Singapore-quoted FSL demanded the return of the 115,000-dwt Action (built 2007) and 115,000-dwt Aqua (built 2007) from Turkey’s Geden Lines in June after talks to strike a new deal between the companies failed.
The vessels, since renamed FSL Shanghai and FSL Hong Kong respectively, were handed back earlier this month but the default was the main reason behind FSL falling to a much deeper loss in the second quarter, the company announced today.
A net loss of $7.2m during the period was almost three times the $2.5m deficit booked during the corresponding quarter a year ago.
Revenue of $21.3m for the second quarter was 27.2% down on the same quarter last year.
FSL Hong Kong entered the spot market straight away while FSL Shanghai has now been employed on a short-term variable-rate time charter with the shipping arm of a major oil trader, the company has revealed.
However FSL described the measure as a short-term move while it seeks long-term employment for both vessels.
The company is profiling suitable candidates to fill the positions left vacant by the recent resignation of its top brass.
President and CEO Philip Clausius, along with chairman and director Wong Meng Meng and senior vice president Cheong Chee Tham all quit at the end of June what was described as “a difference of opinion”.
FSL owns a fleet of 25 ships, of which 18 are employed on long-term bareboat charters and two are tied up on three-year fixed-rate time charters.
The remaining three chemical tankers are employed in the Nordic Pool.
