FSL Trust Keeping Afloat: Q2 2103 Revenue US$21.3-Million

FSL Trust, in its second quarter of 2013 financial report ending 30, June 2013, records a drop in revenue & a higher loss due mainly to default in lease payments for 2 crude oil tankers.

During the quarter, the lessees of the Trust’s two crude oil tankers defaulted on their lease payments. Nevertheless, the Trust’s other 23 vessels were fully employed, generating revenue from long-term bareboat charters, time charters and pool employment.

FSL Trust recorded an operating loss of US$1.0 million compared with an operating profit of US$4.0 million in the corresponding period last year. After taking into account net finance expenses, the Trust incurred a net loss of US$7.2 million in 2QFY13.

In relation to FSL Trust’s bank loan facility, FSLTM has approved all the conditions for an extension of the relaxation of two loan covenants from the Trust’s lenders for another six months until 31 December 2013. The formal documentation of this extension is pending the final endorsement by the lenders.

Auditors KPMG concluded in their review of the company’s financial situation (appended to FSL's financial reports) that circumstances (quoted by them) indicated the existence of a material uncertainty that may affect the Group’s ability to continue as a going concern.