Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — First Ship Lease Trust — Q2 2020 Earnings Presentation

14 slides from Singapore Exchange's earnings presentation, Aug 5, 2020

  1. Slide 1: 2nd Quarter 2020 Financial Results Presentation

    2nd Quarter 2020 Financial Results Presentation 5 August 2020

  2. Slide 2: Disclaimer

    DISCLAIMER This communication may contain forward-looking statements with respect to current expectations and forecasts of the financial condition and performance as well as the operations and business of First Ship Lease Trust (“FSL Trust” or the “Trust”). Forward-looking statements include expecta

  3. Slide 3: 2nd Quarter 2020 Highlights

    2ND QUARTER 2020 HIGHLIGHTS  Strong freight rates for tankers continued in the 2nd quarter 2020 > Benefitted tankers operating in pools  Net profit of US$ 1.3m(1) in the 2nd quarter 2020 and US$ 8.0m(1) in the 1st half 2020 > 2nd quarter 2020 profit 35% lower than previous year (US$ 2.0m)(1) > 6th

  4. Slide 4: Operating Performance Review

    OPERATING PERFORMANCE REVIEW Adjusted EBITDA by Vessel Type (in US$m)(1) Ownership Days by Vessel Type -29% +/-0% +22% -50% +90% +/-0% +14% +/-0% -50% -11% Commentary > Disposal of 4 tankers led to significant reduction (negative 17% y-o-y) of ownership days > Increase (22% y-o-y) of adjusted EBITDA

  5. Slide 5: Operating Performance Review (cont'd)

    OPERATING PERFORMANCE REVIEW (CONT’D) Adjusted EBITDA by Employment Type (in US$m)(1) Ownership Days by Employment Type -13% -6% +42% -50% +/-0% -11% Commentary > Adjusted EBITDA from bareboat charters reduced (negative 13%) due to the redelivery of 2 Container- ships > Adjusted EBITDA from pool emp

  6. Slide 6: Fleet Employment

    FLEET EMPLOYMENT US$ 19m of Contracted Revenue(1) Charter Expiries in 2020 > 2 containerships completed the charters and were redelivered in May and June 2020, respectively, and 1 containership will be redelivered in October 2020, currently considering strategic alternatives > Charter maturity for 3

  7. Slide 7: Fleet Employment Profile

    FLEET EMPLOYMENT PROFILE(1) Vessel Built Size Product Ta nker DWT 2020 2021 2022 2023 Cumbri a n Fi s her 2004 12,921 Cl yde Fi s her 2005 12,984 Ves sels on fixed-rate ba reboat charters Sha nnon Fi s her 2006 5,421 Sol wa y Fi s her 2006 5,421 Speci a l i ty 2006 4,426 Seni ori ty 2006 4,426 Super

  8. Slide 8: Debt Reduction

    DEBT REDUCTION Note(s): (1) Trailing 12-months; excluding gains/losses from the disposal of vessels and vessel impairments 2nd Quarter 2020 Financial Results 8

  9. Slide 9: Update on the Use of Proceeds from the Preferential Offering and the Newbuilding Programme

    UPDATE ON THE USE OF PROCEEDS FROM THE PREFERENTIAL OFFERING AND THE NEWBUILDING PROGRAMME  Opening balance on 1 April 2020 of US$ 6.14m  US$ 4.88m were used for the 3rd instalment of 10% for the keel laying for the newbuilding hull no. N945 in April 2020  US$ 1.26m were used to partly finance th

  10. Slide 10: Market Snapshot

    MARKET SNAPSHOT Containerships Tankers  Unprecedented demand contraction in the  Strong demand for tonnage and record high freight containership-trade with an expected decline in markets in the first 5 months of the year driven by excess of 7% for the full year 2020 an oil price war between OPEC+

  11. Slide 11: Contact

    CONTACT FSL Trust Management Pte. Ltd. as Trustee Manager for First Ship Lease Trust 9 Temasek Boulevard, #19-03 Suntec Tower Two Singapore 038989 Tel: +65 6836 3000 Email: enquiries@firstshiplease.com Investor Relations Contact Edward Ion and Mary Ng Helix PR Tel: +65 6222 6375 Email: investors@fir

  12. Slide 12: Appendix: Income Statement

    APPENDIX: INCOME STATEMENT Income Statement (in US$m)(1) 2nd Quarter 2019 2nd Quarter 2020 Change in % Revenue 16.30 14.51 -11.0% Voyage expenses/(Income) -0.08 -0.02 -81.0% Vessel operating expenses 5.30 3.37 -36.5% Management fees 0.46 0.45 -0.9% Trustee fees 0.01 0.01 -7.7% Other Trust expenses 0

  13. Slide 13: Appendix: Balance Sheet

    APPENDIX: BALANCE SHEET Balance Sheet (in US$m)(1) 30 June 2020 31 Dec 2019 30 June 2020 31 Dec 2019 Assets Equity and liabilities Vessels(2) 158.28 180.70 Units in issue 561.33 561.33 Non-current assets 158.28 180.70 Reserves -403.49 -358.45 Total unitholder's equity 157.84 202.88 Inventories 0.36

  14. Slide 14: Appendix: Historical Financial Performance

    APPENDIX: HISTORICAL FINANCIAL PERFORMANCE Adjusted EBITDA (in US$m)(1)(2) Vessel Impairments (in US$m)(1) 2017 2018 2019 2020 2017 2018 2019 2020 Average Number of Vessels Net Profit/Loss (in US$m)(1) 2017 2018 2019 2020 2017 2018 2019 2020 > Significant improvement of financial performance over th

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