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09-08-2017, 09:20 AM
(This post was last modified: 09-08-2017, 10:50 AM by CY09.
Edit Reason: edits
)
http://infopub.sgx.com/FileOpen/20170803...eID=465387
FSL's Q2 results have been released. One of the down point is that revenue from its charter has been steadily decreasing (likely due to expiry of its old charters and sending the ships into the pool market). The trust has taken another impairment on its shipping assets.
As of 2Q, debt is at US$181 mil, cash flow generated is 13.9mil. Based on this cash flow basis, FSL is still on track to clear its debts by 2021 if the new interest rate it negotiates for is 5.5% or below. After which, the value of its ships (be it scrap or charter revenue) will be entirely of the shareholders.
IMO with the low BBCE generated from its feeder container ship and one of the feeder container up for dry docking (FSL Santos) in 1Q 2018, the trust should scrap the ship to raise 1-2 mil instantly.
FSL's Q2 results have been released. One of the down point is that revenue from its charter has been steadily decreasing (likely due to expiry of its old charters and sending the ships into the pool market). The trust has taken another impairment on its shipping assets.
As of 2Q, debt is at US$181 mil, cash flow generated is 13.9mil. Based on this cash flow basis, FSL is still on track to clear its debts by 2021 if the new interest rate it negotiates for is 5.5% or below. After which, the value of its ships (be it scrap or charter revenue) will be entirely of the shareholders.
IMO with the low BBCE generated from its feeder container ship and one of the feeder container up for dry docking (FSL Santos) in 1Q 2018, the trust should scrap the ship to raise 1-2 mil instantly.