Investment in Chemical Tanker & Handysize Bulk

25 May 2021

Tufton Oceanic Assets Limited (The "Company")

Investment in a Chemical Tanker and a Handysize Bulk Carrier

The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is pleased to announce that the Company has agreed to acquire a Chemical Tanker for $9.8m and a Handysize Bulk Carrier for $13.35m.

The Chemical Tanker is being acquired at below 70% of depreciated replacement cost and is expected to yield over 15% in a leading chemical tanker pool.

The Handysize Bulk Carrier is being acquired at below 90% of depreciated replacement cost and is significantly more fuel efficient than the two vessels recently sold for 100% of depreciated replacement cost. It has a two-year charter producing an annual yield of approximately 20%.

The two acquisitions, together with the divestment announced on 17 May 2021, demonstrate the Company's commitment to capital re-allocation which is increasingly relevant given absolute and relative movements across and within the main shipping markets since 3Q20. They also reflect the Company's commitment to ESG.

Tufton Investment Management Ltd, the Investment Manager, continues to identify an attractive pipeline of opportunities across a range of the Company's target sectors.

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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 $265m (gross) through its Initial Public Offering on the Specialist Fund Segment of the London Stock Exchange, on 20 December 2017, a subsequent placing and offer in October 2018, a placing in March 2019, a placing in September 2019 and a tap issue in March 2021.