Published October 23, 2008

Pacific Ship Trust's revenue up 29%, DPU flat in Q3

By VINCENT WEE
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PACIFIC Ship Trust (PST) maintained a steady course in the third quarter, lifting gross revenue 29 per cent to US$11.2 million from US$8.7 million but keeping distribution per unit (DPU) flat at 1.0953 US cents.

The higher gross revenue came on a full quarter's contribution from the vessel Kota Naga, which was delivered and commenced charter on May 28, and 14 days' time charter income from the vessel CSAV Laja, which commenced charter on Sept 16.

Net profit after tax rose to US$3.2 million from US$589,000, mainly due to higher revenue and a reduction in fair-value losses on interest rate swaps.

Other expenses - professional and regulatory fees, vessel tonnage tax, advertising and administrative costs - rose US$300,000, related mainly to the acquisition and charter of four new vessels. Finance expenses increased from US$6.4 million to US$7.5 million.

Since the first quarter of FY2008, PST has retained 10 per cent of distributable income for use as working capital. As such, Q3 distributable income was US$3.71 million, almost unchanged from US$3.67 million previously.

DPU for the nine months ended Sept 30 was 3.1553 US cents, slightly lower than 3.19 US cents previously, as distributable income eased to US$10.7 million from US$10.8 million.

'PST enjoyed a strong Q3 performance despite volatile market conditions,' said Alvin Cheng, CEO of trustee-manager PST Management. 'We will endeavour to pursue sustainable returns for unitholders by maintaining a prudent risk management and yield accretive growth strategy.'

PST units closed unchanged at 24.5 US cents yesterday.