FSL Trust eyes expansion into floating and offshore energy

Singapore-based FSL Trust is exploring the possibility of expanding its market presence into other maritime assets, including floating and offshore energy.

The owner of the tanker explained that investment opportunities are being explored to reduce business risks and increase competitive advantages amid “volatility, cyclicality, market structure and fierce competition in vanilla shipping markets.”

Expansion may also include investments and/or interests or participations in infrastructure assets directly or indirectly.

The proposal was approved at the extraordinary general meeting of unitholders of FSL Trust, which was held on August 23.

“The widening of the scope of Approved Companies allows the trust to invest in other areas of the maritime space which are less volatile and cyclical and can offer a more attractive risk/return ratio, in particular in the light of the evolution of environmental regulations and the global energy transition”, says FSL Trust.

The Trustee-Manager sold almost all vessels exposed to the market to reduce the risks of the FSL Trust, which included exiting the boxship sector and selling LR2 tankers. FSL Trust’s core fleet consists of 8 specialty tankers which, on an annualized basis, generate adjusted EBITDA of approximately $7.2 million.

Benefiting from firmer oil markets, FSL Trust reported net income of $2.1 million for Q2 2022 and $2.2 million for H1 2022, representing a year-over-year increase of 279 % and 154%, respectively. The trust has contracted future revenue of up to $31.8 million, including $24.7 million of firm contract revenue and $7.1 million of optional contract revenue.

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