Tufton Oceanic Assets Ltd. Acquisition of a Product Tanker and a Bulker (9755W)

TIDMSHIP

RNS Number : 9755W

Tufton Oceanic Assets Ltd.

30 December 2021

Tufton Oceanic Assets Limited (The "Company")

Acquisition of a Product Tanker and a Bulker

The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is pleased to announce that the Company has agreed to acquire a Product Tanker for $30.9m and a Handysize Bulker for $23.6m.

The Product Tanker is being acquired at approximately 85% of depreciated replacement cost ("DRC"). It has a fixed rate time charter of twelve to twenty-four months producing a net yield over 8% despite a relatively weak tanker market presently. The Investment Manager believes that positive drivers for both demand recovery and very low supply growth will significantly increase charter rates and values in the medium term.

The Handysize Bulker is being acquired below DRC. It has a fixed rate time charter of eighteen to twenty-four months producing a net yield over 15%.

Both vessels are already in the top quartile of fuel efficiency in their market segments but will be evaluated for further improvement, including the retrofit of energy saving devices ("ESDs"). The Product Tanker already incorporates some ESDs and other design features which have a similar or better impact on efficiency.

The acquisitions, together with announced divestments, demonstrate the Company's commitment to ESG and capital re-allocation. The latter is increasingly relevant given absolute and relative movements across and within the main shipping markets since 3Q20. The Investment Manager continues to identify an attractive pipeline of opportunities.

For further information, please contact:

 
 Tufton Investment Management Ltd (Investment 
  Manager) 
  Andrew Hampson 
  Paulo Almeida                                                   +44 (0) 20 7518 6700 
 
 Singer Capital Markets 
  James Maxwell, Alex Bond (Corporate Finance) 
  Alan Geeves, James Waterlow, Sam Greatrex 
  (Sales)                                                         +44 (0) 20 7496 3000 
 
 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 .

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December 30, 2021 01:59 ET (06:59 GMT)

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