Pacific Shipping Trust Maintains Stable Results and Further
Expands its Fleet with New Acquisitions in Q4 FY2010
• Gross Revenue remains steady at US$15.3 million in Q4 FY2010 and US$61.3 million in
FY2010
• Distribution per unit (“DPU”) of 0.809 US cents for Q4 FY2010
• FY2010 DPU of 3.227 US cents represents tax-free annualised yield of 8.7%
• 3 acquisitions in FY2010 to acquire total of 9 vessels, increasing PST’s fleet from 12 to 21
vessels
• Contracted charter revenue increasing to approximately US$800 million up to FY2023 as
a result of new charters to, Shagang (1), Cosco Xiamen (2) and Glovis (3),
• Diversification of fleet to include bulk carriers and multi-purpose vessels
Gross revenue in Q4 FY2010 from PST’s existing 12 vessels chartered on a long-term basis was at US$15.3 million, with profit after tax of US$6.6 million. This was relatively consistent when compared to the corresponding period last year and in Q3 FY2010. For FY2010, gross revenue was US$61.3 million and profit after tax totalled US$27.1 million. Mr Teo Choo Wee, Acting CEO of PSTM said, “We are pleased to have delivered on our targets in diversifying our charterers and vessel types. PST’s gross revenue will increase, from September 2011 when the 10-year time charters to Shagang for the two 180,000 DWT Capesize Bulk Carriers come on-stream. This will rise further in Q3 2012 as the 10-year time charters to Cosco Xiamen for two 24,000 DWT Multi-purpose Vessels come on-stream. Finally, the 8 and 10-year time charters of five 57,000 DWT Supramax Bulk Carriers to Glovis will impact positively on gross revenue from Q4 2012. The current daily charterhire rate of US$168,700 from PST’s existing 12 vessels will increase by 96% to US$330,750 when all 21 vessels are in operation by Q1 2013.”
The three transactions in FY2010 will more than triple PST’s total contracted revenue from US$250 million to about US$800 million up to the year 2023, and almost double its portfolio of vessels from 12 to 21 vessels. The Trust will now derive its charter income from a diversified portfolio of bulk carriers, multi-purpose vessels and containerships, providing a balanced exposure to the various sectors of the shipping industry.
The addition of its new charterers - Shagang – the largest private steel enterprise in China, Cosco Xiamen – wholly-owned by the Cosco Group, and now Glovis – Hyundai Kia Automotive Group’s logistics affiliate, demonstrates PST’s ability to carry out its consistent policy of securing reputable counterparties to charter its quality vessels.
“Our strategy to proactively manage charter revenue will ensure that PST more than replaces the revenue from vessels that will be coming off-charter. This will ensure that we deliver sustainable and continuous growth to our unitholders.”
Mr Teo added, “PST’s financial position remains strong as all vessels have been financed on a long-term basis. This is supported by the fact that PST’s loan terms do not have any loanto- value ratios and top-up provisions.
PST has secured financing commitments for a total of US$150 million from three banks for funding its acquisition of the two capesize bulk carriers chartered to Shagang and the two multi-purpose vessels chartered to Cosco Xiamen. This is testimony to PST’s strength and credibility in the shipping fraternity.”
The Books Closure Date is January 27, 2011 and payment to Unitholders of 0.809 US cents per Unit distribution will be made on or about February 28, 2011.
About Pacific Shipping Trust
Pacific Shipping Trust is the first business trust listed on the SGX-ST. It provides structured financing solutions to established shipping companies, thereby generating visible and stable cashflow stream through long-term charters. By acquiring vessels and leasing them to reputable charterers on long-term bareboat or time charters, PST seeks to generate a steady stream of high-yielding income for its Unitholders.
The trustee-manager of PST is PST Management Pte. Ltd., a wholly-owned subsidiary of Pacific International Lines (Private) Limited, one of the largest private shipowners and operators in South East Asia.
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(1) Jiangsu Shagang Group Co., Ltd. (“Shagang”)
(2) Xiamen Ocean Shipping Company, China (“Cosco Xiamen”)
(3) Glovis Co. Ltd (“Glovis”)
(4) Based on unit price of US$0.37 as at January 19, 2011 Closing Price
PST Management Pte. Ltd. press release.