FSL Trust Sheds Two Product Tankers

FSL Trust Management Pte. Ltd., as trustee-manager of First Ship Lease Trust  has announced that wholly-owned subsidiaries of the Trust have executed Memorandum of Agreements to sell LR2 product tankers, FSL Piraeus and FSL Perth (“Disposal”), to an unaffiliated third party and has received an initial 10% deposit in escrow.

Roger Woods, Chief Executive Officer of FSLTM, said, “The disposal of the two Product Tankers is part of our ongoing effort to refresh our fleet. Completion of the disposal is scheduled to take place before the end of January 2020, at which time, the net proceeds will be utilized for
partial repayment of the Trust’s outstanding bank debt. An estimated US$14.8 million will also be utilized towards the newbuilding acquisition announced on December 13, 2018 and April 3, 2019, and for general corporate purposes.”

FSL Piraeus and FSL Perth are PRC-built 109,672 DWT product tankers built in 2006 which have been recently deployed under pool agreements. Upon completion of the aforementioned sale, FSL’s fleet will consist of 16 vessels, comprising two chemical tankers, two crude oil tankers, nine product tankers and three containerships.

As of 31 December 2019, the FSL Piraeus and FSL Perth will be classified as “held for sale” in accordance with International Financial Reporting Standards and the Trust will book an impairment charge of approximately US$5.0 million on these vessels.