Units of Singapore’s First Ship Lease Trust (FSLT.SI) fell as much as 33% after the trust reported a sharp drop in its fourth quarter distribution per unit.
By 9:47 a.m. on Friday, units of First Ship plunged 23% to $0.23 with 6.7 million units changing hands. This was nearly 15 times its average daily volume traded over the last five sessions.
By 9:47 a.m. on Friday, units of First Ship plunged 23% to $0.23 with 6.7 million units changing hands. This was nearly 15 times its average daily volume traded over the last five sessions.
First Ship said on Thursday its fourth quarter distribution per unit (DPU) dropped 89.5% to 0.1 cents. This was despite a 23% rise in quarterly revenue to US$29.6 million ($37.7 million).
“The sharp drop in their DPU has shaken investors’ confidence and their outlook doesn’t look bright,” said a trader.
The trust said in a statement it was reducing fourth quarter DPU, partly due to the weak outlook in the shipping industry.
“Deteriorating freight rates and asset values continue to threaten the shipping industry and result in heightened counterparty risk,” First Ship said in a statement.
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