First Ship Lease Trust (FSL) is looking to expand its portfolio with an eye set on renewables and energy-related offshore assets that generate long-term cash flows and income.
The Singapore-based tanker owner said that volatility and fierce competition, among other things, make it difficult to develop a competitive advantage in existing shipping markets.
The move to expand FSL’s business scope would include other maritime assets, floating and offshore energy and infrastructure assets that are more industrial in nature, such as gas, floating solar photovoltaic and others. According to FSL, this may present significant investment opportunities for the future growth and sustainability of the business.
“Broadening of the scope of authorised businesses allows the Trust to invest in other areas in the maritime space which are less volatile and cyclical and may offer a more attractive risk/reward, particularly in light of the changing environmental regulations and global energy transition,” FSL said in a statement.
FSL’s current vessel portfolio comprises nine tankers of different sizes, of which eight are chartered to an international shipping company on fixed-rate period charters, whilst the remaining vessel is employed in the spot market. The company, which logged a profit of $2.2m in the first six months of 2022, is chaired by Efstathios Topouzoglou, the founding partner, non-executive director and substantial shareholder of London-listed independent Energean.