PST – BT

PST Q3 profit rises 3% to US$7.2m

PACIFIC Shipping Trust’s distribution per unit for the third quarter ended Sept 30, 2010 inched up 1.7 per cent to 0.832 of a US cent, up from 0.818 US cent for the same period a year ago.

Distributable income also barely budged, up 2 per cent from US$6.89 million to US$7.04 million for Q3.

For the nine months ended Sept 30, 2010, distributable income stayed flat at US$20.08 million against last year’s US$20.06 million.

Income to be distributed for the quarter stood at US$4.9 million, but was 13 per cent lower for the nine-month period, at US$14.3 million due to an increase in the income to be retained for working capital.

For the nine months ended Sept 30, 2010, income to be retained for working capital more than doubled year on year, from US$6 million to US$13.9 million.

Gross revenue from its 12 long-term charter vessels also stayed flat at US$15.6 million and US$45.9 million for the quarter and nine-month period, respectively.

Net profit crept up 3 per cent to US$7.2 million for the quarter and up one per cent to US$20.5 million for the first three quarters of 2010.

The trust has been going on a spree of sorts this year, buying two capesize bulk carriers in late-June and two multi-purpose vessels this month.

The multi-purpose vessels will be backed by a 10-year time charter contract with Cosco Xiamen, which will boost Q3 2012 revenue.

‘We are pleased to have delivered on our promise to unitholders to widen our charterer and asset base,’ said Teo Choo Wee, the acting chief executive officer of PST Management Pte Ltd, the trustee-manager of the trust.

‘The fact that we could conclude these two deals recently is a testament to our strong credibility in the shipping fraternity.’

The trust is expecting its gross revenue to increase next year, helped along by 10-year time charters for two 180,000 deadweight tonne capesize bulk carriers to Jiangsu Shagang Group Co Ltd.

‘We have been proactively managing charter revenue to ensure that PST more than replaces the revenue from vessels that will be coming off-charter,’ said Mr Teo.

The books’ closure date is Oct 28 and payment will be made on Nov 29.