PST – BT
Pacific Shipping Trust Q4 DPU up 6% to 1.1 US cents
PACIFIC Shipping Trust (PST) will be distributing 1.1 US cents per unit for the fourth quarter of 2007.
This is 6 per cent higher than the 1.04 US cents distributed for the corresponding quarter in 2006.
Based on its initial public offering price of US$0.45 per unit, the distribution per unit (DPU) amounted to an annualised yield of 9.7 per cent, said PST. The yield came to 10.6 per cent based on the closing price of US$0.41 of PST units on Jan 21.
The rise in the DPU came on the back of higher income distribution for the fourth quarter ended Dec 31, 2007, which amounted to US$3.7 million, compared with US$3.52 million a year ago.
The Q4 2007 distribution will bring full-year income distribution to US$14.5 million, which represents 100 per cent of PST’s distributable amount as set out in its IPO prospectus. The amount is net of repayment of a loan principal.
Net profit for Q4 2007 totalled US$1.6 million compared with US$3.4 million in Q4 2006. The decrease was due to fair value losses in interest rate swaps (entered into to fix the cost of borrowings) which have no impact on the distributable income.
The net profit was achieved on gross revenue of US$8.7 million from the charter of PST’s existing portfolio of vessels and interest income.
Said Subhangshu Dutt, CEO of PST Management, the trustee-manager of PST: ‘For the past six quarters, we have consistently exceeded our IPO projections and we are reasonably confident of maintaining this performance in 2008.’
‘Our four new vessels coming on stream this year are expected to raise PST’s total contracted revenue per annum by 79 per cent. We hope to continue improving on our performance in the coming years with further quality acquisitions.’
Last year, PST announced the acquisition of four vessels which will expand its current portfolio by 50 per cent to 12.
PST’s current fleet comprises eight vessels valued at US$287 million as at December 2007. The valuation, carried out by an independent ship broker, was 15 per cent higher than their book value and nearly 6 per cent above the vessels’ total purchase price.
The latest distribution of 1.10 cents will be made on Feb 29. Unit-holders do not have to pay Singapore tax on the distributable income.
PST is the first business trust listed on the Singapore Exchange. It provides shipping companies with financing and leasing structures that enable them to expand their fleet without straining their capital.