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Tufton Oceanic Assets Limited announced on January 11, 2024, an agreement to sell two Handysize Product Tankers, Pollock and Dachshund, for $41.75 million, a 3.1% premium to their $40.50 million most recent holding NAV. These disposals are expected to close in Q2 2024, after which the company's fleet will comprise 20 vessels. Additionally, the company extended the charter for its MR Product Tanker, Exceptional, for up to 3 years commencing January 1, 2024, at a rate implying a net yield of over 15% for the firm extension period.
| Date | 11 Jan 2024 |
| Time | 07:00:01 |
| Category | Disposals |
| ID | 3063Z |
11 January 2024
Tufton Oceanic Assets Limited (The "Company") Announces
Divestment of two Handysize Product Tankers and
Extension of one MR Product Tanker Charter
The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is pleased to announce the Company has agreed to sell two Handysize Product Tankers, Pollock and Dachshund, for a total of $41.75m, which represents a 3.1% premium to the two vessels most recent holding NAV of $40.50m (the "Disposals"). The Disposals further confirm Tufton's NAV methodology, while also demonstrating its ability to divest portfolio vessels at or above NAV. The transaction is a forward sale and is expected to close during 2Q24 after the vessels complete their current charters, the Company will therefore also benefit from the vessel earnings during this period. The expected realised net IRR across the two vessels will be c.25% and net MOIC c.2.0x including earnings through the assumed delivery dates, significantly ahead of the Company's published IRR target of 12%. Following the Disposals, the Company's fleet will comprise 20 vessels.
Furthermore, the Company has successfully extended the employment of Exceptional, a 2015 built MR Product Tanker, with its current charterer for up to 3 years commencing 1 January 2024. The new charter rate implies a net yield of over 15% for the firm extension period which, when blended with the 6-month sub-market stub end of the previous charter, will produce a net yield of c.13% for the next 2 years. The aggregate charter length on the Company's fleet of Product Tankers is now c.2 years (versus 1.7 years last quarter).
For further information, please contact:
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Tufton Investment Management Ltd (Investment Manager) Andrew Hampson Nicolas Tirogalas |
+44 (0) 20 7518 6700 |
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Singer Capital Markets James Maxwell, Alex Bond, Angus Campbell (Corporate Finance) Alan Geeves, James Waterlow, Sam Greatrex (Sales) |
+44 (0) 20 7496 3000 |
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Hudnall Capital LLP Andrew Cade |
+44 (0) 20 7520 9085 |
About the Company
Tufton Oceanic Assets Limited invests in a diversified portfolio of secondhand commercial sea-going vessels with the objective of delivering strong cash flow and capital gains to investors. The Company's investment manager is Tufton Investment Management Ltd. The Company has raised a total of approximately $316.5m (gross) through its Initial Public Offering on the Specialist Fund Segment of the London Stock Exchange on 20 December 2017 and subsequent capital raises.