%; 1Q10 results stable |
Tags: First Ship Lease Trust
| Written by The Edge | |||||
| Wednesday, 21 April 2010 11:11 | |||||
First Ship Lease Trust (D8DU.SG) is down 0.8% to 63.5 cents as vessel owner’s largely flat 1Q10 operating performance fails to inspire, Dow Jones. Revenue almost unchanged at US$24.4 million ($33.6 million) vs 4Q09, 1Q09. 1Q10 DPU down 38.8% on-year at 1.5 US cents but unchanged vs 4Q09, in line with management’s guidance. Payout amount likely to be maintained in coming quarters as FSL expected to conserve cash for acquisitions. DBS Vickers, which has “buy” call with 78 cents target, says results no surprise, but recommends stock for yield, recovery prospects, noting “visibility in payouts, possibility of acquisitions in 2H10 and our perception of it being a laggard stock.” |
FSL Trust released their 1Q 10 results today
Few Key Points -
a) It reported stable set of operating cash-flow amounting to US$16.5 million. This is consistent for the past few quarters due to the stable nature of shipping leasing operations.
b) US$8 million was used to pay down bank loans as part of the LTV Waiver agreement. Bank debts were reduced to US$480 million of which US$240 million are due in April 2012. Considering that FSLT has to continue paying down debts till 2Q 2011, bank debts should be reduced to US$440 million by then.
c) The charter-free fair valuation of its portfolio of vessels amount to US$623 million. This means its LTV currently stands at 129% using a total debt of US$480 million.This is a 5% increase from Oct 09 hence it shows that vessel values are steadily increasing. This is crucial is easing the credit crunch in the shipping industry.
d) The Trust is finalizing its acquisition of its first vessel in this post-crisis era with the US$28 million placement proceeds raised in Sept 09.The Management mentions that 2H 2010 will mark an exciting era of growth.
e) The Trust will re-look into the Bond offering once the credit industry starts to improve. It will be used to reduced secured debt and acquire new vessels.
f) The Trust will pay a distribution of US$0.015 for 1Q and has given a dividend guidance of US$0.015 for 2Q 2010.
USD0.015 per Quarter
gOOd distributiOn
grandmaster89 ( Date: 20-Apr-2010 15:21) Posted:
|
I hope it would be a good result too. But I think FSL is a trust worthy company and they would act in the interest of unit holders
1Q 2010 Results will be released today after trading hours. Hopefully a declaration of US$0.015 distribution and guidance for another US$0.015 for 2Q 2010. Maybe some news on vessel acquisition with their cash hoard and the charter free valuation of their vessel portfolio. Debts should be further reduced with the quarterly loan amortization of US$8 million.
A forummer in CNA attended the AGM. He mentions that the Management priority is ensuring the Trust survival as opposed to growing the dividend for the time being. The Trust will issue the fair valuation of the vessels in the Q1 report. They are planning to reduce secured debt prior the expiry of the waiver of the LTV covenant in 2Q 2011. Good to see that they are already taking steps to clean up their balance sheet instead of waiting for the last moment like Rickmers haha.
sureesh40 ( Date: 15-Apr-2010 13:33) Posted:
|
Anybody went to their AGM yesterday, How was the food, was it good.
RESOLUTIONS PASSED AT THE THIRD ANNUAL GENERAL MEETING
FSL Trust Management Pte. Ltd. (“FSLTM”), Trustee-Manager of First Ship Lease Trust (“FSL Trust”) wishes to announce that at the Third General Meeting of Unitholders held on 14 April 2010, the proposed ordinary resolutions as set out in the Notice of Annual General Meeting dated 23 March 2010 were duly passed, without any modification.
RESOLUTIONS PASSED AT THE EXTRAORDINARY GENERAL MEETING
FSLTM wishes to announce that at the Extraordinary General Meeting of Unitholders held on 14 April 2010, the proposed Extraordinary Resolution 1, Extraordinary Resolution 2, Extraordinary Resolution 3 and Ordinary Resolution 4 as set out in the Notice of Extraordinary General Meeting dated 23 March 2010 were duly passed, without any modification.
FSL Trust Management Pte. Ltd.
(Company registration no. 200702265R)
as Trustee-Manager of First Ship Lease Trust
Cheng Pei Jiuan Rebecca
Company Secretary
14 April 2010
Cosco clinched shipbuilding contracts for two 57k dwt bulk carriers totaling RMB530m (US$78m). This is a significant contract win, as it has been 15 months since Cosco secured its last dry bulk order in Oct 2008. The contract value works out to be RMB265m or approx. US$39m each vessel. This represents a 28% premium above the average price of similar vessels (US$30.5m) secured in March 2010, based on Clarksons’ Research.
We can see that the value of a single dry bulker vessel of 57,000 DWT is priced at around US$39 million each. This is a price of a new-build vessel. I doubt FSLT will acquire a new-build since it wouldn't want to wait for 2-3 years prior its delivery. A slightly older vessel of 3-4 years would cost significantly lesser. Recently Mercator Lines purchased a 3 year old dry bulker vessel of 75,000 DWT for only US$38 million. As such, I believe FSLT do have sufficient cash to purchase a large panamax dry bulker or 2 smaller dry bulker of 50-60k DWT.
FSLT has US$50 million cash so lets see some acquisition action this year haha
COUNTDOWN 10 days
XD: 26 April 2010 (Monday)
grandmaster89 ( Date: 12-Apr-2010 18:41) Posted:
|
Profit Taking Dips are
PERFECT TiMES
tO PiCK UP mOre gOOd shares