SINGAPORE - The trustee-manager of Singapore-listed First Ship Lease Trust issued on Monday (Feb 6) a profit warning for its financial results for the year ended Dec 31, 2016.
FSL Trust Management Pte Ltd said that based on a preliminary review of draft financial results, FSL Trust expects to report a "significant net loss" for FY2016.
The loss is mainly attributable to impairment provisions on vessels and a loss on the disposal of two vessels, it said.
Despite the accounting loss, FSL Trust continues to generate positive cash flow and income available for distribution, it added.
Further details of FSL Trust's FY2016 performance will be made available on or before Feb 23, 2017, when final results are released.
The trustee-manager asked on Monday for a trading halt on the trust to be lifted.
Separately on Monday, the board of directors of FSL Trust Management announced that director and the chief executive officer Alan Hatton has resigned with effect from Feb 2.
Deputy CEO Roger Woods is now the acting CEO.
It said the management changes do not have any material impact on the earnings per unit and net tangible assets per unit of FSL Trust.
The trustee-manager said Mr Hatton was issued a show cause notice dated Jan 26, 2017, inviting him to provide his explanation as to certain matters involving potential misconduct and breach of duties.
According to the statement, these matters included disclosure of confidential information to third parties which was not disclosed to or authorised by the board, setting up and providing services for remuneration through Lionwharf Pte Ltd in which Mr Hatton was the majority shareholder and failing to give correct information and giving wrong information to the board.
Mr Hatton tendered his resignation and his response to the show cause notice on Feb 2.